The Basics
Checking and Savings
Credit
Loans
Future Planning
100
A system of managing the productive and employment resources of a country, state, or community? a) economy b) business cycle c) index of economic indicators
What is Economy
100
The ease and speed at which an asset can be converted to cash is known as ______. a) easy money b) quick cash c) liquidity
What is liquidity
100
The upside of credit is that it can ______ the downside of credit is that it ___________ . a) finance an education, is tempting to overspend b) be convenient, is used to get to get expensive products sooner c) Protect your privacy, reduces financial flexibility
What is finance an education, tempting to overspend
100
A unsecured loan requires a cosigner to pay debt if the original borrower fails to do so. a) True b) False
What is False
100
The retirement plan offered to individuals by their employer is known as a _______. a) IRA b) 401(k) plan c) ROTH IRA d) municipal bond
What is 401 K plan
200
A recurring period of decline in total output, income employment and trade, usually lasting from six months to a year and marked by widespread contractions in many sectors of the economy. a) recession b) inflation c) deflation d) procyclic indicator
What is recession
200
An account that offers access to minimal financial services that every consumer needs to function in society, regardless of income, is known as a _____. a) Interest earning checking account b) share draft account c) lifeline banking account
What is lifeline banking account
200
Your ability to meet repayment obligations is your _______. a) credit limit b) disposable income c) equity d) debt limit
What is debt limit
200
The legal right to take property to obtain payment of a claim is called ______. a) Lien b) repossession c) claim d) payback
What is lien
200
When buying a used car, to avoid car warranties required by Alabama state law a seller can state in writing that the product is sold ________. a) With no interest b) With no monthly payments c) as is d) At sale value
What is as is
300
What are the top financial missteps that are made in personal finance? a) spending more money than you earn. b)Getting financial advice from amateurs. c) Only thinking about money matters when there is a financial problem. d) All of the above.
What is all of the above
300
The first savings goal that anyone should have is to save enough money for an emergency fund that covers expenses in case of a job layoff, illness, or serious financial liability for at least _______. a) One month b) Two months c) Four months d) Six months
What is six months.
300
Contract that spells out the terms of an installment loan is called a ______. a) credit history b) credit score c) credit report d) promissory note
What is credit report
300
A contract that spells out the terms of a installment loan is called a _______. a) promissory note b) loan insurance c) term of use contract
What is promissory note
300
The initial asking price for a vehicle is the _____. a) Dealer sticker price b) Invoice price c) Loan preapproval price d) Manufacturer's suggested retail price
What is Manufacturer's suggested retail price
400
A summary record of your education, training, experience, and other qualitfications. a) book keeping b) career plan c) resume d) interest inventories
What is resume
400
Which of the following can result in a penalty or fee to be placed upon your savings account? a) Stop payment order b) Excessive withdrawals c) Bad check for insufficient funds d) Maintenance fees on a minimum balance account
What is excessive withdrawals
400
The biggest contribution to your credit score is______. a) How much money you owe b) If you have taken on more debt c) The length of your credit history d) payment history
What is payment history
400
One of the best places to get a consumer loan is from a _______ because it charges the lowest annual percentage rate(interest rate). a) Commercial bank b) Savings and Loan Association c) Credit union d) Life insurance company
What is life insurance company
400
New cars depreciate very quickly after purchase, and can decrease in value as much as ___ % after leaving the dealer's lot. a) 30 b) 25 c) 40 d) 35
What is 25%
500
Which of the following are considered long-term liabilities: a)Credit card and charge account balances b) Education Loans c) Unpaid taxes d) Personal loans to other people
What is education loans
500
General protection of a customer's account takes place in the form of a __________ sent by the financial institution that shows all electronic transfers. a) disclosure statement b) promissory note c) protection clause d) periodic statement
What is a periodic statement
500
Ways to help build a good credit score includes all but which of the following: a) Establish a checking and savings account b) Apply for a bank credit card c) Asking a bank for a small short term cash loan d) Closing the account
What is closing the account
500
As a last resort, consumers declare __________, stating they are officially unable to repay their debts.
What is bankruptcy
500
Differences in an IRA (individual retirement account) and a ROTH IRA include: a) money is allowed to accumate tax free in an IRA b) ROTH IRA's reduce income taxes c) IRA's owe income taxes on withdrawals d) ROTH IRA's are for short term investments
What is IRA's owe income on withdrawals
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