Course Introduction
Financial Literacy
Exam Questions
Financial Literacy provides students with a foundational understanding of essential personal finance concepts, including budgeting, saving, investing, credit management, and financial decision-making. The course covers practical skills needed to navigate everyday financial situations, such as evaluating financial products, understanding interest rates, managing debt responsibly, and planning for short- and long-term financial goals. By the end of the course, students will be equipped with the knowledge and tools to make informed financial choices, fostering greater independence and security in their personal and professional lives.
Recommended Textbook
Personal Finance 13th Edition by E. Thomas Garman
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17 Chapters
3061 Verified Questions
3061 Flashcards
Source URL: https://quizplus.com/study-set/1328
Page 2
Chapter 1: Understanding Personal Finance
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148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/26518
Sample Questions
Q1) If the consumer price index was 232 in 2013 and 244 in 2015,how much did prices increase during this time period?
A)4.9 percent
B)5.2 percent
C)6 percent
D)12 percent
Answer: B
Q2) Procyclical economic indicators are those that predict a positive change in the economy.
A)True
B)False
Answer: True
Q3) An example of inflation is an increase in the price of coffee or gasoline or some other commodity.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Career Planning
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76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/26519
Sample Questions
Q1) The final step in career planning is career fields identification.
A)True
B)False Answer: False
Q2) The act of recommending someone to another for possible employment is a job referral.
A)True
B)False
Answer: True
Q3) Nearly 20 percent of workers cash out all of the money they have accrued in their employer-sponsored retirement plan when changing jobs.
A)True
B)False Answer: False
Q4) A mentor is a powerfully positioned champion who advocates on a job protégé's behalf and guides the protégé toward key players and assignments.
A)True
B)False Answer: False
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Chapter 3: Financial Statements,tools,and Budgets
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/26520
Sample Questions
Q1) Short-term liabilities are obligations to be paid off within one year.
A)True
B)False
Answer: True
Q2) Safe-deposit boxes take two keys to open,and the financial institution where the box is located keeps one of these keys.
A)True
B)False
Answer: True
Q3) Budgeting gives one control over his or her finances.
A)True
B)False
Answer: True
Q4) Reconciling budget estimates includes reconciling conflicting needs and wants.
A)True
B)False
Answer: True
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Chapter 4: Managing Income Taxes
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201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/26521
Sample Questions
Q1) Vicki Chadwell made a $1,000 capital gain on an investment she owned for 15 months.Assuming Vicki is in the 35 percent marginal tax bracket,how much federal income tax would she pay on this capital gain?
A)$1,000
B)$350
C)$280
D)$150
Q2) Judy Hays wants to give $3,200 to the building fund at her local church.Assuming Judy can itemize her deductions,how much will this contribution save her on her federal income taxes if she is in the 28 percent marginal tax bracket?
A)$3,200
B)$896
C)$2,624
D)$0
Q3) The kiddie tax applies to children under the age of 14 and means that all the child's income is taxed at their parents' marginal tax rate.
A)True
B)False
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6
Chapter 5: Managing Checking and Savings Accounts
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181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/26522
Sample Questions
Q1) Your first line of defense against unauthorized use of your banking accounts is prompt examination of your periodic statement provided by your banking institution.
A)True
B)False
Q2) The primary reason for giving a child an allowance is to
A)pay the child for work around the house.
B)teach the child about how to manage money.
C)encourage the child to get a job at an early age.
D)have a way to withhold a privilege in order to control the child's behavior.
Q3) Electronic benefits transfer (EBT) cards are used by the government to pay military personnel and provide Social Security and other government benefits.
A)True
B)False
Q4) Checking accounts that pay no interest are called NOW accounts.
A)True
B)False
Q5) Brokered certificates of deposit are available through stockbrokers.
A)True
B)False
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Chapter 6: Building and Maintaining Good Credit
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/26523
Sample Questions
Q1) Refinancing a loan for more money than was originally owed is called a(n)
A)add-on loan.
B)accelerated loan.
C)discount loan.
D)garnishment.
Q2) The value of an asset less the amount owed on a debt used to buy the asset is your stake in the asset.
A)True
B)False
Q3) Credit counseling agencies can provide individuals with credit counseling as well as assistance with financial problems.
A)True
B)False
Q4) The best use of credit is probably to
A)consume expensive products earlier.
B)obtain discounts.
C)consolidate debts.
D)obtain an education.
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Chapter 7: Credit Cards and Consumer Loans
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166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/26524
Sample Questions
Q1) Credit card companies can change the rules of the account if they give the borrower 45 days notice of the change.
A)True
B)False
Q2) A line of credit is structured much like a A)credit card account.
B)travel and entertainment card account.
C)budget account.
D)service credit.
Q3) With a conditional sales contract,the title passes to the buyer when the document is signed.
A)True
B)False
Q4) The time period between billing dates is referred to as the billing cycle.
A)True
B)False
Q5) Late-payment fees of $25 are often applied when the borrower fails to make a payment by the billing date.
A)True
B)False
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Chapter 8: Vehicles and Other Major Purchases
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145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/26525
Sample Questions
Q1) Sellers are the only source of financing for big ticket items.
A)True
B)False
Q2) The sticker price on a new car is typically the final sales price.
A)True
B)False
Q3) The product that is the best buy will be the one with the
A)lowest price without regard for quality.
B)lowest quality without regard for price.
C)highest quality at a reasonable price.
D)acceptable quality at a fair price.
Q4) If you plan to purchase the vehicle at the end of the lease period,you would pay the residual value if your lease was open-ended.
A)True
B)False
Q5) Comparison shopping for a new vehicle includes
A)deciding between needs and wants.
B)fitting the purchase into your budget.
C)obtaining a loan preapproval.
D)determining the value of your trade-in.
10
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Chapter 9: Obtaining Affordable Housing
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217 Verified Questions
217 Flashcards
Source URL: https://quizplus.com/quiz/26526
Sample Questions
Q1) How much would one pay in points on a $145,000 loan if 2 points were charged?
A)$2,842
B)$2,000
C)$2,900
D)$2,320
Q2) The contract a home seller enters into with a real estate broker is called a A)sales offer.
B)listing agreement.
C)uniform settlement agreement.
D)good-faith estimate.
Q3) The abbreviation PITI stands for principal,interest,real estate taxes,and investment.
A)True
B)False
Q4) Real estate transfer taxes can affect the price a seller is willing to accept for a home.
A)True
B)False
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Chapter 10: Managing Property and Liability Risk
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209 Verified Questions
209 Flashcards
Source URL: https://quizplus.com/quiz/26527
Sample Questions
Q1) ____ is not covered under your automobile bodily injury and property damage liability coverage (Section A).
A)Damage to property of others
B)Bodily injuries to passengers in your vehicle
C)Property damage to your vehicle
D)Bodily injuries of pedestrians hit by your vehicle
Q2) An umbrella liability policy provides A)flood insurance.
B)additional liability protection over and above your auto insurance limits, only.
C)additional liability protection over and above your homeowner's insurance limits, only.
D)additional liability protection over and above any other liability insurance you carry.
Q3) The principle of indemnity is very difficult to apply to ____ insurance.
A)auto
B)homeowner's
C)health
D)life
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Chapter 11: Managing Health Expenses
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/26528
Sample Questions
Q1) Medicaid is a health care program for low income individuals.
A)True
B)False
Q2) Which type of insurance provides reimbursement for costs associated with custodial care in a nursing facility or at home?
A)Medicare
B)Disability income insurance
C)HMOs
D)Long-term care insurance
Q3) The amount paid for a medical service in a geographic area based on what providers in the area usually charge for the same or similar medical service is known as a/an
A)deductible
B)benchmark premium.
C)individual shared responsibility fee.
D)usual, customary, and reasonable (UCR) rate.
Q4) An any-occupation policy will cost more than an own-occupation policy,everything else being equal.
A)True
B)False
Page 13
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Chapter 12: Life Insurance Planning
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215 Verified Questions
215 Flashcards
Source URL: https://quizplus.com/quiz/26529
Sample Questions
Q1) The advantage of term insurance is
A)stable premiums.
B)forced savings.
C)more coverage per premium dollar.
D)high rates of investment return.
Q2) Term life insurance costs far more than cash-value life insurance.
A)True
B)False
Q3) You should rely on an insurance agent to determine how much life insurance you need.
A)True
B)False
Q4) Life insurance should definitely provide funds to pay off all debts if the breadwinner dies.
A)True B)False
Q5) Convertible term offers the policyholder the option of exchanging a term policy for a cash-value policy without evidence of insurability.
A)True
B)False
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Chapter 13: Investment Fundamentals
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172 Verified Questions
172 Flashcards
Source URL: https://quizplus.com/quiz/26530
Sample Questions
Q1) Active investors earn higher returns than passive investors over the long term.
A)True
B)False
Q2) The real rate of return on a tax-free investment yielding 7 percent annually would be ____ percent if the investor were in the 35 percent marginal tax bracket and inflation were 4 percent.
A)-0.55 percent
B)0.55 percent
C)3.00 percent
D)4.48 percent
Q3) Long-term investors are usually willing to give up current income in favor of earning substantial future capital gains.
A)True
B)False
Q4) Dividend reinvestment plans are appropriate for investors who do not currently need dividend income.
A)True
B)False
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Page 15
Chapter 14: Investing in Stocks and Bonds
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352 Verified Questions
352 Flashcards
Source URL: https://quizplus.com/quiz/26531
Sample Questions
Q1) A stop order instructs a stockbroker to sell your shares at the market price if a stock declines to or below a specified price.
A)True
B)False
Q2) The default rate on high-quality bonds is less than 1 percent,whereas the default rate on junk bonds ranges from 8 to 12 percent.
A)True
B)False
Q3) As the market price of a stock increases,the dividend yield goes down if the annual dividend does not change.
A)True
B)False
Q4) The most common denomination for a bond is $10,000. A)True
B)False
Q5) Investment-grade bond investments are lower risk than stock investments. A)True B)False
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Chapter 15: Mutual Funds and Exchange Traded Funds
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176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/26532
Sample Questions
Q1) Up-to-date comparative data on mutual funds is readily available on-line.
A)True
B)False
Q2) Shares in an open-end mutual fund can be liquidated almost immediately simply by communicating with the company via phone,on-line or in writing.
A)True
B)False
Q3) A redemption charge is designed to discourage frequent trading in and out of particular mutual funds.
A)True
B)False
Q4) The fee that is assessed as a percent of the net asset value of a mutual fund account annually to pay for advertising,marketing,and distribution costs of the fund is called a
A)front-end load.
B)12b-1 fee.
C)management fee.
D)contingent deferred sales charge.
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Chapter 16: Real Estate and High-Risk Investments
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/26533
Sample Questions
Q1) The amount of cash flow in income-producing real estate investments depends on A)rent received.
B)expenses paid.
C)method of repaying mortgage debt.
D)All of these.
Q2) Deeded timesharing provides buyers with actual titles and deeds to limited time periods of use of real estate.
A)True
B)False
Q3) Ownership costs include the cost of capital improvements as well as the original cost of the property.
A)True
B)False
Q4) Speculative investments have the potential for significant fluctuations in return,sometimes over short time periods.
A)True
B)False
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Chapter 17: Retirement and Estate Planning
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269 Verified Questions
269 Flashcards
Source URL: https://quizplus.com/quiz/26534
Sample Questions
Q1) Retirement plans available to the self-employed include A)IRAs.
B)SEP-IRAs.
C)Keogh plans.
D)All of these.
Q2) Like all tax-sheltered retirement accounts,an IRA is not an investment but rather a tax-sheltered account in which to make and hold investments.
A)True
B)False
Q3) Living trusts can either be
A)current or testamentary.
B)private or public.
C)retrievable or irretrievable.
D)revocable or irrevocable.
Q4) Employers usually offer employees retirement plans because the promise of a secure retirement represents an effective way to recruit and keep valuable employees. A)True
B)False
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Page 19