Credit
True or False: Credit Card companies actually care about you and are worried when you go into debt.
FALSE
When buying and selling investments, you should not:
A) Learn the different types of investments
B) Switch your investment strategy often, based on market conditions
C) Understand basic investment strategies and identify ones that will help you reach your goals
D) Set your investment goals and consider a time frame
B) Switch your investment strategy often, based on market conditions
What is the difference between gross pay and net pay?
A) Net pay describes your pay after deductions; gross pay is before.
B) Gross pay describes your pay after deductions; net pay is before.
C) Gross and net pay are the same.
D) None of the above
A) Net pay describes your pay after deductions; gross pay is before.
The purpose of insurance is to:
A) Provide an investment opportunity
B) Transfer financial risk
C) Develop a savings plan
D) All of the above
B) Transfer financial risk
What should you have prepared when you go to a job interview?
A) Strengths & Weaknesses
B) Questions for the interviewer
C) A professional appearance
D) All of the above
D) All of the above
Which of the following things cannot be done with a debit card but can be done with a credit card?
A) Go into debt
B) Purchase an airline ticket
C) Rent a car
D) Purchase something online
A) Go into debt
Which of the following account records would have the most current balance?
A) Your monthly bank statement
B) Your own account register
C) Account balance statement from the ATM
D) All of these records will have accurate account balances
B) Your own account register
Which statement is true about liquidity?
A) The more liquid an investment, the less return
B) The more liquid an investment, the more return
C) The less liquid the investment, the less return
D) Both A and B
A) The more liquid an investment, the less return
You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:
A) Comprehensive
B) Liability
C) Collision
D) Uninsured motorist protection
B) Liability
True or False: If you choose a career path when you are young, you have to follow that career path forever.
FALSE
What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?
A) Law of diminishing return
B) Delayed gratification
C) Opportunity cost
D) Significant purchases
C) Opportunity cost
Which of the following is not one of the three basic reasons for saving money?
A) Have money available to lend to friends
B) Build wealth
C) Emergency fund
D) Large purchases
A) Have money available to lend to friends
Which of the following statements is false?
A) Using a cost-benefit analysis approach to your buying decisions will make you a wise consumer.
B) Your choices as a consumer have no impact on the larger social environment.
C) In addition to economic savings, wise consumers also enjoy improved health and have a positive impact on the larger social and even global environment.
D) Being a wise consumer involves developing a variety of skills, from product research to careful comparative analysis.
B) Your choices as a consumer have no impact on the larger social environment.
This principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This is due to both the opportunity to earn interest on the money and because inflation will drive prices up, thereby changing the ʺvalueʺ of the money.
A) Interest rate
B) Opportunity cost
C) Inflation
D) Time value of money
C) Inflation
The widespread financial insecurity of Americans is primarily because:
A) The incomes of Americans are low
B) Government programs are unavailable to help people when they are disabled or experience unemployment
C) Most Americans save a high proportion of their income
D) The saving rate of Americans is low and many borrow in order to spend more than they earn
D) The saving rate of Americans is low and many borrow in order to spend more than they earn
When a company places an ad and offers no interest on your purchase for three years:
A) They are showing their appreciation to you by giving you free money
B) The cost of the financing is built into the price of the item
C) They are not interested in making a profit
D) All of the above
B) The cost of the financing is built into the price of the item
Which of the following statements best explains why income alone does not determine wealth?
A) Investing is the only factor that contributes to wealth building.
B) Income alone does determine a personʹs wealth.
C) Only people who are natural savers can become wealthy.
D) How much money a person makes does not dictate his or her spending and saving behavior.
D) How much money a person makes does not dictate his or her spending and saving behavior.
Rent is a:
A) Fixed expense
B) Variable expense
C) Discretionary expense
D) Intermittent expense
A) Fixed expense
True or False: If you get in a car accident, it YOUR duty to get the other person's insurance and vehicle information.
TRUE
Employee benefits packages:
A)Are non-wage compensations provided to employees in addition to their normal wages or salaries
B) Should not be a consideration when looking for a job
C) Never include retirement plans
D) Are the same regardless of the company you work for
A)Are non-wage compensations provided to employees in addition to their normal wages or salaries
A credit score is intended to measure:
A) Your financial success
B) Your income level
C) The risk of your not repaying debt
D) The amount of money you have in the bank
C) The risk of your not repaying debt
A young investor willing to take moderate risk for above-average growth would be most interested in:
A) Mutual funds
B) Single stocks
C) Real estate
D) Bonds
A) Mutual Funds
This tax pays for benefits that workers and families receive for either Social Security or Medicare.
A) Federal Insurance Contribution Act (FICA)
B) Sales tax
C) State income tax
D) Excise tax
A) Federal Insurance Contribution Act (FICA)
American residents are required to have which type of insurance?
A) Car insurance
B) Health insurance
C) Both A & B
D) None of the above
C) Both A & B
Which of the following statements is false?
A) On-the-job training often combines a professional trainer, hands -on activities and formal classroom training.
B) All high-paying careers require a four-year college degree.
C) An associateʹs degree is a two-year degree that can offer specialized training and a flexible schedule that allows you to work while you earn your degree.
D) Students who are looking to learn specific skills can look into free or low -cost certifications found online, at community colleges, or through government-funded programs.
B) All high-paying careers require a four-year college degree.