(Canfield) Personal Finance: Exam Review

If you really want to save money, you've got to ___________. a. fly economy class b. have a financial advisor c. live on less than you make d. invest in a Roth IRA

Property tax, excise tax, and inheritance tax are all examples of ___________. a. wealth tax b. income tax c. payroll tax d. sales tax

Live like no one else now, so later you can live and ________ like no one else. a. work hard b. be selfish c. hoard your sources d. give

A fixed-rate mortgage has a _____________ mortgage rate for ___________ years. a. good; 15 b. set; a set number c. high; a large amount of d. 12%; 30

Don't get sucked into the _______________ scam. a. health care b. whole life insurance c. half-insurance d. term life insurance

After you hire a real estate agent, the next step in the process is to _______________. a. get a home inspection b. start looking at homes within your budget c. close on your new home d. make on offer on a home

Your decision to rent or buy depends on your___________. a. friends' opinions b. feelings toward renting or buying c. income tax d. financial situation

A bank can help you ________ your money and keep it ________. a. manage; safe b. deposit; budget c. find; glowing d. budget; available

What is The First Foundation? a. build wealth and give b. pay cash for college c. open a checking account d. save a $500 emergency fund

What is the goal of an emergency fund? a. to pay for health insurance b. to have cash on hand for unexpected events c. to pay for large purchases d. to save for your children's college expenses

Americans spend over $600 a month on _____________. a. groceries and eating out b. credit card fees c. entertainment d. impulse purchases they didn't plan to buy

When you buy clothes or check out at the grocery store, you will pay _______________. a. with your credit card b. income tax c. excise tax d. sales tax

If you're a victim of card fraud... a. contact your bank immediately b. wait for your bank to contact you c. wait until the next week to contact your bank d. call 911 before making any other purchases

What are the Four Walls? a. utilities, college fund, restaurants, and car insurance b. cell phone bill, car insurance, shelter, and money for the movies c. food, utilities, transportation, and college fund d. food, utilities, shelter, and transportation

When someone says they need to file their taxes, they're talking about filling out a __________________. a. tax liability b. federal tax return c. form W-4 d. tax bracket

The U.S. is mostly a... a. free market b. focused economy c. demand d. GDP

Your money personality impacts... a. your financial literacy level b. your understanding of bank transactions c. what you plan for as an adult d. how you handle money

You'll have less freedom with your money if you... a. put money in a bank account b. make less than $35,000 c. invest in the stock market d. are paying for things in your past

Which of the following is NOT a component of a budget? a. saving b. credit score c. giving d. income

The deadline for filling your income tax return usually falls on ___________. a. July 4 b. April 15 c. October 13 d. August 15

What is The Third Foundation? a. save for retirement b. pay cash for college c. pay cash for your car d. create a monthly budget

When someone steals and uses your debit or credit card info, that's called _________________. a. authorized spending b. networking c. fraud d. borrowing

Your rent payment should total no more than _______% of your take-home pay. a. 75 b. 15 c. 10 d. 25

Economics is a study of consumer _____________________. a. demand b. choices c. availability d. supply

Umbrella insurance is coverage for... a. damage to your home in a sever thunderstorm b. homeowners who cannot afford insurance c. damage to your home in a sever thunderstorm d. things that fall outside of your home and auto insurance policies

You need to track everything that involves money, including... a. all of the sales that are currently happening b. the latest retail store credit card offers c. your clothing budget for the month d. debit card purchases, third-party app transactions, and ATM withdrawals

Once you have a $500 emergency fund, you should... a. start putting it toward debt b. use the money to pay for health insurance c. save it until you have an emergency d. invest it in the stock market to grow your money

What is the main IRS form that most Americans use to file their taxes? a. form I-9 b. form 1099-DIV c. form 1040 d. schedule C

Your greatest tool to building wealth is ___________. a. tax cuts b. single stocks c. credit score d. your income

______________ is the science of the whole economy, while ________________ is the study of people. a. Microeconomics; macroeconomics b. Global economics; microeconomics c. Macroeconomics; global economics d. Macroeconomics; microeconomics

Credit card companies make the most profit from ____________________. a. changing interest to customers who only pay part of their monthly debt b. partnering with companies to offer rewards to customers c. government tax breaks d. incentive programs with banks

The first priority in your budget should be _____________. a. spending b. giving c. investing d. saving

A money principle to keep in mind is to live on ____________ you make. a. more than b. the same as c. less than d. exactly 20% below what

Overdraft protection sounds like a good idea... a. but it will ruin your credit score b. because it is c. but you have to pay back the deposited money with interest d. and it helps you build wealth

The money you earn hourly for your time and effort at work is called your ________________. a. minimum wage b. income tax c. wages d. salary

A _________ financial goal takes up to two years to reach. a. short-term b. medium-term c. five-level d. long-term

Life insurance guarantees your loved ones get a certain amount of money when you ___________________. a. get injured b. turn 18 c. move out of the house d. pass away

Once you turn 18, you should regularly check your credit report... a. like a plan for growing your credit score b. only if you have a credit card c. to keep an eye on your credit score d. for errors or signs of identity fraud

Personal finance is 20% ____________ and 80% ____________. a. cause; effect b. head knowledge; behavior c. reactions; behaviors d. behavior; head knowledge

A security that represents part ownership of a company is called a(n) ________________. a. certificate of deposit b. stock c. bond d. annuity

You should always make sure you have a... a. credit card b. direct deposit c. budget d. credit line

_________ is key when it comes to compound growth. a. Attitude b. Time c. Roth IRA d. money

Using credit has not always been a socially accepted practice, but it has become... a. less acceptable b. a practice used by the wealthy c. normal in American culture d. necessary for life in America

Verifying your bank's online account statements for accuracy is called ________________. a. direct deposit b. debit card fraud c. reconciling your account d. adjusting your budget

To know your net worth, subtract your liabilities from your ________. a. income b. assets c. liabilities d. previous net worth

Never __________ something you don't _______________. a. invest in; understand b. diversify; enjoy c. finance; think will appreciate in value d. buy; invest in

As the owner of your account, managing your money is __________ responsibility. a. not your b. the banks c. your d. your parent's

Part of being a smart consumer is being able to... a. discern when to open a retail store credit card and when not to b. say no to unnecessary purchase c. use a credit card for the points instead of going into debt d. set up digital wallets and mobile payment

Why does brand recognition help businesses? a. it helps them partner with other businesses b. it helps the business recognize their own logo c. it makes their name and logo easily memorable for consumers d. it keeps the consumer from buying more of their product or service

Which is an example of an appreciating asset? a. farming equipment b. a home c. a computer used for school purposes d. a new car purchased within the past 6 months

A debit card, ATM access, payroll direct deposit, and checks are basic features of _________________. a. a savings account b. a checking account c. banking d. a money market account

What type of interest rate is locked in and won't chance for the life of the loan? a. variable rate b. adjustable rate c. prime rate d. fixed-rate

You can build a legacy you'll be proud of by... a. keeping 10-12 months of living expenses in your emergency fund b. thinking of yourself first c. letting your time and money to grow d. sending your kids to trade school

Car lease agreements come with a stipulation that you must pay a penalty if you ________________. a. park under a garage b. go over the pre-established mileage cap c. drive out of state d. don't wash the car before returning it

People who rely on you financially are called your _________________. a. beneficiaries b. death benefits c. dependents d. family

The smartest way to buy a car is to ____________________. a. pay for it in cash b. take out a personal loan for it c. steal it d. finance it buy pay the debt as quickly as you can

The best way to budget is... a. by using a digital app b. on paper c. with the way that works best for you d. creating a spreadsheet

Make sure your bank has plenty of __________ and ___________. a. ATM locations; a mobile banking app b. insurance; monthly maintenance fees c. branches; low interest rates d. security breaches; foreign transaction fees

How many categories should you have in your budget? a. at least 3 b. no more than 10 c. 7 or more d. no limit; use as many as you need to keep your budget accurate

Commission is when you make money based on the percentage of _____________. a. total sales b. budgets c. investments d. items sold

What does "bull and bear" reference? a. the real estate market b. your investments c. the stock market d. mutual funds

__________________ require the borrower to put up collateral for the loan. a. Secured loans b. Interest rates c. Revolving credit d. Unsecured loans

Making periodic payments to a landlord for the use of their property is called _________________. a. renting or leasing b. down payment c. buying d. security deposit

47% of Americans have less than $1,000 saved for a(n) _____________. a. new smartphone b. car c. emergency d. retirement

When you're ready to buy a house, the best option is a _________________. a. 30-year fixed rate mortgage b. 20-year VA loan c. 15-year equity loan d. 15-year fixed-rate mortgage

It's not IF an emergency will happen, but _______________. a. why b. where c. how d. when

An easy way to avoid ending up with errors in your bank account is to simply... a. only use cash b. budget often c. keep all your receipts d. monitor your account at least twice a week

An example of discretionary spending is _______________. a. monthly rent b. transportation c. nonessential goods and services d. utilities and food

Buying a house while ________ can put your __________________ at risk. a. getting pre-approved; life b. on a budget; social life c. in debt; home purchase d. debt-free; renter's insurance

The purpose of life insurance is to replace your __________________ when you die. a. family b. legacy c. health care d. income

The only place you should keep your emergency fund money is... a. a Roth IRA b. a safe in your bedroom c. a savings account or money market account d. an envelope in a safe place

The amount of money the insurance company agrees to pay for an incident is called ________________. a. co-pay b. claim c. interest d. deductible

Before you insert your debit card at the gas station, you should always... a. ask the store clerk if there has been a thief here lately b. check out the card reader to see if it looks different, loose, or worn c. see if you have enough money on your account d. pay cash- never use a card at a gas pump

True or False: While it may not always appear so, the majority of Americans live paycheck to paycheck.

True or False: A car is a depreciating asset.

True or False: Before you invest, you should make sure a mutual fund has done well for 5-10 years.

True or False: Avoiding debt can lead to financial freedom and hope.

True or False: You should wait to be generous until you have money to give.

True or False: If you see a charge you don't recognize, you should report it to your bank immediately.

True or False: Those who properly fill out their Form W-4 shouldn't have too much or too little taxes withheld.

True or False: Giving to a non profit organization can help lower your taxable income.

True or False: You should buy a home, even if you cannot afford it just yet. Renting is a waste of money.

True or False: You should budget in this order: giving, saving, and spending.

True or False: Convenience is both a perk and a downside of mobile pay.

True or False: Overdrafting your account is a sign of diligence and responsibility.

True or False: When you're retired, you'll still have to pay taxes.

True or False: Renter's insurance will cover you and your belongings if there is ever a fire, theft, or vandalism.

True or False: The key to contentment is gratitude.

True or False: It's important to read your leasing contract because once you sign it, it is enforceable by law.

True or False: If you have an irregular income, budgeting won't work for you.