Personal Finance Test 1

It is especially important to use “key phrases” when preparing your résumé because (p. 53-59)Select one:a. computer software is typically used to scan résumés in order to select better qualified candidates b. you want to show that you are well educatedc. it saves time when writing your résuméd. many employers will be impressed with your vocabulary a. computer software is typically used to scan résumés in order to select better qualified candidates
Forms of remuneration provided by employers to employees that result in the employee not having to pay out-of-pocket for certain expenses are called (p. 49-52)Select one:a. employee benefits b. salariesc. 401(k) plansd. bonuses a. employee benefits
Which of the following reduce the additional income that might come from having a second income? (p. 49-52)Select one:a. additional spending on transportationb. additional spending on foodc. All of these d. the impact of your marginal tax rate c. All of these
A summary record of your education, training, experience and other qualifications is your (p. 53-59)Select one:a. cover letterb. lifestyle inventoryc. interest inventoryd. résumé d. résumé
The progression from entry level positions to higher levels of pay, skill, responsibility, or authority is referred to as a(n) (p. 40-44)Select one:a. ascendancy planb. career ladder c. career enhancementd. progression plan b. career ladder
______ are the principles, standards, or qualities considered worthwhile (p. 40-44)Select one:a. Goalsb. Values c. Aptitudesd. AbilitiesFeedback b. Values
You should avoid listing specific abilities, such as using Microsoft Excel, in your résumé. (p. 53-59)Select one:TrueFalse False
University-, community-, and employer-sponsored opportunities for job seekers to meet with many potential employers over one or more days is called a (p. 53-59)Select one:a. career fair b. mentoring fairc. career festivald. head hunt a. career fair
In preparation for a job interview, you should (p. 60-67)Select one:a. anticipate interview questions and prepare responsesb. create a list of negative responses to questions that you should then avoidc. compile some personal storiesd. compile some personal stories and anticipate interview questions and prepare responses d. compile some personal stories and anticipate interview questions and prepare responses
Which of the following is an employer not legally required to provide to employees? (p. 49-52)Select one:a. worker’s compensation insuranceb. a retirement plan c. unemployment insuranced. unpaid leave for personal and family medical problems b. a retirement plan
In monetary assert management, safety means the speed and ease with which an asset can be converted to cash. (Section 5.1)Select one:TrueFalse False
Which of the following is a federal government agency that administers funds to insure accounts at commercial banks and certain other depository institutions? (Section 5.1)Select one:a. NCUAb. SBFc. SECd. FDIC d. FDIC
Which of the following sets NOW accounts apart from other checking accounts? (Section 5.2)Select one:a. They can be accessed by a debit cardb. They pay interest c. They are time depositsd. They are safer b. They pay interest
The interest rate of most concern to a savings account depositor is the (Section 5.2)Select one:a. annual percentage yield (APY). b. annual percentage rate (APR).c. effective rate of interest (ERI).d. nominal rate of interest (NRI). a. annual percentage yield (APY).
An interest-bearing savings instrument that requires people to deposit money for a fixed amount of time is called a(n) (Section 5.2)Select one:a. secured balance account.b. certificate of deposit. c. money market account.d. time-deposit. b. certificate of deposit.
If you wanted to set up a checking or savings account with another person that granted each of you the right to make withdrawals without consulting the other, you would choose a(n) (Section 5.3)Select one:a. individual access account.b. joint tenancy account with right of survivorship. c. tenancy in common.d. trustee account. b. joint tenancy account with right of survivorship.
What is the maximum you can lose if you notify your bank of a lost debit card within two days? (Section 5.4)Select one:a. $500b. $5,000c. All of your moneyd. $50 d. $50
Ways to protect your privacy and reducing the risk of fraud include: (Section 5.4)Select one:a. All of these b. Always hit the “log off” button before closing your browser windowc. Watch for small charges, like a $1 charge, that you can’t identifyd. Regularly change your passwordse. Avoid banking via public computers or networks a. All of these
The primary reason for giving children an allowance is to (Section 5.5)Select one:a. teach them how to handle money. b. keep them from asking for money all the time.c. pay them for doing chores around the home.d. have something to withhold when there is a need for discipline. a. teach them how to handle money.
For couples, the specific money management tasks such as bill paying, overseeing spending, and handling banking can be divided in any way that works for the couple, but making ______ ______ should be a joint endeavor. (Section 5.5)Select one:a. shopping tripsb. savings depositsc. account reconciliationsd. financial decisions d. financial decisions
The tax rate applied to a taxpayer’s last dollar of income is called the _. (Section 4.1)Select one:a. marginal tax rate b. average tax ratec. composite tax rated. adjusted tax rate a. marginal tax rate
You pay federal taxes only on your _. (Introduction) Select one:a. taxable income b. employment incomec. investment incomed. gross income a. taxable income
____ taxes are characterized by higher tax rates on higher levels of income. (Section 4.1)Select one:a. Exciseb. Marginalc. Regressived. Progressive d. Progressive
Practically everything you receive in return for your work or services and any profit from the sale of assets is considered income, whether the compensation is paid in cash, property, or services. Listing these earnings will reveal your: (Section 4.2).Select one:a. Taxable incomeb. Total income c. Capital gainsd. Adjusted gross income b. Total income
You and your spouse have $9,000 in allowable itemized deductions in a year when the standard deduction is $12,600 for married taxpayers. How much in deductions are you allowed to take? (Section 4.2)Select one:a. $9000b. $15,300c. $21,600d. $12,600 d. $12,600
Which of the following is excluded from gross income? (Section 4.2)Select one:a. Scholarship income spent on room and boardb. Illegal incomec. Gifts and inheritances d. Capital Gains c. Gifts and inheritances
Salary reduction programs that set aside a portion of an employee’s pre-tax income for child-care expenses and unreimbursed medical and dental expenses are called _. (Section 4.3)Select one:a. tax creditsb. flexible spending accounts c. earned income spending accountsd. withholding accounts b. flexible spending accounts
Which of the following directly reduces your tax liability rather than your income subject to federal income taxes? (Section 4.2)Select one:a. tax deductionb. tax exemptionc. tax credit d. tax adjustment c. tax credit
How far back can the IRS go if you have understated your income? (Section 4.2)Select one:a. 1 yearb. 10 yearsc. 3 years d. 6 years d. 6 years
The penalty for tax evasion can include (Section 4.3)Select one:a. jail sentencesb. all of the above c. penaltiesd. interest charges b. all of the above
Which of the following financial statements provides a complete snapshot of one’s financial condition as of a particular point in time? (p. 79-85)Select one:a. bank statementb. balance sheet c. budgetd. cash-flow statement b. balance sheet
The amount of take-home pay remaining after all deductions are withheld for taxes, insurance, union dues, and other items is referred to as your __________ income. (p. 91-96)Select one:a. currentb. disposable c. reald. discretionary b. disposable
Which financial statement shows your net worth? (p. 79-85)Select one:a. Statement of pluses and minusesb. Income Statementc. Balance Sheet d. Budget c. Balance Sheet
The essential first step in budgeting occurs with (p. 91-96)Select one:a. saving moneyb. planningc. setting goals d. controlling spending c. setting goals
Secured lock boxes at banks that can be rented by customers for safe storage of documents and other items are called (p. 87-91)Select one:a. safe-deposit boxes b. safesc. vaultsd. safe houses a. safe-deposit boxes
Documents that evidence financial transactions, such as bills, receipts, credit card receipts and statements, bank records, tax returns, and other documents are called (p. 87-91)Select one:a. financial statementsb. assetsc. financial records d. financial résumés c. financial records
Specific long- and short-term objectives to be attained through financial planning and management efforts are one’s (p. 74-78)Select one:a. financial goals b. financial strategiesc. valuesd. net worth a. financial goals
When working on your monthly budget, which of the following is a useful tool to help balance out the variations in income and expenditures from month to month? (p. 91-96)Select one:a. subordinate budgetb. credit control sheetc. revolving savings fund d. goal worksheet c. revolving savings fund
Your debts – the amounts you owe to others – are called: (p. 79-85)Select one:a. Assetsb. Expensesc. Liabilities d. Income c. Liabilities
Which of the following would be a fixed expense? (P. 79-85)Select one:a. Foodb. Rent c. Entertainmentd. Utilities b. Rent
The amount remaining after all budget classification deficits are subtracted from those with surpluses is: (p. 100-105)Select one:a. cash-flowb. discretionary incomec. net surplus d. net income c. net surplus

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