Which of the following will help you the least in managing your money

getting advice from your friends

U are short on cash each month. U always use credit cards to pay rent and buy food

Do a budget. Find ways to reduce expenses or increase income

A clear understanding of your personal values will

enable U to make choices that reflect what is important to U

Why hold an investment for over 1 year rather than selling it in less than a year

the capital gains will be taxed at a lower rate

A stock broker or financial consultant

Gives financial advice to clients

Discretionary income is

The difference between total income and living expenses

Financial planning is important because it helps you to

reach financial goals and protect your assets

Jane saw a breakfast cereal advertised on TV & insisted that her mother purchase this cereal.

This shows the power of ads to create demand

Financial planning helps individuals to

have strategies for saving and investing

A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the

better off financially the person is.

In creating a budget, Ann realizes that her expenses exceed her income. Immediately she should

reduce or eliminate some expenses

It is expensive to be a smoker. One of the reasons cigarettes are so expensive is that

the government imposes an excise tax on them.

The financial planning process

considers changing needs & goals in different stages of life

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W!SE Review - Money Management Part 1

21 termsStudBud Administration2,134 plays

A review of Money Management concepts to prepare students for the W!SE Financial Literacy Exam

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Questions 21

Answers

1
U budgeted $200 a month for clothing. This month U spent $150 on clothing. U have
a budget variance.
an outflow deficit.
an income overage.
a budget deficit.
2
Spreading one's assets across several types of saving and investment products to manage risk is
Allocation
Diversification
Pooling
Budgeting
3
Which of the following will help you the least in managing your money
paying your rent/mortgage payment and utility bills on time
getting advice from your friends
planning ahead for large expenses and resist impulse buying
setting goals and keeping a budget for your net income
4
U are short on cash each month. U always use credit cards to pay rent and buy food
Ignore it. Things are bound to get better
U must apply for additional credit cards
Do a budget. Find ways to reduce expenses or increase income
U should borrow money from a relative
5
A clear understanding of your personal values will
enable U to save effectively
enable U to make choices that reflect what is important to U
cause anxiety as U make consumer and financial decisions
encourage you to spend money on material goods
6
A term that best describes your gross pay after taxes are deducted is
net worth
take-home pay
total revenues
assets
7
The following is usually considered a variable expense
electric bill payment
rent payment
car payment
mortgage payment
8
Why hold an investment for over 1 year rather than selling it in less than a year
Brokers will not charge any fees for selling the investment.
the capital gains will be taxed at a lower rate
the capital gains will be taxed at a higher rate
money earned on the investment will be considered tax-free
9
A stock broker or financial consultant
Gives financial advice to clients
Guarantees a return on investment
Does not have to be licensed
Sells money orders and certified checks
10
Discretionary income is
Wages plus investment income
A capital gain
The difference between total income and living expenses
Income that has been spent
11
Financial planning is important because it helps you to
have higher expectations
reach financial goals and protect your assets
eliminate risk on investments
achieve all personal goals
12
Something you are working to achieve within a defined period of time is
a dream
a goal
an ideal
a value
13
The following careers would be possible choices for someone interested in money and finance
Musician
Psychologist
Insurance actuary
Social worker
14
Jane saw a breakfast cereal advertised on TV & insisted that her mother purchase this cereal.
This shows the power of ads to create demand
This shows how ads focus on discouraging demand for products
This is an example of ads failure to reach parents
This shows how all ad can make children misbehave
15
Financial planning helps individuals to
guarantee future income
achieve all goals by set target dates
have strategies for saving and investing
eliminate risk on investments
16
A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the
less liquid assets the person has.
more liquid assets the person has.
worse off financially the person is.
better off financially the person is.
17
You want to gain control over your income and spending so that you will be able to save money.
You should get advice from a friend
You should develop a retirement plan
You should develop a budget
You should apply for a loan
18
In creating a budget, Ann realizes that her expenses exceed her income. Immediately she should
open an IRA account
ignore her budget until she has more income
apply for a loan
reduce or eliminate some expenses
19
It is expensive to be a smoker. One of the reasons cigarettes are so expensive is that
the tobacco industry imports most of the tobacco.
the government imposes an excise tax on them.
Tobacco supply is controlled by the Federal Trade Commission
their cost is controlled by the Food and Drug Administration
20
The financial planning process
considers changing needs & goals in different stages of life
guarantees that assets will increase
does not need to be revised for changing income and needs
should not include lifetime goals
21
Money that is left over after paying taxes, fixed and other essential living expenses, is
Net pay
Play money
Disposable income
Net surplus

W!SE Review - Money Management Part 1 Flashcards | StudBud