Personal Financial Planning Final

101 Questions | Total Attempts: 68

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Financial Management Quizzes & Trivia

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

  • 26. 
    Suppose you own twenty shares of Coca Cola stock. You bought the stock one year ago at a price of $50.00 and sold it today with the stock price being $90.00. How much money do you pocket from selling the shares?
    • A. 

      $100

    • B. 

      $400

    • C. 

      $800

    • D. 

      $1500

  • 27. 
    What is overdraft protection used for with regards to checking accounts?
    • A. 

      Used to protect against having insufficient funds in your account

    • B. 

      Used to serve as a savings account

    • C. 

      Used to buy C.D.'s

    • D. 

      Used to purchase stock options

  • 28. 
    What is a stock dividend?
    • A. 

      A payout for investors in the form of stock not cash

    • B. 

      A payout for investors in the form of cash not stock

    • C. 

      A penalty for making money on some stocks

  • 29. 
    What is considered as a low-risk low-cost investment?
    • A. 

      Buying United States treasury bonds

    • B. 

      Purchasing IPO stock in Facebook

    • C. 

      High income bonds

    • D. 

      Purchasing real estate

  • 30. 
    Which investment is the riskiest?
    • A. 

      Buying United States Treasury Government Bonds

    • B. 

      Options Trading

    • C. 

      Credit Swaps

    • D. 

      Buying C.D.'s

  • 31. 
    What is consumer credit?
    • A. 

      Taking a short-term loan and paying for purchases at a later date

    • B. 

      Borrowing money for an extended period of time

    • C. 

      Using savings account dollars

    • D. 

      Purchasing a C.D.

  • 32. 
    Which of the following is an example of open-end credit?
    • A. 

      Using an automobile loans

    • B. 

      Using a mortgage loan

    • C. 

      Using your Visa card to pay for food

  • 33. 
    Which company will be facing an I.P.O this upcoming spring?
    • A. 

      Google

    • B. 

      MySpace

    • C. 

      AT&T

    • D. 

      Facebook

  • 34. 
    What does the GDP measure?
    • A. 

      The value of all expenditures by the United States Government

    • B. 

      The value of all goods and services produced by workers in the US

    • C. 

      The value of all goods and services produced by the government and United States workers

    • D. 

      The net value of all goods in the world

  • 35. 
    What does the acronym CPI pertain to in terms of personal finance?
    • A. 

      Consumer Price Index

    • B. 

      Customers Pricing Individually

    • C. 

      Consumer Producers Index

    • D. 

      Controlling Production Independence

  • 36. 
    What is a credit limit?
    • A. 

      A determined set amount of money on a credit card

    • B. 

      An overdraft protection number on your checking account

    • C. 

      A type of personal investment strategy

    • D. 

      A limited amount of personal net worth

  • 37. 
    What is the one of the most popular forms of credit?
    • A. 

      Debit Cards

    • B. 

      Credit Cards

    • C. 

      Cash Money

    • D. 

      Checking Accounts

  • 38. 
    Long-term financial goals should last over five years.
    • A. 

      True

    • B. 

      False

  • 39. 
    What does I.P.O stand for in terms of financial public offerings in the stock market?
    • A. 

      Initial Public Offering

    • B. 

      Imagining Peaceful Offerings

    • C. 

      Investment Public Offering

    • D. 

      Institution Promises Olives

  • 40. 
    How often should you review and revise your personal financial plans?
    • A. 

      Once a decade

    • B. 

      Once in high school, college, and prior to having a child

    • C. 

      Once a year

    • D. 

      Once a year or when significant events occur

  • 41. 
    What is financial literacy?
    • A. 

      The ability to balance a check book

    • B. 

      The ability to accurately gauge A.P.R

    • C. 

      Understanding the rules of credit

  • 42. 
    Which bank is in charge of adjusting the interest rates that banks use to influence their interest rates?
    • A. 

      The Federal Reserve Bank

    • B. 

      Each Individual Bank

    • C. 

      The President

    • D. 

      None of the above

  • 43. 
    All of the following are reasons for using credit: convenience, identification, emergencies, and consolidating debt
    • A. 

      True

    • B. 

      False

  • 44. 
    What is one disadvantage of credit?
    • A. 

      Purchases are more expensive

    • B. 

      A temptation to overspend exists

    • C. 

      Ties up future income

    • D. 

      Possible financial difficulties

    • E. 

      All of the above are disadvantages

  • 45. 
    Microeconomics is best described as...
    • A. 

      The branch of economics that deals with human behavior and choices

    • B. 

      The branch of economics that deals with big picture thinking

    • C. 

      The branch of economics that specifies what businesses should buy

  • 46. 
    Which of the following is the best example of opportunity cost?
    • A. 

      Studying for a test and getting the answers correct on the test

    • B. 

      Moving to Denver for a new job

  • 47. 
    S.O.L is an abbreviation for what.
    • A. 

      Standard of Living

    • B. 

      Standard of Losing

    • C. 

      Standard of Limitations

    • D. 

      Standard of Limited Liabilities

  • 48. 
    What is a preference?
    • A. 

      A service business first sale of the year

  • 49. 
    What is the major goal of economics?
    • A. 

      To make businesses more money

    • B. 

      To make additional financial compensation for government

    • C. 

      To make people better-off through the use of choices

  • 50. 
    The United States utilizes a free enterprise economy.
    • A. 

      True

    • B. 

      False

  • 51. 
    If total revenue was $100.00 If total cost was $35.00 Your total profit is $65.00
    • A. 

      True

    • B. 

      False

  • 52. 
    What is the best explanation of an asset?
    • A. 

      Anything of value that you/company/government owns

    • B. 

      Anything that creates income

    • C. 

      Anything that is owned

    • D. 

      Anything that can be converted into money

  • 53. 
    What is a tangible asset?
    • A. 

      Asset that maintains a physical existence in form

    • B. 

      Asset that does not have a physical form

    • C. 

      Asset that cannot be computed in the accounting equation

    • D. 

      Asset that fails to materialize

  • 54. 
    Macroeconomics is considered big picture economic thinking specializing in things like GDP, National Debt
    • A. 

      True

    • B. 

      False

  • 55. 
    What is an example of cash outflow?
    • A. 

      Loan Repayments

    • B. 

      Interests on Savings

    • C. 

      Buying dishwasher detergent

    • D. 

      Providing free stock to consumer

  • 56. 
    What is an account?
    • A. 

      Record summarizing all information pertaining to the account equation

    • B. 

      Multitude of records dating across numerous balances

  • 57. 
    Which of the following is a tangible good?
    • A. 

      Accounting Service

    • B. 

      Car Repair Shop

    • C. 

      Accounting Textbook

    • D. 

      Advice for a fried

  • 58. 
    A "free" checking account with minimum balance of $500 has an opportunity cost of lost interest.
    • A. 

      True

    • B. 

      False

  • 59. 
    ATM fees are about the same in different geographic areas. For example, the fees in Gypsum are the same as they are in Rome, Italy
    • A. 

      True

    • B. 

      False

  • 60. 
    Using a debit card is basically the same as writing a check
    • A. 

      True

    • B. 

      False

  • 61. 
    When interest rates are rising, a person would be best served by:
    • A. 

      Short-Term Savings Instruments

    • B. 

      Long-Term Savings Instruments

    • C. 

      Short-Term Loans

    • D. 

      Variable-Rate Loans

  • 62. 
    To avoid high fees for loans, a person should not borrow from a:
    • A. 

      Credit Union

    • B. 

      Savings and Loan Association

    • C. 

      Mutual Savings Bank

    • D. 

      Savings and Loan Association

    • E. 

      Commercial Bank

  • 63. 
    Credit is an arrangement to receive cash, goods, or services now and pay for them in the future
    • A. 

      True

    • B. 

      False

  • 64. 
    College students are not a prime target for using credit
    • A. 

      True

    • B. 

      False

  • 65. 
    You should sign your new credit cards as soon as they arrive.
    • A. 

      True

    • B. 

      False

  • 66. 
    Department stores and gasoline companies are good places to obtain your first credit card.
    • A. 

      True

    • B. 

      False

  • 67. 
    Experts suggest that you spend no more than ____________ percent of your net income on credit purchases.
    • A. 

      Ten Percent

    • B. 

      Twenty Percent

    • C. 

      Thirty Percent

    • D. 

      Forty Percent

  • 68. 
    When you cosign a loan, you are being asked to guarantee this debt.
    • A. 

      True

    • B. 

      False

  • 69. 
    The debit card:
    • A. 

      Debits your account at the moment you buy goods and services

    • B. 

      Credits your account at the moment you buys goods and services

    • C. 

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

    • D. 

      Is really like a travel and entertainment card

  • 70. 
    Household size is a major influence on personal financial planning decisions.
    • A. 

      True

    • B. 

      False

  • 71. 
    Analyzing your current financial position is a part of the final stage of the financial planning process.
    • A. 

      True

    • B. 

      False

  • 72. 
    Opportunity costs refer to what a person gives up when making a decision.
    • A. 

      True

    • B. 

      False

  • 73. 
    The ability to convert financial resources into usable cash with ease is referred to as:
    • A. 

      Bankruptcy

    • B. 

      Liquidity

    • C. 

      Investing

    • D. 

      Saving

  • 74. 
    A budget is a record of how a person or family has spent their money.
    • A. 

      True

    • B. 

      False

  • 75. 
    Furniture, jewelery and an automobile are examples of liquid assets.
    • A. 

      True

    • B. 

      False

  • 76. 
    Current liabilities are amounts that must be paid within a short period of time, usually less than a year.
    • A. 

      True

    • B. 

      False

  • 77. 
    If budgeted spending is less than actual spending, this is referred to as a deficit.
    • A. 

      True

    • B. 

      False

  • 78. 
    Which of the following payments would be considered a variable expense?
    • A. 

      Rent

    • B. 

      An installment loan payment

    • C. 

      A mortgage payment

    • D. 

      A monthly parking fee

    • E. 

      A telephone bill

  • 79. 
    The payment items that should be budgeted first are:
    • A. 

      Variable Expenses

    • B. 

      Investment Funds

    • C. 

      Fixed Expenses

    • D. 

      Unplanned Living Expenses

  • 80. 
    Taxes are only considered in financial planning activities in the month of April.
    • A. 

      True

    • B. 

      False

  • 81. 
    An estate tax is imposed on the value of an individual's property at the time of his or her death.
    • A. 

      True

    • B. 

      False

  • 82. 
    Capital Gains taxes refer to profits from the sale of investments
    • A. 

      True

    • B. 

      False

  • 83. 
    Exemptions are allowed by the Internal Revenue Service (I.R.S)
    • A. 

      True

    • B. 

      False

  • 84. 
    The main purpose of taxes is to:
    • A. 

      Generate revenue for funding government programs

    • B. 

      Reduce the chances of inflation

    • C. 

      Create Jobs

    • D. 

      Discourage use of certain goods and services

  • 85. 
    Most cars bought from private parties have:
    • A. 

      No Implied Warranties

    • B. 

      A 30-Day Return Privilege

    • C. 

      A Limited Warranty

    • D. 

      No Express Warranty is Made between the parties

  • 86. 
    Renting is more advantageous than buying a home for:
    • A. 

      Lower Short-Term Living Costs

    • B. 

      Financial Benefits

    • C. 

      Long-Term Investment Purposes

    • D. 

      Receiving Tax Benefits

  • 87. 
    A limited warranty covers all aspects of the product and does not require the buyer to incur any of the costs for shipping and repairs
    • A. 

      True

    • B. 

      False

  • 88. 
    Ease of mobility is an advantage of renting
    • A. 

      True

    • B. 

      False

  • 89. 
    Current interest rates can affect the price of a home.
    • A. 

      True

    • B. 

      False

  • 90. 
    The main financial benefit of renting is:
    • A. 

      Tax Deductions

    • B. 

      Increased Equity

    • C. 

      Investment Value Growth

    • D. 

      Lower Initial Costs

  • 91. 
    Collision coverage pays for damage to your vehicle for such hazards as fire, theft, or wind damage.
    • A. 

      True

    • B. 

      False

  • 92. 
    Property damage liability coverage would pay for damage to another vehicle for which you were at fault.
    • A. 

      True

    • B. 

      False

  • 93. 
    Your car insurance policy has a $250 deductible. If a small collision causes $600 damage to your car, what amount of the claim would the insurance company pay?
    • A. 

      $250

    • B. 

      $350

    • C. 

      $450

    • D. 

      $600

  • 94. 
    Comprehensive coverage would cover financial losses due to:
    • A. 

      Injuries caused by a driver without insurance

    • B. 

      Damage to your car in an accident for which you were at fault

    • C. 

      Damage to your car are caused by wind or hail

    • D. 

      Legal action against you for an accident

  • 95. 
    Which of the following would be an example of the driver classification category that determines insurance rates?
    • A. 

      John Brown has a 2005 Mazda Miata Convertible

    • B. 

      Harry Anderson lives in Boca Raton, Florida

    • C. 

      Charlie Purciful is 17 years old

    • D. 

      Charlotte Webb has her vehicle in a locked garage

  • 96. 
    Public opinion polls consistently show that Americans are happy with the nation's healthc care system
    • A. 

      True

    • B. 

      False

  • 97. 
    A home made of wood is more expensive to insure than a home made of brick
    • A. 

      True

    • B. 

      False

  • 98. 
    You probably have little or no need for life insurance if you are:
    • A. 

      A single person living alone or with your parents

    • B. 

      Married and your spouse works

    • C. 

      Gainfully employed

    • D. 

      Divorced and have two children

  • 99. 
    Who has the greatest need for life insurannce?
    • A. 

      Households with Small Children

    • B. 

      A Dual income couple

    • C. 

      Singles living with parents

    • D. 

      Singles Living Alone

  • 100. 
    Who has the greatest need for life insurannce?
    • A. 

      Households with Small Children

    • B. 

      A Dual income couple

    • C. 

      Singles living with parents

    • D. 

      Singles Living Alone