Why does a credit application ask for your previous employer?

To find out if you were steady and reliable

If you're deciding to lease a car or buy it over 4 years, which of the following is true?

monthly payments will behigher if you buy rather than lease

Why is it a bad idea to put a lot of money into improvements for a home you're renting?

you will lose your investment in those improvements

can't retire as early as they could if they had child early

If a company advertises a job starting at $26,000 per year, what is this amount?

gross amount before taxes & benefits are taken out

Which of the following is true about homeowner's insurance?

if you have a mortgage, you are required to have it

How prepared do you HONESTLY feel for the final exam?

50% ready, 75% ready, 100% ready, 0% ready

When creating a PIN, password, or username, which is considered the strongest of the following?

random set of numbers, letters, and characters

If you make tips from waiting tables, how does the gov't collect income taxes on the tips?

employer withholds 8% of total bills paid

Why do stocks tend to be a riskier investment than bonds?

they promos to set payments in the future

cannot easily withdraw money from a CD

Which type of disability insurance policy is likely to have the lowest premiums?

long waiting period, only if you can't work at all

Which best describes your right to check your credit history for accuracy?

records can be checked once a year for free

What is an expense statement?

record of how we have spent our money

Which of the following is an advantage of using cash over a credit card?

easier to control the amount you spend

investing $ in stock mutual fund

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Money Skill Final Review

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Financial Literacy

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Questions 37

Answers

1
See image below
stocks
locked in his closet at home
Corporate bonds
a bank savings account
2
Why does a credit application ask for your previous employer?
To know the type of work you used to do
To find out if you ever worked with computers
To find out if you were steady and reliable
To find out where you used to bank
3
If you're deciding to lease a car or buy it over 4 years, which of the following is true?
you own the car when you havemade your last lease payment
monthly payments will behigher if you buy rather than lease
monthly statements will be the same for both
monthly payments will beless if you buy rather than lease
4
See image below
$32.87
$73.14
-$32.87
$42.90
5
Johanna saved $8,000 in a checking account, inflation goes up 10%. How much money did she lose?
$900
$10,000
$1,000
$800
6
Why is it a bad idea to put a lot of money into improvements for a home you're renting?
improvements never add to the value of a house
owner will pay you for the all improvements you make
improvement won't make your life better while you live there
you will lose your investment in those improvements
7
See image below
they will live longer
they will be able to retire earlier
much better than having children right after marriage
can't retire as early as they could if they had child early
8
Which of the following is generally true of the Echo(empty nest) phase?
Expenses tend to be lower
All other answers
Income is as high as it will ever get
Can save more money
9
See image below
since they own the car, gas & oil will be under $60 each way
they won't have to rent a car in LA
transportation cost is the same regardless of the passengers
it is faster
10
If a company advertises a job starting at $26,000 per year, what is this amount?
gross amount minus Social Security contributions
amount that the employee takes home
gross amount minus Federal Income Tax
gross amount before taxes & benefits are taken out
11
See image below
None
$50
$100
$60
12
Which of the following is true about homeowner's insurance?
it pays for liability you have when you drive your car
generally more expensive than utilities for the home
if you have a mortgage, you are required to have it
will keep your house from burning down
13
See image below
Family Relationships
Future Income
Values
Seniority in her current job
14
See image below
$80
$40
$300
$20
15
How prepared do you HONESTLY feel for the final exam?
50% ready
75% ready
100% ready
0% ready
16
When creating a PIN, password, or username, which is considered the strongest of the following?
Birth Date
last 4 digits of social security number
Mother's maiden name
random set of numbers, letters, and characters
17
Lisa's state charges 7% tax & her county charges 1%. How much will a $100 dress really cost?
$107.00
$108.00
$106.00
$100.00
18
See image below
get paid interest for using a washing machine
costs money for detergent for the washing machine
may break down and need repairs
washes clothes for many years
19
Which of the following is not one of the risks that an entrepreneur takes on?
having to fire someone
getting fired from your job
having little time to spend with your family
losing your investment
20
Which of the following drivers is likely to have the highest insurance premium?
27 year old man in suburban area
23 year old woman in suburban area
27 year old woman in large city
19 year old man in large city
21
Which of the following is adjusted every year for inflation?
Tax preparers
Tax rates
Sales tax
Tax brackets
22
If you make tips from waiting tables, how does the gov't collect income taxes on the tips?
the gov't counts all your tips, and taxes you
employer counts tips and withholds taxes
tips are not taxable
employer withholds 8% of total bills paid
23
Why do stocks tend to be a riskier investment than bonds?
they never pay an annual income to owners
they promos to set payments in the future
They are publicly traded
they have a shorter maturity than bonds
24
See image below
money in a CD is safer than a savings account
will take more than 1 year to get money from savings account
the longer money is tied up, the lower the interest you get
cannot easily withdraw money from a CD
25
See image below
A
C
D
B
26
See image below
70
62
67
65
27
Mike had surgery, is out of work for 2 years.What insurance will ensure he still gets paycheck?
Disability Insurance
Liability Insurance
Life Insurance
Health Insurance
28
See image below
6 months after graduation
immediately
at graduation
when the last loan is made
29
See image below
$30
$35
$90
$40
30
Which type of disability insurance policy is likely to have the lowest premiums?
short waiting period, only if you can't work at all
long waiting period, only if you can't work at current job
short waiting period, only if you can't work at current job
long waiting period, only if you can't work at all
31
Which best describes your right to check your credit history for accuracy?
records can be checked once a year for free
Only FBI & Lenders can see the records
record can only be checked if your denied for a credit card
you cannot see your records
32
What is an expense statement?
record of how much we owe and to whom
record of how we have spent our money
a record of our income
record of our income and expenses
33
Which of the following is an advantage of using cash over a credit card?
easier to buy things online
easier to control the amount you spend
easier to rent a car
easier to keep a record of how you spend your money
34
Is it more costly to go to graduate school full time or part time if the tuition is the same?
Costs the same whether it's full or part time
Part time
Full time
Doesn't cost anything for graduate school
35
When is it financially beneficial to borrow money to buy something now & repay later?
When the interest is high
To buy a car for a better job
For a two-week vacation
When clothes you like go on sale
36
See image below
$100
$200
$50
$150
37
See image below
putting $ into a single stock that was recommended to her
investing $ in stock mutual fund
staying away from stocks until she has $10,000 to invest
dividing $ into 7 pieces and buying different stock

Money Skill Final Review Flashcards | StudBud