FBLA: Personal Finance

What are collective values?

a. basic needs for individuals

b. personal preferences

c. things important to society as a whole

d. luxury items desired by individuals

answer: C

The Federal Trade Commission (FTC) does not regulate

a. unfair methods of advertising

b. unfair methods of competition

c. deceptive product labeling

d. unfair interest rates

answer: D

When a family makes major decisions, what should these decisions be based on?

a. desired lifestyle

b. each person's needs and wants

c. the amount of income

d. economic projections

answer: B

Which phrase about money is false?

a. much be backed by gold

b. much be in form where is can be readily divisible

c. is anything that can be used to settle debt

d. must be durable

answer: A

Items of value that a person owns should be included on the:

a. budget

b. personal property inventory

c. balance sheet

d. net worth statement

answer: B

Which one of the following is not an important financial record to keep?

a. tax returns

b. net worth statements

c. Income and expense records

d. Income Statement

answer: D

Which one of the following is not an initial step when preparing a budget?

a. create a wish list

b. set a savings goal

c. estimate income

d. estimate expenses

answer: A

When completing a tax return, what do you call the amount you may subtract from income for each person who depends on your income to live?

a. refund

b. social benefit

c. exemption

d. deduction

answer: C

A _________ guarantees a product's quality and performance.

a. warranty

b. product description

c. testimony

d. statement of assurance

answer: A

The___________ form is completed by new employees to direct the employer on the quantity of taxes to be removed from each paycheck.

a. 1040EZ

b. W-2

c. 1040

d. W-4

answer: D

Taxpayers may claim an exemption for each of their:

a. jobs

b. donations

c. dependents

d. properties

answer: C

The________ is a good that a store is wiling to sell for no profit inn order to drive consumer traffic

a. consumer influencer

b. loss leader

c. skim product

d. penetration product

answer: B

The________ deducts money from a checking account almost immediately to pay for purchases.

a. check

b. debit card

c. deposit

d. credit card

answer: B

The_______ Rule requires used automobile dealers to fully disclose to buyers what is and is not covered under warranty for the used vehicle.

a. CPSC

b. FTC

c. BBB

d. FCC

answer: B

Which federal organization spearheaded the recall on eggs sold at supermarkets?

a. FCC

b. FTC

c. FDA

d. USDA

answer: D

________ includes all activities related to production and distribution of goods and services in a geographic area.

a. Financing

b. Distribution

c. Marketing

d. Financial planning

answer: C

________ stocks are stocks in corporations that reinvest their profits into the business so that it can grow.

a. Cyclical

b. Blue chip

c. Defensive

d. Growth

answer: D

________ are paid to stockholders from the corporation's earnings. (profits).

a. Dividends

b. Odd lots

c. Stock splits

d. Round lots

answer: A

The_______ tells the investor the risk category that has been assigned to a bond.

a. bond redemption

b. bond efficiency

c. bond rating

d. bond default

answer: C

A(n)_______ risk may result in either gain or loss. Buying gold is an example of this type of risk.

a. insurable

b. personal

c. speculative

d. economic

answer: C

_______ that occurs when an individual buys insurance to cover financial losses caused by fire, theft, injury, or death.

a. Risk shifting

b. Risk avoidance

c. Risk reduction

d. Risk assumption

answer: A

The______ is a provision requiring policyholders to insure their building for stated percentage of its replacement value in order to receive full reimbursement for a loss.

a. deductible

b. co-insurance clause

c. personal property floater

d. endorsment

answer: B

______ occurs when the policyholder who has suffered an insurable loss is put back int he same financial condition before the loss occurred.

a. claim verification

b. indemnification

c. damage assessment

d. speculation

answer: B

Which form of credit is the least likely to involve installment payments?

a. education loan

b. automobile loan

c. department store credit card

d. home loan

answer: C

______ is an advantage of owning a home

a. Tax break

b. mobility

c. minimal maintenance

d. property taxes

answer: A

______ is not a negotiable instrument.

a. promissory note

b. bank draft

c. check

d. credit card

answer: D

The______ prohibits the use of threats, obscenities, and misleading statements to intimidate consumer into paying.

a. fair debt collection practices act

b. fair credit billing act

c. fair credit reporting act

d. consumer credit protection act

answer: A

A_______ occurs when a consumer requests the credit bureaus to deny all access to the consumer's credit information or files.

a. closed public record

b. credit restriction

c. credit freeze

d. credit guard

answer: C

Consumers who are deep into debt may go to a credit counseling organization that takes over and manages the consumer's payment of the debt for a period of time until the consumer is free of debt. This procedure is called:

a. debt adjustment

b. bankruptcy

c. online credit advice

d. debt management plan

answer: D

A legal document that establishes ownership is a(n):

a. acceptance

b. deed

c. lien

d. title

answer: D

When interest rates are high, the average consumer will:

a. buy less

b. not change spending patterns

c. buy nothing at all

d. save less

answer: A

Which one of the following is money paid by one former spouse to support the other?

a. child support

b. property settlement

c. alimony

d. divorce decree

answer: C

With ___, the bank deducts payments from your account and transfers them to the appropriate companies.

a. automatic teller machines

b. automatic bill payment

c. direct deposit

d. credit cards

answer: B

A blueprint or plan for managing all aspects of a person's money is called:

a. a focus plan

b. financial planning

c. architectural management

d. an undesirable financial burden

answer: B

A corporation's net, or after-tax, earnings divided by the number of outstanding shares of common stock is a measurement of a company's performance referred to as:

a. earnings per share

b. current yield

c. price-earnings (PE) ratio

d. dividend

answer: A

Which of the following accounts is the most liquid?

a. savings account

b. certificate of deposit

c. money market account

d. checking account

answer: D

You will receive the greatest gain on your principal if interest is compounded

a. daily.

b. semiannually.

c. annually.

d. quarterly.

answer: A

A labeling method that indicates the freshness, or shelf life, of a perishable product is:

a. unit pricing

b. contract

c. open dating

d. warranty

answer: C

What does HMO stand for?

a. Hospitalization and Medical Organization

b. Health and Medical Organization

c. Health Medical Organization

d. Health Maintenance Organization

answer: D

Earning a degree at a four-year college is a _____ goal for a high school sophomore.

a. short-term

b. long-term

c. mid-term

d. future financial

answer: B

What is the time value of money?

a. the value of time in inflation

b. the amount of the dividend divided by the time invested

c. the time that it takes coins to increase in value

d. the increase of an amount of money due to earned interest or dividends

answer: D

One example of non-taxable income is:

a. salary

b. child support

c. interest earned on savings

d. dividends earned on stocks

answer: B

The sales tax is an example of which type of tax?

a. regressive

b. progressive

c. excise

d. proportional

answer: A

The first step for financial planning is:

a. determining and evaluating choices

b. organizing financial resources to achieve financial goals

c. prioritizing choice to make money go as far as possible

d. avoiding money worries by eliminating careless and wasteful spending

answer: A

______ is not a commodity sold on the futures market.

a. Coal

b. Corn

c. Beef

d. Stock

answer: D

The _____ is the legally established ownership of a home.

a. lie

b. deed

c. title n

d. mortgage

answer: C

Because of an error in the pricing bar code, everyone who bought a pair of jeans at a

nationwide clothing store last month was overcharged by three dollars. The legal action that

would be most appropriate in this case would be:

a. a class action lawsuit

b. arbitration

c. negotiation

d. mediation

answer: A

The _____ endorsement on a paycheck is the safest for the consumer.

a. blank

b. special

c. restrictive

d. two-party

answer: C

______ can solve a sudden need for cash with a pre-established amount that can be

borrowed on demand with no collateral.

a. Line of credit

b. Deferred billing

c. Collateral

d. Overdraft protection

answer: A