Personal Finance Final Exam Prep Questions And Answers All 100% Verified, Exams of Banking and Finance

Download Personal Finance Final Exam Prep Questions And Answers All 100% Verified and more Exams Banking and Finance in PDF only on Docsity! Personal Finance Final Exam Prep Questions And Answers All 100% Verified In a timeline of your financial process, where should it end? - correct answer Never- It is an ongoing process. What type of activity contributes to wellbeing? - correct answer An activity that makes him lose track of time. Which statement about our interactions with money is not considered to be true? - correct answer Investment increases risk and reduces your ability to cope with risk and uncertainty. What is influenced by values? - correct answer Everything is influenced by values. What is an example trade-off? - correct answer Buying something that makes you happy but not leaving you What is likely to have the least influence on values? - correct answer Grades Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal? - correct answer Short term goal Personal Finance Final Exam Prep Questions And Answers All 100% Verified One element of a financial goal is missing in this example. "I will save $150 each month to go on a vacation in one year." Which one is it? - correct answer Attainable Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set? - correct answer Long term goal Amber's academic adviser has asked her to set 3 academic goals for this semester. These goals are most likely to be accomplished if: - correct answer Amber writes down her goals A key difference between commercial banks and credit unions is that: - correct answer Commercial banks are for profit and credit unions are not. Savings tools offered by depository institutions may earn interest. Which of the following statements is true about earning interest? - correct answer When earning interest, look for high rates. Personal Finance Final Exam Prep Questions And Answers All 100% Verified Money in checking account, hockey equipment, market value of your car. Example of a contractual expense.. - correct answer cell phone Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered that they have a net gain. What does this mean and what should they do? - correct answer Amanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses. In an income and expense statement, what should be recorded as an expense? - correct answer Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance When is a spending plan complete? - correct answer Spending plans are always under revision so they're never complete Personal Finance Final Exam Prep Questions And Answers All 100% Verified What is the first step to developing a spending plan? - correct answer Track his current income and expenses in an income and expense statement. Example of non contractual expenses.. - correct answer Gasoline, food, and entertainment. If expenses were to exceed income on a spending plan, what would be a financially smart solution? - correct answer Decrease expenses What is a way you can improve your intellectual well being? - correct answer Take on a new project at work. What is the best way to improve you financial well being? - correct answer Take a personal finance class to learn to manage your money You have been assigned by your school counselor to complete a career assessment. Which statement best describes why your counselor has suggested u do this? - correct answer Your counselor wants you to match your skills, abilities, interests and values with a list of specific occupations. Personal Finance Final Exam Prep Questions And Answers All 100% Verified Career assessments help identify... - correct answer possible careers related to ones interests In order to make an informed career decision, a high school student will want to: - correct answer develop personal goals, complete a career assessment, and research careers. When shadowing a job, what are u likely to learn? - correct answer Common tasks and typical daily activities Which statement is true regarding college-level expectations for studying and completing projects? - correct answer Plan backwards from major deadlines You've been in college for 2 years and think that your major isn't for you, deciding to change majors and or schools can result in what? - correct answer Losing credits for classes you've has already taken. You've taken college placement tests and were informed you need remediation in math. What is something that Personal Finance Final Exam Prep Questions And Answers All 100% Verified You're considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called: - correct answer Employee benefits Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City's Cost of Living Index is 100 and Indianapolis' Cost of Living Index is 125, which is true? - correct answer Susan will have more spending power if she stays in Kansas City Gross income minus deductions - correct answer Networth What is true of government assistance programs? - correct answer The ultimate goal of government programs is to help individuals become self-sufficient and independent. Where would you go to see if you qualify for government assistance? - correct answer Go to www.govbenefits.gov on the web. Personal Finance Final Exam Prep Questions And Answers All 100% Verified Which federal program assists low-income families in purchasing nutritious foods? - correct answer SNAP (supplemental nutrition assistance program) Funds/assistance received from the government most likely comes from where? - correct answer taxes at the local, state, and federal levels. Lets say you're moving out, and your parents give you your old bed and frame, what kind of income is this? - correct answer In-kind income Medicare is provided by the federal government for individuals in specified circumstances. In which of the situations below would the individual most likely be receiving Medicare funds? - correct answer Rosie is 67 years old and in need of a health insurance program. You are a single mother who recently lost your job, you would like to obtain your experiences in the medical field to increase your future income and support your 2 children. To do this you will need help paying for some of your expenses. Which government program might help Personal Finance Final Exam Prep Questions And Answers All 100% Verified you with living expenses and job training. - correct answer TANF (Temporary Assistance for Needy Families) Your daughter is sick but you have to go to work, your neighbour Alyssa, who is a stay at home mom offered to watch her for the day. What did you just use? - correct answer Social Capital Which statement best reflects the philosophy of "pay yourself first"? - correct answer An individual should set aside a predetermined amount of money for saving before using any of that money for spending. A diversified portfolio is good because.. - correct answer decreases risk by investing money in a variety of investment tools A bond is - correct answer a type of debt that a company issues to investors for a specified period of time. Which correctly describes the security level of savings tools? - correct answer Savings tools are secure because they are protected by the U.S. government against loss. Personal Finance Final Exam Prep Questions And Answers All 100% Verified You need a savings tool that is very liquid and accessible and can be used every day. - correct answer Checking account When a goal has been set to save $100.00 a month for an emergency fund of $2,000.00, giving up food from the vending machine to achieve that goal is the: - correct answer Trade-off When being paid in cash without any taxes being deducted from it, what is likely to happen? - correct answer You'll have to pay your federal and state taxes on your own, since your employer hasn't done it for you. What are some examples of pay check deductions? - correct answer Federal income tax, state income tax, social security, and medicare deductions are all required deductions. What does being paid by direct deposit mean? - correct answer That your pay will be added into your checking account at your depository institution every pay period. The most secure method for an employer to pay employees is to use: - correct answer Direct Deposit Personal Finance Final Exam Prep Questions And Answers All 100% Verified The regular schedule that employers use to pay their employees is called the: - correct answer Pay period What is gross income? - correct answer A persons salary before all the deductions. Why is investing in product research an important part of the planned buying process? - correct answer Research enhances satisfaction. What is something about close end credit? - correct answer Equal payments are required on a regular basis until the loan is repaid. Which is not included in an individual's credit report? - correct answer Medical Info Which expense would not be considered part of the total transportation expenses? - correct answer Depreciation Personal Finance Final Exam Prep Questions And Answers All 100% Verified When buying a car, what should someone do first in the planned buying process. - correct answer Evaluate the opportunity cost and trade-offs to purchasing the car Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for Amanda? - correct answer Amanda will receive any proceeds when Eric dies. Examples of data furnishers.. - correct answer Landlord, utility company, medical provider If you pay 120 dollars a month to purchase a health insurance policy, what is it called - correct answer a premium The equity that one builds by making mortgage payments is: - correct answer the value of the home after the mortgage debt is subtracted. Are phone numbers likely to be used by scammers? - correct answer No Personal Finance Final Exam Prep Questions And Answers All 100% Verified In which scenario should renters insurance be considered? - correct answer Zach and Leah have rented an apartment in an urban area. Insurance can be purchased to protect one from which losses? - correct answer Health care expenses Patty recently moved into a new apartment with her friend Emma. Who is responsible for purchasing renter's insurance? - correct answer Patty and emma Jake's credit application has been declined because of his negative credit history. Which is most likely to be true? - correct answer Jake has applied for 4 credit cards and a car loan in the past 6 weeks. Shelby is working on her spending plan and would like to spend less on her food for 6 months as she saves toward purchasing a more reliable vehicle. As she makes her plan, which factor would be least important to consider? - correct answer Her personal preferances what should you do to keep a positive credit history - correct answer Maintain reasonable amounts of available credit Personal Finance Final Exam Prep Questions And Answers All 100% Verified What is not a durable good? - correct answer Food It is recommended that life insurance be purchased when the: - correct answer The individual has people dependent on them. When may a person view his/her credit report for free? - correct answer Once a year, from each of the three main credit reporting agencies What is safest way to shop online - correct answer credit card Planned giving can occur through: - correct answer Estate planning activities Healthy giving occurs when - correct answer an individual wants to give back and the result is positive emotions for both the giver and receiver. Personal Finance Final Exam Prep Questions And Answers All 100% Verified If the resulted emotion of giving includes resentment, guilt, or anger then the giving would be considered: - correct answer Unhealthy Advocacy is - correct answer the act or process of writing or speaking out in favor of or about a cause. Which question does not represent a topic that teens should ask parents and guardians about estate planning? - correct answer "How much money do you have in your checking account?" Which is not considered part of the steps of estate planning? - correct answer selling off assets which statement is true on most states of wills and teens. - correct answer Teens under the age of 18 may not write their own will.