Question 1

Real income and nominal income are two terms that reflect the actual purchasing power of one's income.

Accepted Answer

A) True 
 B)False

Question 2

The two statistics one should track to understand the future direction of the economy are

Accepted Answer

A) interest rates and inflation. 
B) interest rates and the gross domestic product. 
C) the consumer confidence index and the index of leading economic indicators. 
D) inflation and the index of leading economic indicators. 
A) interest rates and inflation. 
B) interest rates and the gross domestic product. 
C) the consumer confidence index and the index of leading economic indicators. 
D) inflation and the index of leading economic indicators.

Question 3

Compound interest is the calculation of interest on interest as well as on the original investment.

Accepted Answer

A) True 
 B)False

Question 4

How much is Jeremiah and Sara's real income after the $3,000 increase in income?

Accepted Answer

A) $63,000 
B) $61,765 
C) $60,000 
D) $58,824 
A) $63,000 
B) $61,765 
C) $60,000 
D) $58,824

Question 5

A method by which one can compare cash flows across time,either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) is called

Accepted Answer

A) time-value of money. 
B) compounding. 
C) simple interest. 
D) marginal analysis. 
A) time-value of money. 
B) compounding. 
C) simple interest. 
D) marginal analysis.

Question 6

A worker covered by a health care plan might have to pay the first $1000 of any health expenses during a year.This requirement is called the

Accepted Answer

A) coinsurance 
B) use-it-or-lose-it rule. 
C) variance. 
D) deductible. 
A) coinsurance 
B) use-it-or-lose-it rule. 
C) variance. 
D) deductible.

Question 7

Which of the following plans,often provided to workers by their employer,allows the employee to choose among a listing both tax-sheltered and non-tax-sheltered benefits?

Accepted Answer

A) Cafeteria plan 
B) Flexible spending accounts 
C) Employer-sponsored qualified retirement plans 
D) Health savings account 
A) Cafeteria plan 
B) Flexible spending accounts 
C) Employer-sponsored qualified retirement plans 
D) Health savings account

Question 8

An example of inflation is an increase in the price of coffee or gasoline or some other commodity.

Accepted Answer

A) True 
 B)False

Real income and nominal income are two terms that reflect the actual purchasing power of one's income.

The two statistics one should track to understand the future direction of the economy are

Compound interest is the calculation of interest on interest as well as on the original investment.

How much is Jeremiah and Sara's real income after the $3,000 increase in income?

A method by which one can compare cash flows across time,either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) is called

A worker covered by a health care plan might have to pay the first $1000 of any health expenses during a year.This requirement is called the

Which of the following plans,often provided to workers by their employer,allows the employee to choose among a listing both tax-sheltered and non-tax-sheltered benefits?

An example of inflation is an increase in the price of coffee or gasoline or some other commodity.

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

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Exam 1: Understanding Personal Finance

Real income and nominal income are two terms that reflect the actual purchasing power of one's income.

The two statistics one should track to understand the future direction of the economy are

Compound interest is the calculation of interest on interest as well as on the original investment.

How much is Jeremiah and Sara's real income after the $3,000 increase in income?

A method by which one can compare cash flows across time,either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value) is called

A worker covered by a health care plan might have to pay the first $1000 of any health expenses during a year.This requirement is called the

Which of the following plans,often provided to workers by their employer,allows the employee to choose among a listing both tax-sheltered and non-tax-sheltered benefits?

An example of inflation is an increase in the price of coffee or gasoline or some other commodity.

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