Question 1

Interest,dividends,and capital gains from investments in tax-sheltered retirement plans are tax-free.

Accepted Answer

A) True 
 B)False

Question 2

Arvi,a college teaching assistant,received a raise of $800 from $18,000 to $18,800 this year.If inflation was 3 percent over the same period,which of the following is true?

Accepted Answer

A) Arvi's increase in real income was $800. 
B) Arvi's increase in real income was 4.4 percent. 
C) Arvi's increase in real income was $252 
D) Arvi's increase in real income was $252. 
A) Arvi's increase in real income was $800. 
B) Arvi's increase in real income was 4.4 percent. 
C) Arvi's increase in real income was $252 
D) Arvi's increase in real income was $252.

Question 3

By law,employers are not permitted to "match" all or part of their employees' contributions,even if they wish to encourage saving for retirement.

Accepted Answer

A) True 
 B)False

Question 4

Interest rates on home mortgages and other loans tend to fall during times of high inflation.

Accepted Answer

A) True 
 B)False

Question 5

Fee-based financial planners/brokers charge up-front fees for providing services and charge commissions on any securities trades or insurance purchases that they conduct on your behalf.

Accepted Answer

A) True 
 B)False

Question 6

The study of personal finance involves how people _____ their financial resources.

Accepted Answer

A) spend 
B) save 
C) invest 
D) All of these. 
A) spend 
B) save 
C) invest 
D) All of these.

Question 7

Occasionally,the economy will dip into a trough before it has reached a new peak after a previous trough.This phenomenon is called a

Accepted Answer

A) depression. 
B) recession. 
C) double dip recession. 
D) stagflation. 
A) depression. 
B) recession. 
C) double dip recession. 
D) stagflation.

Question 8

A flexible spending account is an employer-sponsored account that allows employee-paid expenses for medical or dependent care to be paid with employee's pretax dollars rather than after-tax income.

Accepted Answer

A) True 
 B)False

Question 9

Since it is impossible to make precise forecasts about economic trends,indicators such as inflation and interest rates can be ignored when planning your finances.

Accepted Answer

A) True 
 B)False

Question 10

Your standard of living is where you would like to be and your level of living is where you actually are.

Accepted Answer

A) True 
 B)False

Question 11

A good time to invest in stocks is when the economy is

Accepted Answer

A) in the prosperity of the expansion stage. 
B) in the trough of a recession. 
C) in a depression. 
D) entering the recovery stage. 
A) in the prosperity of the expansion stage. 
B) in the trough of a recession. 
C) in a depression. 
D) entering the recovery stage.

Question 12

In an employer-sponsored retirement plan,interest,dividends,and capital gains earned from the funds invested in the plan are taxed

Accepted Answer

A) only after funds are withdrawn from the plan, if at all. 
B) with each payment. 
C) annually. 
D) on a quarterly basis. 
A) only after funds are withdrawn from the plan, if at all. 
B) with each payment. 
C) annually. 
D) on a quarterly basis.

Question 13

Why do rising interest rates generally depress stock prices?

Accepted Answer

A) Businesses have to pay higher interest rates to borrow money, thus reducing their profits. 
B) Stock investors tend to take their money out of the stock market and invest in interest-paying investments. 
C) Future earnings will not be worth as much as today. 
D) All of these. 
A) Businesses have to pay higher interest rates to borrow money, thus reducing their profits. 
B) Stock investors tend to take their money out of the stock market and invest in interest-paying investments. 
C) Future earnings will not be worth as much as today. 
D) All of these.

Question 14

Being financially responsible is being knowledgeable about facts,concepts,principles,and technological tools that are fundamental to be smart about money.

Accepted Answer

A) True 
 B)False

Question 15

Purchasing power is a measure of the goods and services that one's income will buy.

Accepted Answer

A) True 
 B)False

Question 16

If the consumer price index was 232 in 2013 and 244 in 2015,how much did prices increase during this time period?

Accepted Answer

A) 4.9 percent 
B) 5.2 percent 
C) 6 percent 
D) 12 percent 
A) 4.9 percent 
B) 5.2 percent 
C) 6 percent 
D) 12 percent

Question 17

Most financially successful taxpayers have to pay federal income taxes at the 15 percent marginal tax rate.

Accepted Answer

A) True 
 B)False

Question 18

The U.S.government measures inflation using

Accepted Answer

A) the gross domestic product. 
B) the index of leading economic indicators. 
C) the consumer price index. 
D) the consumer confidence index. 
A) the gross domestic product. 
B) the index of leading economic indicators. 
C) the consumer price index. 
D) the consumer confidence index.

Question 19

The statistic that measures the value of all goods and services produced in the United States is the

Accepted Answer

A) consumer price index. 
B) index of leading economic indicators. 
C) federal funds rate. 
D) gross domestic product. 
A) consumer price index. 
B) index of leading economic indicators. 
C) federal funds rate. 
D) gross domestic product.

Question 20

Paul invested $10,000 in a security that will double in value in ten years.Approximately what annual rate of return is this investment making?

Accepted Answer

A) 10.0 percent 
B) 7.2 percent 
C) 6.3 percent 
D) 5.8 percent 
A) 10.0 percent 
B) 7.2 percent 
C) 6.3 percent 
D) 5.8 percent

Interest,dividends,and capital gains from investments in tax-sheltered retirement plans are tax-free.

Arvi,a college teaching assistant,received a raise of $800 from $18,000 to $18,800 this year.If inflation was 3 percent over the same period,which of the following is true?

By law,employers are not permitted to "match" all or part of their employees' contributions,even if they wish to encourage saving for retirement.

Interest rates on home mortgages and other loans tend to fall during times of high inflation.

Fee-based financial planners/brokers charge up-front fees for providing services and charge commissions on any securities trades or insurance purchases that they conduct on your behalf.

The study of personal finance involves how people _____ their financial resources.

Occasionally,the economy will dip into a trough before it has reached a new peak after a previous trough.This phenomenon is called a

A flexible spending account is an employer-sponsored account that allows employee-paid expenses for medical or dependent care to be paid with employee's pretax dollars rather than after-tax income.

Since it is impossible to make precise forecasts about economic trends,indicators such as inflation and interest rates can be ignored when planning your finances.

Your standard of living is where you would like to be and your level of living is where you actually are.

A good time to invest in stocks is when the economy is

In an employer-sponsored retirement plan,interest,dividends,and capital gains earned from the funds invested in the plan are taxed

Why do rising interest rates generally depress stock prices?

Being financially responsible is being knowledgeable about facts,concepts,principles,and technological tools that are fundamental to be smart about money.

Purchasing power is a measure of the goods and services that one's income will buy.

If the consumer price index was 232 in 2013 and 244 in 2015,how much did prices increase during this time period?

Most financially successful taxpayers have to pay federal income taxes at the 15 percent marginal tax rate.

The U.S.government measures inflation using

The statistic that measures the value of all goods and services produced in the United States is the

Paul invested $10,000 in a security that will double in value in ten years.Approximately what annual rate of return is this investment making?

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

Interest,dividends,and capital gains from investments in tax-sheltered retirement plans are tax-free.

Arvi,a college teaching assistant,received a raise of $800 from $18,000 to $18,800 this year.If inflation was 3 percent over the same period,which of the following is true?

By law,employers are not permitted to "match" all or part of their employees' contributions,even if they wish to encourage saving for retirement.

Interest rates on home mortgages and other loans tend to fall during times of high inflation.

Fee-based financial planners/brokers charge up-front fees for providing services and charge commissions on any securities trades or insurance purchases that they conduct on your behalf.

The study of personal finance involves how people _____ their financial resources.

Occasionally,the economy will dip into a trough before it has reached a new peak after a previous trough.This phenomenon is called a

A flexible spending account is an employer-sponsored account that allows employee-paid expenses for medical or dependent care to be paid with employee's pretax dollars rather than after-tax income.

Since it is impossible to make precise forecasts about economic trends,indicators such as inflation and interest rates can be ignored when planning your finances.

Your standard of living is where you would like to be and your level of living is where you actually are.

A good time to invest in stocks is when the economy is

In an employer-sponsored retirement plan,interest,dividends,and capital gains earned from the funds invested in the plan are taxed

Why do rising interest rates generally depress stock prices?

Being financially responsible is being knowledgeable about facts,concepts,principles,and technological tools that are fundamental to be smart about money.

Purchasing power is a measure of the goods and services that one's income will buy.

If the consumer price index was 232 in 2013 and 244 in 2015,how much did prices increase during this time period?

Most financially successful taxpayers have to pay federal income taxes at the 15 percent marginal tax rate.

The U.S.government measures inflation using

The statistic that measures the value of all goods and services produced in the United States is the

Paul invested $10,000 in a security that will double in value in ten years.Approximately what annual rate of return is this investment making?

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