Question 1

The U.S. government provides several types of financial incentives to encourage people to attend college.

Accepted Answer

A) True 
 B)False

Question 2

How does term insurance differ from whole life insurance? Describe the newer types of life insurance that have been offered in recent years.

Accepted Answer

Term life insurance offers pure insuranc

Question 3

Most people find it relatively easy to live frugally.

Accepted Answer

A) True 
 B)False

Question 4

Employees of small businesses can contribute to a Keogh plan.

Accepted Answer

A) True 
 B)False

Question 5

Keogh plans are intended to help small business owners save for retirement.

Accepted Answer

A) True 
 B)False

Question 6

Due to the high cost of the insurance premiums, many people have found that it makes financial sense to carry medical insurance only if their employer provides it.

Accepted Answer

A) True 
 B)False

Question 7

During the first few years of a home mortgage, almost all the payments go for interest on the loan. This high interest is a reason it is better for young people to rent rather than buy.

Accepted Answer

A) True 
 B)False

Question 8

________ is a form of life insurance that provides both a savings plan and pure insurance coverage.

Accepted Answer

A)  Term life insurance 
B)  Growth-centered life insurance 
C)  Whole life insurance 
D)  Multiyear level-premium insurance 
A)  Term life insurance 
B)  Growth-centered life insurance 
C)  Whole life insurance 
D)  Multiyear level-premium insurance

Question 9

Real estate taxes and mortgage interest payments are both

Accepted Answer

A)  expenses of home ownership on which the government levies a tax. 
B)  tax deductible for renters. 
C)  tax deductible for homeowners. 
D)  taxable income for renters and homeowners. 
A)  expenses of home ownership on which the government levies a tax. 
B)  tax deductible for renters. 
C)  tax deductible for homeowners. 
D)  taxable income for renters and homeowners.

Question 10

A homeowner's insurance policy that includes a provision for ________ would provide the homeowner with enough cash to replace the items lost with new items.

Accepted Answer

A)  actual book value protection 
B)  cash in lieu of coverage 
C)  guaranteed replacement cost 
D)  full collateral damage protection 
A)  actual book value protection 
B)  cash in lieu of coverage 
C)  guaranteed replacement cost 
D)  full collateral damage protection

Question 11

A common purpose of a rider added to a homeowner's policy is to

Accepted Answer

A)  provide coverage for items that the standard policy does not cover. 
B)  limit the insurance company's liability for certain types of losses. 
C)  waive the provision that requires the owners to get a health exam. 
D)  allow the policy holder to obtain health, disability, and auto insurance under their homeowner's plan. 
A)  provide coverage for items that the standard policy does not cover. 
B)  limit the insurance company's liability for certain types of losses. 
C)  waive the provision that requires the owners to get a health exam. 
D)  allow the policy holder to obtain health, disability, and auto insurance under their homeowner's plan.

Question 12

________ life insurance offers pure insurance protection for a given period of time.

Accepted Answer

A)  Term 
B)  Temporary 
C)  Managed premium 
D)  Equity-based 
A)  Term 
B)  Temporary 
C)  Managed premium 
D)  Equity-based

Question 13

Buying ________ is often an attractive strategy for young couples, since they can live in one unit and rent the other half to supplement their income, while taking tax deductions on interest and real estate taxes.

Accepted Answer

A)  a semiprivate housing unit 
B)  a ranch apartment 
C)  a biplex 
D)  attached homes 
A)  a semiprivate housing unit 
B)  a ranch apartment 
C)  a biplex 
D)  attached homes

Question 14

Brad and Tori are experiencing marriage difficulties regarding money. One technique to help them control and forecast their future financial situation, as well as allow them to achieve their financial goals, would be to prepare a(n)

Accepted Answer

A)  income statement. 
B)  balance sheet. 
C)  budget. 
D)  asset inventory. 
A)  income statement. 
B)  balance sheet. 
C)  budget. 
D)  asset inventory.

Question 15

IRAs, 401(k), and Keogh plans all include incentives to encourage saving for retirement.

Accepted Answer

A) True 
 B)False

Question 16

The three keys that have the greatest influence on how the value of your home increases over time are: (1) size (square feet), (2) age, and (3) design features.

Accepted Answer

A) True 
 B)False

Question 17

Whole life insurance premiums provide the insured with both pure insurance and a savings plan.

Accepted Answer

A) True 
 B)False

Question 18

The people who assist families in developing a comprehensive program that covers investments, taxes, insurance, and retirement plans are called

Accepted Answer

A)  insurance salespeople. 
B)  financial planners. 
C)  portfolio managers. 
D)  stockbrokers. 
A)  insurance salespeople. 
B)  financial planners. 
C)  portfolio managers. 
D)  stockbrokers.

Question 19

The greatest return over a period of several years is likely to be earned by investing in a

Accepted Answer

A)  small home in a great location. 
B)  savings account in a bank. 
C)  large home in a deteriorating neighborhood. 
D)  moderate size home in a rural setting. 
A)  small home in a great location. 
B)  savings account in a bank. 
C)  large home in a deteriorating neighborhood. 
D)  moderate size home in a rural setting.

Question 20

In order to accumulate capital, young adults are likely to have to

Accepted Answer

A)  accept a lifestyle that sacrifices some amenities. 
B)  live beyond their means. 
C)  rely on credit cards for basic purchases in order to conserve on cash. 
D)  borrow funds from a bank. 
A)  accept a lifestyle that sacrifices some amenities. 
B)  live beyond their means. 
C)  rely on credit cards for basic purchases in order to conserve on cash. 
D)  borrow funds from a bank.

Exam 24: Appendix: Managing Personal Finances

The U.S. government provides several types of financial incentives to encourage people to attend college.

How does term insurance differ from whole life insurance? Describe the newer types of life insurance that have been offered in recent years.

Most people find it relatively easy to live frugally.

Employees of small businesses can contribute to a Keogh plan.

Keogh plans are intended to help small business owners save for retirement.

Due to the high cost of the insurance premiums, many people have found that it makes financial sense to carry medical insurance only if their employer provides it.

During the first few years of a home mortgage, almost all the payments go for interest on the loan. This high interest is a reason it is better for young people to rent rather than buy.

________ is a form of life insurance that provides both a savings plan and pure insurance coverage.

Real estate taxes and mortgage interest payments are both

A homeowner's insurance policy that includes a provision for ________ would provide the homeowner with enough cash to replace the items lost with new items.

A common purpose of a rider added to a homeowner's policy is to

________ life insurance offers pure insurance protection for a given period of time.

Buying ________ is often an attractive strategy for young couples, since they can live in one unit and rent the other half to supplement their income, while taking tax deductions on interest and real estate taxes.

Brad and Tori are experiencing marriage difficulties regarding money. One technique to help them control and forecast their future financial situation, as well as allow them to achieve their financial goals, would be to prepare a(n)

IRAs, 401(k), and Keogh plans all include incentives to encourage saving for retirement.

The three keys that have the greatest influence on how the value of your home increases over time are: (1) size (square feet), (2) age, and (3) design features.

Whole life insurance premiums provide the insured with both pure insurance and a savings plan.

The people who assist families in developing a comprehensive program that covers investments, taxes, insurance, and retirement plans are called

The greatest return over a period of several years is likely to be earned by investing in a

In order to accumulate capital, young adults are likely to have to

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

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