Question 1

Mortgage interest payments and property taxes are

Accepted Answer

A)   tax deductible for homeowners.
B)   expenses that make home ownership less attractive than renting.
C)   both likely to increase each year at a faster rate than your income.
D)   both likely to decline the longer you own the home.E) B) and C)
F) A) and B)

Question 2

Credit cards can be used to categorize and track your purchases.

Accepted Answer

A) True 
 B)False

Question 3

When you prepare your personal balance sheet, remember that your ________ is equal to your total assets minus any liabilities you have.

Accepted Answer

A)   net income
B)   net worth
C)   tax base
D)   cash equivalent valueE) B) and C)
F) A) and D)

Question 4

During her sophomore year in college Carrie received an email from First Bank telling her she was eligible for a credit card along with a free gift. Carrie was excited until she remembered that any cash she has usually "burns a hole" in her pocket, and she spends it quickly. Carrie would likely not be successful with a credit card because

Accepted Answer

A)   she has difficulty in getting access to credit.
B)   she would use it to make impulse purchases that she could not afford.
C)   she would not spend up to the limit immediately.
D)   her dad would not agree to cosign for her.E) B) and D)
F) A) and D)

Question 5

Identify and discuss the six steps that individuals can take to gain control of their personal finances.

Accepted Answer

Step 1. Take inventory of your financial...

Question 6

According to contrarians, the big decline in the stock market during the Great Recession was

Accepted Answer

A)   a great opportunity to invest in stocks.
B)   proof that the stock market was not as sound an investment as most people thought.
C)   a sign that more government regulation was needed to prevent big losses.
D)   proof that the future of capitalism should rely more on small, unincorporated businesses rather than big corporations.E) C) and D)
F) B) and C)

Question 7

Describe the major steps involved in estate planning.

Accepted Answer

For people with young children, the firs...

Question 8

The factor likely to have the greatest impact on how fast the value of a home appreciates over time is the

Accepted Answer

A)   interest rate on the mortgage.
B)   style and design features built into the home.
C)   location of the home.
D)   size of the home.E) A) and B)
F) A) and C)

Question 9

Once you have set up a budget and handled your ordinary expenses, the first thing to do with any extra money you have is to

Accepted Answer

A)   start a savings plan.
B)   pay off your debts.
C)   start your own business.
D)   spend it on the things you would like but that aren't included in your budget.E) B) and C)
F) A) and B)

Question 10

MyRA is a Roth IRA-type retirement savings plan for low and middle-income individuals.

Accepted Answer

A) True 
 B)False

Question 11

A retirement plan where employers often match part of an employee's contribution is known as a

Accepted Answer

A)   simple IRA.
B)   Roth IRA.
C)   Keogh plan.
D)   401(k)  plan.E) All of the above
F) None of the above

Question 12

One of the keys to financial success is never to apply for a credit card.

Accepted Answer

A) True 
 B)False

Question 13

In order to accumulate capital, young adults are likely to have to

Accepted Answer

A)   accept a lifestyle that sacrifices some amenities.
B)   live beyond their means.
C)   rely on credit cards for basic purchases in order to conserve on cash.
D)   borrow funds from a bank.E) All of the above
F) B) and C)

Question 14

A(n)  ________ is the person named in a will to assemble and value the assets of the deceased, handle tax matters, and distribute the assets.

Accepted Answer

A)   executor
B)   guardian
C)   arbiter
D)   intermediatorE) B) and C)
F) A) and D)

Question 15

If you find yourself regularly running out of cash, your only real option is to focus your attention on finding ways to increase your income.

Accepted Answer

A) True 
 B)False

Question 16

The tax-sheltered program to encourage self-employed people to accumulate retirement funds is called a(n)

Accepted Answer

A)   401(k)  plan.
B)   IRA plan.
C)   COLA plan.
D)   Keogh plan.E) A) and D)
F) A) and C)

Question 17

During the first few years of a home mortgage, almost all the payments go for interest on the loan. This high interest is a reason it is better for young people to rent rather than buy.

Accepted Answer

A) True 
 B)False

Question 18

An umbrella policy is an inexpensive policy that provides financial protection only in the event of clearly defined major catastrophes such as hurricanes or earthquakes-events which are referred to in the insurance industry as "rainy days."

Accepted Answer

A) True 
 B)False

Question 19

Dmitry emigrated to the United States from a formerly communist country. He is looking to you for advice on how to succeed in a capitalist system. He would be well advised to

Accepted Answer

A)   find a job and live frugally in order to save money to invest.
B)   rely heavily on government assistance programs to maintain a relatively comfortable life style.
C)   get a credit card, even if it has a very low credit limit, and use it to establish a good credit rating.
D)   follow the buy now, pay later rule of personal finance.E) None of the above
F) B) and D)

Question 20

The people who assist families in developing a comprehensive program that covers investments, taxes, insurance, and retirement plans are called

Accepted Answer

A)   insurance salespeople.
B)   financial planners.
C)   portfolio managers.
D)   stockbrokers.E) A) and B)
F) All of the above

Exam 24: Managing Personal Finances

Describe the major steps involved in estate planning.

Correct Answer
verified
For people with young children, the firs...
View Answer

In order to accumulate capital, young adults are likely to have to

Correct Answer
verified

A(n) ________ is the person named in a will to assemble and value the assets of the deceased, handle tax matters, and distribute the assets.

Correct Answer
verified

MyRA is a Roth IRA-type retirement savings plan for low and middle-income individuals.

Correct Answer
verified

An umbrella policy is an inexpensive policy that provides financial protection only in the event of clearly defined major catastrophes such as hurricanes or earthquakes-events which are referred to in the insurance industry as "rainy days."

Correct Answer
verified

When you prepare your personal balance sheet, remember that your ________ is equal to your total assets minus any liabilities you have.

Correct Answer
verified

Once you have set up a budget and handled your ordinary expenses, the first thing to do with any extra money you have is to

Correct Answer
verified

The factor likely to have the greatest impact on how fast the value of a home appreciates over time is the

Correct Answer
verified

Correct Answer
verified

If you find yourself regularly running out of cash, your only real option is to focus your attention on finding ways to increase your income.

Correct Answer
verified

According to contrarians, the big decline in the stock market during the Great Recession was

Correct Answer
verified

Dmitry emigrated to the United States from a formerly communist country. He is looking to you for advice on how to succeed in a capitalist system. He would be well advised to

Correct Answer
verified

Mortgage interest payments and property taxes are

Correct Answer
verified

A retirement plan where employers often match part of an employee's contribution is known as a

Correct Answer
verified

One of the keys to financial success is never to apply for a credit card.

Correct Answer
verified

During the first few years of a home mortgage, almost all the payments go for interest on the loan. This high interest is a reason it is better for young people to rent rather than buy.

Correct Answer
verified

The tax-sheltered program to encourage self-employed people to accumulate retirement funds is called a(n)

Correct Answer
verified

Credit cards can be used to categorize and track your purchases.

Correct Answer
verified

Identify and discuss the six steps that individuals can take to gain control of their personal finances.

Correct Answer
verified
Step 1. Take inventory of your financial...
View Answer

The people who assist families in developing a comprehensive program that covers investments, taxes, insurance, and retirement plans are called

Correct Answer
verified

Exam 24: Managing Personal Finances

Describe the major steps involved in estate planning.

Correct AnswerverifiedFor people with young children, the firs...View AnswerShow Answer

In order to accumulate capital, young adults are likely to have to

Correct AnswerverifiedShow Answer

A(n) ________ is the person named in a will to assemble and value the assets of the deceased, handle tax matters, and distribute the assets.

Correct AnswerverifiedShow Answer

MyRA is a Roth IRA-type retirement savings plan for low and middle-income individuals.

Correct AnswerverifiedShow Answer

An umbrella policy is an inexpensive policy that provides financial protection only in the event of clearly defined major catastrophes such as hurricanes or earthquakes-events which are referred to in the insurance industry as "rainy days."

Correct AnswerverifiedShow Answer

When you prepare your personal balance sheet, remember that your ________ is equal to your total assets minus any liabilities you have.

Correct AnswerverifiedShow Answer

Once you have set up a budget and handled your ordinary expenses, the first thing to do with any extra money you have is to

Correct AnswerverifiedShow Answer

The factor likely to have the greatest impact on how fast the value of a home appreciates over time is the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If you find yourself regularly running out of cash, your only real option is to focus your attention on finding ways to increase your income.

Correct AnswerverifiedShow Answer

According to contrarians, the big decline in the stock market during the Great Recession was

Correct AnswerverifiedShow Answer

Dmitry emigrated to the United States from a formerly communist country. He is looking to you for advice on how to succeed in a capitalist system. He would be well advised to

Correct AnswerverifiedShow Answer

Mortgage interest payments and property taxes are

Correct AnswerverifiedShow Answer

A retirement plan where employers often match part of an employee's contribution is known as a

Correct AnswerverifiedShow Answer

One of the keys to financial success is never to apply for a credit card.

Correct AnswerverifiedShow Answer

During the first few years of a home mortgage, almost all the payments go for interest on the loan. This high interest is a reason it is better for young people to rent rather than buy.

Correct AnswerverifiedShow Answer

The tax-sheltered program to encourage self-employed people to accumulate retirement funds is called a(n)

Correct AnswerverifiedShow Answer

Credit cards can be used to categorize and track your purchases.

Correct AnswerverifiedShow Answer

Identify and discuss the six steps that individuals can take to gain control of their personal finances.

Correct AnswerverifiedStep 1. Take inventory of your financial...View AnswerShow Answer

The people who assist families in developing a comprehensive program that covers investments, taxes, insurance, and retirement plans are called

Correct AnswerverifiedShow Answer

Correct Answer
verified
For people with young children, the firs...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Step 1. Take inventory of your financial...
View Answer

Correct Answer
verified