Personal Finance Final Exam Project Quiz
Personal Finance Final Exam Week 10 Project.
Questions and Answers
- 1.
What is the difference between a job and a career?
- A.
Jobs are better then careers.
- B.
Careers are easier then jobs.
- C.
Careers provide funds to meet an individual’s needs while jobs are considered less important.
- D.
Jobs provide income to meet an individual’s basic needs while careers are considered professions that are pursued as your life’s work.
Correct Answer
D. Jobs provide income to meet an individual’s basic needs while careers are considered professions that are pursued as your life’s work.Explanation
The given answer correctly explains the difference between a job and a career. It states that jobs provide income to meet basic needs, while careers are considered professions that are pursued as one's life's work. This highlights the distinction between a job, which is often temporary and focused on immediate financial needs, and a career, which involves long-term professional development and personal fulfillment.Rate this question:
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- 2.
Furthering your education results in a higher pay at a job.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement suggests that pursuing further education can lead to higher pay in a job. It implies that individuals who continue their education beyond the basic level are more likely to acquire advanced skills and knowledge that are valued in the job market. This can make them more competitive and eligible for higher-paying positions. Additionally, higher education is often associated with specialized fields or professions that offer higher salaries. Overall, the statement implies a positive correlation between education level and job pay.Rate this question:
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- 3.
A plastic card that allows the user to pay bills by withdrawing and paying directly from a checking account is called a ____________.
Correct Answer
Debit CardExplanation
A plastic card that allows the user to pay bills by withdrawing and paying directly from a checking account is called a debit card. A debit card is linked to a person's bank account and allows them to make purchases or withdraw cash without using physical money. When a transaction is made using a debit card, the funds are directly deducted from the user's checking account, making it a convenient and secure way to make payments.Rate this question:
- 4.
Which of the following is NOT an example of a pay deduction.
- A.
Federal Tax
- B.
State Tax
- C.
United States Tax
- D.
Social Security
Correct Answer
C. United States TaxExplanation
The United States Tax is not an example of a pay deduction because it does not exist. The correct term is Federal Tax, which is indeed a type of pay deduction. State Tax and Social Security are also examples of pay deductions.Rate this question:
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- 5.
A _________ is a statement about what a person wants to be or do that is attained by taking certain steps to achive it.
Correct Answer
GoalExplanation
A goal is a statement about what a person wants to be or do that is attained by taking certain steps to achieve it. It is something that an individual aspires to accomplish and requires the individual to set specific objectives and work towards them. Goals provide direction and motivation, helping individuals to focus their efforts and make progress towards their desired outcome.Rate this question:
- 6.
What is an example of a long term goal?
- A.
Being a Grandparent.
- B.
Getting an A on a test.
- C.
Buying a car.
- D.
Becoming Student Council President.
Correct Answer
A. Being a Grandparent.Explanation
Being a grandparent is an example of a long-term goal because it typically requires a significant amount of time and life experience. It is a goal that cannot be achieved quickly or easily, as it usually involves reaching a certain age, establishing a stable family life, and having children who eventually have children of their own. This goal requires long-term planning, patience, and the ability to navigate the various stages of life.Rate this question:
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- 7.
Rate of return is how fast money grows in a savings account or investment.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The given statement is true. Rate of return refers to the speed at which money grows in a savings account or investment. It is a measure of the profitability of an investment and indicates the percentage increase in the value of the investment over a specific period of time. A higher rate of return indicates faster growth of money, while a lower rate of return suggests slower growth. Therefore, the statement accurately describes the concept of rate of return.Rate this question:
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- 8.
A certificate sent to a person by the bank in which they are depositing money in an account for a specified period of time is a ___________________.
Correct Answer
Certificate of DepositExplanation
A certificate of deposit is a document issued by a bank to a person who is depositing money in an account for a specific period of time. It serves as proof of the deposit and outlines the terms and conditions of the account, including the interest rate and maturity date. The certificate of deposit is a secure investment option that offers a fixed return on investment and is commonly used by individuals looking to earn interest on their savings over a set period.Rate this question:
- 9.
Buying stocks allows you to...
- A.
Become the CEO of a company.
- B.
Donate money to companies.
- C.
Own part of a company.
- D.
Create a savings account.
Correct Answer
C. Own part of a company.Explanation
Buying stocks allows you to own part of a company. When you purchase stocks, you are essentially buying shares of ownership in that company. This means that you have a claim on the company's assets and earnings, and you may also have the right to vote on certain company matters. By owning stocks, you become a shareholder and have the potential to benefit from the company's success through dividends and capital appreciation.Rate this question:
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- 10.
Which is true about credit cards?
- A.
They are an example revolving credit.
- B.
They promote impulse spending.
- C.
They are convenient for making purchases.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
Credit cards are an example of revolving credit because they allow users to borrow money up to a certain limit and then repay it over time. They promote impulse spending by providing a quick and easy way to make purchases without immediate payment. Additionally, credit cards are convenient for making purchases as they are widely accepted by merchants and can be used for online shopping as well. Therefore, all of the given statements about credit cards are true.Rate this question:
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- 11.
Revolving credit is a line of credit that is unlimited and never needs to be payed.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because revolving credit is a line of credit that has a predetermined limit, which means there is a maximum amount that can be borrowed. Additionally, revolving credit does require repayment, typically in monthly installments, and the balance can accrue interest if not paid in full. Therefore, the statement that revolving credit is unlimited and never needs to be paid is incorrect.Rate this question:
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- 12.
Sometimes, always or never: Credit Cards _________ have interest rates on purchases.
Correct Answer
sometimesExplanation
Credit cards sometimes have interest rates on purchases because the interest rate can vary depending on the specific credit card and the terms and conditions set by the issuer. While some credit cards offer introductory periods with 0% interest on purchases, others may have high interest rates that apply to all purchases. Therefore, it is not a universal rule that credit cards always or never have interest rates on purchases, but rather it depends on the specific credit card and its terms.Rate this question:
- 13.
What happens if you don't pay your credit card bill by the due date?
- A.
You are suspended from using your credit card.
- B.
You pay late fees.
- C.
Your credit card is taken away.
- D.
Nothing.
Correct Answer
B. You pay late fees.Explanation
If you don't pay your credit card bill by the due date, you will have to pay late fees. Late fees are charges imposed by the credit card company for not making the payment on time. These fees can vary depending on the credit card issuer and the amount of the outstanding balance. Failing to pay your credit card bill on time can also have a negative impact on your credit score.Rate this question:
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- 14.
What is an advantage of shopping online?
- A.
Its fun.
- B.
You can shop 24 hours a day.
- C.
Its convenient.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The advantage of shopping online is that it offers convenience, as you can shop from the comfort of your own home at any time of the day. Additionally, it provides the flexibility to shop 24 hours a day, allowing you to make purchases whenever it is convenient for you. Moreover, online shopping can also be fun, as you can explore a wide range of products and enjoy the convenience of having them delivered to your doorstep. Therefore, the correct answer is "All of the above."Rate this question:
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- 15.
The buyer’s payment is not sent to the seller until the merchandise is received and approved.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because in many cases, especially for online purchases, the buyer's payment is held in escrow or processed through a secure payment system until the merchandise is delivered and the buyer confirms that it is as described and in satisfactory condition. This helps protect the buyer from scams or receiving faulty or counterfeit products. It also gives them the opportunity to dispute the transaction or request a refund if the merchandise does not meet their expectations.Rate this question:
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- 16.
____________ insurance protects you when others are injured due to something you did or didnt do.
Correct Answer
LiabilityExplanation
Liability insurance provides coverage in cases where someone else is injured or suffers damage as a result of your actions or inactions. It protects you financially by covering the costs of legal fees, medical expenses, or property damage that may arise from a liability claim. This type of insurance is important because accidents or incidents can occur unexpectedly, and without liability coverage, you may be personally responsible for these expenses, which can be substantial.Rate this question:
- 17.
The fee paid for insurance protection is a...
- A.
Premium
- B.
Deductible
- C.
Claim
- D.
Fee Rate
Correct Answer
A. PremiumExplanation
The fee paid for insurance protection is commonly referred to as a premium. This fee is paid by the insured party to the insurance company in exchange for coverage and protection against potential risks or losses. The premium amount is determined based on various factors such as the type of insurance, the level of coverage, the insured party's risk profile, and other relevant factors. It is a regular payment made by the policyholder to maintain their insurance coverage.Rate this question:
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- 18.
A claim is the percentage of a loss that is not insured.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
This statement is false. A claim refers to the amount of money that an insured person or organization requests from an insurance company to cover a loss or damage. It is not the percentage of a loss that is not insured.Rate this question:
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- 19.
Declaring bankruptcy should be your last resort when in debt.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Declaring bankruptcy should be the last option to consider when faced with debt because it has serious consequences on one's financial future. Bankruptcy stays on your credit report for several years, making it difficult to obtain loans or credit in the future. It can also result in the loss of valuable assets and property. Therefore, it is advisable to explore other alternatives like negotiating with creditors, creating a repayment plan, or seeking professional financial advice before resorting to bankruptcy.Rate this question:
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- 20.
Which is NOT a way to manage high debt.
- A.
Credit Counseling
- B.
Refinancing debt
- C.
Getting a Home Equity Loan
- D.
Stop Paying Bills to Save Money
Correct Answer
D. Stop Paying Bills to Save MoneyExplanation
Stop Paying Bills to Save Money is not a way to manage high debt because it will only worsen the situation. Not paying bills can lead to late fees, penalties, and damage to credit scores. It is important to explore other options such as credit counseling, refinancing debt, or getting a home equity loan to effectively manage high debt.Rate this question:
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- 21.
Being Bankrupt means....
Correct Answer
you are cannot pay your bills when they are due.Explanation
Bankruptcy refers to a financial state where a person or entity is unable to meet their financial obligations, particularly the payment of bills, debts, and other financial liabilities within the specified time frame. It signifies a lack of funds or resources to fulfill financial commitments promptly. Therefore, the given answer accurately defines bankruptcy as the inability to pay bills when they are due.Rate this question:
- 22.
Identity theft is when someone uses your personal information with your permission.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Identity theft is when someone uses your personal information without your permission.Rate this question:
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- 23.
Someone knowingly deceives you for personal gain is called ___________.
Correct Answer
FraudExplanation
When someone knowingly deceives another person for their own personal gain, it is referred to as fraud. Fraud involves intentionally misleading or tricking someone in order to obtain something of value, such as money or property. This can occur in various forms, including financial fraud, identity theft, or insurance fraud. The act of fraud is illegal and can result in legal consequences for the perpetrator.Rate this question:
- 24.
What is NOT an example how theives steal your identity.
- A.
Stealing bank statements.
- B.
Taking your school ID card.
- C.
Changing Your Address
- D.
Hacking you computer
Correct Answer
B. Taking your school ID card.Explanation
Taking your school ID card is not an example of how thieves steal your identity because a school ID card typically does not contain enough personal information to allow someone to impersonate you or access your financial accounts. Stealing bank statements, changing your address, and hacking your computer are all examples of methods that thieves can use to gain access to your personal information and steal your identity.Rate this question:
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- 25.
All donations can be deducted from your taxes.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement "All donations can be deducted from your taxes" is not true. While some donations may be tax-deductible, not all donations qualify for tax deductions. The eligibility for tax deductions depends on various factors such as the type of donation, the organization receiving the donation, and the tax laws of the country or region. Therefore, it is incorrect to claim that all donations can be deducted from taxes.Rate this question:
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- 26.
Why do people do charitable contributions?
- A.
For personal gain.
- B.
To make money.
- C.
It makes them feel good.
- D.
They have extra money to donate.
Correct Answer
C. It makes them feel good.Explanation
People do charitable contributions because it makes them feel good. This act of giving back to society and helping others can provide a sense of fulfillment, satisfaction, and happiness. It allows individuals to make a positive impact on the lives of others, which in turn boosts their own well-being and sense of purpose. Additionally, charitable contributions can also align with personal values, beliefs, and moral principles, further enhancing the positive emotions associated with giving.Rate this question:
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- 27.
What is a disadvantge of charitable giving.
- A.
Its a waste of time.
- B.
The resources are no longer available to you.
- C.
It helps the community.
- D.
It costs too much money.
Correct Answer
B. The resources are no longer available to you.Explanation
The correct answer is "The resources are no longer available to you." This means that when you engage in charitable giving, you are giving away resources such as money or possessions, which you will no longer have access to. This can be seen as a disadvantage because it reduces your own resources and may limit your ability to meet your own needs or wants.Rate this question:
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Mar 21, 2023Quiz Edited by
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May 30, 2015Quiz Created by
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