FIN 250 Exam 1 UKY Monday

Evaluating risk associated with making most financial decisions is difficult because of what factor(s)?

Inflation risk, Personal risk, Liquidity risk, Interest rate risk

A medical savings account (MSA) or health savings account (HSA) allows health care costs to be paid with pretax dollars.

True

Which of the following are benefits to financial literacy?

A. Increased effectiveness in obtaining, using, and protecting financial resources

B. Expanded control of financial activities

C. Avoidance of excessive debt, bankruptcy, and dependence on others for financial security

All are correct

A chronological résumé presents your education and experience based on:

A reverse time sequence

The financial planning process concludes with efforts to:

review and revise your financial plan (R&R)

Financial Planning Process

1. Establish Clear Goals.

2. Gather and Organize Financial Information.

3. Analyzing Your Current Financial Situation.

4. Develop a Comprehensive Financial Plan.

5. Put Your Financial Plan into Action.

6. Monitor Your Progress and Make Adjustments. ...

7. Revise and Update Your Financial Plan Over Time.

Formal training methods include:

company programs, seminars and webinars, college courses

Which of the following is described as an online "living entity"?

social media resume

Non-monetary benefits can be requested instead of a salary increase during a negotiation with your employer.

true

Which of the following pieces of information is generally not included on a résumé?

references

The following are examples of intangible-purchase goals, except:

buying a house

Changes in personal, social, and economic factors make it necessary to:

review and revise your financial plan

Acceptable references are those that can verify your abilities and competencies such as:

business colleagues, supervisors, previous employers, teachers

Financial institutions include the following:

banks, credit unions, insurance companies, investment companies

The uncertainty associated with every decision is referred to as:

risk

When an individual makes a purchase without considering the financial consequences of that purchase, he/she ignores the _____________aspect of financial planning.

spending

The main goal of personal financial planning is managing your money to:

achieve personal economic satisfaction

Which one of the following would likely lead to the most earnings over an individual's working career?

Professional or doctoral degree

Naomi Reyes recently coordinated a fund-raising project for an organization that assists homeless youth. This would most likely be an example of experience in:

obtaining financial planning and budgeting skills

Guidance tests may help to identify a satisfying career by measuring:

abilities, interests, personal qualities

The study of how wealth is created and distributed is:

economics

The final stage of the career planning and advancement process is to

plan and implement a program for career development

Resources for financial planning can be found from:

print media, digital media, financial institutions, financial specialists

An interview designed to determine the best candidates for further interviewing is a(n) _____________blank interview.

screening

Long-term financial security can be achieved through both frugal living and wise investing.

True

Which of the following would be a competency commonly associated with successful people?

- An ability to work well with others in various settings

- A willingness to cope with conflict and adapt to change

- An ability to solve problems creatively in team settings

- effective written and oral communication skills

Money received in the form of dividends or interest is classified as _____________blank income.

investment

The principal purpose of taxes is to:

finance government activities

Earned income is money received from

wages

Which of the following represent the use of credit?

home mortgage

A saver will usually receive higher earnings with which one of the following types of savings plans?

- certificate of deposit

For January, Emerson Powers had cash inflows of $3,500 and cash outflows of $4,050, resulting in a:

- deficit of 550

Which of the following is a user-owned, nonprofit, cooperative financial institution?

credit union

Cash and other tangible property (with a monetary value) that you own are referred to as:

assets

Take-home pay is a person's earnings after deductions for taxes and other items

true

Which one of the following is true for an interest-earning account?

It usually requires a minimum balance

The Tax Cuts and Jobs Act simplified the basic form used when filing your taxes, so that there is now only one form, Form 1040, to report your income.

True

A taxpayer whose spouse recently died and who has a dependent is most likely to use the _____________blank filing status.

qualifying widow or widower

The value of the home you own would be included in which section of your balance sheet?

real estate assets

The Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, included reductions on tax rates for individuals, larger standard deductions for all taxpayers, and limits to other common deductions.

True

A budget is a spending plan that outlines how you will spend available income.

True

Which type of organization does not provide home mortgages?

check-cashing outlets

To avoid high fees for cash loans, a person should avoid borrowing from a:

pawnshop

The business hours and ATM locations of a financial institution refer to the __________blank feature when selecting a financial service provider.

convenience

Which of the following institutions is organized primarily to provide loans to purchase homes?

mortgage company

A person's filing status is affected by marital status and dependents.

true

A "no-fee" checking account that requires a non-interest-earning minimum balance of $500 has an opportunity cost of lost interest earnings.

true

Copies of tax returns and supporting data should be kept for _____________blank year(s).

7 years

What type of tax is the federal income tax in America?

direct and progressive

How many filing status categories exist for federal income tax in America?

5

Which of the following is an example of an indirect and regressive tax?

sales tax

direct vs indirect tax

A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group. An indirect tax is one that can be passed on-or shifted-to another person or group by the person or business that owes it.

progressive vs regressive taxes

- Progressive taxes require those with higher incomes to pay a higher percentage of their income

- regressive is a tax that is applied uniformly regardless of income

To determine the true cost of credit for a new car, consider both the finance charge and the:

APR

The annual price increase for most goods and services measured by the Bureau of Labor Statistics is called _____________blank.

the consumer price index

It is safer to use credit, since charge accounts and credit cards let you shop and travel without carrying a large amount of cash.

True

Which of the following is organized as a corporation and owned by stockholders

commercial banks

The education section of a résumé should include:

schools attended

Credit bureaus obtain their data from banks, finance companies, merchants, credit card companies, other creditors, and court records.

TRue

Mature consumers have certain information and:

they demonstrate self-discipline.

they control their impulses and use sound judgment.

they accept responsibility for money management.

they are able to postpone expenditures when needed.

The Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, included reductions on tax rates for individuals, larger standard deductions for all taxpayers, and limits to other common deductions.

True

College students are not a prime target for credit card issuers.

False

The borrower's attitude toward his or her credit obligations is called:

character

If your debit card is lost or stolen, you must work directly with the issuer.

True

Most expiration dates relate to safety not quality, therefore the "sell by" date indicates that food is unsafe for consumption

false

Olivia Nguyen needs a loan to purchase a new car. She knows the creditor must

evaluate her on the same basis as applicants who are male

Debit cards are often called:

check cards, bank cards, cash cards, ATM cards

When comparing prices, remember that:

ready-to-use products have higher prices

The main trends in payment methods include touchless payments, digital wallets, and QR code payments

True

Money received by an individual for personal effort is classified as _____________blank income.

earned

Which of the following is a benefit of an electric vehicle (EV)?

More environmentally friendly

Potential tax credits

Lower maintenance costs

Smartphone apps to program charging and heating and cooling

The stages in the family and financial needs of an adult are called the:

adult life style

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

time and effort spent on comparison shopping

The first step of the financial planning process is to:

determine your current financial situation

The Consumer Credit Counseling Service (CCCS) counseling is usually free.

True

Which of the following institutions makes loans based on the value of tangible possessions, such as jewelry and other valuables?

Pawnshop

The items produced for a specific retail chain of stores are commonly sold under a __________blank brand.

store

Consumer credit dates back to colonial times.

True

Libraries usually have a variety of career information sources for career planning including government publications and industry brochures

True

After you have selected a product, you should buy it immediately before the store runs out of it.

False

What should you do when you shop online using your credit card?

Use a secure browser

An exclusion is earnings not included in gross income.

True

A(n) _____________blank is an employment position that is obtained mainly to earn money.

job

Paulo Valle has just moved into a new house and needs a lawn mower, since he has always lived in apartments and now he has a lawn to mow. What type of goal would this be for Paulo?

durable-product goal

The information in your credit report is used by the credit bureau to calculate your:

FICO credit score

Andre Miller earns $4,500 per month from his job at Cisco Systems; $900 is withheld from this amount each month for taxes. What type of tax is this most likely to be?

income tax

To protect yourself against credit card fraud, you should shred anything with your account number on it before throwing it away

True

The storage of funds for future use is a purpose of __________blank, which include savings accounts and certificates of deposit.

time deposits