Download Personal Finance Exam 2 and more Exams Managerial Economics in PDF only on Docsity! Personal Finance Exam 2 All of the following are key steps to successful career planning except - aligning yourself with historical employment trends These are your principles, standards, or qualities that you consider worthwhile. - values According to the U.S. Census Bureau (as reported in chapter two of the textbook), an advanced degree will produce about how much more per year than a bachelor's degree? - $33,000 To assign monetary values to employee benefits, you can place a market value on the benefit or calculate the ____ value of the benefit. - future The law requires employers to do all of the following for employees except - pay the employees health care expenses 7. According to the textbook, which of these "usually are not very important in the job search process"? - classified advertisements in preparation for a job interview you should - compile some personal stories and anticipate interview questions and prepare responses. Which of the following would not be considered a wise move in career planning? - assuming that your need for higher education is finished once you obtain a job in your chosen field. When comparing the buying power of a salary offer of $52,000 in Boston with a $49,000 offer in Los Angeles, the Boston salary offer would buy ____ of goods and services in Los Angeles, assuming the index was 130.6 for Boston and 114.9 for Los Angeles. - $45,748 * how to solve a buying power problem * - formulas:salary in city 1 * index city 2/ index city 1 = equivalent salary in city 2 salary in city 2 * index city 1/ index city 2 = equivalent salary in city 1 The foundation for financial planning starts with ___. - personal values Which is a well structured financial goal? - Buy a $2,000 car in 10 months (because it has an amount $ and time frame set) Duke and Hanna Morris want to track their financial progress over the next few years. They have decided to evaluate their status every Fourth of July. Which financial tool should they complete each year? - balance sheet Which item below would be considered a tangible asset? *Motorcycle *401(k) retirement plan *Cash *Real estate investment - motorcycle (think furniture/vehicles) Tyrel and MaKenna Little pay off their $1,200 MasterCard debt by withdrawing $1,200 out of their money market account. This will... - not change their net worth on their balance sheet. Daisie Mugger is applying for a mortgage and the loan officer has asked her for some financials. Use this information to calculate Daisie's net worth. Money market account=$5,200; Checking account balance=$1,500; American Express credit card balance=$450; House=$252,000; Mortgage loan balance=$141,000; Cash on hand=$475; Automobile=$21,000; Auto loan balance=$8,600 - $130,125 (use budget spreadsheet) Smily Ehowers, who is single, is currently earns a net pay of $51,500 a year. Smily's annual living expenses are $41,800, and she has $7,150 in monetary assets and $37,000 in investment assets. About how long could she pay expenses if she were to lose her job. - About 2 months (ignore net pay of $51,500 ...take the $41,800 in living expenses and divide that by 12 months = about 3483 the efund $7150 (monetary assets) can cover about 2 months (3483 * 2 ) roughly the amount in the efund Hatt Mowell writes computer software for a Fortune 500 Company. Hatt's salary and bonuses total $122,000, but he pays $39,200 for income taxes. If his annual debt payments are $51,620, what is his debt -to-income ratio? - 42% (literally the name.. do debt divided by income so $51,620/$122,000) The purpose of a revolving savings fund is to - both accumulate funds for large, irregular expenses and meet occasional deficits. Which of these would help you the most when it comes to strictly sticking to your budget? - using an envelope system. Which is not a characteristic of monetary assets? - high return Nick and Ciera want to put $415,000 into federally insured cash accounts. Which situation below would accomplish this? - dividing it equally into two different joint accounts in two different federally insured savings banks. State-chartered credit unions are often insured by the ___, and commercial and savings banks are insured by the ___. - NCUSIF; FDIC.
