Question 1

Give an example of an unexpected expense.

Accepted Answer

Student answers will vary,but should be unexpected expenses that cannot be determined beforehand and include items like car/home repairs,speeding tickets,medical bills,etc.

Question 2

An arrangement that pays for a hospital stay is ________ insurance.

Accepted Answer

A)  car 
B)  health 
C)  disability 
D)  life 
E)  homeowner's 
A)  car 
B)  health 
C)  disability 
D)  life 
E)  homeowner's B

Question 3

When an individual or a family manages the ways in which monies are budgeted,saved,invested,preserved for future life events,and protected against risks,it is called ________.

Accepted Answer

A)  personal management 
B)  corporate finance 
C)  corporate management 
D)  personal finance 
E)  fiscal irresponsibility 
A)  personal management 
B)  corporate finance 
C)  corporate management 
D)  personal finance 
E)  fiscal irresponsibility D

Question 4

All of the following are deductions from taxable income EXCEPT ________.

Accepted Answer

A)  financial payments to a tax-deferred retirement plan 
B)  financial payments to charity 
C)  financial payments for personal clothing 
D)  financial payments for interest on mortgages 
E)  financial payments for medical expenses 
A)  financial payments to a tax-deferred retirement plan 
B)  financial payments to charity 
C)  financial payments for personal clothing 
D)  financial payments for interest on mortgages 
E)  financial payments for medical expenses

Question 5

What one owns minus what one owes is ________.

Accepted Answer

A)  assets 
B)  liabilities 
C)  gross worth 
D)  net worth 
E)  credit card balance 
A)  assets 
B)  liabilities 
C)  gross worth 
D)  net worth 
E)  credit card balance

Question 6

One way to establish credit is to begin with a single store credit card or a single-purpose credit card,such as a gas card.

Accepted Answer

A) True 
 B)False

Question 7

Showing future lenders that you have a good history with credit will help you when you apply for car loans or a mortgage.

Accepted Answer

A) True 
 B)False

Question 8

If you are insuring an older car,it always makes financial sense to carry the cost of collision and comprehensive coverage.

Accepted Answer

A) True 
 B)False

Question 9

Money management is critical for corporations,but not for individuals.

Accepted Answer

A) True 
 B)False

Question 10

Planning to buy a house in ten years is an example of financial planning step 2: set financial goals.

Accepted Answer

A) True 
 B)False

Question 11

It is not at all necessary to revisit a financial plan periodically.

Accepted Answer

A) True 
 B)False

Question 12

Making a spending plan is an example of which step in financial planning?

Accepted Answer

A)  create a budget 
B)  execute the plan 
C)  set financial goals 
D)  take a financial inventory 
E)  know where your money goes 
A)  create a budget 
B)  execute the plan 
C)  set financial goals 
D)  take a financial inventory 
E)  know where your money goes

Question 13

Pension plans are retirement plans established by your employer.

Accepted Answer

A) True 
 B)False

Question 14

Tax rates progressively increase as income increases.

Accepted Answer

A) True 
 B)False

Question 15

At 3 percent interest,it will take ________ years to double an amount of money invested.

Accepted Answer

A)  24 
B)  36 
C)  72 
D)  12 
E)  48 
A)  24 
B)  36 
C)  72 
D)  12 
E)  48

Question 16

What is the first step in developing a financial plan?

Accepted Answer

A)  set financial goals 
B)  know where your money goes 
C)  take a financial inventory 
D)  create a budget 
E)  execute the plan 
A)  set financial goals 
B)  know where your money goes 
C)  take a financial inventory 
D)  create a budget 
E)  execute the plan

Question 17

Special retirement pretax savings accounts created by the government are ________.

Accepted Answer

A)  Roth IRAs 
B)  pension plans 
C)  IRAs 
D)  NDAs 
E)  401(k) plans 
A)  Roth IRAs 
B)  pension plans 
C)  IRAs 
D)  NDAs 
E)  401(k) plans

Question 18

An arrangement that pays to replace your possessions if they are stolen is ________ insurance.

Accepted Answer

A)  health 
B)  homeowner's 
C)  life 
D)  disability 
E)  malpractice 
A)  health 
B)  homeowner's 
C)  life 
D)  disability 
E)  malpractice

Question 19

What is compound interest?

Accepted Answer

Compound interest is interest that is ea

Question 20

To use a credit card wisely,pay off the balance in full every ________.

Accepted Answer

A)  year 
B)  month 
C)  quarter 
D)  ten years 
E)  two years 
A)  year 
B)  month 
C)  quarter 
D)  ten years 
E)  two years

Exam 21: Personal Finance

Give an example of an unexpected expense.

An arrangement that pays for a hospital stay is ________ insurance.

When an individual or a family manages the ways in which monies are budgeted,saved,invested,preserved for future life events,and protected against risks,it is called ________.

All of the following are deductions from taxable income EXCEPT ________.

What one owns minus what one owes is ________.

One way to establish credit is to begin with a single store credit card or a single-purpose credit card,such as a gas card.

Showing future lenders that you have a good history with credit will help you when you apply for car loans or a mortgage.

If you are insuring an older car,it always makes financial sense to carry the cost of collision and comprehensive coverage.

Money management is critical for corporations,but not for individuals.

Planning to buy a house in ten years is an example of financial planning step 2: set financial goals.

It is not at all necessary to revisit a financial plan periodically.

Making a spending plan is an example of which step in financial planning?

Pension plans are retirement plans established by your employer.

Tax rates progressively increase as income increases.

At 3 percent interest,it will take ________ years to double an amount of money invested.

What is the first step in developing a financial plan?

Special retirement pretax savings accounts created by the government are ________.

An arrangement that pays to replace your possessions if they are stolen is ________ insurance.

What is compound interest?

To use a credit card wisely,pay off the balance in full every ________.

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