Personal Finance Exam Questions and Answers, Exercises of Nursing

Download Personal Finance Exam Questions and Answers and more Exercises Nursing in PDF only on Docsity! Personal Finance Final Exam questions with correct answers Personal Financial Planning - arranging to spend, save, and invest money to live comfortably, and have financial security and achieve goals. Goals - things that you want to accomplish Values - beliefs and principles you consider important, correct, and desirable. Liquidity - the ability to convert and asset into cash without losing its value. Asset - anything of value that if you anted to sell you could get money for it Service - a task a person or a machine performs for you. Good - physical item that is produced that can be weighed or measured. Opportunity cost - what you give up to get something else. Economics - study of the decisions that go into making, distributing, and using goods and services Personal Finance Final Exam questions with correct answers Economy - the ways in which people make, distribute, and use their goods and services. Supply - the amount of goods and services available for sale Demand - the amount of goods and services people are willing to buy. Federal Reserve System - central banking organization of the United States. Inflation - the rise in the level of prices for goods and services Consumer - person that purchases goods and services Interest - the price that is paid for the use of another's money Time Value of Money - this is the increase of the amount of money due to earned interest or dividends. Personal Finance Final Exam questions with correct answers Networking - the way of making and using contacts to get job information and advice. Informational interview - meeting with someone who works in your area of interest who can provide you with information about the career or company you are considering. Resume - one or two paged summary of your education, training, experience, and qualifications. Cover Letter - personal letter you present with resume. Cafeteria Style Employee Benefits - program that allows workers to choose the benefits that best meet their personal needs. Pension Plan - retirement plan funded at least in part by your employer. Mentor - an experienced employee that serves as a teacher and counselor for a less experienced person. Personal Finance Final Exam questions with correct answers Money Management - Planning how to get the most from your money Safe Deposit Box - small secure storage compartment that you rent in a bank Personnel Financial Statement - document that provides information about your current financial position and presents a summary of income and spending Personnel Balance Sheet - financial statement that lists items of values owned, debts owed, and a person's net worth Net Worth - the difference between the amount you own and the amount you owe Assets - items of value that a person or company owns Wealth - the abundance of valuable material possessions or resources Liquid Assets - items that can be quickly converted into cash Personal Finance Final Exam questions with correct answers Real Estate - land and any structures that are on it ,such as a house or building, that a person owns. Market Value - the price at which property would sell Liabilities - debts that you owe Insolvency - Occurs if your liabilities are greater than your assets Cash Flow - money that goes into and out of your wallet and your bank accounts Income - money you earn as result of working Take Home Pay(net pay) - amount of income left after taxes and other deductions are taking out of your gross pay Discretionary Income - money left over after paying for the essentials Personal Finance Final Exam questions with correct answers Arbitration - a process in which a conflict between a customer and a business is resolved an impartial 3rd party whose decision is legally binding. Small Claims Court - a court that deals with legal disputes that involve amounts below a certain limit. Class Action Suit - a legal action on behalf of all the people who have suffered the same injustice. Legal Aid Society - a network of community law offices that provide free or low cost legal assistance. Direct Deposit - an automatic deposit of net pay to a employee's designated bank account Automated Teller Machine (ATM) - Computer terminal that allows a withdrawal of cash from your account Personal Finance Final Exam questions with correct answers Debit Card - a cash card that allows you to withdrawal money or pay for purchases from your checking or savings account Point of Sale Transaction - a purchase by a debit card when you buy a good or a service at a retail store or a restaurant. Commercial Bank - a for profit institution that offers a full range of financial services such as checking, savings, and lending. Savings and Loan Association - they traditionally specialize in savings accounts and mortgage loans but now they offer some of the same services as commercial banks Credit Union - a non-profit institution owned by its members and organized for their benefit Certificate of Deposit (CD) - savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return Personal Finance Final Exam questions with correct answers Money Market Account - a savings account that requires a minimum balance and earns interest that varies from month to month Rate of Return - the percentage of increase in the value of your savings from earned interest. Compounding - the process in which interest is earned on both the principle (the original amount you deposited) and on any previous earned interest. Annual Percentage Yield - the amount of interest that a $100 deposit would earn after compounding for 1 year. Over Draft Protection - an automatic loan made to an account if the balance will not cover checks written. Stop Payment Order - a request that a bank or financial institution not cash a particular check. Endorsement - a signature of the payee which is the party to whom the check has been written. Personal Finance Final Exam questions with correct answers Credit Rating - a measure of a person's ability and willingness to make credit payments on time. Cosigning - this means you agree to be responsible for the loan payments if the other person fails to make them. Bankruptcy - a legal process in which some or all of the assets of a debtor are distributed among creditors because he is unable to pay back what he borrowed. Mobility - the ability to move easily from place to place. Tenant - a person who pays for the right to live in a residence owned by someone else. Landlord - the person who owns the property that is rented. Lease - a legal document that defines the conditions of the rental agreement between the tenant and the landlord. Personal Finance Final Exam questions with correct answers Security Deposit - an amount of money paid to the owner of the property by the tenant to guard against any financial loss or damage the tenant might cause. Renter's Insurance - a type of insurance that covers the loss of a tenant's personal property as a result of damage or theft. Equity - the value of the home less the amount still owed on the money borrowed to purchase. Escrow Account - an account where money is held in trust until it can be delivered to a designated party. Private Mortgage Insurance(PMI) - a special policy that protects the lender in case the buyer cannot make payments or cannot make them on time. Mortgage - a long term loan extended to someone who buys property. Points - extra charges that must be paid by the buyer to the lender in order to get a lower interest rate. Personal Finance Final Exam questions with correct answers Amortization - a reduction of a loan balance through payments made over a period of time. Fixed Rate Mortgage(Conventional Mortgage) - a mortgage with a fixed interest rate and a fixed schedule of payments. Adjustable Rate Mortgage(Variable Payment Mortgage) - a mortgage with an interest rate that increases or decreases during the life of the loan. Home Equity Loan - a loan based on the difference between the current market value of a home and the amount the borrower owes on the mortgage. Refinance - obtaining a new mortgage to replace the existing one. Closing - a meeting between the buyer, the seller, and the lender to complete the transaction. Title Insurance - a type of insurance that protects the buyer if problems with the title are found later Personal Finance Final Exam questions with correct answers Financial Planner - a specialist who is trained to offer specific financial help and advice. Tax-exempt income - income that is not taxed Tax-deferred income - income that is taxed at a later date Capital gain - profit from the sale of assets such as stocks, bonds, and real estate. Capital loss - the sale of an investment for less than its purchase price Prospectus - a document that discloses information about a company's earnings, assets and liabilities, products or services, a particular stock, and the qualifications of its management. Securities - the investments, stocks, bonds, mutual funds, options, and commodities that are bought and sold on the stock market. Personal Finance Final Exam questions with correct answers Private Corporation - a company that issues stock to a small group of people Public Corporation - one that sells its shares openly in stock markets where anyone can buy them Par Value - an assigned dollar value that Is printed on a stock certificate Blue Chip Stock - considered a safe investment that generally attracts conservative investors Income Stock - pays higher than average dividends compared to other stock issues. Growth Stock - a corporation whose potential earnings may be higher than the average earnings predicted for all the corporations in the country Cyclical Stock - has market value that tends to reflect the state of the economy Defense stock - one that remains stable during the declines of the economy Personal Finance Final Exam questions with correct answers Large cap stock - stock from a corporation that has issued a large number of shares and has a large amount of capitalization Capitalization - the total amount of stocks and bonds issued by a corporation. Small Cap Stock - a stock issued by a company with a capitalization of 500 million or less Penny Stock - typically sells for less than a dollar a share although it can sell for as much as 10 dollars a share. Bull Market - a market condition that occurs when investors are optimistic about the economy and buy stocks. Bear Market - a market condition that occurs when investors are pessimistic about the economy and sell stocks. Current Yield - the annual dividend of an investment divided by the current market value Personal Finance Final Exam questions with correct answers Coupon Bond - a bond that is registered in the owner's name for only the face value and not for interest. Bearer Bond - a bond that is not registered in the investor's name. Zero Coupon Bond - a bond that does not produce interest payments. Municipal Bond - this is issued by a state or local government to pay for its ongoing activities. Investment Grade Bonds - these are bonds issued by financially stable companies or municipalities. Closed End Fund - a mutual fund with a fixed number of shares that are issued by an investment company when the fund is first organized. Open End Fund - a mutual fund with an unlimited number of shares that are issued and redeemed by an investment company at the investor's request. Personal Finance Final Exam questions with correct answers Net Asset Value (NAV) - the amount that one share of a mutual fund is worth. Load Fund - a mutual fund for which you pay a commission every time you buy or sell shares. No Load Fund - a mutual fund that has no commission fee. Income Dividends - earnings a fund pays to shareholders. Yield - the rate of return usually stated as a percentage earned by an investor who holds a bond for a certain period of time. Health Insurance - a form of protection that eases the financial burden people may experience as a result of illness or injury. Coinsurance - a percentage of the medical expenses the policy holder must pay in addition to the deductible amount. Personal Finance Final Exam questions with correct answers Stop-Loss - a provision that requires the policy holder to pay all costs up to a certain amount, after which the insurance company pays 100% of the remaining expenses covered in the policy. Co-Payment - a flat fee you pay every time you receive a covered service. Blue Cross - an insurance company that provides hospital care benefits. Blue Shield - an insurance company that provides benefits for surgical and medical services performed by physicians. Managed Care - refers to prepaid health plans that provide comprehensive health care to their members. Health Maintenance Organization(HMO) - health insurance plan that directly employs or contracts with selected or preapproved physicians and other medical professionals to provide health care services in exchange for a fixed prepaid monthly premium. Personal Finance Final Exam questions with correct answers Defined Benefit Plan - a retirement plan that specifies the benefits an employee will receive at retirement age based on total earnings and years on the job. Individual Retirement Account(IRA) - a special account in which a person saves a portion of income for retirement. Keogh - a retirement plan specifically designed for self employed people and their employees. Annuity - a contract purchased form an insurance company that guarantees a future fixed or variable payment to the purchaser for a certain number of years or life. Heirs - people who will have the legal right to your assets when you die. Estate - all property an assets owned by an individual or group. Estate Planning - the process of creating a detailed plan for managing personal assets to make the most of them while you are alive and to ensure that they are distributed wisely after your death. Personal Finance Final Exam questions with correct answers Beneficiary - a person who is named to receive a portion of someone's estate. Will - a legal declaration of a person's wishes regarding disposal of his or her estate after death. Intestate - the status of not having a valid will. Trust - an arrangement in which a designated person known as a trustee manages assets for the benefit of someone else. Probate - a legal procedure of proving a will is valid or invalid. Executor - a person willing and able to perform the tasks involved in caring out a will. Guardian - a person who accepts responsibility of caring for children of the deceased and managing the estate for the children until they reach a certain age. Personal Finance Final Exam questions with correct answers Codicil - a document that explains add or deletes provisions in an existing will. Living Will - a legal document in which you state if you want to be kept alive by artificial means if you become terminally ill and are unable. Power of Attorney - a legal document that authorizes someone to act on your behalf Tax Liability - the total amount of taxes owed. Estate Tax - a federal tax collected on the value of a person's property at the time of his or her death. Inheritance Tax - a state tax collected on the property left by a person to his heirs in a will. Income Tax - a tax on wages, salaries, and self employed earnings.