Test 1 for personal finance

Total Flash Cards » 36
Text Size » S M L
1. Who is most likely to benefit by inflation? borrowers
2. The stages that an individual goes through based on age, financial needs, and family situation is called the: adult life cycle.
3. adult life cycle. The stages that an individual goes through based on age, financial needs, and family situation is called the:
4. Six steps in financial planning process 1. detrmne current fin sit. 2.dvlp fin goals 3.idntfy alt courses of action 4.Evaluate alts 5.create&implmnt fin action plan 6.review&revise fin plan
5. A formalized report that summarizes your current fin situation, analyzes your fin needs, and recommends a direction for your fin activities is a(n): financial plan.
6. financial plan. A formalized report that summarizes your current fin situation, analyzes your fin needs, and recommends a direction for your fin activities is a(n):
7. Which type of computation would a person use to determine current value of a desired amount for the future? present value of a single amount
8. Changes in income, values, and family situation make it necessary to evaluate and revise your actions
9. A functional résumé is best for a person who has diverse skills
10. The purpose of the development section of a cover letter is to highlight background that qualifies the applicant for a specific job
11. Money management refers to day-to-day financial activities
12. Medical expenses deductible for amount that is over ___ of AGI 7.5%
13. An all-purpose account that provides several services is a(n): asset management account
14. asset management account An all-purpose account that provides several services is a(n):
15. When did installment credit explode on the American scene? with the advent of the automobile in the early 1900s
16. incidental credit. A credit arrangement that has no extra costs and no specific repayment plan is called
17. A credit arrangement that has no extra costs and no specific repayment plan is called incidental credit
18. Experts suggest that you spend no more than ____________ percent of your net income on credit purchases 20
19. Which federal credit law protects you against an unauthorized use of your credit card? Fair Credit Billing Act
20. Which fed consumer credit law provides specific cost disclosure requirements for the APR and the fin charge as a dollar amount? Truth in Lending Act
21. Higher consumer prices are likely to be accompanied by higher interest rates
22. higher interest rates are likely to be accompanied by Higher consumer prices
23. Which of the following would increase the risk of a loan? higher consumer prices
24. higher consumer prices affect the risk of loan by_____ increasing its risk
25. Kenton Greer wants to locate employment positions available in his area. This information would be best obtained from professional contacts
26. Comparison of earnings for different savings plans can best be accomplished using the annual percentage yield
27. A ____________ endorsement would be used if a person is presenting a check in order to obtain cash. blank
28. $5000 in a bank CD. This CD pays an interest rate of 6% and he has committed his funds for the next three years. What type of financial service? Savings services
29. does credit increase or decrease your purchasing power? neither
30. Installment cash credit is a direct loan of money for personal purposes
31. Which federal credit law sets the procedure for promptly correcting billing mistakes? Fair Credit Billing Act
32. Which Federal agency writes regulations to carry out the consumer credit laws? Federal Reserve System
33. Which formula dictates that you pay more interest at the beginning of the loan and pay less and less interest as the debt is reduced? the rule of 78s
34. According to consumer affairs experts, the nation's number two family financial problem is: over-indebtedness
35. If you default on your automobile loan: no advance notice is required before repossession.
36. The CCCS sometimes charges a fee if it: administers a debt repayment plan.