Question | Answer |
If you own 50 shares of stock that you purchased for $40 a share, and the price increases to $70 per share, your profit is | $1,500
|
An overdue payment is called | Delinquency
| The primary reason for insurance is to | Transfer risk
| In order to effectively manage money, you need a | budget
| What is the difference between gross pay and net pay? | Gross pay is before taxes, net pay is after taxes
| What is a good age for kids to open their first checking account? | 13-15 years old
| If you have caused an accident, which type of automobile insurance would cover damage to your own car? | liability
| Matt and Eric are young men. Each has a good credit history. They work at the same company and make approximately the same salary. Matt has borrowed $6,000 to take a foreign vacation. Eric has borrowed $6,000 to buy a car. Who is likely to pay the lowest finance charge? | Eric will pay less because the car is collateral for the loan.
| If you went to college and earned a 4-year degree, how much more money could you expect to earn than if you only had a high school diploma? | About 10 times as much.
| Use the Rule of 72 to calculate how long it will take for your money to double if it’s earning 6% in interest? | 12 years
| Which type of bank account typically offers no interest? | checking
| What is the general, common name for your credit score? | FICO
| The form filed by students to receive federal financial aid for school is known as? | FAFSA
| Which form is your employer required to send to you before you file your tax return? | W-2
| What is the deadline to file your taxes? | April 15
| Who do you file your taxes each year? | IRS
| Where is the central bank of the United States located? | Washington, DC
| How many Federal Reserve Districts are in existence? | 12
| What are the 3 types of bankruptcy? | Business, Farmers, and Consumers
| Who are the three credit reporting agencies? | TransUnion, Equifax, and Experian
| If you are 17 right now, what is the best age to begin investing? | 17
| When the landlord and tenant agree on a nolease agreement this means that the tenant is responsible for the property? | month-to-month
| The three places to learn the general health of the economy are? | The Dow Jones Industrial Average, Standard & Poors 500 Composite Index, and the National Association of Security Dealers Automated Quotations
| Most Americans are covered by health insurance because? | It is offered to them by their employer
| A customer is protected against loss at a financial institution if it insured by the? | FDIC, SAIF, or NCUA
| A vehicle is considered a lemon if? | The defect remains unfixed after four repair attempts
| An advantage of using credit is? | Not having to carry large amounts of cash
| A well written financial goal includes the following elements? | Specific, measurable, attainable, realistic, and time bound
| Basic wealth protection, wealth accumulation, and wealth distribution are the three stages of? | An individuals financial life cycle
| What is the relationship between risk and return? | The higher the possible return, the higher the risk
| The higher the possible return, the higher the risk? | Create a financial plan to save up for the down payment and other housing costs; this probably means cutting current expenses to save money
| According to the time value of money, the power of time benefits an individual because? | Money paid out or received in the future is not equivalent to money paid out or received today.
| The steps to a spending plan process include? | Setting financial goals, organizing, deciding, implementing, controlling, and evaluating
| True or False An income and expense statement lists all monetary transactions during a specific time period. | True
| Above the Rest, a sporting goods company, was founded in 1915. It is a nationally recognized company with a consistent record of quality products, reasonable prices, good management, great customer service, pays dividends, and has a long record of profits. What type of common stock is Above the Rest? | Blue chip stock |