Question 1

Purchasing ________ insurance is a relatively low cost way of protecting yourself from lost income due to an accident or prolonged illness.

Accepted Answer

A)  flexible term 
B)  health 
C)  contingent annuity 
D)  disability 
A)  flexible term 
B)  health 
C)  contingent annuity 
D)  disability

Question 2

For individuals, budgets are usually more trouble than they are worth.

Accepted Answer

A) True 
 B)False

Question 3

When purchasing with a credit card, it's important to remember that ________ if you do not pay the balance in full within a stated time period.

Accepted Answer

A)  the credit limit is reduced 
B)  no returns are allowed 
C)  interest is charged on the remaining balance 
D)  discounts are available 
A)  the credit limit is reduced 
B)  no returns are allowed 
C)  interest is charged on the remaining balance 
D)  discounts are available

Question 4

Most homeowner's insurance policies do not cover certain types of expensive items unless you purchase a rider for the additional coverage.

Accepted Answer

A) True 
 B)False

Question 5

Recent college graduates, Jason and Elizabeth, are newlyweds. Although they acquired a significant amount of debt during college, both recently got good-paying jobs and appear to have promising careers. Given their situation, down the road Jason and Elizabeth

Accepted Answer

A)  are almost certain to be able to retire comfortably when the time comes, given the high level of income they are likely to earn. 
B)  could be able to retire comfortably, but doing so will take planning and discipline on their part. 
C)  have little chance of enjoying a comfortable retirement because the college debts will take years to repay and become a major burden. 
D)  will probably find that Social Security will provide an adequate retirement, but that they may need to supplement this with a modest pension if they really want to enjoy the fine life in their golden years. 
A)  are almost certain to be able to retire comfortably when the time comes, given the high level of income they are likely to earn. 
B)  could be able to retire comfortably, but doing so will take planning and discipline on their part. 
C)  have little chance of enjoying a comfortable retirement because the college debts will take years to repay and become a major burden. 
D)  will probably find that Social Security will provide an adequate retirement, but that they may need to supplement this with a modest pension if they really want to enjoy the fine life in their golden years.

Question 6

Guaranteed replacement cost insurance coverage provides the insured with the depreciated cost of assets.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the best advice about the use of credit cards?

Accepted Answer

A)  Except for very small purchases, credit cards should always be used instead of cash. 
B)  The best approach to credit cards is never even to apply for one. 
C)  Credit cards are an important part of a personal financial system, but pay the balance in full during the period when no interest is charged. 
D)  Credit cards are most useful when making large purchases (over $500), because they allow you to spread out the payments to fit into your budget. 
A)  Except for very small purchases, credit cards should always be used instead of cash. 
B)  The best approach to credit cards is never even to apply for one. 
C)  Credit cards are an important part of a personal financial system, but pay the balance in full during the period when no interest is charged. 
D)  Credit cards are most useful when making large purchases (over $500), because they allow you to spread out the payments to fit into your budget.

Question 8

The best way to save money is to

Accepted Answer

A)  pay yourself first by taking out money for savings from each paycheck before deciding what to do with the remaining money. 
B)  start your own business designed to create business tax deductions. 
C)  prepare a balance sheet. 
D)  pay yourself last. 
A)  pay yourself first by taking out money for savings from each paycheck before deciding what to do with the remaining money. 
B)  start your own business designed to create business tax deductions. 
C)  prepare a balance sheet. 
D)  pay yourself last.

Question 9

Dylan and Wyatt are good friends who have similar jobs that pay them well. Both have established budgets that allow them to invest several hundred dollars each month. Dylan has a strategy of putting most of his money in bank CDs and a savings account. Wyatt has opted for a strategy of investing in the stock market. According to the evidence of the past 50 years, it is likely that over the long run

Accepted Answer

A)  Dylan and Wyatt will experience very similar rates of return. 
B)  Dylan will experience a significantly higher return than Wyatt. 
C)  Wyatt will experience a significantly higher return on his investments than Dylan, but will also experience more ups and downs over the years. 
D)  Dylan will experience a slightly higher return, but Wyatt's return will be more stable and predictable. 
A)  Dylan and Wyatt will experience very similar rates of return. 
B)  Dylan will experience a significantly higher return than Wyatt. 
C)  Wyatt will experience a significantly higher return on his investments than Dylan, but will also experience more ups and downs over the years. 
D)  Dylan will experience a slightly higher return, but Wyatt's return will be more stable and predictable.

Question 10

Joe wants life insurance to provide benefits for his family if he were to die. He also wants part of his premium to go into a savings plan that he will need if he lives to retirement age. His best strategy to achieve insurance and savings with one premium is term insurance.

Accepted Answer

A) True 
 B)False

Question 11

If you have minor children, the first step in estate planning is to select their guardian.

Accepted Answer

A) True 
 B)False

Question 12

Even though they are in debt, most of today's college graduates are capital-rich.

Accepted Answer

A) True 
 B)False

Question 13

Variable annuities offer investment choices identical to mutual funds.

Accepted Answer

A) True 
 B)False

Question 14

An individual retirement account (IRA) is a tax-deferred investment plan designed to encourage workers to save for retirement.

Accepted Answer

A) True 
 B)False

Question 15

About half of the U.S. population accumulates enough money to afford a comfortable retirement.

Accepted Answer

A) True 
 B)False

Purchasing ________ insurance is a relatively low cost way of protecting yourself from lost income due to an accident or prolonged illness.

For individuals, budgets are usually more trouble than they are worth.

When purchasing with a credit card, it's important to remember that ________ if you do not pay the balance in full within a stated time period.

Most homeowner's insurance policies do not cover certain types of expensive items unless you purchase a rider for the additional coverage.

Recent college graduates, Jason and Elizabeth, are newlyweds. Although they acquired a significant amount of debt during college, both recently got good-paying jobs and appear to have promising careers. Given their situation, down the road Jason and Elizabeth

Guaranteed replacement cost insurance coverage provides the insured with the depreciated cost of assets.

Which of the following is the best advice about the use of credit cards?

The best way to save money is to

Joe wants life insurance to provide benefits for his family if he were to die. He also wants part of his premium to go into a savings plan that he will need if he lives to retirement age. His best strategy to achieve insurance and savings with one premium is term insurance.

If you have minor children, the first step in estate planning is to select their guardian.

Even though they are in debt, most of today's college graduates are capital-rich.

Variable annuities offer investment choices identical to mutual funds.

An individual retirement account (IRA) is a tax-deferred investment plan designed to encourage workers to save for retirement.

About half of the U.S. population accumulates enough money to afford a comfortable retirement.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

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Exam 24: Managing Personal Finances

Purchasing ________ insurance is a relatively low cost way of protecting yourself from lost income due to an accident or prolonged illness.

For individuals, budgets are usually more trouble than they are worth.

When purchasing with a credit card, it's important to remember that ________ if you do not pay the balance in full within a stated time period.

Most homeowner's insurance policies do not cover certain types of expensive items unless you purchase a rider for the additional coverage.

Recent college graduates, Jason and Elizabeth, are newlyweds. Although they acquired a significant amount of debt during college, both recently got good-paying jobs and appear to have promising careers. Given their situation, down the road Jason and Elizabeth

Guaranteed replacement cost insurance coverage provides the insured with the depreciated cost of assets.

Which of the following is the best advice about the use of credit cards?

The best way to save money is to

Joe wants life insurance to provide benefits for his family if he were to die. He also wants part of his premium to go into a savings plan that he will need if he lives to retirement age. His best strategy to achieve insurance and savings with one premium is term insurance.

If you have minor children, the first step in estate planning is to select their guardian.

Even though they are in debt, most of today's college graduates are capital-rich.

Variable annuities offer investment choices identical to mutual funds.

An individual retirement account (IRA) is a tax-deferred investment plan designed to encourage workers to save for retirement.

About half of the U.S. population accumulates enough money to afford a comfortable retirement.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Filters