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Finance Flashcards

Personal finance

Inflation increases the value of savings False
The rate of yearly earnings from an account, including compound interest annual yield percentage
Patients can minimize their own health care by doing all of the following except Insisting on the best medical specialist for care
Which of the following is not an advantage of using credit Ease of spending money you don’t have
A savings tool in which money is deposited for a set period of time and earns a set annual rate of interest certificate of deposit
A share in ownership of a corporation stock
the statistical characteristics of the population demographics
lost opportunity to earn interest on savings an opportunity cost of spending money is
investing and saving are the same things false
Liquidity savings refers to availability of your funds on short notice
The ultimate purpose of financial planning is to reach important goals and to achieve some sense of financial security. true
Wants are those items you must have to survive. false
Auto insurance premiums are higher for young single males than for most other drivers true
Variable expenses are those that all of the above
Real estate is among the safest investments for beginning investors. false
an objective a person wants to attain goal
person named by the policyholder to receive the death benefit of an insurance policy beneficiary
The chief advantage of a budget is can help you make the most of your money and avoid financial problems
A savings plan consists of all of the following except opening a credit card account
a savings depository owned by the depositors that divides the profits among depositors in the form of dividends mutual savings bank
A chief advantage of using credit is the opportunity to use goods and services while paying for them. true
an arrangement that allows consumers to buy goods or services and pay for them later credit
An investment portfolio is the collection of stocks, bonds, and other securities a person owns. true
a for-profit financial institution that receives and pays dividends on depositors’ savings, make mortgage loans, and offers most of the services commercial banks offer savings and loan association
the stages of change a family passes through from formation to aging family life cycle
a payment in exchange for an employee’s labor or services wage
a nonprofit financial cooperative owned by and operated for the benefit of its members; it accepts deposits, makes loans, and provides other services credit union
Possessing credit cards tempts many people to spend more than they can afford. true
Which of the following is not an advantage of checking accounts? high interest on balances
Credit is available most readily to people with a good credit rating
A consumer should check out his or her credit rating periodically to be sure the information on file is correct
the process of organizing and utilizing resources to accomplish predetermined objectives management
When planning the use of resources, it is important to consider that resources are all of the above
Money and time are examples of human resources. false
a record of checks, deposits, and charges on a checking account bank statement
The amount you pay to use credit depends on all of the following except reason for using credit
Gross income is also called “take-home pay”. false
No matter what your financial situation, it is desirable to begin a savings program and insure against financial risks early in life. true
property that a borrower promises to give up in case of default collateral
the understanding of the basic knowledge and skills needed to manage financial resources financial literacy
Goals are usually closely related to values. true
A bank statement provides a record of all the following except outstanding checks
Key sources of state and local tax revenue include all of the following except social security tax
An example of a need is food
payment for work that is expressed as an annual figure salary
You can damage a good credit rating by ignoring bills you cannot pay until the creditors take collection action
Simple interest makes money grown more quickly than compound interest. false
The Form W-4 determines the amount of payroll deductions employers should withhold from your paycheck
In managing your personal affairs, it is essential to develop a workable system for keeping financial and legal records and documents. true
Homeowner’s insurance generally provides liability and property protection. true
the federal government’s basic program for providing income when earnings are reduced or stopped because of retirement, serious illness or injury, or death social security
Spending on education is one of the top three items on the federal budget. false
The decision-making process involves all except getting advice from at least five friends
IRA’s offer consumers the opportunity to make tax deferred contributions to a retirement fund. true
Acknowledging a serious financial problem is one of the key steps in coping with it. true
The primary function of a financial institution is the safekeeping of consumer savings. false
Credit is more costly than using cash. true
An overdraft is a check that is not included on your bank statement. false
The deductible on a health insurance claim is the amount the patient must pay before the insurer makes any payments
A good choice for a consumer who writes a large number of checks and can keep the required minimum amount of money in the account at all times would be a ? checking account basic
An emergency fund should contain enough money to cover two months of living expenses. false
a bank owned by stockholders and organized to receive, transfer, and lend money to individuals commercial bank
Fixed expenses include installment payments, insurance premiums, and rent
All of the following are strategies for managing risk except contraction
Depreciation is an increase in the value of property or belongings. false
The Form W-2 determines how much tax was withheld from your paycheck last year
Money is a limited resource. true
amount of money paid to an insurance company on a regular basis for a policy premium
a savings account that pays interest and allows you to make deposits and withdrawals regular savings account
A living will is a statement of instructions you wish to be followed if you become unable to make decisions on your own behalf. true
a savings account that pays a higher interest rate, but usually requires a minimum balance and has limited check writing privileges money market deposit account
the idea that an action should be taken or a purchase be made only if the benefits are at least as great as the costs cost benefit principle
The amount of taxes withheld from paychecks depends on the amount earned and the number of allowances claimed. true
Long-term liabilities include the unpaid amount of a home mortgage
The main purpose of life insurance is to protect dependents from loss of income and other expenses after the death of the insured person. true
any form of money a person receives from various sources income
a measure of the likelihood that something will be lost risk
An advantage of owning preferred stock over common stock in a company is a first claim on company assets in case of bankruptcy, after creditors are paid
A sound credit rating is an important financial asset. true
Interest earnings are considered taxable income. true
the amount borrowed on a loan principal

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