Personal Finance Multiple Choice Final Exam Study Guide, Exams of Business Finance

Download Personal Finance Multiple Choice Final Exam Study Guide and more Exams Business Finance in PDF only on Docsity! Personal Finance Multiple Choice Final Exam Study Guide The ways in which people make, distribute, and use their goods and services Is called the... A. Opportunity Cost B. Short-Term Goals C. Economy D. Wealth-Watch - C. Economy Earning interest on previously earned interest is called... A. Compounding B. Economics C. Doubling Down D. Inflation - A. Compounding Financial plans that are more than five years off are called... A. Opportunity Plans B. Long-Term Goals C. Intermediate Goals D. Attainable Goals - B. long Term Goals The trade-off made by making one choice instead of another is commonly referred to as a(n)... A. Trade Decision B. Personal Preference C. Economic Choice D. Opportunity Cost - D. Opportunity Cost Saving for vacation next summer or paying off small debts by the end of the year are examples of... A. Opportunity Planning B. Short-Term Goals C. Long-Term Goals D. Opportunity Results - B. Short-Term Goals Spending, saving, and investing to have the kind of life you want and financial security can be achieved by... A. Personal Financial Planning B. Paying Interest C. Discussing your financial situation with a friend D. Regulating Inflation - A. Personal Financial Planning The amount of goods and services available for sale is called... A. Demand B. Reserve C. Supply D. Economy - C. Supply The central banking organization of the United States is called the... A. Bank of America B. United States Reserve Bank C. The Highlights of Your Skills and Abilities D. The Reason You Want a Particular Job - D. The Reason You Want a Particular Job Good places to look for job listings include all of the following EXCEPT... A. The OCCUPATIONAL OUTLINE HANDBOOK B. Newspapers C. The Internet D. Job Fairs - A. The OCCUPATIONAL OUTLINE HANDBOOK A pension plan is a... A. Plan for Maternity B. Plan for Increases in Pay C. Retirement Plan Funded in Part by Employers D. Free Life Insurance Policy - C. Retirement Plan Funded in Part by Employers An example of a tax-exempt benefit is... A. Vacation Time B. Free Life Insurance C. A 401(k) Plan D. A Flexible Work Schedule - B. Free Life Insurance By law an employer must pay for a portion of... A. Child Care B. Social Security C. Fitness Programs D. Legal Assistance - B. Social Security A disadvantage of using a safe-deposit box for keeping financial documents is that it... A. Fails to protect documents from fire B. Takes up too much space in your home C. Can cost $100 a year to rent D. Cannot store canceled checks - C. Can cost $100 a year to rent An example of a liquid asset is a... A. Savings Account B. Bond C. Retirement Account D. House - A. Savings Account An example of a current liability is... A. Car Loan B. Taxes C. A Mortgage D. A Student Loan - B. Taxes A cash flow statement gives you important feedback on your... A. Assets and Liabilities B. Short-Term and Long-Term Debts C. Income and Spending Patterns D. Net Pay and Gross Pay - C. Income and Spending Patterns One use of discretionary funds is spending on... A. Groceries B. Transportation C. Videos D. Medication - C. Videos An example of a variable expense is... A. Cable Television Charges B. Bus Fare to School or Work C. Insurance Premiums D. Electric Bills - D. Electric Bills Your net worth goes up when you... A. Spend More Than You Earn B. Pay Off Previous Debts C. Borrow Money to Pay a Deficit D. Withdraw Money From Your Savings - B. Pay Off Previous Debts The first step in planning a budget is... A. Estimating Income B. Setting Financial Goals C. Listing Fixed Expenses D. Budgeting For Savings - B. Setting Financial Goals A. Making a List B. Store-Brand Products C. Comparing Prices D. Impulse Buying - D. Impulse Buying Better Business Bureaus handle... A. Class-Action Lawsuits B. Complaints Against Local Merchants C. Potentially Unsafe Products D. Standards for Chemicals, Cosmetics, and Medical Devices - B. Complaints Against Local Merchants The court system set up by every state to settle minor disagreements is called... A. The Supreme Court B. The Consumer Safety Commission C. Small Claims Court D. Night Court - C. Small Claims Court Disagreements in small claims courts are usually settled by... A. Judges B. Juries C. Mediation D. Arbitration - A. Judges Which of the following financial services is best suited for saving money over a period of years? A. Certificate of Deposit B. Checking Account C. Demand Deposit D. Mortgage Loan - A. Certificate of Deposit Credit cards allow you you to... A. Spend Only The Amount in Your Account B. Borrow Money For a Short Term C. Protect Your Checks From Thieves D. Transfer Money Between Accounts On-Line - B. Borrow Money For A Short Term You will earn a higher interest rate when you... A. Buy a Certificate of Deposit B. Use an ATM C. Open a Savings Account D. Recharge a Stored-Value Card - A. Buy a Certificate of Deposit The Federal Deposit Insurance Corporation insures depositors against losing their money in the case of a... A. Lost Debit Card B. Stolen Paycheck C. Bank Failure D. Death in the Family - C. Bank Failure Compared with commercial banks, credit unions generally offer.. A. Higher Interest Rates on Loans B. Fewer Financial Services C. Higher Interest on Savings D. Lower Fees and Loan Rates - D. Lower Fees and Loan Rates To earn high interest rates on a certificate of deposit, you must accept all the following limitations EXCEPT... A. Leaving Money in for the Term of the Deposit B. Paying a Penalty When Money is Withdrawn Early C. Completing a Monthly Bank Reconciliation D. Depositing a Minimum Amount - C. Completing a Monthly Bank Reconciliation In which kind of savings plan does the interest rate vary from month to month? A. Regular Savings B. Certificate of Deposit C. Money Market D. U.S. Savings Bond - C. Money Market If you deposit $100 in an account with an annual interest rate of 6 percent compounded monthly, after 12 months you will have... A. $6 B. $6.18 C. $106 D. $106.18 - D. $106.18 When writing a check, include all of the following EXCEPT... C. Banks Avoid the Practice of Redlining D. The Information in a Person's File is Correct - D. The Information in a Person's File is Correct How should a cardholder begin to correct a mistake on a credit card bill? A. Stop Payment on the Creditor's Check B. Shred Papers That Contain Personal Information C. Notify the Creditor in Writing D. Get a New Personal Identification Number - C. Notify the Creditor in Writing The Consumer Credit Counseling Service offers to... A. Erase Legitimate Debts That Consumers Owe B. Supervise Debt Repayment Plans C. Grant Money for Repaying Debts D. Help Debtors Declare Bankruptcy - B. Supervise Debt Repayment Plans In a Chapter 13 bankruptcy, the debtor usually gets to... A. Keep Most of His or Her Property B. Discontinue Alimony Payments C. Avoid Paying Debts Arising from Fraud D. Stop Payments on Educational Loans - A. Keep Most of His or Her Property Renting is often a wise choice for someone who wants... A. Pets B. Stability C. Privacy D. Mobility - D. Mobility A disadvantage of renting is... A. More Responsibilities B. High Initial Costs C. Restricted Activities D. Eligibility for Tax Deductions - C. Restricted Activities Your biggest monthly expense as a tenant is the... A. Rent B. Security Deposit C. Utilities D. Renter's Insurance - A. Rent An example of an attached home is a... A. One-Story Ranch B. Townhouse C. Prefabricated D. Mobile Home - B. Townhouse A home inspector is responsible for... A. Negotiating a House's Purchase Price B. Recommending Lawyers and Real Estate Agents C. Evaluating the House and the Land D. Arranging Financing for the Purchase - C. Evaluating the House and the Land The listing price is the amount that the... A. Owner asks for the House B. Buyer Offers for the House C. Buyer Accepts for the House D. Buyer Borrows to Finance the House - A. The Owner Asks for the House A bank pays the full amount of a mortgage to... A. The Buyer B. A Savings and Loan C. The Seller D. An Escrow Account - C. The Seller What might a buyer do to get a low interest rate? A. Buy Mortgage Insurance B. Pay Points C. Pay an Application Fee D. Amortize - B. Pay Points Many government-guaranteed loans offer lower interest rates because they are... A. Available to Moderate-Income Buyers B. Given to Eligible Veterans of the Armed Services C. Accompanied by Extra Insurance Fees D. Repaid by the Government if the Borrower Defaults - D. Repaid by the Government if the Borrower Defaults