Personal finance

T/F? Interest rates provide and indicator of how well people are living

False

T/F? The first step of financial planning is to determine your current financial status

True

T/F? A new car is an example of a need

False

T/F? CPI is the measure of change in a basket of goods

True

T/F? Future Value is what an original deposit will be worth in the past

False

T/F? The time value of money is the amount your og deposit will be worth in the future, based on earning a specified interest rate over a set period of time

False

T/F? Liquidity refers to how easy it is to convert an asset to cash

True

T/F? The main cause of inflation is an increase in demand without an increase in supply

True

T/F? You can buy and touch intangible things

False

T/F? A series of equal, regular deposits is called an annuity

True

T/F? If you apply for a job at the library you will first be required to attend an informational interview

False

T/F? A mentor is someone new to the job

False

T/F? Aptitude test help you identify activities you enjoy the most

False

T/F? An auto mechanic is employed in a service industry

True

T/F? You must fill out a W-4 form for an employer to determine tax withholding

True

T/F? A good place to learn about a career in a specific field is a professional organization

True

T/F? An employer has the right to not hire a woman because she is pregnant

False

T/F? Big cities are less expensive to live in because there are more apartments available

False

T/F? The amount of education you have may affect your starting salary

True

T/F? Demographic trends are tendencies of people moving from one area of the country to another

False

T/F? The title to your car is an example of a personal financial document

True

T/F? Safe deposit box usually cost less than 100

True

T/F? Insolvency is the inability to pay your debts when due

True

T/F? Food is an example of a variable expense

True

T/F? Take-home pay is another name for net pay

True

T/F? The total of your fixed and variable expenses is your cash flow

False

T/F? Financial transactions and documents can be saved on a password protected computer

True

T/F?you should include bonuses you might get t work when you estimate your income

False

T/F? A deficit is when more money is spent than is earned or recieved

True

T/F? Creating a personal balance sheet is a good way to determine your assets and liabilities

True

T/F? Factors such as where you live and your ethnic background can affect your buying decisions

True

T/F? When you compare brands, you should consider price and advertising

False

T/F? The consumers resource grade book is can be sued to find a companies address

False

T/F? Small claims court is used to hear misdemeanors

False

T/F? An implied,warranty is a written guarantee that covers certain aspects of a product

False

T/F? A service contract would cover part replacement on a furnace

False

T/F? Arbitration is not legally binding

False

T/F? Meditation is legally binding

False

T/F? A network of community law offices that provide free or low cost legal assistance is a legal aid society

True

T/F? Common reasons for consumer complaints include user manuals in Latin and poor advertising

False

T/F? Money in a checking account is called a demand deposit

True

T/F? A prepaid phone card is an example of a debit card

False

T/F? A savings and loan association is an insurance institution that is owned by its members

False

T/F? A certificate of deposit portfolio has many different maturity dates

True

T/F? APY is the amount of interest that 200,000 would earn after compounding intrest

False

T/F? The endorsement is the signature of the payer

False

T/F? Having a roll over CD is beneficial to the CD owner

False

T/F? According to the Truth in Savings Law, financial institutions have to guarantee you a minimum interest rate on your deposits

False

T/F? Overdraft protection is an automatic loan made to an account is the balance will not cover the checks written

True

T/F? A restrictive endorsement allows you to transfer a check to an organization or another person

False

T/F? A car loan is an example of closed end credit

True

T/F? FICO scores are normally between 350-850

True

T/F? A borrower is a credit cardholder who does not pay his or her balance in full each month

True

T/F? There are three major credit reporting bureaus, Experience, Equifax, and Trans Atlantic

False

T/F? A secured loan is one guaranteed to be repaid through safe collateral

True

T/F? CCCS is a for profit organization that provides credit counseling

False

T/F? Chapter 13 allows the debtor to keep most of their assets

True

T/F? When you co-sign a loan for a friend, you may be responsible to make loan payments if the other person fails to

True

T/F? If you file for Bankruptcy the report will be kept on file for 10 years

True

T/F? One sign of debt problems is using and paying off your credit cards every month

False

T/F? Points are paid to get a higher interest rate

False

T/F? Tax benefits are an advantage of renting a house

False

T/F? A legal document that describes the conditions of a rental agreement is called a lease

True

T/F? To sublet is to let a roommate move in with you and share the cost of rent

False

T/F? Zoning laws are regulations that limit how property in a given area can be used

True

T/F? Refinancing is always a good option

False

T/F? A buyer usually pays a real estate agent a commission

False

T/F? A security deposit is normally returned after one year

False

T/F? Most adjustable rate loans have a rate hat

False

T/F? Title insurance protects the buyer if problems are found with a title

True

T/F? Preferred stock is not considered a good investment for most people

True

T/F? A stock split occurs when the shares of stock owned by existing stockholders are divided into a larger number of shares

True

T/F? Par value is an assigned value that is printed on a stock certificate

True

T/F? Stocks issued by Centex are considered cyclical stocks

True

T/F? Conservative investors are attracted to small cap stocks

False

T/F? A bear market occurs when investors are pessimistic about the economy

True

T/F? Stock in companies that pay higher than average dividends are called income stock

True

T/F? IPOs occur when a company sells stock to the general public for the first time

True

T/F? Buying on margin is a risky way to purchase stocks

True

T/F? A corporation is required by law to hold monthly meetings

False

Financial plans that are more than five years off are called _________

Long term goals

A series of equal regular deposits is called __________

An annuity

Saving for vacation next summer or paying off small debts by the end of the year are examples of ____________

Short term goals

Hairstyling and bookkeeping are examples of __________

Services

The trade off made by making one choice instead of another is commonly referred to as an _______________

Opportunity cost

Spending, saving, and investing to have the kind of life you want and financial security can be achieved by _____________

Personal financial planning

Earning interest on previously earned interest is called ___________

Compounding

The amount of goods and services available for sale is called

Supply

The central banking organization of the United States is called the __________

Federal reserve system

The ways in which people make, distribute, and use their goods and services is called the _____________

Economy

A cover letter gives the potential employer ____________

The reason you want a particular job

Someone who enjoys nature and outdoors may have an aptitude for a career in ______________

Forestry management

A demographic trend that has boosted careers in health, physical fitness, and recreational products is more _____________

Leisure time

A pension plan is a _____________

Retirement plan funded in part by employers

An example of tax exempt benefit is __________

Free life insurance

By law an employer must pay for a portion of _____________

Social security

High interest rates are likely to reduce employment opportunities in ___________

Construction

The market value of benefits is measured by _____________

What you would had paid yourself

Which is not a way to obtain employment experience

Cooperation

A position in which a person receives training by working with people who are experienced in a particular field is called __________

An internship