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personal finance assessment questions

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personal finance - semester 1

Question 1 of 92

1

The earliest type of trade was?

Select one of the following:

  • bartering

  • currency

  • economies

  • cowry shell currency

Explanation

Question 2 of 92

1

The economies of all cultures are based on?

Select one of the following:

  • currency

  • supermarkets

  • trade

Explanation

Question 3 of 92

1

Historians believe that the Chinese developed the first?

Select one of the following:

  • credit card

  • metal currency

  • supermarket

Explanation

Question 4 of 92

1

Corporate structure may be defined as ________.

Select one of the following:

  • There are an equal number of employees earning above the amount provided and an equal number earning below the amount provided

  • There are an equal number of employees earning above the provided but not an equal number earning below the amount provided

  • There are an equal number of employees not earning above the amount provided but an equal number of employees earning below the number provided

  • the number calculated by adding all numbers together, then dividing by the total amount of numbers

Explanation

Question 5 of 92

1

which of the following might not be an option for increasing your present income?

Select one of the following:

  • requesting a merit increase in pay

  • quitting your job to find another

  • looking for a better job without quitting your old job

Explanation

Question 6 of 92

1

Which of the following is true about a merit increase in pay?

Select one of the following:

  • you have prove that you deserve it more than your coworkers

  • you automatically receive merit raises every year

  • you might have to wait for a certain anniversary date to get it

Explanation

Question 7 of 92

1

Your resume should include all of the following information EXCEPT?

Select one of the following:

  • personal history

  • education background

  • qualifications

  • contact information

Explanation

Question 8 of 92

1

The single best way to increase your income is to get an education. Why?

Select one of the following:

  • you automatically make more money if your are educated

  • you automatically get promotions if your are educated

  • you can obtain jobs that have higher starting salaries

  • you will automatically receive better benefits

Explanation

Question 9 of 92

1

Which of the following will probably earn a higher level of income?

Select one of the following:

  • a male file clerk with a high school diploma and a year of college

  • a male accountant with a Bachelor's degree

  • a female accountant with a Master's degree in business administration

Explanation

Question 10 of 92

1

the term median means ______.

Select one of the following:

  • there are an equal number of employees earning above the amount provided but not an equal number earning below the amount provided

  • there are an equal number of employees not earning above the amount provided but an equal number of employees earning below the number provided

  • the number calculated by adding all numbers together, then dividing by the total amount of numbers

Explanation

Question 11 of 92

1

The term average means _______.

Select one of the following:

  • there are an equal number of employees earning above the amount provided and an equal number earning below the amount provided

  • there are an equal number of employees earning above the amount provided but not an equal number of employees earning below the amount provided

  • there are equal number of employees not earning above the amount provided but an equal number of employees earning below the amount provided

  • the number calculated by adding all numbers together, then dividing by the total amount of numbers

Explanation

Question 12 of 92

1

The term "educational attainment" means _______.

Select one of the following:

  • you are attending school to earn a degree

  • whatever education you have gotten

  • you have earned the highest degree possible in your field

Explanation

Question 13 of 92

1

Your choice of career should be based on which factors?

Select one of the following:

  • the location of possible jobs

  • your interests and knowledge

  • the salary ranges and your interests

  • whether or not they will provide daycare

Explanation

Question 14 of 92

1

Which of the following is not true concerning Income Tax Refunds?

Select one of the following:

  • you are essentially giving the government an interest-free loan

  • it means that you are having too much deducted from your paycheck

  • you haven't properly evaluated your personal tax circumstances

Explanation

Question 15 of 92

1

When claiming dependents, they must meet the following criteria EXCEPT?

Select one of the following:

  • the dependent must reside with you for the entire year

  • the dependent must be under nineteen years of age unless he or she is a full-time student (under 24 years old)

  • the dependent was unable to provide over half of his or her support for the year

  • the dependent must be a relative

Explanation

Question 16 of 92

1

If you opt to put money in the medical flexible spending account rather than trying to amass enough medical expenses to itemize on your tax return, you are taking advantage of _____.

Select one of the following:

  • a credit

  • witholding

  • a deduction

  • an exlusion

Explanation

Question 17 of 92

1

A form of taxation in which everyone pays an equal rate of taxes is called a _______.

Select one of the following:

  • progressive tax

  • regressive tax

  • flat tax

  • net tax

Explanation

Question 18 of 92

1

A form of taxation in which the highest income earner pays the largest percentage of taxes is called a _______.

Select one of the following:

  • regressive tax

  • flat tax

  • net tax

Explanation

Question 19 of 92

1

A form of taxation in which the lowest incom earners pay the largest percentage of taxes is called a ______.

Select one of the following:

  • regressive tax

  • flat tax

  • net tax

  • progressive tax

Explanation

Question 20 of 92

1

Which of the following is not considered part of your gross income?

Select one or more of the following:

  • everything of value you recieved during the year

  • bartered goods and services

  • everything of value of that you received from April 15th to December 31st

  • money you win on a game show

Explanation

Question 21 of 92

1

Which of the following is not true about your adjusted gross income?

Select one of the following:

  • it is your income plus your deductions

  • it determines whether you are eligible for additional tax breaks

  • iti s your gross income minus deductions

  • it is your income minus deductions

Explanation

Question 22 of 92

1

Which of the following is true about standard deductions?

Select one of the following:

  • they are tax breaks that you can claim without having to itemize

  • they are listed just above the total taxable income on the 1040 tax form

  • they reduce your tax bill rather than your taxable income

  • you must itemize in order to take advantage of this deduction

Explanation

Question 23 of 92

1

A dollar-for-dollar reduction in your tax payment is called a _______.

Select one of the following:

  • deduction

  • flat tax

  • credit

  • debit

Explanation

Question 24 of 92

1

Which of the following best defines health insurance?

Select one of the following:

  • an annual contract between an insurance company and an individual

  • a type of insurance whereby the insurer pays the medical costs of the insured

  • a type of insurance that protects your personal property if you are unable to pay your bills

  • a type of insurance that assists your loved ones in the event of your death

Explanation

Question 25 of 92

1

Which of the following illustrates the main difference between Medicare and Medicaid?

Select one of the following:

  • Medicare helps to insure the elderly, while Medicaid focuses on low-income individuals and families

  • Medicaid helps to insure the elderly, while Medicare insures low incom earners

  • Medicaid helps to replace lost income for the poor

  • Medicare is available only to those over the age of 65

Explanation

Question 26 of 92

1

Which of the following is not true about managed care?

Select one of the following:

  • your employer is responsible for all co-payments

  • it is a system in which companies contract with doctors to provide health care services

  • it you have health care coverage through your employer, you probably have a managed care plan

  • the most common types of managed care are HMO's and PPO's

Explanation

Question 27 of 92

1

Which of the following statements is true about Medicaid?

Select one of the following:

  • Medicaid covers only hospital and doctor's visits

  • Medicaid is a managed health care system

  • Medicaid was established to help ensure that people living below the poverty level could receive health care

  • Medicaid provides health care only for elderly

Explanation

Question 28 of 92

1

What is life insurance?

Select one of the following:

  • health insurance that covers you for the rest of your life

  • insurance that supplements your income if your life is threatened

  • insurance that protects you in the event of an unexpected illness or accident that prevents you from working

  • insurance that assists your loved ones with income in the event of your death

Explanation

Question 29 of 92

1

John T. works on the assembly line in an automobile factory. One day, he falls of the roof of his home while cleaning his rain gutters and injures his back. He soon learns that he will have to be off his job for close to a year while his back heals. Which of the following insurance will he need to cover losses from his absence?

Select one of the following:

  • he will have to collect from his regular medical insurance

  • because the accident occurred at home, he is not covered

  • He may potentially be covered by disability insurance provided by his employer until he returns to work

Explanation

Question 30 of 92

1

Which of the following statements is not true about HMO insurance?

Select one of the following:

  • it is a managed health care system

  • the letter stand for Health Maintenance Organization

  • in an HMO, you are assigned a primary care physician

  • in an HMO you can choose your own primary care physician (PCP), but specialists must be referred by the PCP

Explanation

Question 31 of 92

1

Which of the following statements is not true about disability insurance?

Select one of the following:

  • the only way to get disability insurance is through your employer

  • you can have short-term or long-term disability insurance

  • long-term disability insurance ends when a person turns 65

  • long-term disability insurance lasts five years

Explanation

Question 32 of 92

1

Which of the following might be considered positive aspects of HMO's?

Select one of the following:

  • free choice of primary care physician

  • care from non-HMO provider not covered

  • out-of-pocket expenses are usually low

  • easy to receive specialized care

Explanation

Question 33 of 92

1

Which of the following might be considered a negative aspect of HMO's?

Select one of the following:

  • HMO's focus on preventative care

  • Not easy to receive specialized care

  • free choice of primary care physician

Explanation

Question 34 of 92

1

A FICO score represents all of the following EXCEPT?

Select one of the following:

  • income to debt ratio

  • creditworthiness

  • length of credit history

Explanation

Question 35 of 92

1

On average, compared to a person with good credit, a person with poor credit will pay ____ for insurance?

Select one of the following:

  • 5% to 10% more

  • 10% to 15% less

  • 20% to 50% more

  • 25% to 40% more

Explanation

Question 36 of 92

1

How long does it take to rebuild your credit history?

Select one of the following:

  • 7 years

  • 9 years

  • 30 years

  • 8 years

Explanation

Question 37 of 92

1

Secured debt means a lender gives yo money in exchange for what?

Select one of the following:

  • collateral

  • credit report

  • principal

  • interest

Explanation

Question 38 of 92

1

Which type of debt is the least attractive for a consumer?

Select one of the following:

  • secured debt

  • mortgage debt

  • lease debt

Explanation

Question 39 of 92

1

When an asset, such as a car, decreases in value over time what is it called?

Select one of the following:

  • equity

  • leasing

  • depreciation

Explanation

Question 40 of 92

1

If you miss one payment on a credit card, what is generally the penalty?

Select one of the following:

  • a lower available credit line

  • a late payment fee

  • a negative notation on your credit report

Explanation

Question 41 of 92

1

if you miss two payments on a credit card, what is generally the penalty?

Select one of the following:

  • a late payment fee and a lower available credit line

  • a late payment fee

  • a negative notation on your credit report

  • a higher interest rate and a late payment fee

Explanation

Question 42 of 92

1

If you have $1,000.00 on a credit card and the interest rate is 23.7% per year, how much interest will you pay for one year? (Multiply rather than compound your interest).

Select one of the following:

  • $23.70

  • $237.00

  • $230.70

Explanation

Question 43 of 92

1

How many monthly payments are there in a 30-year loan?

Select one of the following:

  • 365

  • 360

  • 100

Explanation

Question 44 of 92

1

What can the be best type of safety net in hard times?

Select one of the following:

  • rental property

  • none of the above

  • mortgage

Explanation

Question 45 of 92

1

Generally, you need to live in a home __________ years to break even on closing costs

Select one of the following:

  • two

  • three

  • four

Explanation

Question 46 of 92

1

What is generally the most complicated financial transaction the average american will ever undertake?

Select one of the following:

  • buying a car

  • buying a home

  • none of the above

Explanation

Question 47 of 92

1

real estate is considered a/an ________ investment.

Select one of the following:

  • liquid

  • sure

  • partially-liquid

Explanation

Question 48 of 92

1

Individual mortgage interest rates are generally determined by what?

Select one of the following:

  • The economy

  • The individual's credit score

  • The property value

  • the state the property is located in

Explanation

Question 49 of 92

1

What is PMI?

Select one of the following:

  • Personal mortgage investment

  • Personal mortgage insurance

  • Personal mortgage interest

Explanation

Question 50 of 92

1

Who dictates how much insurance a homeowner must carry on their property?

Select one of the following:

  • the state the property is located in

  • the bank that holds the mortgage

  • the owner

  • none of the above

Explanation

Question 51 of 92

1

Assuming you have a 30-year fixed-rate loan, you're paying _______% interest during the first few years.

Select one of the following:

  • 90

  • 80

  • 70

  • 60

Explanation

Question 52 of 92

1

Why is investing gold beneficial?

Select one of the following:

  • it is easy to mine

  • it is considered a stable investment

  • gold is more expensive than stocks

  • the value of gold is subject to inflation

Explanation

Question 53 of 92

1

What type of insurance may a homeowner need?

Select one of the following:

  • flood insurance

  • firestorm insurance

  • all of the above

Explanation

Question 54 of 92

1

Which of the following is not one of the three types of business arrangements in the United States?

Select one of the following:

  • sole proprietorship

  • partnership

  • sole partnership

  • coporation

Explanation

Question 55 of 92

1

with a sole proprietorship, who pays the taxes?

Select one of the following:

  • the company

  • both the shareholders and the owner

  • the owner

Explanation

Question 56 of 92

1

which of the following would not be considered an advantage of a sole proprietorship?

Select one of the following:

  • there are no legal formalities if the business dissolves

  • all of the profits from the business go right to the owner

  • a proprietor is also responsible for his or her own health insurance

Explanation

Question 57 of 92

1

What can a proprietor do to minimize personal risk and liability?

Select one of the following:

  • change his/her name

  • form a limited liability proprietorship

  • form a limited liability partnership

  • form a limited liability company

Explanation

Question 58 of 92

1

Why are partnerships often favored over corporations?

Select one of the following:

  • they are most successful

  • there are no taxes levied on profits

  • a partnership structure eliminates the divided tax levied upon profits realized by the owners

Explanation

Question 59 of 92

1

What are the two types of partnerships?

Select one of the following:

  • general and private

  • limited and general

  • private and limited

Explanation

Question 60 of 92

1

which of the following would not be considered an advantage of a partnership?

Select one of the following:

  • a partnership usually involves low start-up costs

  • each general partner is deemed the agent of the partnership

  • it's easy to form a partnership

  • you can share the responsibilities with your partners

Explanation

Question 61 of 92

1

As a generic legal term, ________ means any group of persons with a legal entity.

Select one of the following:

  • corporation

  • business

  • partnership

  • proprietorship

Explanation

Question 62 of 92

1

Who regulates a corporation?

Select one of the following:

  • the bondholders

  • the corporation's founders

  • the corporations's union

Explanation

Question 63 of 92

1

Which of the following is not a legal characteristic of a corporation?

Select one of the following:

  • transferable shares

  • perpetual life

  • limited liability

  • legal protection from law suits

Explanation

Question 64 of 92

1

What is an entrepreneur?

Select one of the following:

  • a corporation

  • one who opens a new business

  • a bank that loads money

Explanation

Question 65 of 92

1

Which of the following is the best definition of probable operating costs?

Select one of the following:

  • amount of money required to start a business

  • amount of money required to market a business

  • amount of money required to purchase business equiptment

  • amount of money required to keep a business running

Explanation

Question 66 of 92

1

What may be offered to clients when banks find the risk too high?

Select one of the following:

  • personal money

  • partnership money

  • private money

Explanation

Question 67 of 92

1

which of the following s a start-up cost associated with opening a business?

Select one of the following:

  • legal fees/licensing

  • insurance

  • all of the above

Explanation

Question 68 of 92

1

What is a term used widely among real estate investors to refer to non-traditional means of real estate financing, or financing techniques not commonly used?

Select one of the following:

  • capital financing

  • leverage financing

  • creative financing

Explanation

Question 69 of 92

1

what does "OPM" stand for in leveraging OPM?

Select one of the following:

  • other profit means

  • other people's money

  • organizational profit marketing

Explanation

Question 70 of 92

1

Generally, a load obtained from a bank will be a ________ loan.

Select one of the following:

  • variable

  • collateral-free

  • term

Explanation

Question 71 of 92

1

Which of the following is not a type of retail bank?

Select one of the following:

  • bond bank

  • private bank

  • offshore bank

  • ethical bank

Explanation

Question 72 of 92

1

What type of banks were traditionally banks which engaged in trade financing?

Select one of the following:

  • ethical

  • offshore

  • merchant

Explanation

Question 73 of 92

1

Which of the following is an example of an unsecured bank loan?

Select one of the following:

  • bank overdrafts

  • corporate bonds

  • all of the above

Explanation

Question 74 of 92

1

Which of the following is not a core module of accounting?

Select one of the following:

  • accounts payable

  • debt collection

  • purchase orders

Explanation

Question 75 of 92

1

What is a general ledger also known as?

Select one of the following:

  • an enumerated ledger

  • none of the above

  • a nominal leder

Explanation

Question 76 of 92

1

Which of the following is not one of the seven basic accounting categories?

Select one of the following:

  • gains

  • losses

  • investments

Explanation

Question 77 of 92

1

the listing of the account names and the sum of the account balances is called what?

Select one of the following:

  • a total balance

  • a complete balance

  • an absolute balance

  • a trial balance

Explanation

Question 78 of 92

1

Which of the following should be included in a general ledger?

Select one of the following:

  • date

  • description

  • total amount for each account

  • all of the above

Explanation

Question 79 of 92

1

What kind of statement is also known as a profit and loss statement?

Select one of the following:

  • complete statement

  • income statement

  • investment statement

  • earnings statement

Explanation

Question 80 of 92

1

What kind of statement shows how changes in balance sheet and income accounts affected cash and cash equivalents?

Select one of the following:

  • cash flow statement

  • investment statement

  • earnings statement

  • income statement

Explanation

Question 81 of 92

1

a balance sheet is often described as a __________ of the company's financial condition on a given date.

Select one of the following:

  • photo

  • slideshow

  • snapshot

Explanation

Question 82 of 92

1

What is the purpose of an income statement?

Select one of the following:

  • to show managers and investors whether the company is spending its money appropriately

  • to show managers and investors whether the company made or lost money during the period being reported

  • none of the above

Explanation

Question 83 of 92

1

the two components of _______ are variable costs and fixed costs.

Select one of the following:

  • complete cost

  • required cost

  • total cost

Explanation

Question 84 of 92

1

What is the margin of safety?

Select one of the following:

  • how much sales can fall before a business makes less than 15%

  • none of the above

  • how much sales can fall before a business starts taking a loss

Explanation

Question 85 of 92

1

What are expenses that change as conditions change?

Select one of the following:

  • moderate costs

  • variable costs

  • changing costs

Explanation

Question 86 of 92

1

What are expenses that do not change called?

Select one of the following:

  • known costs

  • stable costs

  • fixed costs

Explanation

Question 87 of 92

1

Which of the following are examples of possible fixed costs?

Select one of the following:

  • wages of workers

  • raw material

  • neither of the above

  • both of the above

Explanation

Question 88 of 92

1

which of the following are examples of possible fixed costs?

Select one of the following:

  • property tax

  • both of the above

  • none of the above

Explanation

Question 89 of 92

1

What is known as the rate of business expansion through increasing output and sales as opposed to mergers, acquisitions, and takeovers?

Select one of the following:

  • corporate growth

  • inorganic growth

  • monetary growth

Explanation

Question 90 of 92

1

What is known as the rate at which business expands by increasing output and business reach

Select one of the following:

  • organic growth

  • corporate growth

  • inorganic growth

  • monetary growth

Explanation

Question 91 of 92

1

What is another term for profit planning?

Select one of the following:

  • profit zoning

  • profit mapping

  • profit predicting

  • profit sharing

Explanation

Question 92 of 92

1

What is known as the price at which a seller projects that a buyer will buy a product?

Select one of the following:

  • target price

  • selling price

  • perfect price

  • profit price

Explanation

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