Exam 24: Appendix: Managing Personal Finances

Most financial experts will tell you to save about one month's earnings for contingency purposes.

For a young person, one of the worst places to invest money for the long-term is:

A ________ is a document that names a guardian for your children, states how you want your assets distributed, and names an executor to handle your estate when you die.

One drawback to buying a home compared to renting is that your monthly mortgage payments will increase, while rental payments are fixed.

Guaranteed replacement cost insurance coverage provides the insured with the depreciated cost of assets.

During her sophomore year in college Carrie received an email from First Bank telling her she was eligible for a credit card along with a free gift. Carrie was excited until she remembered that any cash she has usually "burns a hole" in her pocket, and she spends it quickly. Carrie would likely not be successful with a credit card because

Which of the following is a benefit unique to buying two attached homes, as opposed to the purchase of a single-family home?

Recent demographic trends suggest that the financial condition of the Social Security program soon will begin to improve.

Dylan and Wyatt are good friends who have similar jobs that pay them well. Both have established budgets that allow them to invest several hundred dollars each month. Dylan has a strategy of putting most of his money in bank CDs and a savings account. Wyatt has opted for a strategy of investing in the stock market. According to the evidence of the past 50 years, it is likely that over the long run

The increase in the number of retirement plans approved by the federal government likely indicates that

One of the first things the financial planner is likely to have them do would be to

Once you have set up a budget and handled your ordinary expenses, the first thing to do with any extra money you have is to

Once you have evaluated your current financial situation and know your sources of income and expenses, you have reached the point where you can establish a personal budget.

A simple IRA, which allows workers to contribute larger amounts than a regular IRA, is available to employees who work for firms with fewer than 100 employees.

In order to qualify as a tax shelter, IRA saving plans must be invested in mutual funds.

The path to success in a capitalist system is to

On your personal balance sheet, your assets should include anything of value that you own.

One benefit of a simple IRA is that it allows

Historically, the best place to invest has been in U.S. government savings bonds.

As an employee of Marshall Manufacturing, Sherry has an opportunity to invest pre-tax income in an employer-sponsored retirement plan. Her employer will contribute 50 cents for every dollar that Sherry contributes to this fund. What is this an example of?