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Personal Finance Final Exam Review #2 Flashcards | StudBud
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Personal Finance Final Exam Review #2
Personal Finance Final Exam Review #2
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Review #2
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Part of auto insurance that covers medical & property damage of other driver if you're at fault
Premium
Mortgage
Deductible
Liability
2
If you are a victim of identity theft you are only responsible for paying back half of the debt
True
False
3
The debt system in America prevents many people from building
Employment benefits
Credit
Wealth
Financial literacy
4
This occurs when money is withdrawn from a bank account & the available balance goes below zero
Overdraft
Zero budget
Cash flow
Deposit
5
Student loans should be considered "good debt" since they help you achieve career goals.
True
False
6
The FICO score is a(n)
Indication of winning with money
Fee you pay to use credit
"I love debt" score
Measure of how well you handle money
7
In order to get financial aid of any king, you have to complete this form each year in college
FDIC
IRA
FAFSA
SEP
8
A system by which goods and services are produced and distributed
Financial services
Government
Economy
Domestic policy
9
Raising the deductible may help lower your premium but it's important to do a ___analysis first
Claim
Out-of-pocket
Break-even
Liability
10
This insurance replaces income lost due to a physical condition that prevents you from working
Deductible
Disability
Liability
Injury
11
All of the decisions & activities of an individual or family regarding their money
Interest
Economy
Personal finance
Consumerism
12
Principle that suggests an amount of money today has different buying power than in the future
Inflation
Compound interest
Time value of money
Deflation
13
The time between a disabling event and the beginning of payments in your disability coverage
Stop gap
Out of pocket
Elimination period
Deductible
14
The Internal Revenue Service (IRS) is the federal government agency responsible for
Filling out your tax forms
Tax collection and tax law enforcement
Keeping the unemployment rate low
Writing tax laws
15
One way in which you lose financially when buying a new car is
Your friends buy fancier and newer rides of their own
Depreciation when you leave the lot
That new car smell
Your first two oil changes are free
16
The FICO score measures all of the following except
Savings account balance
New debt
Debt history
Types of debt
17
Measure of a person's credit risk; calculated from a credit report using a standardized formula
Depreciation
Loan term
Credit disclosure
Credit score
18
The Five Foundations are
Five steps for getting out of debt
Five steps for paying cash for a car
Only important for people aged forty and older
The beginner steps to establish & maintain financial peace
19
The Federal Fair Debt Collection Practices Act of 1977 dictates how
Debt collectors can interact with individuals
Much debt a person is allowed to carry
Much interest a lender can charge
Frequently debt collectors can contact your employer
20
Which statement is true about liquidity?
The more liquid the investment, the less the return
Both 1 and 2
The less liquid the investment, the less the return
The more liquid the investment, the greater the return
21
The zero-based ________ gives every dollar a name on paper, on purpose, before the month begins
Loan
Bank statement
Budget
Income
22
Giving to others is an important part of your financial plan because
Giving makes you feel good
All of the above
Giving connects you to other people
Giving is contagious: when you give it causes others to give
23
A retirement savings plan offered by a corporation to its employees
IRA
401(k)
Portfolio
Share
24
Unfortunately, statistics show that most Americans
Avoid using credit cards
Live paycheck to paycheck
Pay cash for large purchases
Save more than enough for retirement
25
Income earned from things you own & money earned from books, software, or music you've written
Compensation Income
Passive Income
Portfolio Income
Earned Income
