Question 1

You can save money on your cost of premiums for your employer-based health care plan by selecting a high-deductible health plan (HDHP).

Accepted Answer

A) True 
 B)False

Question 2

The rate of increase in prices of items purchased by a particular individual is called the

Accepted Answer

A) federal funds rate. 
B) consumer confidence index. 
C) personal inflation rate. 
D) consumer price index. 
A) federal funds rate. 
B) consumer confidence index. 
C) personal inflation rate. 
D) consumer price index.

Question 3

401(k),403(b) and 457 plans are example of tax-sheltered retirement plans offered by employers.

Accepted Answer

A) True 
 B)False

Question 4

If the consumer price index was 100 in 1984 and 244 in 2015,the purchasing power of the dollar

Accepted Answer

A) fell 144 percent. 
B) fell 59 percent. 
C) rose 144 percent. 
D) rose 59 percent. 
A) fell 144 percent. 
B) fell 59 percent. 
C) rose 144 percent. 
D) rose 59 percent.

Question 5

The economic phase with conditions making it easy for consumers to buy homes,cars,and other goods is called

Accepted Answer

A) expansion. 
B) trough. 
C) peak. 
D) contraction. 
A) expansion. 
B) trough. 
C) peak. 
D) contraction.

Question 6

Which of the following economic indicators tends to move in the opposite direction of where the economy is headed?

Accepted Answer

A) procyclical indicators 
B) employment rate 
C) gross domestic product 
D) counter cyclical indicators 
A) procyclical indicators 
B) employment rate 
C) gross domestic product 
D) counter cyclical indicators

Question 7

Financial well-being is a state in which a person can feel secure in his or her financial future.

Accepted Answer

A) True 
 B)False

Question 8

Which form of compensation is not considered an employee benefit?

Accepted Answer

A) Paid holidays 
B) Commissions 
C) Health insurance 
D) Retirement plan 
A) Paid holidays 
B) Commissions 
C) Health insurance 
D) Retirement plan

Question 9

Financial literacy is your knowledge of facts,concepts,principles,and technological tools that are fundamental to be smart about money.

Accepted Answer

A) True 
 B)False

Question 10

In times of high inflation,personal incomes generally keep up with the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 11

Donald is a college student who has $4,000 in savings that he earned from his summer job.He plans to leave the $4,000 in a 6 percent certificate of deposit (CD) for three years,but his banker has asked Donald whether he wants the interest earned on the CD mailed to him at the end of each year or reinvested in the CD.Approximately how much more will Donald earn if he decides to reinvest the interest rather than withdrawing the interest income each year?

Accepted Answer

A) $14 
B) $44 
C) $144 
D) $240 
A) $14 
B) $44 
C) $144 
D) $240

Question 12

During a recession,people and business are likely to engage in ____________; meaning that their use of credit will decrease.

Accepted Answer

A) leveraging. 
B) deleveraging. 
C) compounding. 
D) tax-sheltering. 
A) leveraging. 
B) deleveraging. 
C) compounding. 
D) tax-sheltering.

Question 13

Lisa Carson has the opportunity to receive $12,000 now or $15,000 in four years.If Lisa can earn 6 percent on her investments,what is the present value of the $15,000 payment?

Accepted Answer

A) $15,000 
B) $13,785 
C) $11,881 
D) $9,505 
A) $15,000 
B) $13,785 
C) $11,881 
D) $9,505

Question 14

If you receive tax-sheltered income,it means that

Accepted Answer

A) you will never have to pay taxes on the income. 
B) the income has already been taxed. 
C) the taxes on the income will be deferred until a later date. 
D) taxes will be assessed on the state rather than federal level. 
A) you will never have to pay taxes on the income. 
B) the income has already been taxed. 
C) the taxes on the income will be deferred until a later date. 
D) taxes will be assessed on the state rather than federal level.

Question 15

You cannot build financial security or wealth unless you spend less than you earn.

Accepted Answer

A) True 
 B)False

Question 16

Harper earned $48,000 in 2014.If inflation was 3 percent that year and continued at that rate how long would it take for the purchasing power of that level of income to be cut in half?

Accepted Answer

A) 33 years 
B) 24 years 
C) 23 years 
D) 3 years 
A) 33 years 
B) 24 years 
C) 23 years 
D) 3 years

Question 17

A rising inflation rate is good news for

Accepted Answer

A) stock investors. 
B) borrowers. 
C) savers. 
D) lenders. 
A) stock investors. 
B) borrowers. 
C) savers. 
D) lenders.

Question 18

Leading economic indicators are those that do the best job of measuring the state of the economy at any point in time.

Accepted Answer

A) True 
 B)False

Question 19

The preferred phase of the economic cycle is

Accepted Answer

A) expansion 
B) peak 
C) trough 
D) contraction 
A) expansion 
B) peak 
C) trough 
D) contraction

Question 20

You would want your financial planner to provide you with an investment policy statement that details your investment philosophy,your financial situation,and the risks you are willing to take,as well as what the advisor will do for you.

Accepted Answer

A) True 
 B)False

You can save money on your cost of premiums for your employer-based health care plan by selecting a high-deductible health plan (HDHP).

The rate of increase in prices of items purchased by a particular individual is called the

401(k),403(b) and 457 plans are example of tax-sheltered retirement plans offered by employers.

If the consumer price index was 100 in 1984 and 244 in 2015,the purchasing power of the dollar

The economic phase with conditions making it easy for consumers to buy homes,cars,and other goods is called

Which of the following economic indicators tends to move in the opposite direction of where the economy is headed?

Financial well-being is a state in which a person can feel secure in his or her financial future.

Which form of compensation is not considered an employee benefit?

Financial literacy is your knowledge of facts,concepts,principles,and technological tools that are fundamental to be smart about money.

In times of high inflation,personal incomes generally keep up with the rate of inflation.

During a recession,people and business are likely to engage in ____________; meaning that their use of credit will decrease.

Lisa Carson has the opportunity to receive $12,000 now or $15,000 in four years.If Lisa can earn 6 percent on her investments,what is the present value of the $15,000 payment?

If you receive tax-sheltered income,it means that

You cannot build financial security or wealth unless you spend less than you earn.

Harper earned $48,000 in 2014.If inflation was 3 percent that year and continued at that rate how long would it take for the purchasing power of that level of income to be cut in half?

A rising inflation rate is good news for

Leading economic indicators are those that do the best job of measuring the state of the economy at any point in time.

The preferred phase of the economic cycle is

You would want your financial planner to provide you with an investment policy statement that details your investment philosophy,your financial situation,and the risks you are willing to take,as well as what the advisor will do for you.

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 1: Understanding Personal Finance

You can save money on your cost of premiums for your employer-based health care plan by selecting a high-deductible health plan (HDHP).

The rate of increase in prices of items purchased by a particular individual is called the

401(k),403(b) and 457 plans are example of tax-sheltered retirement plans offered by employers.

If the consumer price index was 100 in 1984 and 244 in 2015,the purchasing power of the dollar

The economic phase with conditions making it easy for consumers to buy homes,cars,and other goods is called

Which of the following economic indicators tends to move in the opposite direction of where the economy is headed?

Financial well-being is a state in which a person can feel secure in his or her financial future.

Which form of compensation is not considered an employee benefit?

Financial literacy is your knowledge of facts,concepts,principles,and technological tools that are fundamental to be smart about money.

In times of high inflation,personal incomes generally keep up with the rate of inflation.

During a recession,people and business are likely to engage in ____________; meaning that their use of credit will decrease.

Lisa Carson has the opportunity to receive $12,000 now or $15,000 in four years.If Lisa can earn 6 percent on her investments,what is the present value of the $15,000 payment?

If you receive tax-sheltered income,it means that

You cannot build financial security or wealth unless you spend less than you earn.

Harper earned $48,000 in 2014.If inflation was 3 percent that year and continued at that rate how long would it take for the purchasing power of that level of income to be cut in half?

A rising inflation rate is good news for

Leading economic indicators are those that do the best job of measuring the state of the economy at any point in time.

The preferred phase of the economic cycle is

You would want your financial planner to provide you with an investment policy statement that details your investment philosophy,your financial situation,and the risks you are willing to take,as well as what the advisor will do for you.

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters