Question 1

To understand the value of saving money, the most important thing to learn is the power of _____.

Accepted Answer

A)  investing 
B)  compound interest 
C)  the money market 
D)  the stock market 
A)  investing 
B)  compound interest 
C)  the money market 
D)  the stock market B

Question 2

Budgeting is the application of financial principles to the monetary decisions that you make either for your individual benefit or for that of your family.

Accepted Answer

A) True 
 B)False  False

Question 3

Discuss the major job benefits often provided by employers.

Accepted Answer

The major job benefits that you will most likely encounter are health insurance, disability insurance, flexible spending accounts and retirement plans. Some employer-sponsored health insurance plans cover only the employee while others cover the employee, spouse and children. Most plans require employees to share some of the cost of the medical plan. Disability insurance provides you with an income when you are unable to work for an extended period due to illness. A flexible spending account allows you to reduce your tax bill by using pretax dollars to pay for qualified expenses, such as health care and child care. Retirement benefits provide you with money to live on when you retire. A defined benefit retirement plan provides a set amount of money each month to retirees based on the number of years they worked and the income they earned. A defined contribution retirement plan is a form of retirement savings in which both the employee and the employer may contribute.

Question 4

People who graduate from college can expect to generate _____ more annual income than those earning only a high school diploma.

Accepted Answer

A)  10.3% 
B)  48.9% 
C)  82.8% 
D)  120.2% 
A)  10.3% 
B)  48.9% 
C)  82.8% 
D)  120.2%

Question 5

What is the bottom line of a cash flow statement

Accepted Answer

A)  Net income 
B)  Net cash flow 
C)  Net worth 
D)  Total cash inflow 
A)  Net income 
B)  Net cash flow 
C)  Net worth 
D)  Total cash inflow

Question 6

Something that can be used, as opposed to an investment, is called an intangible asset.

Accepted Answer

A) True 
 B)False

Question 7

The difference between the actual amounts and budgeted amounts is called the variable expense.

Accepted Answer

A) True 
 B)False

Question 8

For every $1 that you spend on your college education, you can expect to earn about $35 during the course of your financial life cycle.

Accepted Answer

A) True 
 B)False

Question 9

In order to get a handle on your finances and begin to get out of debt, financial planners suggest you do the following for one week:

Accepted Answer

A)  pay only the minimum balance due on your credit cards. 
B)  count up your ATM fees. 
C)  cash your paycheck rather than putting it in the bank. 
D)  sell your textbook. 
A)  pay only the minimum balance due on your credit cards. 
B)  count up your ATM fees. 
C)  cash your paycheck rather than putting it in the bank. 
D)  sell your textbook.

Question 10

Average credit card debt per U.S. household has been decreasing since the 1990s.

Accepted Answer

A) True 
 B)False

Question 11

With simple interest, principal plus interest earns more interest.

Accepted Answer

A) True 
 B)False

Question 12

Stage 1 of an individual's financial plan should focus on preserving wealth.

Accepted Answer

A) True 
 B)False

Question 13

Disability insurance pays an income to an insured person when he or she is unable to work for a few days.

Accepted Answer

A) True 
 B)False

Question 14

An alternative to a credit card is a debit card, which pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.

Accepted Answer

A) True 
 B)False

Question 15

Basically all credit cards are the same in terms of interest rates, fees and payment schedules.

Accepted Answer

A) True 
 B)False

Question 16

For every dollar that you spend on your college education, you can expect to earn about _______ during the course of your life.

Accepted Answer

A)  $100 
B)  $3 
C)  $500 
D)  $35 
A)  $100 
B)  $3 
C)  $500 
D)  $35

Question 17

If someone is insolvent, it's because they are spending more than they're earning.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the principle of the time value of money and how it works.

Accepted Answer

The principle of the time value of money

Question 19

Finance concerns the flow of money from one place to another.

Accepted Answer

A) True 
 B)False

Question 20

In order to get out of debt, it is recommended that you do all of the following except:

Accepted Answer

A)  cut up your credit cards. 
B)  start living on a cash-only basis. 
C)  try to lower your monthly bills. 
D)  take out a cash advance on one card and pay off the others with the cash received. 
A)  cut up your credit cards. 
B)  start living on a cash-only basis. 
C)  try to lower your monthly bills. 
D)  take out a cash advance on one card and pay off the others with the cash received.

To understand the value of saving money, the most important thing to learn is the power of _____.

Budgeting is the application of financial principles to the monetary decisions that you make either for your individual benefit or for that of your family.

Discuss the major job benefits often provided by employers.

People who graduate from college can expect to generate _____ more annual income than those earning only a high school diploma.

What is the bottom line of a cash flow statement

Something that can be used, as opposed to an investment, is called an intangible asset.

The difference between the actual amounts and budgeted amounts is called the variable expense.

For every $1 that you spend on your college education, you can expect to earn about $35 during the course of your financial life cycle.

In order to get a handle on your finances and begin to get out of debt, financial planners suggest you do the following for one week:

Average credit card debt per U.S. household has been decreasing since the 1990s.

With simple interest, principal plus interest earns more interest.

Stage 1 of an individual's financial plan should focus on preserving wealth.

Disability insurance pays an income to an insured person when he or she is unable to work for a few days.

An alternative to a credit card is a debit card, which pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.

Basically all credit cards are the same in terms of interest rates, fees and payment schedules.

For every dollar that you spend on your college education, you can expect to earn about _______ during the course of your life.

If someone is insolvent, it's because they are spending more than they're earning.

Discuss the principle of the time value of money and how it works.

Finance concerns the flow of money from one place to another.

In order to get out of debt, it is recommended that you do all of the following except:

The Foundations of Business

Business Ethics and Social Responsibility

Business in a Global Environment

Selecting a Form of Business Ownership

The Challenges of Starting a Business

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Teamwork and Communications

Marketing: Providing Value to Customers

Product Design and Development

Operations Management in Manufacturing and Service Industries

The Role of Accounting in Business

Managing Financial Resources

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 14: Personal Finances

To understand the value of saving money, the most important thing to learn is the power of _____.

Budgeting is the application of financial principles to the monetary decisions that you make either for your individual benefit or for that of your family.

Discuss the major job benefits often provided by employers.

People who graduate from college can expect to generate _____ more annual income than those earning only a high school diploma.

What is the bottom line of a cash flow statement

Something that can be used, as opposed to an investment, is called an intangible asset.

The difference between the actual amounts and budgeted amounts is called the variable expense.

For every $1 that you spend on your college education, you can expect to earn about $35 during the course of your financial life cycle.

In order to get a handle on your finances and begin to get out of debt, financial planners suggest you do the following for one week:

Average credit card debt per U.S. household has been decreasing since the 1990s.

With simple interest, principal plus interest earns more interest.

Stage 1 of an individual's financial plan should focus on preserving wealth.

Disability insurance pays an income to an insured person when he or she is unable to work for a few days.

An alternative to a credit card is a debit card, which pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.

Basically all credit cards are the same in terms of interest rates, fees and payment schedules.

For every dollar that you spend on your college education, you can expect to earn about _______ during the course of your life.

If someone is insolvent, it's because they are spending more than they're earning.

Discuss the principle of the time value of money and how it works.

Finance concerns the flow of money from one place to another.

In order to get out of debt, it is recommended that you do all of the following except:

The Foundations of Business

Business Ethics and Social Responsibility

Business in a Global Environment

Selecting a Form of Business Ownership

The Challenges of Starting a Business

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Teamwork and Communications

Marketing: Providing Value to Customers

Product Design and Development

Operations Management in Manufacturing and Service Industries

The Role of Accounting in Business

Managing Financial Resources

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters