Personal Financial Planning Final

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Macbuff9
M
Macbuff9
Community Contributor
Quizzes Created: 5 | Total Attempts: 3,152
| Attempts: 509
Quiz Flashcard
SettingsSettings
Please wait...
Please wait...
Personal Finance Quizzes & Trivia
About This Quiz

Personal Financial Planning Final for Spring Semester 2012. High School Course.

Quiz Preview

  • 2. 

    Credit is an arrangement to receive cash, goods, or services now and pay for them in the future

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement accurately describes credit as an arrangement where one can obtain cash, goods, or services immediately and then repay for them at a later date. This implies that credit allows individuals or businesses to make purchases without having to provide immediate payment, providing them with the flexibility to fulfill their needs or desires in the present and settle the debt in the future. Therefore, the answer is true.

    Rate this question:

  • 3. 

    The main purpose of taxes is to:

    • Generate revenue for funding government programs

    • Reduce the chances of inflation

    • Create Jobs

    • Discourage use of certain goods and services

    Correct Answer
    A. Generate revenue for funding government programs
    Explanation
    The main purpose of taxes is to generate revenue for funding government programs. Taxes are collected from individuals and businesses to finance various government functions such as infrastructure development, healthcare, education, defense, and social welfare programs. By levying taxes, the government can generate the necessary funds to provide essential services and maintain the functioning of the state.

    Rate this question:

  • 4. 

    What does A.P.R. stand for in terms of financing?

    • Annual Percentage Rate

    • Annual Partnership Reduction

    • Auxiliary Payments Retention

    • Annual Participatory Rate

    Correct Answer
    A. Annual Percentage Rate
    Explanation
    The correct answer is Annual Percentage Rate. The term A.P.R. stands for Annual Percentage Rate in terms of financing. The A.P.R. is a measure of the cost of borrowing, expressed as a yearly interest rate. It includes not only the interest rate on the loan but also any additional fees or charges that may be associated with the loan. The A.P.R. allows borrowers to compare different loan options and understand the true cost of borrowing.

    Rate this question:

  • 5. 

    Current liabilities are amounts that must be paid within a short period of time, usually less than a year.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Current liabilities are amounts that a company owes and must be paid within a short period of time, typically within a year. This includes obligations such as short-term loans, accounts payable, accrued expenses, and taxes payable. These liabilities are considered current because they are expected to be settled within a relatively short timeframe, usually within the operating cycle of the business. Therefore, the statement that current liabilities are amounts that must be paid within a short period of time is true.

    Rate this question:

  • 6. 

    Taxes are only considered in financial planning activities in the month of April.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    This statement is false because taxes are considered in financial planning activities throughout the year, not just in the month of April. Financial planning involves assessing and managing various aspects of personal or business finances, including tax planning and compliance. Taxes are an important component of financial planning as they impact income, expenses, investments, and overall financial goals. Therefore, considering taxes is not limited to the month of April but is an ongoing process in financial planning.

    Rate this question:

  • 7. 

    What is the term that is used to describe the declining value of a new car once you drive it off of the car lot?

    • Depreciation

    • Appreciation

    • Variable Costs

    • Unique Costs

    Correct Answer
    A. Depreciation
    Explanation
    Depreciation is the term used to describe the declining value of a new car once it is driven off the car lot. This occurs because as soon as the car is sold, it is considered a used car and its value decreases. Depreciation is a common factor that affects the resale value of vehicles and is an important consideration for car owners and buyers.

    Rate this question:

  • 8. 

    What is the name of the bank that is considered the central bank of the United States of America?

    • Bank of New York

    • Treasury Department

    • The Federal Reserve Bank

    • All private banks are considered one bank

    Correct Answer
    A. The Federal Reserve Bank
    Explanation
    The Federal Reserve Bank is considered the central bank of the United States of America. It is responsible for implementing monetary policy, regulating banks, and maintaining the stability of the financial system. It controls the nation's money supply and interest rates, and plays a crucial role in promoting economic growth and stability.

    Rate this question:

  • 9. 

    What does the acronym CPI pertain to in terms of personal finance?

    • Consumer Price Index

    • Customers Pricing Individually

    • Consumer Producers Index

    • Controlling Production Independence

    Correct Answer
    A. Consumer Price Index
    Explanation
    The acronym CPI stands for Consumer Price Index. This index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is used to track inflation and to adjust wages, pensions, and other payments for changes in the cost of living. The CPI is an important indicator in personal finance as it helps individuals understand how prices of goods and services are changing and how it may impact their purchasing power.

    Rate this question:

  • 10. 

    What is the one of the most popular forms of credit?

    • Debit Cards

    • Credit Cards

    • Cash Money

    • Checking Accounts

    Correct Answer
    A. Credit Cards
    Explanation
    Credit cards are one of the most popular forms of credit because they allow individuals to make purchases on credit, allowing them to borrow money from the credit card issuer. With credit cards, individuals can make purchases and pay them back over time, typically with interest. Credit cards also offer various benefits such as rewards programs, cashback, and fraud protection, making them a convenient and widely used form of credit.

    Rate this question:

  • 11. 

    Current interest rates can affect the price of a home.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because interest rates have a direct impact on the affordability of a home. When interest rates are low, it becomes more affordable for individuals to borrow money for purchasing a home, leading to an increase in demand and potentially driving up home prices. On the other hand, when interest rates are high, borrowing becomes more expensive, reducing the demand for homes and potentially causing prices to decrease. Therefore, current interest rates can indeed affect the price of a home.

    Rate this question:

  • 12. 

    The debit card:

    • Debits your account at the moment you buy goods and services

    • Credits your account at the moment you buys goods and services

    • Is a new type of a credit card issued by Visa International

    • Is really like a travel and entertainment card

    Correct Answer
    A. Debits your account at the moment you buy goods and services
    Explanation
    The correct answer is "Debits your account at the moment you buy goods and services." This means that when you use a debit card to make a purchase, the money is immediately taken out of your bank account. Unlike a credit card, which allows you to borrow money and pay it back later, a debit card uses the funds you already have available in your account.

    Rate this question:

  • 13. 

    What is a property tax?

    • A tax on something you own such as a home or boat

    • An income tax meant to boost sales taxes

    • A federal government tax

    Correct Answer
    A. A tax on something you own such as a home or boat
    Explanation
    Property tax is a tax levied on the ownership of certain properties, such as homes or boats. It is a form of taxation that is based on the assessed value of the property and is typically collected by local governments. The purpose of property tax is to generate revenue for local municipalities to fund public services and infrastructure. It is not an income tax or a federal government tax, but rather a specific tax on the ownership of tangible assets.

    Rate this question:

  • 14. 

    If total revenue was $100.00 If total cost was $35.00 Your total profit is $65.00

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true because profit is calculated by subtracting the total cost from the total revenue. In this case, the total revenue is $100.00 and the total cost is $35.00. By subtracting the total cost from the total revenue, we get a profit of $65.00. Therefore, the statement "Your total profit is $65.00" is true.

    Rate this question:

  • 15. 

    Household size is a major influence on personal financial planning decisions.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The size of a household can have a significant impact on personal financial planning decisions. The more people there are in a household, the higher the expenses are likely to be, including costs for housing, food, utilities, and transportation. Additionally, household size can affect income levels, as multiple earners may contribute to the overall financial situation. Therefore, understanding the household size is crucial in making effective financial plans and budgeting accordingly.

    Rate this question:

  • 16. 

    A home made of wood is more expensive to insure than a home made of brick

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A home made of wood is more expensive to insure than a home made of brick because wood is more susceptible to fire damage and other hazards compared to brick. Insurers consider the material used in construction when determining insurance premiums, as wood homes have a higher risk of damage and require more expensive repairs. Additionally, wood is more prone to termite infestation and decay, which can further increase the risk and cost of insuring a wooden home.

    Rate this question:

  • 17. 

    A fixed expenditure is something that cannot be changed assuming there are no other economic options.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A fixed expenditure refers to expenses that remain constant and cannot be easily changed or eliminated. These expenses are typically necessary and recurring, such as rent, mortgage payments, or loan installments. They are considered fixed because they do not fluctuate based on changes in income or economic options. Therefore, the statement "A fixed expenditure is something that cannot be changed assuming there are no other economic options" is true.

    Rate this question:

  • 18. 

    What is a C.D.?

    • Certificate of Deposit

    • Center of Deposit

    • Consumer Deposit

    • Credit Draft

    Correct Answer
    A. Certificate of Deposit
    Explanation
    A Certificate of Deposit (C.D.) is a financial product offered by banks and financial institutions. It is a type of time deposit where individuals deposit a certain amount of money for a fixed period of time, typically ranging from a few months to several years. In return, the bank pays a fixed interest rate on the deposited amount. At the end of the fixed period, the individual can withdraw the principal amount along with the accrued interest. C.D.s are considered low-risk investments and are popular among individuals who want to earn a guaranteed return on their savings.

    Rate this question:

  • 19. 

    What tax is also known as the "death tax" and is placed on wills of $2,000,000 and higher?

    • Proportional Income Tax

    • Regressive Income Tax

    • Sales Tax

    • Estate Tax

    Correct Answer
    A. Estate Tax
    Explanation
    The correct answer is Estate Tax. Estate tax, also known as the "death tax," is a tax that is imposed on the transfer of the estate of a deceased person. It is applicable to estates with a value of $2,000,000 and higher. This tax is levied on the total value of the estate before it is distributed to the beneficiaries.

    Rate this question:

  • 20. 

    What is the major function of the Federal Reserve Banks?

    • Controlling the Money Supply

    • Outlining the Risk of the American Banking System

    • Advising the American Public

    • Investing in the Housing Market

    Correct Answer
    A. Controlling the Money Supply
    Explanation
    The major function of the Federal Reserve Banks is to control the money supply. They do this by implementing monetary policy, which involves influencing interest rates and managing the availability of credit in the economy. By controlling the money supply, the Federal Reserve Banks can help stabilize prices, promote economic growth, and maintain financial stability.

    Rate this question:

  • 21. 

    What does I.P.O stand for in terms of financial public offerings in the stock market?

    • Initial Public Offering

    • Imagining Peaceful Offerings

    • Investment Public Offering

    • Institution Promises Olives

    Correct Answer
    A. Initial Public Offering
    Explanation
    An Initial Public Offering (IPO) refers to the first sale of shares by a privately-owned company to the public, allowing it to raise capital and become publicly traded. This is a common way for companies to expand and raise funds for various purposes such as expansion, debt repayment, or acquisitions. The other options provided in the question are not relevant or accurate in the context of financial public offerings in the stock market.

    Rate this question:

  • 22. 

    Ease of mobility is an advantage of renting

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Renting offers the advantage of ease of mobility because it allows individuals to easily move from one place to another without the commitment of owning a property. Renters have the flexibility to relocate for job opportunities, personal preferences, or other reasons without the hassle of selling a house or dealing with property ownership responsibilities. This advantage is particularly beneficial for individuals who have a dynamic lifestyle or are uncertain about their long-term plans. Additionally, renting provides the opportunity to live in desirable locations that may be financially out of reach for homebuyers.

    Rate this question:

  • 23. 

    When you cosign a loan, you are being asked to guarantee this debt.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    When you cosign a loan, you are agreeing to take responsibility for the debt if the primary borrower fails to make payments. This means that if the borrower defaults on the loan, the lender can legally pursue you for the outstanding balance. By cosigning, you are essentially guaranteeing the debt and agreeing to repay it if necessary. Therefore, the statement "When you cosign a loan, you are being asked to guarantee this debt" is true.

    Rate this question:

  • 24. 

    An estate tax is imposed on the value of an individual's property at the time of his or her death.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    An estate tax is a tax that is levied on the total value of an individual's property at the time of their death. This tax is imposed on the estate, which includes all assets and liabilities left behind by the deceased person. The purpose of this tax is to generate revenue for the government and to prevent the accumulation of wealth in the hands of a few individuals. Therefore, it is true that an estate tax is imposed on the value of an individual's property at the time of their death.

    Rate this question:

  • 25. 

    Capital Gains taxes refer to profits from the sale of investments

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Capital gains taxes are indeed taxes imposed on the profits earned from the sale of investments. When an individual or entity sells an investment such as stocks, bonds, or real estate at a higher price than the purchase price, they realize a capital gain. These gains are subject to taxation by the government. The tax rate on capital gains may vary depending on factors such as the holding period and the type of investment. Therefore, the statement "Capital Gains taxes refer to profits from the sale of investments" is true.

    Rate this question:

  • 26. 

    You probably have little or no need for life insurance if you are:

    • A single person living alone or with your parents

    • Married and your spouse works

    • Gainfully employed

    • Divorced and have two children

    Correct Answer
    A. A single person living alone or with your parents
    Explanation
    If you are a single person living alone or with your parents, you probably have little or no need for life insurance. Since you don't have any dependents or financial obligations, there is no one who would suffer financially in the event of your death. Therefore, life insurance may not be necessary in this situation.

    Rate this question:

  • 27. 

    Long-term financial goals should last over five years.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Long-term financial goals should last over five years because they require a significant amount of time and planning to achieve. These goals typically involve saving for major expenses such as buying a house, funding education, or retirement planning. It takes time to accumulate the necessary funds and make strategic investments to reach these goals. Short-term goals, on the other hand, can be achieved within a few months or a year. Therefore, it is important to have a long-term perspective and commitment to achieve financial stability and success.

    Rate this question:

  • 28. 

    Which bank is in charge of adjusting the interest rates that banks use to influence their interest rates?

    • The Federal Reserve Bank

    • Each Individual Bank

    • The President

    • None of the above

    Correct Answer
    A. The Federal Reserve Bank
    Explanation
    The Federal Reserve Bank is responsible for adjusting the interest rates that banks use to influence their interest rates. As the central bank of the United States, the Federal Reserve has the authority to set the benchmark interest rate, known as the federal funds rate. By adjusting this rate, the Federal Reserve can influence borrowing costs for banks and ultimately impact the interest rates offered to consumers and businesses. This role allows the Federal Reserve to manage monetary policy and promote economic stability.

    Rate this question:

  • 29. 

    Macroeconomics is considered big picture economic thinking specializing in things like GDP, National Debt

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Macroeconomics is indeed a branch of economics that focuses on analyzing the overall performance and behavior of an economy as a whole. It examines factors such as GDP (Gross Domestic Product), which measures the total value of goods and services produced in a country, and national debt, which represents the amount of money a government owes. By studying these indicators and their interrelationships, macroeconomists aim to understand and predict economic trends and make informed policy recommendations. Therefore, the statement that macroeconomics specializes in things like GDP and national debt is true.

    Rate this question:

  • 30. 

    Opportunity costs refer to what a person gives up when making a decision.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Opportunity costs are the benefits or values that are forgone or sacrificed when an individual chooses one option over another. In other words, it is the value of the next best alternative that is foregone. Therefore, the given statement is true as it correctly describes opportunity costs as what a person gives up when making a decision.

    Rate this question:

  • 31. 

    Who has the greatest need for life insurannce?

    • Households with Small Children

    • A Dual income couple

    • Singles living with parents

    • Singles Living Alone

    Correct Answer
    A. Households with Small Children
    Explanation
    Households with small children have the greatest need for life insurance because they have dependents who rely on their income for financial support. In the event of the primary earner's death, life insurance provides a financial safety net to cover expenses such as childcare, education, and daily living costs. It ensures that the children are taken care of and their future needs are met. Dual income couples, singles living with parents, and singles living alone may also have a need for life insurance, but the responsibility of providing for dependents makes households with small children a higher priority.

    Rate this question:

  • 32. 

    A checking account Allows transfer of deposited funds to merchants and service providers, as well as to accounts at other financial institutions

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A checking account is a type of bank account that allows the account holder to transfer deposited funds to merchants, service providers, and other financial institutions. This means that the funds in a checking account can be used to make payments and purchases directly, either online or in-person. Additionally, checking accounts often come with features such as check-writing abilities and debit cards, which further facilitate the transfer of funds. Therefore, the statement that a checking account allows transfer of deposited funds to merchants and service providers, as well as to accounts at other financial institutions, is true.

    Rate this question:

  • 33. 

    Renting is more advantageous than buying a home for:

    • Lower Short-Term Living Costs

    • Financial Benefits

    • Long-Term Investment Purposes

    • Receiving Tax Benefits

    Correct Answer
    A. Lower Short-Term Living Costs
    Explanation
    Renting a home is more advantageous than buying a home for lower short-term living costs because when renting, individuals only need to pay for monthly rent and utilities, whereas homeowners have additional expenses such as mortgage payments, property taxes, and maintenance costs. Renting allows for more flexibility in terms of budgeting and can be a more affordable option for those who are not ready to commit to long-term homeownership. Additionally, renting eliminates the need for a large down payment and can free up funds for other financial goals or investments.

    Rate this question:

  • 34. 

    Who has the greatest need for life insurannce?

    • Households with Small Children

    • A Dual income couple

    • Singles living with parents

    • Singles Living Alone

    Correct Answer
    A. Households with Small Children
    Explanation
    Households with small children have the greatest need for life insurance because they have dependents who rely on their income for financial support. In the event of the policyholder's death, life insurance provides a financial safety net to cover expenses such as childcare, education, and daily living costs. This ensures that the children's needs are met even if one or both parents are no longer able to provide for them.

    Rate this question:

  • 35. 

    All of the following are reasons for using credit: convenience, identification, emergencies, and consolidating debt

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Using credit can provide convenience as it allows individuals to make purchases without carrying cash. It also serves as a form of identification when making transactions. Credit can be useful in emergencies when immediate funds are needed. Additionally, credit can be used to consolidate debt by combining multiple debts into one payment, potentially making it easier to manage and pay off. Therefore, all of the mentioned reasons are valid for using credit, making the statement true.

    Rate this question:

  • 36. 

    What is a tangible asset?

    • Asset that maintains a physical existence in form

    • Asset that does not have a physical form

    • Asset that cannot be computed in the accounting equation

    • Asset that fails to materialize

    Correct Answer
    A. Asset that maintains a physical existence in form
    Explanation
    A tangible asset is an asset that maintains a physical existence in form. This means that it can be seen, touched, and physically measured. Examples of tangible assets include buildings, machinery, inventory, and cash. These assets are considered valuable because they have a physical presence and can be used or sold to generate economic benefits.

    Rate this question:

  • 37. 

    What does comprehensive insurance cover when buying car insurance?

    • Pays for damage caused by vandalism, hailstorms, floods, theft

    • Pays for damage when you hit another person's car

    • Pays for nothing

    • Pays for speeding tickets

    Correct Answer
    A. Pays for damage caused by vandalism, hailstorms, floods, theft
    Explanation
    Comprehensive insurance provides coverage for various damages to your car that are not caused by a collision. This includes damages caused by vandalism, hailstorms, floods, and theft. It is important to have comprehensive insurance to protect your vehicle from these types of non-collision related damages.

    Rate this question:

  • 38. 

    A proportional tax system is also known as a "flat tax system."

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A proportional tax system is also known as a "flat tax system" because it applies the same tax rate to all taxpayers regardless of their income level. This means that everyone pays the same percentage of their income in taxes. This type of tax system is considered fair because it treats all individuals equally. However, critics argue that it can be regressive, meaning that it may place a heavier burden on low-income individuals compared to high-income individuals.

    Rate this question:

  • 39. 

    What is a credit limit?

    • A determined set amount of money on a credit card

    • An overdraft protection number on your checking account

    • A type of personal investment strategy

    • A limited amount of personal net worth

    Correct Answer
    A. A determined set amount of money on a credit card
    Explanation
    A credit limit refers to a predetermined maximum amount of money that a person can borrow or spend using a credit card. It is the maximum balance that can be carried on the card at any given time. This limit is set by the credit card issuer based on factors such as the individual's creditworthiness, income, and financial history. Once the credit limit is reached, the cardholder cannot make further purchases or withdrawals until the outstanding balance is paid down.

    Rate this question:

  • 40. 

    S.O.L is an abbreviation for what.

    • Standard of Living

    • Standard of Losing

    • Standard of Limitations

    • Standard of Limited Liabilities

    Correct Answer
    A. Standard of Living
    Explanation
    S.O.L is an abbreviation commonly used to refer to "Standard of Living." This term represents the level of comfort, material goods, and necessities that an individual or group of people have access to. It encompasses factors such as income, housing, healthcare, education, and overall well-being. Standard of Living is an important measure when assessing the quality of life and economic prosperity in a particular area or country.

    Rate this question:

  • 41. 

    Exemptions are allowed by the Internal Revenue Service (I.R.S)

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Exemptions are allowed by the Internal Revenue Service (IRS) means that the IRS permits certain individuals or entities to be exempt from paying certain taxes or to receive certain tax benefits. This could include exemptions for certain types of income, deductions, credits, or even entire tax liabilities.

    Rate this question:

  • 42. 

    The ability to convert financial resources into usable cash with ease is referred to as:

    • Bankruptcy

    • Liquidity

    • Investing

    • Saving

    Correct Answer
    A. Liquidity
    Explanation
    Liquidity refers to the ease with which financial resources can be converted into usable cash. It is a measure of how quickly and easily an asset can be bought or sold in the market without causing significant price changes. Having high liquidity means that an individual or a company can access cash quickly, which is important for meeting short-term financial obligations or taking advantage of investment opportunities. Bankruptcy, investing, and saving are not directly related to the ability to convert financial resources into cash.

    Rate this question:

  • 43. 

    The payment items that should be budgeted first are:

    • Variable Expenses

    • Investment Funds

    • Fixed Expenses

    • Unplanned Living Expenses

    Correct Answer
    A. Fixed Expenses
    Explanation
    Fixed expenses should be budgeted first because they are recurring and essential expenses that need to be paid regularly. These expenses include rent or mortgage payments, utilities, insurance premiums, and loan repayments. By budgeting for fixed expenses first, individuals can ensure that these necessary expenses are covered before allocating funds to other categories. This helps in better financial planning and ensures that there is enough money set aside for these fixed obligations.

    Rate this question:

  • 44. 

    Which company will be facing an I.P.O this upcoming spring?

    • Google

    • MySpace

    • AT&T

    • Facebook

    Correct Answer
    A. Facebook
    Explanation
    Facebook will be facing an I.P.O this upcoming spring.

    Rate this question:

  • 45. 

    College students are not a prime target for using credit

    • True

    • False

    Correct Answer
    A. False
    Explanation
    College students are often targeted by credit card companies as they are seen as a potential market for credit cards. Many credit card companies offer special student credit card programs with lower credit limits and introductory rates to attract college students. Additionally, college students may need credit cards for various expenses such as textbooks, groceries, and transportation. Therefore, it is not true that college students are not a prime target for using credit.

    Rate this question:

  • 46. 

    Public opinion polls consistently show that Americans are happy with the nation's healthc care system

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement says that public opinion polls consistently show that Americans are happy with the nation's healthcare system. However, the correct answer is false, which means that the statement is not true. This suggests that public opinion polls do not consistently show that Americans are happy with the healthcare system, indicating that there may be dissatisfaction or varying opinions among the population regarding the nation's healthcare system.

    Rate this question:

  • 47. 

    Which of the following is a type of checking account?

    • Demand Deposits

    • Regular Checking

    • Special Checking

    • Lifeline Banking

    • All of the Above are types of checking accounts

    Correct Answer
    A. All of the Above are types of checking accounts
    Explanation
    All of the options listed - Demand Deposits, Regular Checking, Special Checking, and Lifeline Banking - are types of checking accounts. Demand deposits refer to funds that can be withdrawn on demand, while Regular Checking is a basic type of checking account offered by banks. Special Checking may have additional features or benefits, and Lifeline Banking is a type of checking account typically offered to low-income individuals. Therefore, all of these options are valid types of checking accounts.

    Rate this question:

  • 48. 

    What is one disadvantage of credit?

    • Purchases are more expensive

    • A temptation to overspend exists

    • Ties up future income

    • Possible financial difficulties

    • All of the above are disadvantages

    Correct Answer
    A. All of the above are disadvantages
    Explanation
    All of the options mentioned are disadvantages of credit. Purchases are more expensive because of interest charges and fees. Credit can also create a temptation to overspend, leading to financial difficulties. Additionally, credit ties up future income as it requires regular payments, limiting the available funds for other expenses or investments. Therefore, all of the options listed are valid disadvantages of credit.

    Rate this question:

  • 49. 

    You should sign your new credit cards as soon as they arrive.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    It is important to sign your new credit cards as soon as they arrive to prevent any potential fraud or unauthorized use. By signing the cards, you are validating your ownership and making it difficult for someone else to forge your signature. This adds an extra layer of security and helps protect your finances.

    Rate this question:

Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 15, 2012
    Quiz Created by
    Macbuff9

Recent Quizzes

Concept of Financial Planning - Ch 1 Concept of Financial Planning - Ch 1
Personal Financial Planning #1 Personal Financial Planning #1
The Financial Planning Process Quiz! Trivia The Financial Planning Process Quiz! Trivia
Test Your Financial Freedom Knowledge With A Quiz Test Your Financial Freedom Knowledge With A Quiz
Control Your Finances: Do I Need a Financial Advisor? Quiz Control Your Finances: Do I Need a Financial Advisor? Quiz
National Savings Day Quiz: Are You A Money Maestro Or A Spending Sensation? National Savings Day Quiz: Are You A Money Maestro Or A Spending Sensation?
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.