Test 1 for personal finance

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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.