Question 1

A major source of revenue on your personal income statement is your salary or wages from your job.

Accepted Answer

A) True 
 B)False

Question 2

Many small-business owners invest in 401(k) plans for their retirement.

Accepted Answer

A) True 
 B)False

Question 3

A contract that calls for regular payments to an individual for life or for a fixed period of time is called a(n)

Accepted Answer

A)  annuity. 
B)  fixed dividend plan. 
C)  mutual fund. 
D)  level premium agreement. 
A)  annuity. 
B)  fixed dividend plan. 
C)  mutual fund. 
D)  level premium agreement.

Question 4

Social Security is the term used to describe the Old Age, Survivors, and Disability Insurance Program.

Accepted Answer

A) True 
 B)False

Question 5

The key to generating enough capital for investment for many individuals is to

Accepted Answer

A)  obtain as many credit cards as possible in order to maximize spending power. 
B)  live frugally. 
C)  borrow money from friends and family. 
D)  buy only high-quality consumer goods. 
A)  obtain as many credit cards as possible in order to maximize spending power. 
B)  live frugally. 
C)  borrow money from friends and family. 
D)  buy only high-quality consumer goods.

Question 6

The number of workers paying into Social Security for each retiree receiving Social Security benefits is

Accepted Answer

A)  fixed by law. 
B)  increasing. 
C)  decreasing. 
D)  not fixed by law, but has remained relatively constant for several decades. 
A)  fixed by law. 
B)  increasing. 
C)  decreasing. 
D)  not fixed by law, but has remained relatively constant for several decades.

Question 7

When you buy a home, the monthly payments for the home may remain relatively fixed, but your payments for taxes and utilities are likely to increase.

Accepted Answer

A) True 
 B)False

Question 8

Investors who desire a very stable and predictable income from their investments (such as people who are nearing retirement) would be reluctant to invest heavily in the stock market.

Accepted Answer

A) True 
 B)False

Question 9

Terrence is in the 30% tax bracket. What is the after-tax cost of a $3,000 contribution to his traditional IRA account?

Accepted Answer

A)  $900 
B)  $1,440 
C)  $2,100 
D)  zero 
A)  $900 
B)  $1,440 
C)  $2,100 
D)  zero

Question 10

Tracking business and personal spending by categories is an important technique to control expenditures.

Accepted Answer

A) True 
 B)False

Question 11

It is usually better to use any money left after paying monthly bills to pay off debts that carry high interest rates rather than putting that money into a savings account.

Accepted Answer

A) True 
 B)False

Question 12

It is likely that young adults today will benefit from the recent trend in the Social Security system to increase benefits and expand the cost-of-living adjustments.

Accepted Answer

A) True 
 B)False

Question 13

The simple IRA plans allow employees of ________ companies to contribute larger amounts than the traditional IRA.

Accepted Answer

A)  nonprofit 
B)  small 
C)  big 
D)  international 
A)  nonprofit 
B)  small 
C)  big 
D)  international

Question 14

________ insurance provides protection from the cost of medical care for illnesses and injuries.

Accepted Answer

A)  Term 
B)  Health 
C)  Renters 
D)  Homeowner's 
A)  Term 
B)  Health 
C)  Renters 
D)  Homeowner's

Question 15

A good way to save money is to spend all of your regular income, but have a strict rule to put any money from unexpected or unusual sources (such as overtime pay, bonuses, gifts, gambling payouts, or contest prizes) into a savings account.

Accepted Answer

A) True 
 B)False

Question 16

Funds invested in savings accounts and certificates of deposit (CDs) have traditionally outperformed stocks as a means of generating long-term financial gains.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following deductible levels would result in the lowest premium for automobile insurance?

Accepted Answer

A)  $ 200 
B)  $ 500 
C)  $ 750 
D)  $1,000 
A)  $ 200 
B)  $ 500 
C)  $ 750 
D)  $1,000

Question 18

Credit cards can be used to categorize and track your purchases.

Accepted Answer

A) True 
 B)False

Question 19

Variable annuities offer investment choices identical to mutual funds.

Accepted Answer

A) True 
 B)False

Question 20

The chances of becoming disabled at an early age are much higher than your chances of dying from an accident.

Accepted Answer

A) True 
 B)False

Exam 24: Appendix: Managing Personal Finances

A major source of revenue on your personal income statement is your salary or wages from your job.

Many small-business owners invest in 401(k) plans for their retirement.

A contract that calls for regular payments to an individual for life or for a fixed period of time is called a(n)

Social Security is the term used to describe the Old Age, Survivors, and Disability Insurance Program.

The key to generating enough capital for investment for many individuals is to

The number of workers paying into Social Security for each retiree receiving Social Security benefits is

When you buy a home, the monthly payments for the home may remain relatively fixed, but your payments for taxes and utilities are likely to increase.

Investors who desire a very stable and predictable income from their investments (such as people who are nearing retirement) would be reluctant to invest heavily in the stock market.

Terrence is in the 30% tax bracket. What is the after-tax cost of a $3,000 contribution to his traditional IRA account?

Tracking business and personal spending by categories is an important technique to control expenditures.

It is usually better to use any money left after paying monthly bills to pay off debts that carry high interest rates rather than putting that money into a savings account.

It is likely that young adults today will benefit from the recent trend in the Social Security system to increase benefits and expand the cost-of-living adjustments.

The simple IRA plans allow employees of ________ companies to contribute larger amounts than the traditional IRA.

________ insurance provides protection from the cost of medical care for illnesses and injuries.

A good way to save money is to spend all of your regular income, but have a strict rule to put any money from unexpected or unusual sources (such as overtime pay, bonuses, gifts, gambling payouts, or contest prizes) into a savings account.

Funds invested in savings accounts and certificates of deposit (CDs) have traditionally outperformed stocks as a means of generating long-term financial gains.

Which of the following deductible levels would result in the lowest premium for automobile insurance?

Credit cards can be used to categorize and track your purchases.

Variable annuities offer investment choices identical to mutual funds.

The chances of becoming disabled at an early age are much higher than your chances of dying from an accident.

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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