Question 1

Which of the following is an option for housing your emergency fund and other short-term savings?

Accepted Answer

A)  Somewhere in your house. 
B)  Savings account. 
C)  Collectibles. 
D)  Real estate. 
A)  Somewhere in your house. 
B)  Savings account. 
C)  Collectibles. 
D)  Real estate.

Question 2

Max has monetary assets that total $1,500 and monthly living expenses that total $2,000. What is his emergency fund ratio?

Accepted Answer

A)  0.75. 
B)  1.25. 
C)  1.33. 
D)  1.45. 
A)  0.75. 
B)  1.25. 
C)  1.33. 
D)  1.45.

Question 3

Which of the following refers to a savings product that is generally purchased with one lump-sum dollar amount?

Accepted Answer

A)  Retirement account. 
B)  Savings account. 
C)  Money market savings account. 
D)  Certificate of deposit. 
A)  Retirement account. 
B)  Savings account. 
C)  Money market savings account. 
D)  Certificate of deposit.

Question 4

What type of risk results only in an economic loss?

Accepted Answer

A)  Pure risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk. 
A)  Pure risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk.

Question 5

The results of the emergency fund formula should vary between ________ and ________ months.

Accepted Answer

A)  2; 4 
B)  3; 6 
C)  4; 6 
D)  5; 7 
A)  2; 4 
B)  3; 6 
C)  4; 6 
D)  5; 7

Question 6

When are earnings from custodial IRA accounts taxed?

Accepted Answer

A)  Upon withdrawal. 
B)  In the year they are earned. 
C)  Earnings are not taxed. 
D)  When the child is no longer a minor. 
A)  Upon withdrawal. 
B)  In the year they are earned. 
C)  Earnings are not taxed. 
D)  When the child is no longer a minor.

Question 7

What happens to the value of most investments when interest rates increase?

Accepted Answer

A)  Increase. 
B)  Decrease. 
C)  Increase by 50%. 
D)  No change. 
A)  Increase. 
B)  Decrease. 
C)  Increase by 50%. 
D)  No change.

Question 8

Which of the following refers to an interest-bearing asset that allows you to earn a small return on your deposit?

Accepted Answer

A)  Mutual fund. 
B)  Savings account. 
C)  Retirement account. 
D)  Emergency fund. 
A)  Mutual fund. 
B)  Savings account. 
C)  Retirement account. 
D)  Emergency fund.

Question 9

Which of the following is a scam that is typically based on selling products and/or recruiting new members into an organization?

Accepted Answer

A)  Ponzi scheme. 
B)  Pyramid scheme. 
C)  Telemarketing fraud. 
D)  Identity theft. 
A)  Ponzi scheme. 
B)  Pyramid scheme. 
C)  Telemarketing fraud. 
D)  Identity theft.

Question 10

Which of the following is a significant advantage of a Roth IRA?

Accepted Answer

A)  Investments held in the account accumulate earnings on a tax-deferred basis. 
B)  Money pulled from the account is tax-free if certain conditions are met. 
C)  Investments held in the account accumulate earnings on a tax-deferred basis and money pulled from the account is tax-free if certain conditions are met. 
D)  None of these answer choices are correct. 
A)  Investments held in the account accumulate earnings on a tax-deferred basis. 
B)  Money pulled from the account is tax-free if certain conditions are met. 
C)  Investments held in the account accumulate earnings on a tax-deferred basis and money pulled from the account is tax-free if certain conditions are met. 
D)  None of these answer choices are correct.

Question 11

How much more should you expect to pay for last-minute airline tickets for emergency travel?

Accepted Answer

A)  10%. 
B)  25%. 
C)  35%. 
D)  50%. 
A)  10%. 
B)  25%. 
C)  35%. 
D)  50%.

Question 12

Which of the following occurs when someone attempts to deceive you with a promise of goods, services, money, or other benefits that do not really exist, were never intended to be provided, or were misrepresented?

Accepted Answer

A)  Fraud. 
B)  Threat. 
C)  Financial gain. 
D)  Credit freeze. 
A)  Fraud. 
B)  Threat. 
C)  Financial gain. 
D)  Credit freeze.

Question 13

What is the minimum age at which a custodial account can be converted to an individual account?

Accepted Answer

A)  18. 
B)  19. 
C)  21. 
D)  Varies based on state laws. 
A)  18. 
B)  19. 
C)  21. 
D)  Varies based on state laws.

Question 14

Which of the following is an attribute of a money market account?

Accepted Answer

A)  Low liquidity. 
B)  Low returns. 
C)  Very flexible. 
D)  FDIC or National Credit Union Share Insurance Fund (NCUSIF) insured. 
A)  Low liquidity. 
B)  Low returns. 
C)  Very flexible. 
D)  FDIC or National Credit Union Share Insurance Fund (NCUSIF) insured.

Question 15

Mia has monetary assets that total $2,500 and annual living expenses that total $12,000. What is her emergency fund ratio?

Accepted Answer

A)  0.21. 
B)  0.40. 
C)  1.50. 
D)  2.50. 
A)  0.21. 
B)  0.40. 
C)  1.50. 
D)  2.50.

Question 16

Which of the following refers to compounding interest?

Accepted Answer

A)  Interest that is paid out monthly. 
B)  Interest that is paid out annually. 
C)  Interest earned begins to earn additional interest. 
D)  Interest that is paid out quarterly. 
A)  Interest that is paid out monthly. 
B)  Interest that is paid out annually. 
C)  Interest earned begins to earn additional interest. 
D)  Interest that is paid out quarterly.

Question 17

Which of the following is an option for building an emergency fund?

Accepted Answer

A)  Borrowing on your credit card. 
B)  Using a line of credit to pay your expenses. 
C)  Depositing money each month or pay period into a savings account and maintaining a combination of savings and low-cost access to credit. 
D)  None of these answer choices are correct. 
A)  Borrowing on your credit card. 
B)  Using a line of credit to pay your expenses. 
C)  Depositing money each month or pay period into a savings account and maintaining a combination of savings and low-cost access to credit. 
D)  None of these answer choices are correct.

Question 18

Which of the following should you do if you have been a victim of identity theft?

Accepted Answer

A)  Contact your local police or sheriff department. 
B)  Alert your credit card company or financial institution. 
C)  Check with your insurance agent. Some homeowner and renter insurance policies include coverage for a stolen identity and/or financial frauds. 
D)  All of these answer choices are correct. 
A)  Contact your local police or sheriff department. 
B)  Alert your credit card company or financial institution. 
C)  Check with your insurance agent. Some homeowner and renter insurance policies include coverage for a stolen identity and/or financial frauds. 
D)  All of these answer choices are correct.

Question 19

Which of the following refers to a way to purchase U.S. savings bonds?

Accepted Answer

A)  Directly from the U.S. Treasury Department. 
B)  Directly with your federal income tax return. 
C)  Through payroll deductions. 
D)  All of these answer choices are correct. 
A)  Directly from the U.S. Treasury Department. 
B)  Directly with your federal income tax return. 
C)  Through payroll deductions. 
D)  All of these answer choices are correct.

Question 20

Which of the following refers to the change in the level of consumer goods and service prices over time?

Accepted Answer

A)  Inflation. 
B)  Consumer Price Index. 
C)  Price of goods sold. 
D)  Rate of return. 
A)  Inflation. 
B)  Consumer Price Index. 
C)  Price of goods sold. 
D)  Rate of return.

Which of the following is an option for housing your emergency fund and other short-term savings?

Max has monetary assets that total $1,500 and monthly living expenses that total $2,000. What is his emergency fund ratio?

Which of the following refers to a savings product that is generally purchased with one lump-sum dollar amount?

What type of risk results only in an economic loss?

The results of the emergency fund formula should vary between and months.

When are earnings from custodial IRA accounts taxed?

What happens to the value of most investments when interest rates increase?

Which of the following refers to an interest-bearing asset that allows you to earn a small return on your deposit?

Which of the following is a scam that is typically based on selling products and/or recruiting new members into an organization?

Which of the following is a significant advantage of a Roth IRA?

How much more should you expect to pay for last-minute airline tickets for emergency travel?

Which of the following occurs when someone attempts to deceive you with a promise of goods, services, money, or other benefits that do not really exist, were never intended to be provided, or were misrepresented?

What is the minimum age at which a custodial account can be converted to an individual account?

Which of the following is an attribute of a money market account?

Mia has monetary assets that total $2,500 and annual living expenses that total $12,000. What is her emergency fund ratio?

Which of the following refers to compounding interest?

Which of the following is an option for building an emergency fund?

Which of the following should you do if you have been a victim of identity theft?

Which of the following refers to a way to purchase U.S. savings bonds?

Which of the following refers to the change in the level of consumer goods and service prices over time?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Checking Accounts, Credit Scores, and Credit Cards

Loans and Housing Decisions

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters

Exam 7: The Foundation of Savings

Which of the following is an option for housing your emergency fund and other short-term savings?

Max has monetary assets that total $1,500 and monthly living expenses that total $2,000. What is his emergency fund ratio?

Which of the following refers to a savings product that is generally purchased with one lump-sum dollar amount?

What type of risk results only in an economic loss?

The results of the emergency fund formula should vary between ________ and ________ months.

When are earnings from custodial IRA accounts taxed?

What happens to the value of most investments when interest rates increase?

Which of the following refers to an interest-bearing asset that allows you to earn a small return on your deposit?

Which of the following is a scam that is typically based on selling products and/or recruiting new members into an organization?

Which of the following is a significant advantage of a Roth IRA?

How much more should you expect to pay for last-minute airline tickets for emergency travel?

Which of the following occurs when someone attempts to deceive you with a promise of goods, services, money, or other benefits that do not really exist, were never intended to be provided, or were misrepresented?

What is the minimum age at which a custodial account can be converted to an individual account?

Which of the following is an attribute of a money market account?

Mia has monetary assets that total $2,500 and annual living expenses that total $12,000. What is her emergency fund ratio?

Which of the following refers to compounding interest?

Which of the following is an option for building an emergency fund?

Which of the following should you do if you have been a victim of identity theft?

Which of the following refers to a way to purchase U.S. savings bonds?

Which of the following refers to the change in the level of consumer goods and service prices over time?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Checking Accounts, Credit Scores, and Credit Cards

Loans and Housing Decisions

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters

The results of the emergency fund formula should vary between and months.