Personal Financial Planning Final

101 Questions | By Macbuff9 | Last updated: Mar 21, 2022 | Total Attempts: 458

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

Questions and Answers

1.

Which of the following would be considered a variable cost in owning a vehicle?
- A.
  
  Interest on your car loan
- B.
  
  Insurance for your car
- C.
  
  Paying the state registration fee and license fee
- D.
  
  Oil Changes and Tire Rotations
2.

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?
- A.
  
  Depreciation
- B.
  
  Appreciation
- C.
  
  Variable Costs
- D.
  
  Unique Costs
3.

What percentage should you never borrow more than of your yearly net income? In other words, what percentage should you never rise above in order to buy something?
- A.
  
  50% of your yearly net income
- B.
  
  20% of your yearly net income
- C.
  
  70% of your yearly net income
- D.
  
  5% of your yearly net income
4.

What does A.P.R. stand for in terms of financing?
- A.
  
  Annual Percentage Rate
- B.
  
  Annual Partnership Reduction
- C.
  
  Auxiliary Payments Retention
- D.
  
  Annual Participatory Rate
5.

What is the best explanation of an as-is warranty?
- A.
  
  Represents no warranty on your car
- B.
  
  Is a dealer warranty
- C.
  
  Is considered one of the safest warranty's with regards to cars
6.

What does comprehensive insurance cover when buying car insurance?
- A.
  
  Pays for damage caused by vandalism, hailstorms, floods, theft
- B.
  
  Pays for damage when you hit another person's car
- C.
  
  Pays for nothing
- D.
  
  Pays for speeding tickets
7.

Which of the following does not determine your car insurance rates?
- A.
  
  Marital Status
- B.
  
  Geographic Location
- C.
  
  Vehicle Characteristics
- D.
  
  Driving Record
- E.
  
  None of the Above
8.

Which governmental entity is in charge of handling and processing your income taxes?
- A.
  
  Department of Homeland Security
- B.
  
  Internal Revenue Service
- C.
  
  Wall Street Banks
- D.
  
  Department of Health and Human Sciences
9.

What is a property tax?
- A.
  
  A tax on something you own such as a home or boat
- B.
  
  An income tax meant to boost sales taxes
- C.
  
  A federal government tax
10.

What tax is also known as the "death tax" and is placed on wills of $2,000,000 and higher?
- A.
  
  Proportional Income Tax
- B.
  
  Regressive Income Tax
- C.
  
  Sales Tax
- D.
  
  Estate Tax
11.

What type of income tax system is used in the United States of America today?
- A.
  
  Regressive Tax System
- B.
  
  Progressive Tax System
- C.
  
  Proportional Tax System
12.

A proportional tax system is also known as a "flat tax system."
- A.
  
  True
- B.
  
  False
13.

What is the name of the tax that you will pay if you win the PowerBall or Mega Millions?
- A.
  
  Sales Tax
- B.
  
  Supranational Tax
- C.
  
  Annotated Tax
- D.
  
  Gift Tax
14.

Which of the following states impose no income taxes on their citizens?
- A.
  
  Nevada
- B.
  
  California
- C.
  
  Maine
- D.
  
  Washington D.C.
15.

Which of the following taxes is responsible for funding local schools in the state of Colorado?
- A.
  
  Sales Taxes
- B.
  
  Regressive Income Taxes
- C.
  
  Progressive Income Taxes
- D.
  
  Property Taxes
16.

Which of the following best represents a discretionary expense?
- A.
  
  Mortgage Payments
- B.
  
  Rent Payments
- C.
  
  Going to the Movies
- D.
  
  Buying Food
17.

A fixed expenditure is something that cannot be changed assuming there are no other economic options.
- A.
  
  True
- B.
  
  False
18.

What is the name of the bank that is considered the central bank of the United States of America?
- A.
  
  Bank of New York
- B.
  
  Treasury Department
- C.
  
  The Federal Reserve Bank
- D.
  
  All private banks are considered one bank
19.

Which district bank do we in Colorado report to according to the Federal Reserve system of banks?
- A.
  
  San Francisco Branch
- B.
  
  Atlanta Branch
- C.
  
  Kansas City Branch
- D.
  
  New York Branch
20.

Who is the current head of the Federal Reserve Bank?
- A.
  
  Alan Greenspan
- B.
  
  Timothy Geithner
- C.
  
  President Barack Obama
- D.
  
  Ben Bernanke
21.

What is the major function of the Federal Reserve Banks?
- A.
  
  Controlling the Money Supply
- B.
  
  Outlining the Risk of the American Banking System
- C.
  
  Advising the American Public
- D.
  
  Investing in the Housing Market
22.

What is it called when a bank has to hold a specific amount in their vault as mandated by the Federal Reserve?
- A.
  
  Required Reserves
- B.
  
  Federal Depositor
- C.
  
  Excess Reserves
- D.
  
  Banking Reserves
23.

Which of the following is a type of checking account?
- A.
  
  Demand Deposits
- B.
  
  Regular Checking
- C.
  
  Special Checking
- D.
  
  Lifeline Banking
- E.
  
  All of the Above are types of checking accounts
24.

A checking account Allows transfer of deposited funds to merchants and service providers, as well as to accounts at other financial institutions
- A.
  
  True
- B.
  
  False
25.

What is a C.D.?
- A.
  
  Certificate of Deposit
- B.
  
  Center of Deposit
- C.
  
  Consumer Deposit
- D.
  
  Credit Draft