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personal finance - semester 1
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Questions in this quiz (92)
1The earliest type of trade was?
- Abartering
- Bcurrency
- Ceconomies
- Dcowry shell currency
- Abartering
2The economies of all cultures are based on?
- Acurrency
- Bsupermarkets
- Ctrade
3Historians believe that the Chinese developed the first?
- Acredit card
- Bmetal currency
- Csupermarket
4Corporate structure may be defined as ________.
- AThere are an equal number of employees earning above the amount provided and an equal number earning below the amount provided
- BThere are an equal number of employees earning above the provided but not an equal number earning below the amount provided
- CThere are an equal number of employees not earning above the amount provided but an equal number of employees earning below the number provided
- Dthe number calculated by adding all numbers together, then dividing by the total amount of numbers
5which of the following might not be an option for increasing your present income?
- Arequesting a merit increase in pay
- Bquitting your job to find another
- Clooking for a better job without quitting your old job
6Which of the following is true about a merit increase in pay?
- Ayou have prove that you deserve it more than your coworkers
- Byou automatically receive merit raises every year
- Cyou might have to wait for a certain anniversary date to get it
7Your resume should include all of the following information EXCEPT?
- Apersonal history
- Beducation background
- Cqualifications
- Dcontact information
8The single best way to increase your income is to get an education. Why?
- Ayou automatically make more money if your are educated
- Byou automatically get promotions if your are educated
- Cyou can obtain jobs that have higher starting salaries
- Dyou will automatically receive better benefits
9Which of the following will probably earn a higher level of income?
- Aa male file clerk with a high school diploma and a year of college
- Ba male accountant with a Bachelor's degree
- Ca female accountant with a Master's degree in business administration
10the term median means ______.
- Athere are an equal number of employees earning above the amount provided but not an equal number earning below the amount provided
- Bthere are an equal number of employees not earning above the amount provided but an equal number of employees earning below the number provided
- Cthe number calculated by adding all numbers together, then dividing by the total amount of numbers
11The term average means _______.
- Athere are an equal number of employees earning above the amount provided and an equal number earning below the amount provided
- Bthere are an equal number of employees earning above the amount provided but not an equal number of employees earning below the amount provided
- Cthere are equal number of employees not earning above the amount provided but an equal number of employees earning below the amount provided
- Dthe number calculated by adding all numbers together, then dividing by the total amount of numbers
12The term "educational attainment" means _______.
- Ayou are attending school to earn a degree
- Bwhatever education you have gotten
- Cyou have earned the highest degree possible in your field
13Your choice of career should be based on which factors?
- Athe location of possible jobs
- Byour interests and knowledge
- Cthe salary ranges and your interests
- Dwhether or not they will provide daycare
14Which of the following is not true concerning Income Tax Refunds?
- Ayou are essentially giving the government an interest-free loan
- Bit means that you are having too much deducted from your paycheck
- Cyou haven't properly evaluated your personal tax circumstances
15When claiming dependents, they must meet the following criteria EXCEPT?
- Athe dependent must reside with you for the entire year
- Bthe dependent must be under nineteen years of age unless he or she is a full-time student (under 24 years old)
- Cthe dependent was unable to provide over half of his or her support for the year
- Dthe dependent must be a relative
16If you opt to put money in the medical flexible spending account rather than trying to amass enough medical expenses to itemize on your tax return, you are taking advantage of _____.
- Aa credit
- Bwitholding
- Ca deduction
- Dan exlusion
17A form of taxation in which everyone pays an equal rate of taxes is called a _______.
- Aprogressive tax
- Bregressive tax
- Cflat tax
- Dnet tax
18A form of taxation in which the highest income earner pays the largest percentage of taxes is called a _______.
- Aregressive tax
- Bflat tax
- Cnet tax
19A form of taxation in which the lowest incom earners pay the largest percentage of taxes is called a ______.
- Aregressive tax
- Bflat tax
- Cnet tax
- Dprogressive tax
20Which of the following is not considered part of your gross income?
- Aeverything of value you recieved during the year
- Bbartered goods and services
- Ceverything of value of that you received from April 15th to December 31st
- Dmoney you win on a game show
21Which of the following is not true about your adjusted gross income?
- Ait is your income plus your deductions
- Bit determines whether you are eligible for additional tax breaks
- Citi s your gross income minus deductions
- Dit is your income minus deductions
22Which of the following is true about standard deductions?
- Athey are tax breaks that you can claim without having to itemize
- Bthey are listed just above the total taxable income on the 1040 tax form
- Cthey reduce your tax bill rather than your taxable income
- Dyou must itemize in order to take advantage of this deduction
23A dollar-for-dollar reduction in your tax payment is called a _______.
- Adeduction
- Bflat tax
- Ccredit
- Ddebit
24Which of the following best defines health insurance?
- Aan annual contract between an insurance company and an individual
- Ba type of insurance whereby the insurer pays the medical costs of the insured
- Ca type of insurance that protects your personal property if you are unable to pay your bills
- Da type of insurance that assists your loved ones in the event of your death
25Which of the following illustrates the main difference between Medicare and Medicaid?
- AMedicare helps to insure the elderly, while Medicaid focuses on low-income individuals and families
- BMedicaid helps to insure the elderly, while Medicare insures low incom earners
- CMedicaid helps to replace lost income for the poor
- DMedicare is available only to those over the age of 65
26Which of the following is not true about managed care?
- Ayour employer is responsible for all co-payments
- Bit is a system in which companies contract with doctors to provide health care services
- Cit you have health care coverage through your employer, you probably have a managed care plan
- Dthe most common types of managed care are HMO's and PPO's
27Which of the following statements is true about Medicaid?
- AMedicaid covers only hospital and doctor's visits
- BMedicaid is a managed health care system
- CMedicaid was established to help ensure that people living below the poverty level could receive health care
- DMedicaid provides health care only for elderly
28What is life insurance?
- Ahealth insurance that covers you for the rest of your life
- Binsurance that supplements your income if your life is threatened
- Cinsurance that protects you in the event of an unexpected illness or accident that prevents you from working
- Dinsurance that assists your loved ones with income in the event of your death
29John T. works on the assembly line in an automobile factory. One day, he falls of the roof of his home while cleaning his rain gutters and injures his back. He soon learns that he will have to be off his job for close to a year while his back heals. Which of the following insurance will he need to cover losses from his absence?
- Ahe will have to collect from his regular medical insurance
- Bbecause the accident occurred at home, he is not covered
- CHe may potentially be covered by disability insurance provided by his employer until he returns to work
30Which of the following statements is not true about HMO insurance?
- Ait is a managed health care system
- Bthe letter stand for Health Maintenance Organization
- Cin an HMO, you are assigned a primary care physician
- Din an HMO you can choose your own primary care physician (PCP), but specialists must be referred by the PCP
31Which of the following statements is not true about disability insurance?
- Athe only way to get disability insurance is through your employer
- Byou can have short-term or long-term disability insurance
- Clong-term disability insurance ends when a person turns 65
- Dlong-term disability insurance lasts five years
32Which of the following might be considered positive aspects of HMO's?
- Afree choice of primary care physician
- Bcare from non-HMO provider not covered
- Cout-of-pocket expenses are usually low
- Deasy to receive specialized care
33Which of the following might be considered a negative aspect of HMO's?
- AHMO's focus on preventative care
- BNot easy to receive specialized care
- Cfree choice of primary care physician
34A FICO score represents all of the following EXCEPT?
- Aincome to debt ratio
- Bcreditworthiness
- Clength of credit history
35On average, compared to a person with good credit, a person with poor credit will pay ____ for insurance?
- A5% to 10% more
- B10% to 15% less
- C20% to 50% more
- D25% to 40% more
36How long does it take to rebuild your credit history?
- A7 years
- B9 years
- C30 years
- D8 years
37Secured debt means a lender gives yo money in exchange for what?
- Acollateral
- Bcredit report
- Cprincipal
- Dinterest
38Which type of debt is the least attractive for a consumer?
- Asecured debt
- Bmortgage debt
- Clease debt
39When an asset, such as a car, decreases in value over time what is it called?
- Aequity
- Bleasing
- Cdepreciation
40If you miss one payment on a credit card, what is generally the penalty?
- Aa lower available credit line
- Ba late payment fee
- Ca negative notation on your credit report
41if you miss two payments on a credit card, what is generally the penalty?
- Aa late payment fee and a lower available credit line
- Ba late payment fee
- Ca negative notation on your credit report
- Da higher interest rate and a late payment fee
42If you have $1,000.00 on a credit card and the interest rate is 23.7% per year, how much interest will you pay for one year? (Multiply rather than compound your interest).
- A$23.70
- B$237.00
- C$230.70
43How many monthly payments are there in a 30-year loan?
- A365
- B360
- C100
44What can the be best type of safety net in hard times?
- Arental property
- Bnone of the above
- Cmortgage
45Generally, you need to live in a home __________ years to break even on closing costs
- Atwo
- Bthree
- Cfour
46What is generally the most complicated financial transaction the average american will ever undertake?
- Abuying a car
- Bbuying a home
- Cnone of the above
47real estate is considered a/an ________ investment.
- Aliquid
- Bsure
- Cpartially-liquid
48Individual mortgage interest rates are generally determined by what?
- AThe economy
- BThe individual's credit score
- CThe property value
- Dthe state the property is located in
49What is PMI?
- APersonal mortgage investment
- BPersonal mortgage insurance
- CPersonal mortgage interest
50Who dictates how much insurance a homeowner must carry on their property?
- Athe state the property is located in
- Bthe bank that holds the mortgage
- Cthe owner
- Dnone of the above
51Assuming you have a 30-year fixed-rate loan, you're paying _______% interest during the first few years.
- A90
- B80
- C70
- D60
52Why is investing gold beneficial?
- Ait is easy to mine
- Bit is considered a stable investment
- Cgold is more expensive than stocks
- Dthe value of gold is subject to inflation
53What type of insurance may a homeowner need?
- Aflood insurance
- Bfirestorm insurance
- Call of the above
54Which of the following is not one of the three types of business arrangements in the United States?
- Asole proprietorship
- Bpartnership
- Csole partnership
- Dcoporation
55with a sole proprietorship, who pays the taxes?
- Athe company
- Bboth the shareholders and the owner
- Cthe owner
56which of the following would not be considered an advantage of a sole proprietorship?
- Athere are no legal formalities if the business dissolves
- Ball of the profits from the business go right to the owner
- Ca proprietor is also responsible for his or her own health insurance
57What can a proprietor do to minimize personal risk and liability?
- Achange his/her name
- Bform a limited liability proprietorship
- Cform a limited liability partnership
- Dform a limited liability company
58Why are partnerships often favored over corporations?
- Athey are most successful
- Bthere are no taxes levied on profits
- Ca partnership structure eliminates the divided tax levied upon profits realized by the owners
59What are the two types of partnerships?
- Ageneral and private
- Blimited and general
- Cprivate and limited
60which of the following would not be considered an advantage of a partnership?
- Aa partnership usually involves low start-up costs
- Beach general partner is deemed the agent of the partnership
- Cit's easy to form a partnership
- Dyou can share the responsibilities with your partners
61As a generic legal term, ________ means any group of persons with a legal entity.
- Acorporation
- Bbusiness
- Cpartnership
- Dproprietorship
62Who regulates a corporation?
- Athe bondholders
- Bthe corporation's founders
- Cthe corporations's union
63Which of the following is not a legal characteristic of a corporation?
- Atransferable shares
- Bperpetual life
- Climited liability
- Dlegal protection from law suits
64What is an entrepreneur?
- Aa corporation
- Bone who opens a new business
- Ca bank that loads money
65Which of the following is the best definition of probable operating costs?
- Aamount of money required to start a business
- Bamount of money required to market a business
- Camount of money required to purchase business equiptment
- Damount of money required to keep a business running
66What may be offered to clients when banks find the risk too high?
- Apersonal money
- Bpartnership money
- Cprivate money
67which of the following s a start-up cost associated with opening a business?
- Alegal fees/licensing
- Binsurance
- Call of the above
68What is a term used widely among real estate investors to refer to non-traditional means of real estate financing, or financing techniques not commonly used?
- Acapital financing
- Bleverage financing
- Ccreative financing
69what does "OPM" stand for in leveraging OPM?
- Aother profit means
- Bother people's money
- Corganizational profit marketing
70Generally, a load obtained from a bank will be a ________ loan.
- Avariable
- Bcollateral-free
- Cterm
71Which of the following is not a type of retail bank?
- Abond bank
- Bprivate bank
- Coffshore bank
- Dethical bank
72What type of banks were traditionally banks which engaged in trade financing?
- Aethical
- Boffshore
- Cmerchant
73Which of the following is an example of an unsecured bank loan?
- Abank overdrafts
- Bcorporate bonds
- Call of the above
74Which of the following is not a core module of accounting?
- Aaccounts payable
- Bdebt collection
- Cpurchase orders
75What is a general ledger also known as?
- Aan enumerated ledger
- Bnone of the above
- Ca nominal leder
76Which of the following is not one of the seven basic accounting categories?
- Agains
- Blosses
- Cinvestments
77the listing of the account names and the sum of the account balances is called what?
- Aa total balance
- Ba complete balance
- Can absolute balance
- Da trial balance
78Which of the following should be included in a general ledger?
- Adate
- Bdescription
- Ctotal amount for each account
- Dall of the above
79What kind of statement is also known as a profit and loss statement?
- Acomplete statement
- Bincome statement
- Cinvestment statement
- Dearnings statement
80What kind of statement shows how changes in balance sheet and income accounts affected cash and cash equivalents?
- Acash flow statement
- Binvestment statement
- Cearnings statement
- Dincome statement
81a balance sheet is often described as a __________ of the company's financial condition on a given date.
- Aphoto
- Bslideshow
- Csnapshot
82What is the purpose of an income statement?
- Ato show managers and investors whether the company is spending its money appropriately
- Bto show managers and investors whether the company made or lost money during the period being reported
- Cnone of the above
83the two components of _______ are variable costs and fixed costs.
- Acomplete cost
- Brequired cost
- Ctotal cost
84What is the margin of safety?
- Ahow much sales can fall before a business makes less than 15%
- Bnone of the above
- Chow much sales can fall before a business starts taking a loss
85What are expenses that change as conditions change?
- Amoderate costs
- Bvariable costs
- Cchanging costs
86What are expenses that do not change called?
- Aknown costs
- Bstable costs
- Cfixed costs
87Which of the following are examples of possible fixed costs?
- Awages of workers
- Braw material
- Cneither of the above
- Dboth of the above
88which of the following are examples of possible fixed costs?
- Aproperty tax
- Bboth of the above
- Cnone of the above
89What is known as the rate of business expansion through increasing output and sales as opposed to mergers, acquisitions, and takeovers?
- Acorporate growth
- Binorganic growth
- Cmonetary growth
90What is known as the rate at which business expands by increasing output and business reach
- Aorganic growth
- Bcorporate growth
- Cinorganic growth
- Dmonetary growth
91What is another term for profit planning?
- Aprofit zoning
- Bprofit mapping
- Cprofit predicting
- Dprofit sharing
92What is known as the price at which a seller projects that a buyer will buy a product?
- Atarget price
- Bselling price
- Cperfect price
- Dprofit price
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- personal finance assessment questions
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- tori.e2m
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- English
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