Personal Finance example #44508

When studying finance or economics, the cost of a decision is also known as a(n): a: personal cost b: financial cost c: long-term cost d: opportunity cost

Amanda wants to buy a new car. What questions should she ask before she makes the purchase? Select three options. - Do I need this car or should I use my old car a little longer? - Is this a reliable vehicle? - What will my friends think when I buy this car? - Will buying this car prevent me from saving money to buy a house? - Will this new vehicle help me make new friends?

To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Select three options. - What can go wrong? - What are the alternatives? - How will it affect my status in society? - What is the likely return? - Is the risk worth the return?

In American society, which of these is an example of a want? a. food b. shoes c. video games d. utility bills

What are the main purposes of a budget? Select three options. - to record past income and spending - to take out a student loan from the bank - to plan future income and spending - to apply for a mortgage - to balance available resources and expenses

What is included in an individual's personal assets? Select three options. - number of dependents - money - career - property - investment

Emma lives on a tight budget. She saves money and also makes intelligent choices when spending it. Which statements describe Emma's financial skills? Select three options. - Emma is more prepared to meet her basic needs. - Emma is better prepared to avoid financial setbacks. - Emma is better able to avoid accumulating assets. - Emma is more prepared to face emergencies. - Emma is better able to avoid financial decision-making.

Personal finance skills have the most significant impact on an individual's a. career b. education c. quality of life d. number of dependents

Which results are more likely for someone without personal finance skills? Select three options. - larger long-term credit or loan costs - less preparation for emergencies - fewer utility expenses - simple long-term investment strategies - increased long-term challenges

Shondra is thinking of making payments for her laptop by setting up automatic withdrawals with the store. What must Shondra consider before she decides to pay with automatic withdrawals? a. Shondra should be sure she will remember to call the store each month to make the payment. b. Shondra should check her credit history to be sure she has a good credit score. c. Shondra should be sure she will have enough in her account to be able to make the monthly payments. d. Shondra should consult with a credit counseling service.

Which is a long-term consequence of making late payments on your bills? a. It will be harder to secure a new loan at a low rate. b. The balance in your checking account will be negative. c. There will be a late fee. d. The number of payments will increase.

The chart describes how four of Susan's friends handle their money. Sylvia: She uses her whole paycheck to buy food and necessities and pay the minimum amount on her bills each month. Then, she buys new clothes and pays for them with a credit card. Nancy: She uses her whole paycheck to buy food and necessities and then takes a trip each month, which she pays for by adding to a personal loan with her credit union. Fiona: She buys food and necessities and pays more than the minimum due on her bills each month. She goes out with her friends using some of the money that is left over in her checking account. Uli: She buys food and necessities and pays the minimum amount on her bills each month. She goes out with her friends using the money that is left over in her savings. Which person is most creditworthy?

Omar is having trouble paying his rent and making minimum payments on his student loan and credit cards. What should Omar consider doing to improve his situation? a. Omar should apply for a personal loan. b. Omar should get budgeting advice from a consumer credit counselor. c. Omar should apply for another credit card to buy food with. d. Omar should make less than the minimum payments each month.

George's parents are going on a cruise and are concerned about paying their bills while they are gone because they will not have the usual means of communication. What is the best payment method for them to use while they are gone? a. telephone b. online payment c. mail d. automatic withdrawal

Which statement describes a disadvantage of Marnie paying a bill by telephone with a credit card or a debit card? a. Marnie will not have to find a stamp and a mailbox. b. Marnie will have to share her card account information. c. Marnie's bill is paid immediately. d. Marnie may be eligible for a discount.

Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank. What is the best option for him to pay his bills? a. Frank should telephone in his payment to the company. b. Frank should pay his bill online. c. Frank should set up automatic withdrawals for the company he is paying. d. Frank should mail a check to the company.

Enjoli enjoys science and foreign language classes. She loves working with people and volunteers in the local shelter and library on a regular basis, but she is not fond of flying. Which career is she most likely to enjoy? a. doctor in a clinic that serves a low-income population b. doctor partnering with insurance companies to determine covered procedures c. doctor in a research facility for a large drug company d. doctor for a professional sports team

Jerome likes to take stuff apart and then rebuild it. He is also good at math but is rather shy. Which career choices might he enjoy? Check all that apply. - Engineer: design, plan, or manage a system such as machines, computers, or roads. - Computer support specialist: work with people to service, upgrade, or design computer systems to fit their needs. - Aircraft inspector: inspect, plan, and oversee repairs on aircraft; may also need to design parts as repair methods that meet standards. - Car salesman: sell cars to the police. - Factory reproduction manager: check that products meet specifications. - Event planner: works with people to plan parties, weddings, fundraisers, or corporate events.

Which aspect could have a positive impact on future salary in a job position? a. The opportunity for advancement or promotion could result in higher pay. b. The starting salary is very high, but the job outlook is poor. c. The position offers more employee benefits than others like it. d. The career choice requires less post-secondary education so less student loans are needed.

Logan has several job offers in different cities. What should he research to determine how much money he will have to spend as he wishes? a. cost of living in each location b. schedule he will be required to work c. number of libraries, parks, museums, and sporting event locations in each city d. distance each city is from his family and friends

Which statement is an example of post-secondary education? a. core classes such as math and English that one takes in high school b. vocational classes such as marketing or computer-aided design that one may take in high school c. a class in a specific computer application or language that one may take to advance in a career d. a dance class that one takes after retiring for enrichment and enjoyment

Which factor would be a valid influence on a career choice in the United States? a. gender b. race c. birthplace d. interests

Jared can play three musical instruments; he loves drawing, painting, and other visual arts as well. Jared can work in groups at school and likes to help plan events like class parties and dances. Jared would like a career with regular hours. Which careers would Jared enjoy? Check all that apply. - musician in a band on tour - music teacher at a school - life-enrichment director and event planner at a retirement home - professional photographer for special events - accountant for a theater

Which type of training would be considered vocational training? a. training to prepare for a career b. training to improve one's health c. training to learn a new hobby d. training to improve relationships

Which represents an employee benefit? a. wage paid per hour of work b. health-insurance plan with company-paid premiums c. schedule with weekends off d. gratuity given by customers or clients

Cameron is choosing a career out of high school with no further training. The median salary for this career is $30,000. His friend Mateo is choosing a career that requires a college degree but has a median salary of $55,000. Over 20 years, what will be the difference between their incomes? - $25,000 - $85,000 - $500,000 - $1,700,000

Caitlin has finished her schooling and training to be a dental hygienist. She has two job offers that she is considering. Which job would offer the best annual income considering the cost of living in each locale? a. Job 2 is a better choice because the annual income after rent and utilities is $59,700 but that of job 1 is $55,575. b. Job 2 is a better choice because the annual income after rent and utilities is $45,400 but the income for job 1 is $41,900. c. Job 1 is a better choice because it costs $4,500 less per year to live there. d. The jobs have equal annual incomes of $45,400 after rent and utilities so Caitlin should take the job in her favorite locale.

Amy is analyzing a job offer. How much should she expect to pay on rent and utilities each year? a. $1,300 b. $2,400 c. $13,200 d. $15,600

Tayesha wants to find more information about a career in architecture. Which resource is most likely to give balanced, accurate information? a. She should use Facebook advice from friends since they know her best. b. She should use a personal blog of an architect since it is a person in the industry. c. She should use the US Bureau of Labor Statistics website since it will cover a wide range of information about the careers around the United States. d. She should use a fashion magazine article on famous architects since it will have lots of pictures.

Oscar claims that employee benefits have little impact on lifetime income so one should only consider a job with the largest salary. Which statement about his claim is true? a. He is correct because a larger salary would allow one to save more money for retirement. b. He is correct because benefits have no monetary value to an employee even though the employer may pay for them. c. He is incorrect because health insurance will save the employee money he could apply to retirement. d. He is incorrect because the employer gives the money for benefits directly to the employee so the employee can use the money as he wishes.

Both Phoebe and Connor are trying to maximize their lifetime income. Each has a different plan on how to do this best: Phoebe claims that she wants a career with no college or trade school requirements because she could save the money for retirement rather than spending it on education. She estimates her average yearly salary at $35,000 per year with no post-secondary education requirements. Connor claims post-secondary education will help him get a career with a higher salary and more benefits that he can use in retirement, so the education costs will more than pay for themselves. Connor estimates paying $80,000 for his post-secondary education and an average yearly salary of $60,000 per year after he earns his college degree. Which statement about their claims is correct? a. Phoebe is correct because a college education is overly expensive and is almost a waste of money. b. Phoebe is correct because she will not be spending tuition dollars on college while earning $140,000 during the four years it would take to earn an undergraduate degree. College graduates would never be able to make up that difference in earnings. c. Connor is correct because it is likely that the increased income and better benefits he will earn throughout his career will outweigh the $80,000 and four years he invests in his college education. d. Connor is correct because a person without a college degree will never be able to support himself.

Liam is a computer systems analyst and is looking to change to a company that offers more opportunities for advancement. He has job offers from two companies that look promising. Which company is a better choice based on annual income after housing and utility costs? a. Job 2 is a better choice because it will have a salary and benefits worth $20,500 more than job 1. b. Job 2 is a better choice because the annual income after housing is expected to be $140,300 but job 1 is expected to be $98,200. c. Job 1 is a better choice because the annual income after housing is $65,800 but that of job 2 is $64,700. d. Job 1 is a better choice because annual income after benefits and housing will be $109,800 but the annual income for job 2 will be $92,200.

At an educational institution, the cost of room and board includes a. housing and meals. b. health and dental care. c. textbooks and supplies. d. tuition and class fees.

What is one benefit of privately issued student loans? a. They are issued in cooperation with the student's university to reduce costs and paperwork. b. They have lower interest rates and can be paid back with lower out-of-pocket costs. c. They are backed by the US government to ensure greater financial security. d. They are available to any student who meets lending standards, regardless of financial need.

Besides the cost of an education, what additional expenses must students pay? Check all that apply. - housing - meals - supplies - textbooks - tuition

One reason a student may seek a federal student loan instead of a private student loan is that a. private loans carry a higher interest rate than federal loans. b. federal loans are obtained by banks, while private loans are backed by the government. c. federal loans must be paid back more quickly than private loans. d. private loans are only available to parents, while federal loans may be issued to the student.

Which statement best defines tuition? a. Tuition is federal money awarded to a student. b. Tuition is aid given to a student by an institution. c. Tuition is money borrowed to pay for an education. d. Tuition is the price of attending classes at a school.

Which statement describes an hourly wage job? a. Each paycheck is the exact same regardless of number of hours worked. b. Each paycheck is less, even if an employer wants you to work more hours in a week. c. If an employer wants the employee to work more hours in a week, the result is a larger paycheck. d. If the business is closed for a holiday, the employee still gets paid regardless of available vacation hours.

Which statement best explains a grant? a. A grant is money awarded to a student, usually based on financial need. b. A grant is aid given to a student by an institution, often based on academic success. c. A grant is money borrowed by a student to pay for an education that will need to be repaid. d. A grant is the price of attending classes at a school.

This graph compares the cost of an education at different institutions in Texas. This graph demonstrates that: a. private universities can cost three times as much to attend as public universities. b. public universities can cost three times as much to attend as private universities. c. community colleges can cost five times as much to attend as technical schools. d. technical schools can cost five times as much to attend as community colleges.

Eric wants to attend a public four-year university. He estimates that the average cost of one year at this university is $19,500. He can save at most $325 a month. Without factoring in interest, grants, or scholarships, what is the minimum number of months he needs to save in order to be able to pay for one year of college? a. 60 b. 62 c. 65 d. 67

The table shows the cost of various expenses Montrel expects to pay for one year at a public two-year college. tuition: $3,220 room/board: $7,650 transportation: $1,895 books/lab fees: $875 How much should Montrel expect to pay?

Catherine is using the table to predict the cost of one year of education at a four-year private college. tuition: $32,250 room and board: $10,590 transportation: $2,460 books and fees: $1,980 other: $750 She predicts she will receive $14,000 in grants annually. Catherine does not own a car and plans to live near campus where she will rely on the free bus system for transportation. What is the minimum amount Catherine should expect to contribute to her education annually? a. $31,570 b. $34,030 c. $45,570 d. $48,030

Aneesha determined that the cost of attending her public four-year college in her first year will be $6,220. If the average cost is expected to increase by 6%, what will be the cost of attending her second year in college? a. $6,226.00 b. $6,257.32 c. $6,593.20 d. $6,820.00

Michael will attend college in 5 years. He anticipates he will need $19,000 to pay for the first year. He currently has $6,400 in a savings account. Without including any interest earned, what is a reasonable estimate of the amount Michael needs to deposit into his savings account each month over the next 5 years to be able to pay for his first year of college? a. $200 b. $350 c. $500 d. $650

The Hartman family is saving $400 monthly for Ronald's college education. The family anticipates they will need to contribute $20,000 toward his first year of college, which is in 4 years. Which best explains whether the family will have enough money in 4 years? a. The family will not have enough money. They will have saved only $16,000. b. The family will not have enough money. They will have saved only $19,200. c. The family will likely have enough money. They will have saved $16,000 and have accumulated interest. d. The family will likely have enough money. They will have saved $19,200 and have accumulated interest.

In his first school year, Leo contributed $13,468 toward college expenses. In his second school year, the expenses are expected to increase by 4%. What is the approximate minimum amount Leo should expect to contribute in his second school year? a. $13,472 b. $13,868 c. $14,007 d. $18,855

David estimates that he will have expenses totaling $24,870 for one year of college. He will receive $7,560 in grants. How much will David have to contribute each semester during this year? a. $4,875 b. $8,655 c. $9,750 d. $17,310

Iman has 48 months to save $18,000, the maximum amount he estimates his first year of college will cost. He does not want to depend on interest, and does not consider interest when determining his minimum monthly savings goal. What is the minimum amount he should save per month to achieve his goal? a. $350.00 b. $375.00 c. $425.00 d. $450.00

The table shows the predicted cost of the first year of college at a private school six years from now. tuition: $36,620 room and board: $12,900 books and fees: $2,450 transportation: $3,100 other: $1,330 Emily is using the table to determine the minimum amount of money she should save monthly if she is to have enough money to pay for her first year of college. She anticipates receiving $6,000 in grants and has 6 years to save in a college savings account. Without including any interest earned, what is a reasonable estimate of the amount Emily and her family should save each month for the next 6 years to pay for her first year of college? a. $600 b. $700 c. $850 d. $950

Which statement or statements accurately describe characteristics of subsidized Stafford loan? I. grace period during which payments are not due II. based on student need III. student is responsible for all interest for the lifetime of the loan. a. I only b. II only c. I and II d. I and III

At the beginning of each of her four years in college, Miranda took out a new Stafford loan. Each loan had a principal of $5,500, an interest rate of 7.5% compounded monthly, and a duration of ten years. Miranda paid off each loan by making constant monthly payments, starting with when she graduated. All of the loans were subsidized. What is the total lifetime cost for Miranda to pay off her 4 loans? Round each loan's calculation to the nearest cent. a. $23,650.00 b. $29,481.08 c.$7,834.32 d. $31,337.27

Ursula took out an unsubsidized Stafford loan to help pay for her first of her four years at college. The loan had a principal of $6,400, an interest rate of 6.9% compounded monthly. After college, Ursula started making monthly payments over a 10 year period on her loan. What percentage of the total cost of the loan is the finance charge? a. 45.25% b. 27.91% c. 43.50% d. 82.66%

Kate took out a subsidized Stafford loan worth $9,710 to pay for college. The interest rate on the loan was 5.9%, compounded monthly. It took Kate 5 years to pay off the loan after graduation. What portion of the total amount she paid represented the interest? a. $11,236.22 b. $9,710.00 c. $1,526.22 d. $2,942.37

Olivia has taken out a $13,100 unsubsidized Stafford loan to pay for her college education. She plans to graduate in four years. The loan has a duration of ten years and an interest rate of 7.6%, compounded monthly. By the time Olivia graduates, how much greater will the amount of interest capitalized be than the minimum amount that Olivia could pay to prevent interest capitalization? Round all dollar values to the nearest cent. a. $654.45 b. $477.27 c. $995.60 d. $354.22

Henry wants to avoid interest capitalization on his $7,800 unsubsidized Stafford loan. Henry will graduate in four years, and the loan has a duration of ten years. The loan has an interest rate of 5.6%, compounded monthly. How much must Henry pay every month to avoid interest capitalization? a. $14.56 b. $43.68 c. $36.40 d. $31.20

Claudius took out an unsubsidized Stafford loan at the beginning of his six-year college career. The loan had a principal of $4,850, an interest rate of 6.5% compounded monthly, and a duration of ten years. If Claudius started paying off the loan when he graduated, what is his monthly payment? Round all dollar values to the nearest cent. a. $71.37 b. $81.25 c. $55.07 d. $76.55

Which loan or loans listed below are awarded based on the financial need of the student? I. Perkins loan II. subsidized Stafford loan III. unsubsidized Stafford loan a. I only b. I and II c. II and III d. I, II, and III

Gertrude takes out a $5,500 subsidized Stafford loan, which must be paid back in ten years. Gertrude will graduate four years after taking out the loan. If the loan has an interest rate of 6.8%, compounded monthly, and Gertrude makes monthly payments, how much interest will she pay by the time the loan is repaid? Round all dollar values to the nearest cent. a. $4,462.40 b. $1,213.28 c. $1,713.69 d. $2,094.80

Why is deferment an important aspect of student loans? a. Most students are unable to make monthly payments while studying, so deferment allows them to focus on studying. b. Even if students are able to pay for their loan, they don't need to take on the responsibilities of paying back the loan. c. Deferment allows students to miss payments every so often, because being a college student is tough. d. Deferment is only beneficial to a student if they are a full-time student.

Helena has taken out a $9,300 unsubsidized Stafford loan to pay for her college education. She plans to graduate in four years. The loan has a duration of ten years and an interest rate of 6.4%, compounded monthly. By the time Helena graduates, how much greater will the amount of interest capitalized be than the minimum amount that she could pay to prevent interest capitalization? Round all dollar values to the nearest cent. a.$238.46 b. $496.00 c.$595.20 d.$324.33

Toby just graduated from four years of college. At the beginning of each year, he took out a Stafford loan with a principal of $6,125. Each loan had a duration of ten years and an interest rate of 5.3%, compounded monthly. All of the loans were subsidized. Toby plans to pay off each loan in monthly installments, starting from his graduation. What is the total lifetime cost for Toby to pay off his 4 loans? Round each loan's calculation to the nearest cent. a.$7,904.04 b.$31,616.16 c.$10,393.82 d.$36,490.25

Yasmine plans to attend a four-year public university. She expects she will need to contribute $9,000 annually to her education. Which savings plan will help Yasmine save enough money to pay for one year of school, regardless of whether or not interest is earned on her savings? a. $600 per month for 1 year b. $350 per month for 2 years c. $225 per month for 3 years d. $200 per month for 4 years

What are possible advantages and disadvantages of using automatic withdrawal to pay bills? Check all that apply. - not having to keep track of the balance in a checking account - avoiding late payment fees - having to share your account information - not having to find a stamp and a mailbox - not knowing when the payment will be taken out of your account - possible overdraft fees if there is not enough money in the account to cover the payment amount - having to pay a fee for the service

The Lopez family is putting $275 monthly into a savings account for Verona's college education. The family anticipates they will need to contribute $10,000 toward her first year of college, which is in 3 years. Which best explains whether or not the family can expect to have enough money after saving for 3 years ? Assume the savings account accrues interest a. The family will not have enough money. They will have saved only $8,250. b. The family will not have enough money. They will have saved only $9,900. c. The family will likely have enough money. They will have saved $8,250 and have accumulated interest. d. The family will likely have enough money. They will have saved $9,900 and have accumulated interest.

Ariel wants to compare the salaries for positions she was offered at two companies. What should she consider in this process? Check all that apply. - She should research the cost of living of different locations to compare against the offered salaries. - She should research the benefits included in each offer. - She should research the average salary of similar positions to see if the offers are fair. - She should take the position that offers the largest salary. - She should take the position that has the lowest cost of living.

What is one difference between a vocational school and on-the-job training? a. A vocational school degree takes one year to earn. On-the-job training takes two or more years. b. A vocational school degree takes weeks or months to earn. On-the-job training takes two years or fewer. c. A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer. d. A vocational school is usually paid for by the employer. On-the-job training is usually paid for by the worker.

Roderigo has just finished paying back his $8,575 unsubsidized Stafford loan, which he took out to fund his four-year degree. The loan had a duration of ten years and an interest rate of 7.1%, compounded monthly. Roderigo will allow interest capitalization. If Roderigo made monthly payments to pay off his loan, how much interest did he pay in total? Round all dollar values to the nearest cent. a.$4,547.02 b.$3,426.20 c.$7,353.80 d.$5,436.20

What term is used to describe an individual's money and personal property? a. budget b. income c. assets d. finances

This year, the annual tuition at a public four-year university is $5,290. Next year when Jarrod attends his first year, the tuition is expected to increase 4.5%. Jarrod has 1 year to save the amount of money equal to the tuition for his first year. What is the approximate minimum amount Jarrod should save monthly? a. $441 b. $461 c. $553 d. $639

Through the successful study of personal finance, an individual will be a. better prepared for potential problems. b. able to learn how to spend available assets. c. faced with long-term challenges. d. more likely to avoid high opportunity costs.

Richard's annual college expenses are expected to total $17,745. He will receive $5,320 in grants. How much will Richard need to contribute to his annual college expenses? a. $11,425 b. $11,465 c. $12,425 d. $12,465

Mariana wants to research a career in veterinary medicine. Where could she find accurate and objective information? Check all that apply. - She could speak with a career counselor. - She could visit the library and check out a book from the career section about veterinarians. - She could visit the library and check out a book from the fiction section with a veterinarian in it. - She could visit the online site for the US Bureau of Labor and Statistics. - She could visit a personal blog site written by a veterinarian.

Any student can qualify for a subsidized Stafford loan, regardless of financial need. T. F.

Which statement best describes lifetime income? a. the total salary for all the years worked b. the total salary and retirement benefits for all the years worked c. the total salary and value of insurance benefits for all the years worked d. the total cost of college classes and vocational training divided by the total years worked

Sara would like to open a bank account. What will she need to do this? Check all that apply. - identification card - high school diploma - money to start the account - birth certificate - proof of address

This is a table that could be used to maintain a record of account transactions. It is similar to what is found in a checkbook ledger. Some of its column headings are missing. How should these columns be labeled? a. Balance, Transaction Code, Description b. Check Number, Description, Balance c. Transaction Code, Balance, Notes d. Description, Check Number, Balance

What is a major difference between retail banks and credit unions? a. Retail banks only serve businesses, while credit unions only serve individuals. b. Retail banks operate in order to earn profit, while credit unions are nonprofit. c. Retail banks only have small local branches, while credit unions are nationwide. d. Retail banks manage a person's money, while credit unions focus on providing loans.

Alex has not been keeping his banking records up to date. On his latest bank statement, he found that he had been charged an overdraft fee for writing a bad check. In addition to his being charged a fee, which of these is another possible consequence of an overdraft? a. The bank will close the merchant's account. b. The merchant who received his check will be charged an overdraft fee. c. The bank will cancel his debit card. d. The merchant who received his check will expect repayment and a penalty fee.

Glenn and Maggie own a regional chain of juice bars and are looking to expand in the coming year. They already have fifty shops, but they know they will need a loan to reach their goal of one hundred twenty five shops. Which type of banking institution is most suitable for Glenn and Maggie's business? a. a credit union b. a savings and loan c. a commercial bank d. an investment bank

Which of these is the best reason for Nina to maintain up-to-date and accurate records of her bank accounts? a. to decide which bills to pay first b. to determine how much she needs to earn c. to stop herself from making financial mistakes d. to know how much money she has for budgeting

What is one benefit of purchasing saving bonds? a. Saving bonds are purchased from the government and guaranteed to increase in value. b. Saving bonds are purchased from commercial banks and guaranteed to increase in value. c. Saving bonds are short term investments backed by the government to protect from loss. d. Saving bonds are long term investments created to help first time home buyers obtain a mortgage.

What does reconciling an account involve? a. checking one's financial records against the bank's b. making sure a paycheck arrives on time c. calculating the interest owed on a savings account d. identifying instances of identity theft

Which of these is an advantage of checking accounts? a. Checking accounts prevent the customer from having overdraft fees. b. Checking accounts allow convenient ways to deposit or withdraw funds. c. Checking accounts are processed immediately so customer and bank records always match. d. Checking accounts offer limited checks but offer higher rates of interest.

The Chambers family has a net monthly income of $6,500. If the family decides to reduce its clothing budget by $200 a month, how much will the new clothing budget be? Round to the nearest dollar. a. $161 b. $853 c. $970 d. $1,170

Yoko is trying to save money for a new bicycle. She sets up a budget as shown below. How much money will Yoko have left over for her savings each month? a. $85 b. $95 c. $110 d. $120

Georgia's gross pay was $35,600 this year. She is to pay a federal income tax of 16%. How much should Georgia pay in federal income tax this year? Round to the nearest dollar. a. $29.90 b. $569.00 c. $5,696.00 d. $29,904.00

Ramya's mom was hired for a new job with a yearly income of $84,000. The total of all deductions from her paycheck will be 25% of the gross pay. She asked Ramya to compute her net monthly income. What is Ramya's mother's net monthly income? a. $1,750 b. $3,360 c. $5,250 d. $6,720

How much did Briana save by purchasing a backpack that cost $45 with a sales promotion of 20% off instead of a backpack that cost $42 with a sales promotion of 10% off? a. $1.80 b. $3.00 c. $4.80 d. $6.90

Hillary's family is thinking of relocating to a different city to save money. They set up a budget comparing the cost of living in four cities. Based on cost of living alone, which city should they choose to live in? a. Oakland b. Phoenix c. Santa Fe d. San Diego

Shondra's family's monthly net income is $6,654. The family's budget is shown in the circle graph below. The family decides to increase the savings budget by 3 percent by decreasing one of the variable expenses by 3 percent. If the family decreases the clothing budget by 3 percent, what amount will it have to spend on clothing? Round to the nearest dollar. a. $266 b. $466 c. $645 d. $665

Nevan's gross pay was $45,150 last year. The federal income tax withholding from his pay was 16% of his gross pay. Nevan determined the federal income tax he owes is $6,150. Which of the following is true? a. Nevan owes an additional $984 in federal tax. b. Nevan owes an additional $1,074 in federal tax. c. Nevan will receive a refund of $984. d. Nevan will receive a refund of $1,074.

The Sullivan family made a bar chart to compare how much they spend on different costs each month. If the family's net monthly income is $7,800, what percent of the income is spent on food, clothing, and housing? a. 50% b. 59% c. 60% d. 61%

A dishwasher is priced at $475. There are two options offered to reduce the price: either a 15% discount off the price or a rebate of $75. Which is the better choice, and what is the extra amount saved? a. The 15% discount is better; it saves $60 more. b. The 15% discount is better; it saves $3.75 more. c. The rebate is better; it saves $3.75 more. d. The rebate is better; it saves $60 more.

Walden's family is shopping for a reclining chair. The chair the family decided on has a retail price of $800 plus 5% sales tax at four stores. Each store is offering a different promotion. A: $75 instant rebate B: 10% off sale C: 5% off sale plus store pays sales tax D: a "no tax" sale—the store pays the tax Which store has the best deal? a. store A b. store B c. store C d. store D

Simon bought a computer and made monthly payments. By the end of the month, Simon had no money left for groceries. Which step in the decision-making process should Simon now take? a. Taking action. b. Making a decision. c. Evaluating results. d. Gathering information.

A good rule is to spend no more than 25-30% of your net _____ income on housing

Daniel wants to buy a laptop computer, and he has $300 in savings. He can purchase a new computer for $279 or a refurbished [repaired or renovated] computer for $100. What should Daniel do next? a. Evaluate his decision to buy a computer. b. Revise his budget to allow for a new computer. c. Obtain a credit card to pay for a refurbished computer. d. Review the pros and cons of the different available computers.

What is the most acceptable and easy way to revise a budget to allow for the purchase of a new couch? a. Cancel renters' insurance. b. Skip a car payment for a few months. c. Advertise for a roommate to reduce rent. d. Cook dinners at home instead of going out to eat.

What is an advantage of renting a place to live? a. lower up-front costs b. payments change from month to month c. low down payment d. increasing equity over time

Which is the most important consideration when deciding to purchase or lease a vehicle? a. all current monthly expenditures b. the amount of cash saved c. the cost of gas and insurance d. all monthly car payments

Marlene has decided to save $3,500 so that she can attend the nearby community college. Which step in the decision process should Marlene take? a. Take action. b. Gather information. c. Evaluate results. d. Evaluate alternatives.

The chart compares transportation options. What is a main disadvantage of leasing a vehicle compared to buying a vehicle? a. the up-front cost b. the monthly payments c. the length of payments d. the cost of insurance and gas

Which fixed expense would be most difficult to change if money is needed for car payments? a. rent b. electricity c. cable d. Internet

Which expense category will most likely be changed to allow money for the purchase of a car? a. savings b. groceries c. utilities d. entertainment

Read the scenario. Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit. Which of the following illustrates the most economically sound choice for Brad? a. buying both a car and a home b. leasing both a car and home c. buying a car and leasing a home d. leasing a car and buying a home

What is the purpose of comparison shopping? a. ensuring you are not buying out of emotion b. attempting to find the best deal on a product c. determining whether you truly need a product d. reading reviews to make sure a product is good

A monthly fixed rate mortgage payment a. could change. b. never changes. c. increases annually. d. decreases annually.

The most economical way to purchase large items, such as furniture, is to buy with:

Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottles. Which of the following makes the most economic sense? a. 20 bottles of soda at $1.50 each b. 4 six-packs of soda at $5.00 each c. one case of 24 sodas at $18.50 d. two cases of 24 sodas at $18.50 each

Why do prices increase when demand for a product is high? a. Companies know they can make more money by selling fewer products at higher prices. b. Companies know that people will be willing to spend more to get an in-demand product. c. Companies take advantage of the demand to make people spend more money on excess products. d. Companies know they can stop production and still make money on sales.

This chart shows the actual pricing history for three items. For which product(s) would it be most beneficial to wait before buying? a. game system b. smartphone c. DVD and smartphone d. smartphone and game system

Building equity in a home is a good thing because a. mortgage payments decrease as equity increases. b. credit scores increase as equity increases. c. equity in a home increases the homeowner's net worth. d. property taxes decrease as equity increases.

What is not a potential risk of purchasing a used car? a. used cars can require repairs sooner b. warranties can be very limited c. used cars can have lower initial cost d. unexpected issues may arise

Which activity is done in Step 2 of comparison shopping? a. Research a product. b. Assess the purchase objectively. c. Compare prices and features. d. Buy a product.

James has $1500 to open a checking account. He can maintain a monthly balance of at least $1000. He plans to use the ATM four times per month at his local branch. He does not overdraft his account and plans to use direct deposit. He also plans to pay his bills online and he averages 8 bills per month. James wants an account with the lowest fees. Which checking account would be best for James? a. Account A b. Account B c. Account C d. Account D

Martin puts his weekly paycheck into his checking account. In which column should he write the value of his paycheck? a. Deposits b. Balance c. Debit d. Check number

Paul wrote a check to the dentist for $345.69. He'll use the check register to record his transaction. What will be his new balance? a. $704.73 b. $720.62 c. $1,233.58 d. $1,579.27

Irma has $500 to open a checking account. She wants an account with the lowest fees. She plans to use only her bank's ATM to deposit her paychecks and withdraw cash. Which checking account would be best for Irma? a. Account A b. Account B c. Account C d. Account D

Wilbur has $800 to open a checking account. He can maintain a minimum balance of at least $500. He plans to use the ATM twice a month and he maintains a savings account at the same bank. His employer has direct deposit and he sometimes overdrafts his account. Wilbur wants a checking account with the lowest fees. Which checking account would be best for Wilbur? a. Account A b. Account B c. Account C d. Account D

Jana has $100 to open a checking account. She can maintain a monthly balance of $300. She also has a savings account at the same bank. She plans to use online bill paying and write fewer than 10 checks per month. She currently uses her bank's ATM several times per month. Jana does not overdraw her account. Jana wants an account with the lowest fees. Which checking account would be best for Jana? a. Account A b. Account B c. Account C d. Account D

Beth withdrew $35 from her checking account. In which column should she record the $35 withdrawal? a. Check Number b. Debit c. Deposit d. Balance

Roland has purchased a new tablet. How he can avoid risk? Check all that apply. - by using a screen protector - by letting his toddler play with it - by using an antivirus app - by using a protective case - by letting his friends borrow it

Under which circumstance would someone need disability insurance? a. A person's suitcase was stolen and valuables were lost. b. A person has contracted the flu and needs a prescription. c. A person was in a car accident and cannot work for several months. d. A person's house was seriously damaged during a natural disaster.

Why does insurance often provide "peace of mind"? a. People know their insurance coverage will help prevent accidents and damage. b. People trust that they will make a profit if they pay insurance premiums. c. People are not concerned about their health if they can pay for doctor's visits. d. People are less worried when they know they have protection from risk.

What is the definition of premium? a. the value of something lost or damaged b. the highest payout by an insurer c. the amount paid for an insurance policy d. the best insurance available

Which is always a cost when buying insurance? a. premium b. deductible c. co-payment d. payout

If two people are invited to invest and become partners in a business, the business owners will then _______ the risk.

Which questions about risk should someone ask before making a big purchase? Check all that apply. - What problems are most likely to happen? - What can be done to avoid liability? - What could go wrong? - What problems could be most damaging? - What option has no risk?

An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of? a. reducing risk. b. sharing risk. c. avoiding risk. d. maximizing risk.

The basic purpose of insurance is to provide a. loans. b. prevention. c. protection. d. liability.

Insurance is a financial service that allows a a. consumer to transfer all risk to a company. b. company to control finances for a consumer. c. consumer to share liability with a company. d. company to maximize risk for a consumer.

The document shows a 1040 form. The 1040 form is used to collect a. state tax. b. local tax. c. federal tax. d. sales tax.

In addition to federal income tax, many people also pay a. corporate tax. b. state income tax. c. local medicare tax. d. local social security tax.

A federal payroll tax that supports retired workers is a. progressive tax. b. sales tax. c. corporate tax. d. social security tax.

Property taxes are based on a. where a property is located. b. who lives on a property. c. how much a property is worth. d. when a property was purchased.

Which describes a type of tax that funds city programs? a. progressive tax b. federal income tax c. local income tax d. medicare tax

Social security and medicare are a. progressive taxes. b. payroll taxes. c. local taxes. d. corporate taxes.

If Massachusetts has a sales tax of 6 percent and New Hampshire has no sales tax, how much money can be saved by buying a $1,000 television in New Hampshire? a. $6 b. $16 c. $60 d. $600

Sales tax is calculated by multiplying the price of an item by the

The document shows a personal allowances worksheet. The document asks about dependents because the number can a. affect who pays taxes. b. increase overall taxes. c. lower overall taxes. d. affect when to pay taxes.

Which living expense needs to be included in the budget of someone renting an apartment? a. property taxes b. insurance c. down payment d. maintenance

Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one from a lesser-known brand. Which questions should she consider before she buys the jacket? Check all that apply. - Is advertising influencing her? - What are her motivations? - Has she compared prices? - Is she buying at the right time? - Will her sister like the jacket too?

Iliana's gross pay is $2,130 per month. Her deductions total $270. She budgets for $1,000 in fixed expenses and $400 in variable expenses. How much money will Iliana be able to save? a. $270 b. $460 c. $730 d. $860

What is one cost of avoiding insurance? a. falling into debt if faced with a serious problem b. not benefitting from insurance deductibles c. not being able to purchase a car or home d. facing increased probability of accidents

A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price or a rebate of $300. Which is the better choice, and what is the extra amount saved? a. The 25% discount is better; it saves $12.50 more. b. The rebate is better; it saves $12.50 more. c. The 25% discount is better; it saves $75 more. d. The rebate is better; it saves $75 more.

What is the definition of liability? a. the amount a consumer must pay after an incident before the b. insurance company starts paying b. the monthly amount paid for insurance c. intentionally destroying something in order to collect insurance d. a responsibility to pay for or fix a problem

A _____ form must be filled out when someone is hired for a job to determine how much income tax will be withheld.

What does purchasing insurance for a business reveal about the business owner's attitude toward financial risk? a. It shows that the owner expects financial risk and is eliminating it by making an insurance company liable. b. It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company. c. It shows that the owner is willing to share ownership of the business to reduce financial risk. d. It shows that the owner is willing to budget for short-term financial risks to avoid long-term risks.

Which is a kind of federal payroll tax? a. medicare tax b. sales tax c. property tax d. progressive tax

The Dumescu family made a chart to compare its budget items. Liliana noticed that the sum of three of the budget items was half of the budget. a. housing, clothing, and savings b. housing, medical, and food c. food, transportation, and clothing d. transportation, savings, and housing

Yarin's gross pay for the year was $3,500. The federal income tax withholding from his pay was 9% of his gross pay. Yarin determined the federal income tax he owes is $115. How much of a refund can Yarin expect? a. $200 b. $315 c. $3,035 d. $3,185

In some cases, it is safe to avoid insurance because a. it is too expensive. b. it may not be needed. c. one already has enough savings. d. one is already in debt.

Which describes a type of tax that people pay on money they earn? a. flat tax b. income tax c. purchase tax d. progressive tax

If having a warranty on a car is important, a person should buy a car that is

Lois bought clothing at a store. She did not have enough in her bank account to pay for the purchase. After receiving the bill and paying off the balance, she realized that she paid $9.69 in interest. Which statement is true about her method of payment? a. Lois used a debit card to make the purchase. b. Lois used a credit card to make the purchase. c. Lois either used a debit card or used a credit card and paid the balance in full when the bill arrived. d. Lois either used a debit card or used a credit card and made a single payment.

Before giving a loan to a customer, a lender examines the customer's credit report. Which explains why the lender examines the customer's credit report? a. to determine if the customer is a likeable person b. to determine the customer's income c. to determine the customer's job title d. to determine if the customer is likely to pay back the loan

Which helps to establish a negative credit history? a. Make payments on or before the due date. b. Never miss a payment. c. Pay off the full amount with the first monthly statement. d. Pay less than the minimum amount due.

Sal and Jen went to the store together, and each bought the same car stereo.Sal used a card to make the purchase, and the full amount was immediately withdrawn from his bank account.Jen used a card to make the purchase, and she received a bill within 15 days of the purchase. She paid $21.30 for the next 18 months until the bill was paid in full. The full payment included $58.60 in interest.Which statement describes Sal's purchase? a. Sal used a debit card and paid a total of $383.40 for the stereo. b. Sal used a debit card and paid a total of $324.80 for the stereo. c. Sal used a credit card and paid a total of $383.40 for the stereo. d. Sal used a credit card and paid a total of $324.80 for the stereo.

Tamera and Rupert each applied for the same credit card through the same company. Tamera has a positive credit history. Rupert has a negative credit history. Which compares their credit limits and likely interest rates? a. Tamera's credit limit is most likely higher than Rupert's, and her interest rate is most likely lower. b. Tamera's credit limit is most likely lower than Rupert's, and her interest rate is most likely higher. c. Rupert's credit limit is most likely higher than Tamera's, and his interest rate is most likely lower. d. Rupert's credit limit is most likely lower than Tamera's, and his interest rate is most likely lower.

Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reasons for a positive credit history? Check all that apply. - A good credit history portrays irresponsibility. - A good credit history results in lower interest rates. - A good credit history makes borrowing easier. - A good credit history results in higher interest rates. - A good credit history may result in denial of a rental application.

Kenya used a debit card to buy a pair of jeans. Which statement is true about her method of payment? a. Kenya used money directly from her bank account to buy the jeans. b. Kenya borrowed the money to buy the jeans. c. Kenya did not have enough money in her bank account to buy the jeans. d. Kenya will pay for the jeans over time.

Fido wants to buy a new car. He will need to get a car loan. Fido decides to wait for a few months until his credit history improves. Which explains whether Fido is making a sensible decision? a. Fido's decision is sensible because the selling price of the car should be less in a few months. b. Fido's decision is sensible because the cost of the car loan should be less if his credit history improves. c. Fido's decision is not sensible because he needs the car right away. d. Fido's decision is not sensible because it does not matter if he buys the car now or in a few months.

Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report? a. to determine which company has the best credit card features b. to determine if he has a history of good credit c. to determine if he needs a credit card d. to determine his credit limit

Isabella bought a CD player at the store. She will receive the bill at the end of the month. She plans to pay $30 each month until the bill is paid in full. How did Isabella pay for the CD player? a. cash b. check c. credit card d. debit card

This year, Mr. Thomas has a higher credit score than he did last year. Which of the following should Mr. Thomas expect with the improved score? Check all that apply. - a more difficult time borrowing money to buy a house - an easier time getting a car loan - an easier time renting an apartment - a denial when opening a bank account - higher interest rates on credit cards

Pete is trying to get a loan. He has a credit score of 480. How is Pete's lender likely to view this credit score? a. Pete is responsible and will pay the loan back on time. b. Pete is responsible but will not pay the loan back on time. c. Pete is irresponsible but will pay the loan back on time. d. Pete is irresponsible and will not pay the loan back on time.

A lender is assessing customers for loans. The credit scores of four customers are below. Ida: 820 Corrine: 550 Bruce: 390 Roland: 610 Which person will the lender assess as having the lowest risk?

Yoko is buying a car from a local car dealership. She wants to get the lowest interest rate possible. Which will most likely help her get the lowest interest rate? a. asking nicely b. making sure she has a positive credit history c. explaining that she has many outstanding loans d. showing her driver's license

Quincy listed information from his credit report. Which list could Quincy have written? a. previous address, current address, bankruptcy, car loan payment history b. current address, monthly income, car loan payment history, date of birth c. previous address, current address, schools attended, bankruptcy d. current address, monthly income, car loan payment history, schools attended

The table shows a schedule of Jorge's payment plan for a car. How many years will it take Jorge to pay off the loan? a. 3 years b. 4 years c. 5 years d. 6 years

Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing an electronic reader for $140. Check all that apply. - If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $140. - If Mo pays cash, the cost of the purchase will be $140. - If Mo uses the credit card and pays off the balance at $30 a month for 7 months with no late fees, the cost of the purchase will be $143.34. - If Mo pays cash, the cost of the purchase will be $135.80. - If Mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89. - If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.

Which is an example of easy-access credit? a. $3000 monthly line of credit b. credit card with a $4,000 limit c. one-week payday loan for $350 d. $200,000 loan for a home

The table shows a schedule of Mr. Kirov's plan for paying off his credit card balance. If Mr. Kirov continues to make monthly payments of $100 and does not make any new purchases, how many more payments will he need to make before the balance is 0? a. 4 payments b. 5 payments c. 6 payments d. 7 payments

Maura had to get a $350 emergency loan at a very high interest rate to pay for dental work. The lender did not need her credit history. If she does not pay back the loan within three weeks, she will have to pay an extra $50. Raina says the loan is an example of easy-access credit while Maura says it is an example of open-end credit. Which statement about the loan is correct? a. Raina is correct because the loan is a line of credit. b. Maura is correct because the loan has an interest rate. c. Raina is correct because the loan has a large fee if it is not repaid on time. d. Maura is correct because the loan does not have an annual fee.

Kanya has a credit card that gives a 6% discount on every purchase and free shipping when used online. The annual percentage rate on the credit card is 12%. Kanya wants to buy a laptop that costs $420. Which statement about the cost of the laptop is true? a. If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $25.20 more than paying cash for the laptop. b. If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $50.40 more than paying cash for the laptop. c. If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $50.40 less than paying cash for the laptop. d. If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $25.20 less than paying cash for the laptop.

Open-end credit is a. a loan given for a short period of time that is not dependent on credit history. b. pledged to a company as security for a loan repayment. c. an amount of time during which a loan can be repaid without interest. d. an agreement with an institution on a certain amount that can be repeatedly borrowed.

Which is an example of closed-end credit? a. payday loan b. title loan c. home loan d. credit card

Tran has a credit card with a spending limit of $2000 and an APR (annual percentage rate) of 12%. During the first month, Tran charged $450 and paid $150 of that in his billing cycle. Which expression will find the amount of interest Tran will be charged after the first month? a. (0.01)(300) b. (0.01)(450) c. (0.12)(300) d. (0.12)(450)

The table shows a schedule of Evita's payment plan for a used car. Evita paid $2,408.91 in interest. What was the selling price of the car? a. $12,845.52 b. $17,127.07 c. $19,000.00 d. $21,408.91

The simple interest on a loan of $200 at 10 percent interest per year is a. $10 per year until the loan is paid off. b. $15 per year until the loan is paid off. c. $20 per year until the loan is paid off. d. $25 per year until the loan is paid off.

What best determines whether a borrower's interest rate on an adjustable rate loan goes up or down? a. a fixed interest rate b. a bank's finances c. a market's condition d. a person's finances

What is a benefit of obtaining a personal loan? a. getting money with special repayment terms b. getting money with favorable interest rates c. getting small amounts of money to use immediately d. getting large amounts of money to use immediately

A way to build good credit is a. using only secured loans. b. taking out many lines of credit. c. paying bills when they are due. d. using only credit cards.

Both mortgages and auto loans a. are riskier for lenders. b. are riskier for borrowers. c. require a down payment in general. d. require minimum payments.

A credit score is based in part on a. employment and race. b. income and location. c. employment and trust. d. payment history and total debt.

In determining whether to issue a loan, banks are not allowed to ask about an applicant's a. employment history. b. date of birth. c. country of origin. d. income tax returns.

Consumers who pay more than the minimum payment on credit cards a. pay less interest in the long run. b. are able to buy more things. c. see their credit scores decrease. d. qualify for mortgages.

For which buyer would a lender most likely approve a $200,000 mortgage? a. a person with a credit score of 800 with a large amount of debt who has recently switched to a lower-paying job b. a person with a credit score of 760 with a small amount of debt who has had steady employment for many years c. a person with a credit score of 650 with a large amount of available credit who has a low-paying, but steady job d. a person with a credit score of 600 with a small amount of available credit who has recently switched to a high-paying job

Which best describes a way people can use personal loans? a. to buy a house b. to buy a bicycle c. to pay for college d. to pay for groceries

Filing for bankruptcy can make it hard for a consumer to reestablish and obtain

What is the compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate? a. $10.00 b. $21.00 c. $33.10 d. $46.41

Which describes the difference between secured and unsecured credit? a. Secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object. b. Unsecured credit is backed by an asset equal to the value of a loan, while secured credit is not guaranteed by a material object. c. Secured credit is risky because banks cannot seize assets, while unsecured credit is less risky because it is backed by material objects. d. Unsecured credit enables lenders to seize an asset if a loan is not paid, while secured credit prohibits lenders from taking material objects.

The chart shows a range of credit scores. A credit score between 500 and 600 means a consumer would most likely a. find it easy to get a loan. b. find it hard to get a loan. c. get a loan with low payments. d. get a loan with low interest.

People who want to buy a house typically ask the bank for a credit card ____ over a 10- to 30-year period.

The following table shows a portion of a four-year amortization schedule. After three years, how much of the principal has been paid off? a.$25,176.60 b.$22,706.64 c.$19,827.08 d.$5,349.52

A trade-in is most closely related to which of the following? a.A down payment, because it reduces the amount financed. b.An interest payment, because it represents value given to the dealer. c.The list price, because it is derived from the price of a car. d.Amortization, because it is a way of paying for car financing.

Cassandra purchased a new car. The car had a list price of $16,870. Cassandra made a down payment of $1,800 and financed the rest, paying 12.3% interest compounded monthly over a payment period of four years. If Cassandra also had to pay 7.8% sales tax, a $895 vehicle registration fee, and a $68 documentation fee, what is her monthly payment? a.$446.74 b.$459.42 c.$461.41 d.$507.09

Bernie has decided to purchase a new car with a list price of $18,575. Sales tax in Bernie's state is 7.40%, and he will be responsible for a $795 vehicle registration fee and a $110 documentation fee. Bernie plans to trade in his existing car, a 1999 Buick Riviera in good condition, and finance the rest of the cost for five years at an interest rate of 12.77%, compounded monthly. Assuming that the dealer gives Bernie the listed trade-in price for his car, what will his monthly payment be? Round all dollar values to the nearest cent. a.$472.05 b.$439.12 c.$438.20 d.$518.23

The following table shows a portion of a five-year amortization schedule. What percent of the payments made were due to interest for the months shown? a.30.9% b.32.6% c.62.5% d.63.4%

Suzanne has purchased a car with a list price of $23,860. She traded in her previous car, which was a Dodge in good condition, and financed the rest of the cost for five years at a rate of 11.62%, compounded monthly. The dealer gave her 85% of the listed trade-in price for her car. She was also responsible for 8.11% sales tax, a $1,695 vehicle registration fee, and a $228 documentation fee. If Suzanne makes a monthly payment of $455.96, which of the following was her original car? a. 2004 Intrepid b. 2008 Neon c. 2005 Viper d. 2007 Dakota

Laura is currently paying off her four-year car financing. When she purchased her car, it had a list price of $19,858. Laura traded in her previous car, a good-condition 2000 Honda Insight, for 85% of the trade-in value listed below, financing the rest of the cost at 9.5% interest, compounded monthly. She also had to pay 9.27% sales tax, a $988 vehicle registration fee, and a $77 documentation fee. However, because Laura wants to pay off her loan more quickly, she makes a total payment of $550 every month. How much extra is she paying monthly? Round all dollar values to the nearest cent. a. $73.81 b. $71.72 c. $88.24 d. $77.92

Charles is going to purchase a new car that has a list price of $21,450. He is planning on trading in his good-condition 2004 Dodge Neon and financing the rest of the cost over three years, paying monthly. His finance plan has an interest rate of 12.28%, compounded monthly. Charles will also be responsible for 6.88% sales tax, a $1,089 vehicle registration fee, and a $124 documentation fee. If the dealer gives Charles 80% of the listed trade-in price on his car, once the financing is paid off, what percent of the total amount paid will the interest be? (Consider the trade-in to be a reduction in the amount paid.) a. 17.64% b. 15.67% c. 16.70% d. 12.86%

Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7.96% sales tax, a $2,138 vehicle registration fee, and a $262 documentation fee. Reg's financing has an interest rate of 10.27%, compounded monthly, and a duration of three years. If Reg makes a monthly payment of $773.89, which of the following was his down payment? Round all dollar values to the nearest cent. a. $2,000 b. $2,200 c. $2,500 d. $2,800

Tyler is planning to buy a new car. He intends to trade in his existing car, a 2002 Chrysler Sebring in good condition. Using the table below, estimate how much Tyler's car is worth. a. $3,260 b. $2,920 c. $2,605 d. $3,188

A balloon payment mortgage makes the best sense for borrowers who are a. fearful of taking risks when borrowing money. b. planning on selling their homes before the term of the loan ends. c. looking to avoid borrowing money from banks. d. anticipating losing their jobs in the next few years.

The chart shows the costs associated with the purchase of a new home. In the chart, closing costs refers to the a. cost of making repairs to the new home. b. fees that must be paid to local schools. c. costs associated with obtaining the loan. d. fees assessed by the state or local government.

What impact might an economic downturn have on a borrower's fixed-rate mortgage? a. It might cause a borrower's payments to go up. b. It might cause a borrower's payments to go down. c. It has no impact because a fixed-rate mortgage cannot change. d. It has no impact because the economy does not affect interest rates.

The table shows the terms of a fixed-rate mortgage. Which formula should be used to correctly calculate the monthly mortgage payment? A B C D

The chart shows the costs associated with the purchase of a new home. What is the best conclusion that can be drawn from the information in the chart? a. It is too expensive for most people to buy a new home. b. There are additional fees and costs involved in taking out a mortgage. c. Making a down payment means taxes do not have to be paid. d. Fees and taxes make up about 50 percent of the costs of buying a home.

What best explains the relationship between a borrower's credit score and a down payment requirement? a. Someone with a high credit score may be required to make a higher down payment. b. Someone with a high credit score may be required to make a lower down payment. c. Someone with a low credit score may be required to make a lower down payment. d. Someone with a low credit score may not have to make a down payment.

A borrower with bad credit is likely to be charged a. a low interest rate. b. a high interest rate. c. no interest rate. d. higher property taxes.

Many people prefer a fixed-rate mortgage because it a. is variable. b. might go down. c. is predictable. d. costs the least.

Use the following table to help answer the question below. A family of three living in Georgia is thinking about filing bankruptcy. In order to file for Chapter 7 bankruptcy, what must be true about their monthly income? a. The family's monthly income must be less than $5,092. b. The family's monthly income must be more than $5,092. c. The family's monthly income must be less than $4,605. d. The family's monthly income must be more than $4,605.

Benson has a bankruptcy on his credit report, so he pays higher interest rates on his current loans. He calculates that the extra money he pays in additional interest each year, if invested at the rate of 2% for one year, could earn him simple interest totaling $180. How much does Benson pay in additional interest each month? a. $360 b. $750 c. $900 d. $1,000

A person who filed bankruptcy in the past is able to get a 25-year mortgage loan at a rate that is 6% higher than what they could have received if they had not filed. The interest rate this person pays on a $130,000 loan is 13%, compounded monthly. Assume this person could have received the lower interest rate on the loan and saved all of the difference on the payments for the first five years of the loan. If this person then invested this total amount in an account paying simple interest at the rate of 2%, how much money would have accumulated in interest by the time the mortgage is paid off? a. $547.37 b. $32,842.38 c. $13,196.95 d. $17,179.23

Nellie has a bankruptcy on her credit report and therefore pays higher interest rates on her current loans. She calculates that the extra money she pays in additional interest each year, if invested at the rate of 3% for 5 years, could earn her simple interest totaling $114. Approximately how much does Nellie pay in additional interest each year? a.$171 b.$190 c.$342 d.$760

Which of the following, while appearing negative, might actually be considered an advantage of filing bankruptcy? a.inability to get new credit cards b.inability to discharge all debt c.inability to get a car loan d.inability to stop collections by creditors

Cheri took out a loan for $14,350. The loan term was 3 years and Cheri's payments were $625.77 per month. Since Cheri had filed for bankruptcy several years prior, she ended up paying a higher interest rate. With a better credit rating, her payments could have been $431.21 per month. How much more in interest did Cheri end up paying for her loan because of her bankruptcy? a.$5,836.80 b.$2,334.72 c.$8,624.16 d.$7,004.16

A couple has one child. They live in Virginia and have a combined annual income of $91,215. The couple has a mortgage, a car loan, student loans, and credit card debt. When one of them loses their job, their monthly income is reduced by $3,200. If they felt the need to file for bankruptcy, which of the following statements is true? a.They could file for Chapter 7 bankruptcy and discharge all of their debt. b.They could file for Chapter 7 bankruptcy and discharge most of their debt. c.They could file for Chapter 13 bankruptcy and discharge all of their debt. d.They could file for Chapter 13 bankruptcy and discharge some of their debt.

Which of the following can not be discharged by filing bankruptcy? a.car loan b.credit card debt c.mortgage d.student loan

Which of the following items would you most likely be able to keep in Chapter 7 bankruptcy? a.equity in your home b.a fur coat worth $2,000 c.a sports car with $6,000 equity d.tools for your woodworking hobby

Which of the following phrases best summarizes Chapter 7 bankruptcy? a.discharge debt and keep property b.discharge debt and liquidate assets c.reorganize debt and keep property d.reorganize debt and liquidate assets

Tess is going to purchase a new car that has a list price of $29,190. She is planning on trading in her good-condition 2006 Dodge Dakota and financing the rest of the cost over four years, paying monthly. Her finance plan has an interest rate of 10.73%, compounded monthly. Tess will also be responsible for 7.14% sales tax, a $1,235 vehicle registration fee, and a $97 documentation fee. If the dealer gives Tess 75% of the listed trade-in price on her car, once the financing is paid off, what percent of the total amount paid over four years would be interest? (Consider the trade-in to be a reduction in the amount paid.) a.21.39% b.19.15% c.23.43% d.18.98%

Which of the following is not a true statement about filing bankruptcy? a.Bankruptcy erases all of your debt. b.It is possible to rebuild your credit after filing bankruptcy. c.There are exemptions that allow you to keep essentials. d.Bankruptcy stops aggressive action by creditors.

Since they filed bankruptcy in the past, a couple ends up paying a 12% fixed rate for a 30 year mortgage. With a better credit rating, they could have gotten the loan at a rate of 8%. If their loan amount is $140,000, how much more per month will the couple be paying for their mortgage as a result of their bankruptcy? a.$137,532.67 b.$412.79 c.$1,440.06 d.$260.37

Calculate the monthly payment for a 5-year car loan of $23,570 at 10.43% interest, compounded monthly. a.$247.44 b.$337.56 c.$433.88 d.$505.79

Valerie is going to purchase a new car. The car she wants has a list price of $32,495. Valerie is planning to make a down payment of $1,877. Furthermore, she plans to trade in her current car, which is a 2006 Hyundai Sonata in good condition. She will finance the rest of the cost by making monthly payments over five years. She can finance the cost at a rate of 8.64%, compounded monthly. She will also have to pay 8.23% sales tax, a $2,243 vehicle registration fee, and a $314 documentation fee. If the dealer gives Valerie 87.5% of the trade-in price on her car, listed below, approximately how much will Valerie pay in total for her new car? (Round all dollar values to the nearest cent, and consider the trade-in to be a reduction in the amount paid.) a.$37,385 b.$38,821 c.$38,287 d.$36,944

Which is most likely to happen to consumers with good credit? Check all that apply. -They can be approved for loans. -They are denied a mortgage. -They can receive lower interest rates. -They are denied an unsecured loan. -They can use credit in emergencies. -They are forced into high interest rates.

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica's lender likely to view this credit score? a. Jessica is low risk and will pay her outstanding balances on time. b. Jessica is low risk but will not pay her outstanding balances on time. c. Jessica is high risk and will pay her outstanding balances on time. d. Jessica is high risk but will not pay her outstanding balances on time.

A mortgage is a legal agreement between a borrower and a a. city agency. b. family court judge. c. wealthy relative. d. bank.

Dennis has just made the final monthly payment necessary for paying off his car financing. When he purchased the car three years ago, it had a list price of $23,878. Dennis traded in his good-condition 2001 Honda Odyssey and financed the rest of the cost at an interest rate of 11.82%, compounded monthly. The dealer gave Dennis 85% of the trade-in value of his car, listed below. Dennis was also responsible for paying 9.05% sales tax, a $1,474 vehicle registration fee, and a $225 documentation fee. All told, how much did Dennis pay in interest? (Round all dollar values to the nearest cent, and consider the trade-in to be a reduction in the amount paid.) a. $3,919.77 b. $3,906.80 c. $4,599.44 d. $3,668.52

The charts show the effect of an interest rate adjustment on an adjustable-rate mortgage. The change in interest rate shown in the charts resulted in a. a lower interest rate. b. a higher principal. c. a higher monthly payment. d. a higher number of payments.

Companies report people to credit agencies if they a. fail to pay their bills on time. b. borrow too much money. c. fail to use different types of credit. d. use large amounts of credit at once.

A down payment is usually what percentage of the asking price of a home? a. 0-5 percent b. 5-20 percent c. 20-50 percent d. 50-75 percent

Which are considered types of credit available to borrowers? Check all that apply. - personal loans - bonds - credit cards - mortgages - cash - auto loans - gift cards

What consumer protection agency is known by the acronym FTC? a.Federation of Traders and Consumers b.Foreign Tariff Committee c.Federal Trade Commission d.Fair Trade Community

Identify the percent increase in sales of parkas and the percent increase in sales of raincoats. Then find which percent of increase is greater and by how much greater it is than the other. (Round your answer to the nearest tenth.) a.Sales of parkas increased 65.2 percentage points faster than sales of raincoats. b.Sales of parkas increased 1.5 percentage points faster than sales of raincoats. c.Sales of raincoats increased 89.1 percentage points faster than sales of parkas. d.Sales of raincoats increased 49.0 percentage points faster than sales of parkas.

Which of the following functions is most closely connected with the FDA? a.regulating markets and preventing monopolies b.enforcing truth in advertising c.protecting the public from unsafe medicines and foods d.using monetary policy to prevent inflation

What is meant by the "right to redress"? a.The consumer has the right to repeat any transaction. b.The consumer has the right to replacement of damaged goods. c.The consumer has the right to hear back from businesses that they contact. d.The consumer has the right to fair settlement of disputes.

Identify the percent increase in total sales and the percent increase in sales of trench coats. Then find which percent of increase is greater and by how much greater it is than the other. (Round your answer to the nearest tenth.) a.Sales of trench coats increased 0.7 percentage points faster than total coat sales. b.Sales of trench coats increased 8.3 percentage points faster than total coat sales. c.Total coat sales increased 2.5 percentage points faster than sales of trench coats. d.Total coat sales increased 10.7 percentage points faster than sales of trench coats.

Of the four consumer protection groups listed below, identify which groups are government agencies and which are non-governmental. I. Better Business Bureau II. Consumer Product Safety Commission III. Consumers Union IV. Food and Drug Administration a. I and II are governmental; III and IV are not. b.II and III are governmental; I and IV are not. c.II and IV are governmental; I and III are not. d.III and IV are governmental; I and II are not.

Say that a company has treated you unfairly or dishonestly. Which of the following options could help you resolve the issue? I. Report them to the Better Business Bureau. II. Speak to their corporate consumer department. III. Seek the help of the Department of HHS. a.I and II b.II and III c.I and III d.II only

An important basic consumer right is the right to live and work in a(n) ____ environment.

Which agency is responsible for promoting the welfare and opportunities of wage earners? a.FDA b.HUD c.DOL d.CPSC

Which basic consumer right calls for accurate information on product information and labeling requirements so the customer can make purchasing decisions? a. the right to safety b. the right to be heard c. the right to education d. the right to be informed

Koshi creates a password as follows: number, special character, letter, letter, number If there are 12 special characters and Koshi does not repeat a letter or number, how many possibilities are there for his password? a.702,000 b.730,080 c.780,000 d.811,200

Which of the following best describes a way of safeguarding personal information? a.Allison removes one check to pay her electric bill and then locks her checkbook in the car when she goes in to pay it. b.Byron gives his credit card number to a telephone solicitor, but only after getting the person's name. c.Jenika has the cashier run her debit card as a credit purchase, rather than debit, to avoid having to enter her PIN. d.Lydell reads and signs the privacy policy at his doctor's office that says they only share information with pharmaceutical companies.

Lola Jean Ramos just turned 21 on June 19th and she loves to go dancing. From the given scenarios, which one describes the best way for Lola to create a 6 character password? a.She creates her password using her first name and age: lola21. b.She creates her password using her initials and birthdate: ljr619. c.She creates her password using the saying "Love to dance at 21": ltd@21. d.She creates her password using the saying "Lola Jean Ramos is 21": ljri21.

What are the total amount of choices possible if an individual is to create a 4 digit password using the digits 0 through 9 inclusive, but not using the digit 0 as the first character of the password? a.39 b.900 c.399 d.9000

How many 4-digit personal identification numbers are possible if the number cannot contain a zero? a.5,040 b.6,561 c.9,000 d.10,000

What does the Fair and Accurate Credit Transactions Act provide for consumers? a.It entitles consumers to get one free credit report per year from the big three reporting agencies. b.It entitles consumers to notify credit reporting agencies if their identity is stolen. c.It entitles consumers to file a complaint with the Federal Trade Commission if their identity is stolen. d.It entitles consumers to find out about who has access to personal information and if it is being handled securely.

An identity thief watches someone enter a 4-digit PIN and manages to see the first two digits. If the thief tries guessing the PIN, how many possibilities would there be? a.81 b.90 c.100 d.200

When creating passwords for secure accounts, which of the following rules should you apply? a.use personal information that is easy to remember b.use a variety of letters, numbers and characters c.use a sequence or pattern of numbers d.use the same password for all accounts

A password is 4 characters long and must consist of 3 letters and 1 of 10 special characters. If letters can be repeated and the special character is at the end of the password, how many possibilities are there? a.175,760 b.456,976 c.703,040 d.1,679,616

How many four-digit personal identification numbers (PIN) are possible if the PIN cannot begin with a 0 and the PIN must be an odd number? a. 5,000 b. 4,500 c. 3,600 d. 500

Why is it risky to invest in a commodity? a. A commodity has little or no value as a long-term investment. b. Commodity stocks cannot be traded after you purchase them. c. The commodity's price might drop significantly very quickly. d. The investment will tie up your money for more than one year.

The image shows Alex's investments in one year. Investments during One Year What does the information demonstrate about Alex's investments? a. He should have invested in a commodity instead of a stock. b. He would have lost more with a higher-risk investment. c. He most likely would have benefited by diversifying. d. He most likely would have profited by buying more of the stock.

Which investment is best for someone who is likely to need cash soon? a. mutual fund b. CD c. 401(k) d. savings account

Which of these investments may be long term? Check all that apply. - savings accounts - mutual funds - bonds - retirement funds - commodities

In what way does a 401(k) differ from an individual retirement account (IRA)? a. A 401(k) is created through an individual's employer. b. A 401(k) can be created by individuals who deposit money. c. A 401(k) allows consumers to contribute before taxes. d. A 401(k) is a good long-term investment strategy.

What might convince an investor to buy stock or mutual funds? a. belief that a company has just reached its peak popularity b. news that a stock's price has recently increased significantly c. belief that a small number of investors have bought the stock so far d. news that a company is about to release a promising product

What is the relationship between risk and return? a. A higher risk often means a higher return. b. A lower risk always means a higher return. c. A higher risk often means a lower return. d. A lower risk will always mean a lower return.

Which statements apply to a certificate of deposit (CD)? Check all that apply. - It is always purchased as a short-term investment. - It can be purchased from a banking institution. - It is always purchased as a long-term investment. - It can be purchased for almost any amount. - It is purchased through an individual's employer.

The pie graph shows sources of income for people ages 65 and over in 2010. According to this chart, among people 65 and over, investment income represents the a. largest source of income. b. smallest source of income. c. second largest source of income. d. fourth largest source of income.

When investors purchase a commodity, they believe a. the commodity's price will go up after purchase. b. the bank will pay interest to the investors. c. the investors' employer will match the cost. d. the commodity is guaranteed to make them money.

Which statement best describes how an investor makes money off debt? a. An investor makes money by issuing bonds. b. An investor makes money by earning interest. c. An investor makes money by raising capital. d. An investor makes money by being repaid for the principal.

Are the buying and selling of stocks centralized activities? Why or why not? a. Yes, the New York Stock Exchange is the principal exchange for the nations of the world. b. No, people can buy stocks anywhere, and they do not need to go through a market. c. Yes, the world's stock markets are coordinated exchanges, and they are dependent on one another. d. No, there are many stock markets around the world, and they are independent of one another.

Once stocks are on the market, which best explains how their prices are set? a. Prices are controlled by the issuing company. b. Prices are set by the financial market. c. Prices follow economic trends. d. Prices fluctuate on the basis of demand.

Which best describes what generally occurs in financial markets? a. Debt and loans are traded. b. Assets are traded. c. Commodities are traded. d. Shares are traded.

Which is true about investments and risk? a. Low-risk investments have a high return over the long run. b. High-risk investments usually fail. c. Safe investments are always somewhat profitable. d. Every investment carries some degree of risk.

Which can be traded in a commodities market? a. cars b. computers c. oil d. clothing

Since stocks can be traded online, which purpose is best served by markets? a. Markets regulate transactions. b. Markets are where the trades actually occur. c. Markets sell the assets to be traded. d. Markets ensure that the transactions are secure.

Capital appreciation refers to a. the increased value of an asset. b. the ability to make a profit from owning stock. c. the distribution of earnings to shareholders. d. the profitable sale of shares.

What is one way in which bonds do not generate income for investors? Bonds appreciate in value. Bonds pay interest. Bonds pay a specified amount at maturity. Bonds pay dividends.

Which factors can affect a stock's price? Check all that apply. - market performance - the company's financial health - the quantity products produced - location of the company - the economy

Roberto listed his assets and liabilities on a personal balance sheet. After creating the balance sheet, Roberto decided to use his investments to pay off his car loan. How will that decision affect the difference between his assets and liabilities? a. It will make the assets $5,000 less than the liabilities. b. It will make the assets $5,000 more than the liabilities. c. The difference between the assets and the liabilities will remain the same. d. The difference between the assets and the liabilities cannot be compared.

Rita does chores for her neighbors and makes $45 each weekend. She owes her sister $80. Rita has $178 in coins and a collection of baseball cards worth $475.Which is a liability? a. the money she earns b. the money she owes her sister c. the coins d. the collection of baseball cards

Julio has a house worth $220,000. He has a $175,000 mortgage. Julio says that in this situation, his asset is really only $45,000. Which statement explains whether Julio is correct? a. Julio is correct because the $45,000 equity in the house is the real asset. b. Julio is correct because he can pay $45,000 and have no more liabilities. c. Julio is not correct because the same item cannot represent both an asset and a liability. d. Julio is not correct because the house cannot be worth more than the mortgage.

Anna is creating a personal balance sheet. She plans to list these items. Bank Account Jewelry Health Insurance Rent Which statements about the balance sheet are correct? Select three choices. - Health insurance, and rent will be listed in the liabilities column. - Anna will need to find the total value of her jewelry and bank account. - The period of the balance sheet will be one year. - Anna will add the value of the assets and subtract the value of the liabilities. - The items in the table will be listed in four columns.

What is Paige's net income for December? - $900 - $950 - $1,850 - $2,750

Colin listed his assets and liabilities on a personal balance sheet. Which statement is true about the total assets and the total liabilities? - The total of the assets and the liabilities are the same. - The total of the assets is greater than the total of the liabilities. - The total of the assets is less than the total of the liabilities. - The total of the assets cannot be compared to the total of the liabilities.

Amala listed her assets and liabilities. What is the total of Amala's liabilities? a. $850 b. $2,500 c. $3,350 d. $5,550

Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pays $175 a month for utilities. Mr. Morgan owns a rental property for which he receives $680 per month.Which is a liability? a. the yearly salary b. the commission c. the mortgage d. the rental property

Omar's income statement for the month of October is shown. What is Omar's net income for October? a. $1,000 b. $1,500 c. $2,500 d. $3,500