Question 1

What is the purpose of disability insurance?

Accepted Answer

A) Covers medical costs for you and your family members 
B) Pays you for time lost from work due to a job injury 
C) Provides medical coverage to individuals with disabilities 
D) Pays an income to you when you are unable to work because of illness for an extended period of time 
A) Covers medical costs for you and your family members 
B) Pays you for time lost from work due to a job injury 
C) Provides medical coverage to individuals with disabilities 
D) Pays an income to you when you are unable to work because of illness for an extended period of time

Question 2

The principle whereby a dollar received in the present is worth more than a dollar received in the future is called compound interest.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is not true?

Accepted Answer

A) Most people prefer to consume now than in the future. 
B) If you put $100 in a bank on 1/1/2010 and it earns compound interest at an annual rate of 10%,on 12/31/2011,you will have exactly $220. 
C) a dollar received today starts earning interest sooner than one received tomorrow. 
D) starting to save $2,000 a year at 10% at age 23 doubles the cash you would have if instead you started saving $2,000 a year at age 36. 
A) Most people prefer to consume now than in the future. 
B) If you put $100 in a bank on 1/1/2010 and it earns compound interest at an annual rate of 10%,on 12/31/2011,you will have exactly $220. 
C) a dollar received today starts earning interest sooner than one received tomorrow. 
D) starting to save $2,000 a year at 10% at age 23 doubles the cash you would have if instead you started saving $2,000 a year at age 36.

Question 4

Subprime loans were made to borrowers who don't qualify for market-set interest rates because of their age,gender or marital status.

Accepted Answer

A) True 
 B)False

Question 5

The main problem with an adjustable rate mortgage (ARM)is that:

Accepted Answer

A) you have to pay the same interest rate as in a fixed-rate mortgage plus 10 percent. 
B) it makes planning and budgeting difficult because you don't know when the rate will change. 
C) when the rate adjusts upward your house payment goes down. 
D) when the prime rate falls,so does your mortgage interest rate. 
A) you have to pay the same interest rate as in a fixed-rate mortgage plus 10 percent. 
B) it makes planning and budgeting difficult because you don't know when the rate will change. 
C) when the rate adjusts upward your house payment goes down. 
D) when the prime rate falls,so does your mortgage interest rate.

Question 6

With simple interest,principal plus interest earns more interest.

Accepted Answer

A) True 
 B)False

Question 7

You have financial problems if you're a splurger and/or your bills are too high for your income.

Accepted Answer

A) True 
 B)False

Question 8

Management risk is the risk that poor management of an organization with which you're dealing may adversely affect the outcome of your personal?finances planning.

Accepted Answer

A) True 
 B)False

Question 9

If your monthly bills are too high for your income,do whatever you can to bring down those bills.

Accepted Answer

A) True 
 B)False

Question 10

The difference between your assets and your liabilities is called fair market value.

Accepted Answer

A) True 
 B)False

Question 11

John Creighton just received a financial aid package that includes several forms of support.Which of the following type of aid is based on his financial need and does not have to be repaid?

Accepted Answer

A) Athletic scholarship 
B) Pell Grant 
C) Work study 
D) Both b and c 
A) Athletic scholarship 
B) Pell Grant 
C) Work study 
D) Both b and c

Question 12

Which of the following is not true about debit cards?

Accepted Answer

A) If you spend or take out more money through an ATM machine than you have in your account,banks do not charge fees if you are in the overdraft protection program. 
B) Debit cards are accepted by most merchants. 
C) Debit cards can help you to control spending. 
D) Banks need to get your permission before enrolling you in an overdraft protection program. 
A) If you spend or take out more money through an ATM machine than you have in your account,banks do not charge fees if you are in the overdraft protection program. 
B) Debit cards are accepted by most merchants. 
C) Debit cards can help you to control spending. 
D) Banks need to get your permission before enrolling you in an overdraft protection program.

Question 13

Cars and boats are appreciable assets.

Accepted Answer

A) True 
 B)False

Question 14

Monetary or liquid assets include all of the following except _____.

Accepted Answer

A) cash 
B) money in checking accounts 
C) cars 
D) certificates of deposits (CD's) 
A) cash 
B) money in checking accounts 
C) cars 
D) certificates of deposits (CD's)

Question 15

Most young people can get along without medical insurance.

Accepted Answer

A) True 
 B)False

Question 16

With _____,the interest earned on your savings in a given time period is added to the money in your savings account,and the new total (principal plus interest)earns more interest.

Accepted Answer

A) APY 
B) simple interest 
C) compounding 
D) bonds 
A) APY 
B) simple interest 
C) compounding 
D) bonds

Question 17

Part of your personal net worth statement is the amount owed to others.

Accepted Answer

A) True 
 B)False

Question 18

Sam prepared a monthly budget and budgeted $250 a month for wages earned at his part-time job.At the end of the first month when he added up his pay stubs,he found he earned only $200.His budget will show a(n)_____.

Accepted Answer

A) favorable variance of $50 
B) favorable variance of $200 
C) unfavorable variance of $50 
D) unfavorable variance of $450 
A) favorable variance of $50 
B) favorable variance of $200 
C) unfavorable variance of $50 
D) unfavorable variance of $450

Question 19

The adjustable-rate mortgage (ARM)has an interest rate tied to the increase or decrease of certain interest rates that your lender has to pay.

Accepted Answer

A) True 
 B)False

Question 20

Typically,your financial plans do not change very much over the course of your life.

Accepted Answer

A) True 
 B)False

What is the purpose of disability insurance?

The principle whereby a dollar received in the present is worth more than a dollar received in the future is called compound interest.

Which of the following statements is not true?

Subprime loans were made to borrowers who don't qualify for market-set interest rates because of their age,gender or marital status.

The main problem with an adjustable rate mortgage (ARM)is that:

With simple interest,principal plus interest earns more interest.

You have financial problems if you're a splurger and/or your bills are too high for your income.

Management risk is the risk that poor management of an organization with which you're dealing may adversely affect the outcome of your personal?finances planning.

If your monthly bills are too high for your income,do whatever you can to bring down those bills.

The difference between your assets and your liabilities is called fair market value.

John Creighton just received a financial aid package that includes several forms of support.Which of the following type of aid is based on his financial need and does not have to be repaid?

Which of the following is not true about debit cards?

Cars and boats are appreciable assets.

Monetary or liquid assets include all of the following except _____.

Most young people can get along without medical insurance.

With _____,the interest earned on your savings in a given time period is added to the money in your savings account,and the new total (principal plus interest)earns more interest.

Part of your personal net worth statement is the amount owed to others.

Sam prepared a monthly budget and budgeted $250 a month for wages earned at his part-time job.At the end of the first month when he added up his pay stubs,he found he earned only $200.His budget will show a(n)_____.

The adjustable-rate mortgage (ARM)has an interest rate tied to the increase or decrease of certain interest rates that your lender has to pay.

Typically,your financial plans do not change very much over the course of your life.

The Foundations of Business

Entrepreneurship

Selecting a Form of Business Ownership

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 15: Personal Finances

What is the purpose of disability insurance?

The principle whereby a dollar received in the present is worth more than a dollar received in the future is called compound interest.

Which of the following statements is not true?

Subprime loans were made to borrowers who don't qualify for market-set interest rates because of their age,gender or marital status.

The main problem with an adjustable rate mortgage (ARM)is that:

With simple interest,principal plus interest earns more interest.

You have financial problems if you're a splurger and/or your bills are too high for your income.

Management risk is the risk that poor management of an organization with which you're dealing may adversely affect the outcome of your personal?finances planning.

If your monthly bills are too high for your income,do whatever you can to bring down those bills.

The difference between your assets and your liabilities is called fair market value.

John Creighton just received a financial aid package that includes several forms of support.Which of the following type of aid is based on his financial need and does not have to be repaid?

Which of the following is not true about debit cards?

Cars and boats are appreciable assets.

Monetary or liquid assets include all of the following except _____.

Most young people can get along without medical insurance.

With _____,the interest earned on your savings in a given time period is added to the money in your savings account,and the new total (principal plus interest)earns more interest.

Part of your personal net worth statement is the amount owed to others.

Sam prepared a monthly budget and budgeted $250 a month for wages earned at his part-time job.At the end of the first month when he added up his pay stubs,he found he earned only $200.His budget will show a(n)_____.

The adjustable-rate mortgage (ARM)has an interest rate tied to the increase or decrease of certain interest rates that your lender has to pay.

Typically,your financial plans do not change very much over the course of your life.

The Foundations of Business

Entrepreneurship

Selecting a Form of Business Ownership

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters