Question 1

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 2

Your first step in applying for a job is to write a cover letter- a document that explains why you're sending your résumé and highlights your qualifications.

Accepted Answer

A) True 
 B)False

Question 3

Failing to pay debts can ultimately cause you to serve time in prison.

Accepted Answer

A) True 
 B)False

Question 4

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 5

For expenditures, if the actual amount is higher than the budgeted amount, the variance is favorable.

Accepted Answer

A) True 
 B)False

Question 6

You are more likely to qualify for a loan if you _____.

Accepted Answer

A) never had a need for a credit card 
B) are married 
C) rent an apartment rather than own a house with a mortgage 
D) have a history of borrowing 
A) never had a need for a credit card 
B) are married 
C) rent an apartment rather than own a house with a mortgage 
D) have a history of borrowing

Question 7

Theadjustable?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 8

Money market accounts are considered liquid assets because they can be easily accessed to get cash.

Accepted Answer

A) True 
 B)False

Question 9

A budget shows the income received for the past year and the amounts one expects to spend in the next year for each cash outflow item.

Accepted Answer

A) True 
 B)False

Question 10

Examples of personal liabilities include the following except_______.

Accepted Answer

A) credit card balances 
B) student loans 
C) tuition 
D) home mortgage 
A) credit card balances 
B) student loans 
C) tuition 
D) home mortgage

Question 11

Which of the following is not true about credit card costs?

Accepted Answer

A) You can avoid annual fees by shopping around but the tradeoff for no annual fee might be a higher interest rate. 
B) Over-limit fees are charged whenever you exceed your credit line. 
C) 6% of late-payment fees are incurred by college students. 
D) Cash advance fees are often about 1% of the amount borrowed. 
A) You can avoid annual fees by shopping around but the tradeoff for no annual fee might be a higher interest rate. 
B) Over-limit fees are charged whenever you exceed your credit line. 
C) 6% of late-payment fees are incurred by college students. 
D) Cash advance fees are often about 1% of the amount borrowed.

Question 12

An alternative to a credit card is a debit card, which pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.

Accepted Answer

A) True 
 B)False

Question 13

Generally, financial needs peak somewhere in stage 2, at approximately age fifty-five, or ten years before typical retirement age.

Accepted Answer

A) True 
 B)False

Question 14

If your personal savings rate is negative it means that you:

Accepted Answer

A) have no savings at all 
B) spent more than you've earned 
C) removed more money from your savings account than what you've deposited 
D) spent more than you earned and removed cash from your savings for the period in question 
A) have no savings at all 
B) spent more than you've earned 
C) removed more money from your savings account than what you've deposited 
D) spent more than you earned and removed cash from your savings for the period in question

Question 15

Subprime loans have very attractive interest rates because they are below the prime rate.

Accepted Answer

A) True 
 B)False

Question 16

A good way to approach your financial goals is by dividing them into three time frames:

Accepted Answer

A) short term (less than 2 years), intermediate term (2-5 years), and long term (more than 5 years). 
B) short-run (within the next 12 months), moderate (1-2 years), and long-run (more than 2 years). 
C) one-year, two-year, three or more years. 
D) moderate, intermediary, long-term. 
A) short term (less than 2 years), intermediate term (2-5 years), and long term (more than 5 years). 
B) short-run (within the next 12 months), moderate (1-2 years), and long-run (more than 2 years). 
C) one-year, two-year, three or more years. 
D) moderate, intermediary, long-term.

Question 17

If someone is insolvent, it's because they are spending more than they're earning.

Accepted Answer

A) True 
 B)False

Question 18

An income variance occurs when actual income turns out to be higher than expected or budgeted income.

Accepted Answer

A) True 
 B)False

Question 19

What is the best way to get a copy of your credit report?

Accepted Answer

A) Ask someone at your bank 
B) Ask your credit card company 
C) Go online and request a free copy 
D) Buy a copy from one of the three credit report agencies. 
A) Ask someone at your bank 
B) Ask your credit card company 
C) Go online and request a free copy 
D) Buy a copy from one of the three credit report agencies.

Question 20

A goal that you expect to achieve in 2 to 5 years is a(n) _____.

Accepted Answer

A) short-term goal 
B) generally unachievable 
C) intermediate-term goal 
D) long-term goal 
A) short-term goal 
B) generally unachievable 
C) intermediate-term goal 
D) long-term goal

Which of the following statements is not true?

Your first step in applying for a job is to write a cover letter- a document that explains why you're sending your résumé and highlights your qualifications.

Failing to pay debts can ultimately cause you to serve time in prison.

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

For expenditures, if the actual amount is higher than the budgeted amount, the variance is favorable.

You are more likely to qualify for a loan if you _____.

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

Money market accounts are considered liquid assets because they can be easily accessed to get cash.

A budget shows the income received for the past year and the amounts one expects to spend in the next year for each cash outflow item.

Examples of personal liabilities include the following except_______.

Which of the following is not true about credit card costs?

An alternative to a credit card is a debit card, which pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.

Generally, financial needs peak somewhere in stage 2, at approximately age fifty-five, or ten years before typical retirement age.

If your personal savings rate is negative it means that you:

Subprime loans have very attractive interest rates because they are below the prime rate.

A good way to approach your financial goals is by dividing them into three time frames:

If someone is insolvent, it's because they are spending more than they're earning.

An income variance occurs when actual income turns out to be higher than expected or budgeted income.

What is the best way to get a copy of your credit report?

A goal that you expect to achieve in 2 to 5 years is a(n) _____.

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

Which of the following statements is not true?

Your first step in applying for a job is to write a cover letter- a document that explains why you're sending your résumé and highlights your qualifications.

Failing to pay debts can ultimately cause you to serve time in prison.

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

For expenditures, if the actual amount is higher than the budgeted amount, the variance is favorable.

You are more likely to qualify for a loan if you _____.

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

Money market accounts are considered liquid assets because they can be easily accessed to get cash.

A budget shows the income received for the past year and the amounts one expects to spend in the next year for each cash outflow item.

Examples of personal liabilities include the following except_______.

Which of the following is not true about credit card costs?

An alternative to a credit card is a debit card, which pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.

Generally, financial needs peak somewhere in stage 2, at approximately age fifty-five, or ten years before typical retirement age.

If your personal savings rate is negative it means that you:

Subprime loans have very attractive interest rates because they are below the prime rate.

A good way to approach your financial goals is by dividing them into three time frames:

If someone is insolvent, it's because they are spending more than they're earning.

An income variance occurs when actual income turns out to be higher than expected or budgeted income.

What is the best way to get a copy of your credit report?

A goal that you expect to achieve in 2 to 5 years is a(n) _____.

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