Deck 10: Managing Money

Question 1

What do you need to calculate your opportunity cost for work versus college?

A)Your post-graduation earning potential,the number of years you have before retirement,and your tuition
B)Your age,the age you plan on retiring,and your tuition
C)Your current earnings,your post-graduation earning potential,and the number of years you plan on working
D)Your tuition,your age,and your current earnings

Answer 1

C

Question 2

Being proactive in managing your personal budget includes:

A)Keeping track of your bank balance
B)Not spending money unless you have checks left in your checkbook
C)Locking up the checkbook the bank gives you and only using your debit card
D)Making sure you are eligible for cash-back incentives with every purchase you make

Answer 2

A

Question 3

Being a first-rate money manager can:

A)Make you get rich quickly
B)Enable you to increase your discretionary spending
C)Less often leave you without enough money to pay your rent
D)Keep you out of the financial trouble many college students have

Answer 3

D

Question 4

What are the most common costs associated with a college education?

A)Tuition and buying books
B)Buying books and a computer
C)Room and board
D)Laboratory fees and organization membership dues

Question 5

Just as when you were a child and discovered that the fancy shoes from TV did not actually make you run faster (or fly),you often find that:

A)It's not the shoes; it's what's inside them
B)Having and using a product does not always live up to the promotional hype
C)The buyer should beware
D)TV stunts are not always wise to replicate

Question 6

What classification of expense is it if you contribute to a 401K or 403B account provided by your work?

A)Home Expenses
B)Personal Expenses
C)Savings
D)Discretionary Spending

Question 7

Although it sounds illogical,you can begin to plan for unexpected expenses by:

A)Recognizing possible and probable large expenses you may face
B)Making several possible budgets
C)Keeping loan application forms handy
D)Always having an emergencies-only credit card

Question 8

What is the key to successful budget planning and management?

A)Having a steady job where you earn decent wages
B)Monitoring your financial position at least daily
C)Never varying from your allowed expenses
D)Writing down your total income and your complete listing of planned expenditures

Question 9

What is the estimated lifetime earning potential increase between a college graduate and a high school only graduate?

A)$90,000.00
B)$9,000.00
C)$900,000.00
D)$900.00

Question 10

What are the two broad categories of monthly expenses?

A)Flexible and variable
B)Variable and fixed
C)Fixed and static
D)Static and set

Question 11

What should you consider before making a purchase?

A)Where you can get the goods for the least amount of money
B)If you can get reward points by using your credit card
C)Is there a gift-with-purchase promotion running or in the near future
D)The pros and cons of making the purchase,as well as ins and outs of the product itself

Question 12

Before signing a contract for a mobile phone,you should:

A)Calculate the full cost over the life of the contract,including allowing for monthly taxes and fees
B)Make sure to get the latest model
C)Discuss the details with a knowledgeable sales associate
D)Ask your friends if they are satisfied with their service

Question 13

Meeting your financial goals likely includes:

A)Education,work,and smart savings
B)Planning,productivity,and procrastination
C)Education,winning the lottery,and smart investing
D)Work,education,and luck

Question 14

Your personal definition of wealth is based on:

A)Your values,standards,and career aspirations
B)Your self-image,values,and goals
C)Your goals,dreams,and hopes
D)Your perceptions,career aspirations,and standards

Question 15

What should your maximum amount be for monthly discretionary spending?

A)$1,200.00,equaling $300.00 per week
B)The money you have left after paying all of your necessary expenses
C)30% of your gross monthly income
D)One-quarter of your net weekly income

Question 16

What sort of expense is a professional wardrobe?

A)A purely discretionary expense
B)A discretionary,yet necessary expense
C)A low-priority expense
D)A fixed expense

Question 17

To 7 foot 1 inch Shaq,6 foot 2 inch Bill Murray is not a tall man; but to 5 foot 9 inch Sylvester Stallone,Bill Murray is a tall man.This is an example of:

A)Understanding
B)Simple math
C)Dependence
D)Perspective

Question 18

Whether buying or leasing,purchasing a new car is:

A)An unexpected expense
B)A home expense
C)A major discretionary outlay
D)An unplanned cost

Question 19

What does a monthly budget plan accomplish?

A)It makes checking your bank balance superfluous
B)It lets you know exactly where you stand,fiscally,and serves as the base for your personal financial management
C)It allows you to spend your discretionary maximum
D)It creates a balance of control in your personal relationships

Question 20

It is important to include annual or semi-annual expenses such as textbooks and parking passes:

A)In a comprehensive yearly budget
B)Only in your expense reports for the months in which they were purchased
C)As part of your monthly savings budget: For example,$17 per month equals $204 for the year
D)As part of why you need a student loan

Question 21

A personal budget plan lets you plainly see where your money goes.

Question 22

Once tuition and taxes are figured in,college graduates have about the same earning potential as people with only a high school diploma.

Question 23

Adhering to your budget can keep your expenses from exceeding your __________.

Question 24

One of the most vital responsibilities you,as a college student,have is to be a smart money manager,including having good control of discretionary spending.

Question 25

Only business and economics majors should take classes in personal financial management.

Question 26

It is never too early to start planning and saving for retirement.

Question 27

You can depend on using your credit card for emergency expenses.

Question 28

Your career path may begin with college,progress to work,and then lead back to college before you are able to attain a top position.

Question 29

Your monthly fiscal goals are to keep your spending less than or equal to your income,increase your savings,and decrease the amount of any debts.

Question 30

Your clothing costs are part of your __________ __________ budget.

Question 31

Part of calculating your opportunity cost is accepting that your time has no value.

Question 32

Researching the average income of positions in your chosen field can help you determine the value of your education.

Question 33

Basing your definition of wealth in probable reality can stunt your ability to go further in life,much the same way as a self-fulfilling prophecy can start a vicious cycle.

Question 34

Advertising empowers you to make an informed choice.