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Budgeting
Credit
Banks
Insurance
Investing
100
Which of the following is NOT an example of a fixed expense? a. Food b. Rent c. Car payments d. Health insurance
What is Food
100
APR is: a. Compound interest similar to that of a retirement plan b. After-Progress Ratio c. Used to compare only mortgage rates d. The interest maintained on a loan (car, home, etc.) averaged out over a one-year period
What is the interest maintained on a loan (car, home, etc.) averaged out over a one-year period
100
Credit unions are: a. not-for-profit b. for exclusive members (i.e. teachers, firefighters, etc.) c. partially owned by their members d. all of the above are characteristics
What is all of the above are characteristics
100
The most important reason for having health insurance is that a. Medical costs related to serious health care problems are high b. Health care coverage is required to get low interest rate loan c. Premiums paid for the insurance increase a person’s net worth d. It is a requirement to get a job
What is a. Medical costs related to serious health care problems are high
100
A major reason that corporations issue stock is to a. Raise money to expand business activity b. Increase the pay given to the corporation’s board of directors c. Reduce the number of corporate shareholders d. Give raises to the corporate employees
What is a. Raise money to expand business activity
200
What is an example of “pay yourself first”? a. Budgeting the same amount each month b. Setting aside money each month to pay a car loan c. Paying the monthly cell phone bill from your checking account d. Saving money from each paycheck before spending it
What is D.. Saving money from each paycheck before spending it
200
Interest: a. can work both for you (retirement account) and against you (car payments) b. can only be positive (retirement accounts, bond yields, savings accounts, etc.) c. will always work against you (mortgage payments, car payments, etc.) d. is only beneficial to an investor if it outpaces inflation rates by a rate of two-to-one.
What is A. can work both for you (retirement account) and against you (car payments)
200
Reconciling a checkbook means for: a. banks are to forgive debt owed to them by borrowers b. borrowers are to pay back debt owed to lenders c. customers to cross-check their bank account against their own records to ensure that they agree d. Only a and c are correct
What is C. customers to cross-check their bank account against their own records to ensure
200
As a result of a fire in an apartment, a person’s furniture is destroyed. In order for the person to receive payment for the destroyed furniture, the person must have a. Landlords insurance b. Renters insurance c. Life insurance d. Mortgage insurance
What is b. Renters insurance
200
The price of a stock is likely to increase if a. The expectation is for the company’s profits is expected to grow b. People have less discretionary income to invest in stock c. The company cut its dividends d. Unemployment is high
What is a. The expectation is for the company’s profits is expected to grow
300
When a person’s budget has an income that is greater than expenses, the person will have a a. Surplus b. Deficit c. Capital gain d. Low credit score
What is a. Surplus
300
If a person believes he is a victim of identity theft, he must a. Destroy his credit and debit card monthly statements b. Contact the Securities and Exchange Commission c. Rent a safety deposit box at a bank for his valuables d. File a report with the police and get a copy of the report
What is d. File a report with the police and get a copy of the report
300
An Electronic Funds Transfer (EFT): a. can transfer funds between different accounts w b. allows customers the opportunity to use debit cards to pull money from savings accounts or credit cards accounts. c. Allows for an automatic transfer of funds from your checking account to your savings bonds. d. All of the above
What is All of the above
300
You take a drivers education course, what effect will it have on your car insurance premium? a. It will raise the premium b. It will lower the premium c. It will have no effect on the premium d. It will eliminate the need to pay the premium
What is b. It will lower the premium
300
Which financial product is created an managed by an investment professional? a. Common stock b. Municipal bond c. Certificate of deposit (CD) d. Mutual fund
What is d. Mutual fund
400
Which of the following is a sign that a person is having financial problems? a. Changing jobs frequently for a higher salary b. Paying bills with a credit card cash advance c. Having high car expenses d. Using checks to pay bills
What is b. Paying bills with a credit card cash advance
400
As a result of declaring bankruptcy the person’s a. Job cannot change b. Salary will be increased c. Credit card interest will be lowered d. Credit score will be lowered
What is d. Credit score will be lowered
400
The FDIC is a federal agency that insures each bank account up to (as of 2009): a. $250,000 per account b. $500,000 per account c. $1,000,000 per account d. There is no limit on what can be insured (as of the latest senate bill passed into law)
What is a. $250,000 per account
400
When a person has health insurance, his copay is a. The amount of money the insurance company pays to the doctor for service b. A fee the insured person has to pay for each visit to the doctor c. The monthly payment that makes sure the policy is not canceled d. A bill the doctor gives him to send to the insurance company
What is B.. A fee the insured person has to pay for each visit to the doctor
400
The Standard and Poor’s (S & P 500) is an index of 500 a. Leading publicly owned U.S. corporations b. Insurance companies c. Banks insurance by the Federal Deposit Insurance Credit Union d. Municipal bonds
What is a. Leading publicly owned U.S. corporations
500
After paying all expenses, the money available at the end of the month for additional saving, spending, or investing is called a. A deficit b. Capital loss c. A debt d. Discretionary income
What is d. Discretionary income
500
The Truth in Lending Act requires credit card companies to a. State the monthly charges and annual percentage rate (APR) on monthly credit card statements b. State the federally fixed interest rate and the penalty for charging more than that rate c. Increase the money available to lend to credit card holders during economic depressions d. Limit the money individuals can charge on a credit card each month
What is b. State the federally fixed interest rate and the penalty for charging more than that rate
500
Overdraft protection allows for: a. creditors to write checks beyond what they have in their accounts b. 0 interest transactions c. Has no limit on the amount of funds being over-drafted d. Typically has a $300 limit on the amount to be over-drafted.
What is A creditors to write checks beyond what they have in their accounts
500
Which person has the greatest need for life insurance? a. A single working mother with three young children b. A retired person without dependents c. An unmarried college student d. A single male who lives with his parents
What is A. single working mother with three young children
500
What statement about risk is generally true? a. Risk is eliminated when an investor works with a financial adviser b. There is no risk when investing in financial products during a recession c. Investors who take a risk are likely to lose all their money d. There is some risk when investing in stocks and bonds
What is d. There is some risk when investing in stocks and bonds