Question 1

Risk is the possibility that cash flows will be variable.

Accepted Answer

A) True 
 B)False

Question 2

About 90% of young people with college degrees indicate that their education has already paid off or will pay off in the future.

Accepted Answer

A) True 
 B)False

Question 3

A general job search would include all of the following approaches except:

Accepted Answer

A) checking career web sites. 
B) reading classified ads in newspapers. 
C) placing "available for work" ads in magazines. 
D) attending career fairs. 
A) checking career web sites. 
B) reading classified ads in newspapers. 
C) placing "available for work" ads in magazines. 
D) attending career fairs.

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

Line items in a budget are used to identify various expenditures such as housing, food, transportation, personal and health care.

Accepted Answer

A) True 
 B)False

Question 6

The second step in financial planning is to set short-term, intermediate-term and long-term financial goals

Accepted Answer

A) True 
 B)False

Question 7

If whenever something goes wrong (car repairs, doctors' bills), you have to use your credit card, this is a sign of financial problems.

Accepted Answer

A) True 
 B)False

Question 8

To increase the supply of money available for mortgage loans and new home purchases _____ bought mortgages already written by lenders, pooled them, and sold them as mortgage?backed securities to investors on the open market.

Accepted Answer

A) Fannie Mae 
B) Freddie Mac 
C) banks 
D) investment bankers 
A) Fannie Mae 
B) Freddie Mac 
C) banks 
D) investment bankers

Question 9

Debit cards can be expensive to use because:

Accepted Answer

A) they can cause you to overdraft your checking account and consequently incur an overdraft fee. 
B) the finance charge on debit cards is higher than on credit cards. 
C) the annual fee for these cards is higher than for credit cards. 
D) merchants charge a fee when you use them. 
A) they can cause you to overdraft your checking account and consequently incur an overdraft fee. 
B) the finance charge on debit cards is higher than on credit cards. 
C) the annual fee for these cards is higher than for credit cards. 
D) merchants charge a fee when you use them.

Question 10

In addition to the itemized lists of inflows and outflows, there are three other columns in the budget.They are _____.

Accepted Answer

A) cash in, cash out, change in cash 
B) assets, liabilities and net worth 
C) revenues, expenditures and net income 
D) budget, actual and variance 
A) cash in, cash out, change in cash 
B) assets, liabilities and net worth 
C) revenues, expenditures and net income 
D) budget, actual and variance

Question 11

The bank rate measures the percentage of disposable income devoted to savings.

Accepted Answer

A) True 
 B)False

Question 12

The financial planning process consists of three steps:

Accepted Answer

A) evaluate your current financial status, set financial goals, develop and use a budget. 
B) work with a financial planner, create a financial budget, devise a plan to maximize the likelihood that you will stay within your budget. 
C) calculate your total debt, determine the cash available per month to pay down the debt, develop a plan for paying off the debt. 
D) prepare a budget, prepare a list of assets and liabilities, prepare a statement of cash flows. 
A) evaluate your current financial status, set financial goals, develop and use a budget. 
B) work with a financial planner, create a financial budget, devise a plan to maximize the likelihood that you will stay within your budget. 
C) calculate your total debt, determine the cash available per month to pay down the debt, develop a plan for paying off the debt. 
D) prepare a budget, prepare a list of assets and liabilities, prepare a statement of cash flows.

Question 13

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

Accepted Answer

A) compound interest 
B) simple interest 
C) CDs 
D) investing 
A) compound interest 
B) simple interest 
C) CDs 
D) investing

Question 14

The first step in getting a good job offer is the interview.

Accepted Answer

A) True 
 B)False

Question 15

Your _____ is the difference between your assets and your liabilities.

Accepted Answer

A) statement of cash-flow 
B) liquidity 
C) net worth 
D) variance 
A) statement of cash-flow 
B) liquidity 
C) net worth 
D) variance

Question 16

When the actual amount of expenditure is more than the budgeted amount, it is recorded as an "unfavorable" variance.

Accepted Answer

A) True 
 B)False

Question 17

Stage 1 of an individual's financial plan should focus on preserving wealth.

Accepted Answer

A) True 
 B)False

Question 18

Your personal liabilities are your obligations to various creditors.

Accepted Answer

A) True 
 B)False

Question 19

Over the course of the financial life cycle, families headed by college graduates will earn about ___________more than families headed by high school graduates who didn't attend college.

Accepted Answer

A) $1.6 million 
B) $500,000 
C) $200,000 
D) $3.4 million 
A) $1.6 million 
B) $500,000 
C) $200,000 
D) $3.4 million

Question 20

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.

Risk is the possibility that cash flows will be variable.

About 90% of young people with college degrees indicate that their education has already paid off or will pay off in the future.

A general job search would include all of the following approaches except:

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

Line items in a budget are used to identify various expenditures such as housing, food, transportation, personal and health care.

The second step in financial planning is to set short-term, intermediate-term and long-term financial goals

If whenever something goes wrong (car repairs, doctors' bills), you have to use your credit card, this is a sign of financial problems.

To increase the supply of money available for mortgage loans and new home purchases _____ bought mortgages already written by lenders, pooled them, and sold them as mortgage?backed securities to investors on the open market.

Debit cards can be expensive to use because:

In addition to the itemized lists of inflows and outflows, there are three other columns in the budget.They are _____.

The bank rate measures the percentage of disposable income devoted to savings.

The financial planning process consists of three steps:

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

The first step in getting a good job offer is the interview.

Your _____ is the difference between your assets and your liabilities.

When the actual amount of expenditure is more than the budgeted amount, it is recorded as an "unfavorable" variance.

Stage 1 of an individual's financial plan should focus on preserving wealth.

Your personal liabilities are your obligations to various creditors.

Over the course of the financial life cycle, families headed by college graduates will earn about ___________more than families headed by high school graduates who didn't attend college.

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

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

Risk is the possibility that cash flows will be variable.

About 90% of young people with college degrees indicate that their education has already paid off or will pay off in the future.

A general job search would include all of the following approaches except:

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

Line items in a budget are used to identify various expenditures such as housing, food, transportation, personal and health care.

The second step in financial planning is to set short-term, intermediate-term and long-term financial goals

If whenever something goes wrong (car repairs, doctors' bills), you have to use your credit card, this is a sign of financial problems.

To increase the supply of money available for mortgage loans and new home purchases _____ bought mortgages already written by lenders, pooled them, and sold them as mortgage?backed securities to investors on the open market.

Debit cards can be expensive to use because:

In addition to the itemized lists of inflows and outflows, there are three other columns in the budget.They are _____.

The bank rate measures the percentage of disposable income devoted to savings.

The financial planning process consists of three steps:

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

The first step in getting a good job offer is the interview.

Your _____ is the difference between your assets and your liabilities.

When the actual amount of expenditure is more than the budgeted amount, it is recorded as an "unfavorable" variance.

Stage 1 of an individual's financial plan should focus on preserving wealth.

Your personal liabilities are your obligations to various creditors.

Over the course of the financial life cycle, families headed by college graduates will earn about ___________more than families headed by high school graduates who didn't attend college.

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

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