Life Skills: Personal Finance Test Preparation
Course Introduction
This course equips students with essential life skills in personal finance, focusing on practical tools and knowledge for managing money effectively. Topics include budgeting, saving, credit management, loans, investing, understanding taxes, and financial planning for life events such as education, housing, retirement, and emergencies. Students will gain confidence in making informed financial decisions, recognizing common financial pitfalls, and setting actionable goals for their future economic well-being. Through real-life case studies and interactive exercises, this course prepares learners to achieve greater financial independence and security.
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) Paying expenses with pretax dollars
A)increases taxable income.
B)increases take-home pay.
C)increases after-tax income.
D)is only a good idea for high income earners.
Answer: C
Q2) The study of personal finance involves how people _____ their financial resources.
A)spend
B)save
C)invest
D)All of these.
Answer: D
Q3) When prices rise,the purchasing power of the dollar declines by the same percentage.
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 ____ is a highly regarded interest inventory.
A)Strong Interest Inventory
B)Stanford-Binet Assessment
C)Likert Inventory
D)Simpson Test of Preferences (STOP)
Answer: A
Q2) You should not take the job if the geographic location is not what you want.
A)True
B)False
Answer: False
Q3) A career plan provides guidance to help you attain your career goals.
A)True
B)False
Answer: True
Q4) Which of the following statements about job interviews is correct?
A)The interview is the single most important part of your search for employment.
B)The average length of an interviewing process is 6 to 30 days.
C)You should focus on the company's needs not yours.
D)all of the above
Answer: D
Page 4
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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) Mack and Amy are making regular contributions of $200 a month from their salaries to a money market savings account.These transactions will
A)increase their net worth on their balance sheet.
B)decrease the surplus on their cash-flow statement.
C)not change either their net worth or the surplus.
D)both increase their net worth on their balance sheet and decrease the surplus on their income and expense statement.
Answer: D
Q2) The liquidity ratio reveals how many months it would take to convert all assets into cash.
A)True
B)False
Answer: False
Q3) Discretionary income is used to pay for things like A)auto loans.
B)food.
C)rent.
D)insurance.
Answer: B
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Page 5
Chapter 4: Managing Income Taxes
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201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/26521
Sample Questions
Q1) Interest paid on automobile loans is partially deductible as an itemized deduction (for those who can itemize).
A)True
B)False
Q2) The Fishers did very well on their investment choice.They earned $280 in dividend income from their stock investment this year.Later in the same year when they sold the stock,they realized a long-term capital gain of $2,984.How much of this dividend and capital gain income will they have to pay taxes on?
A)$2,704
B)$2,984
C)$3,264
D)$280
Q3) Taxes are defined as compulsory charges imposed by a government on its citizens and their property.
A)True
B)False
Q4) Personal income taxes are paid on all of your income.
A)True
B)False
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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) Which of the following might be used by an employer to pay an employee?
A)ATM card
B)stored-value card
C)preloaded debit card
D)prepaid card
Q2) When a customer uses a debit card to pay for a purchase,funds must be paid as of the next due date on the account.
A)True
B)False
Q3) Which of the following are examples of monetary assets?
A)Cash on hand, corporate stock, and insurance
B)Money market accounts, cash on hand, and certificates of deposit
C)Savings accounts, interest-earning checking accounts, and corporate stock
D)Real estate, money market accounts, interest-earning checking accounts
Q4) Periodically,you should conduct an account reconciliation in which you compare your records with your bank's records.
A)True
B)False
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7
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) Credit cards allow repeated use of credit as long as equal monthly payments are maintained over a set period of time.
A)True
B)False
Q2) Data on bankruptcy can be included in your credit file for ____ years.
A)7
B)10
C)13
D)15
Q3) Which of the following is a bankruptcy protection scheme that allows income earners to satisfy outstanding debts in whole or in part within a specific time frame?
A)wage earner plan
B)debt consolidation
C)flipping
D)garnishment
Q4) Prescreened refers to a credit card offer that a bank aims at certain consumers based on their borrowing histories.
A)True
B)False
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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) The interest rates on cash advances using a credit card are usually higher than the rates for purchases.
A)True
B)False
Q2) If you cut up your credit card,the account is effectively closed.
A)True
B)False
Q3) If you purchase an item using a credit card and later take it back for a refund you will receive
A)a credit receipt and the amount will be charged back to the merchant by your card issuer.
B)a check in the mail for the refund.
C)a cash refund.
D)higher credit score.
Q4) The FCBA helps people who wish to dispute billing errors on revolving credit accounts.
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) ____ tend to have the widest range of choices and quality for used cars.
A)New car dealerships
B)Used car dealerships
C)Rental car companies
D)Repossession auctions
Q2) A _______ _________ report lists prior ownership,odometer readings,accident reports,flood damage,total-loss information,and any title fraud on a used vehicle
A)vehicle history
B)lemon record
C)buyer pattern
D)insurance history
Q3) New car manufacturers are required to disclose the vehicle's overall environmental impact in a window sticker.
A)True
B)False
Q4) The National Automobile Dealers Association website is a good source of used car prices.
A)True
B)False
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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) A due-on-sale clause in a mortgage loan enhances one's ability to sell his or her home via a loan assumption.
A)True
B)False
Q2) Real estate property taxes are typically not
A)locally assessed taxes.
B)tax-deductible expenses.
C)levied on the assessed value of property.
D)based on the purchase price of the home.
Q3) For most homeowners,mortgage payments represent total housing costs.
A)True
B)False
Q4) Mortgage lock-ins have a 30- or 60-day limit.For a fee you can buy more time through a
A)a settlement extension.
B)lock extension.
C)contingency clause.
D)rate hold.
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11
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) Earthquake insurance is covered under the standard homeowner's insurance policies.
A)True
B)False
Q2) Historically,homeowner's insurance paid only the actual cash value of property damaged or destroyed.
A)True
B)False
Q3) If you have an insurance policy with a $300 deductible and 30 percent coinsurance,you would pay 30 percent of your insured loss plus $300.
A)True
B)False
Q4) Floater policies provide named-peril protection for movable personal property.
A)True
B)False
Q5) Risk is the uncertainty about whether a financial loss will occur and how large the loss will be.
A)True
B)False
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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) A healthcare subsidy lowers the amount you spend on your monthly premium or reduces out-of-pocket costs
A)True B)False
Q2) Choosing your Medicare plan through a private company that combines Medicare Parts A and B into one plan called a Medicare Advantage plan can broaden health care benefits.
A)True
B)False
Q3) An any-occupation policy will cost more than an own-occupation policy,everything else being equal.
A)True
B)False
Q4) Your waiting period on disability income insurance can be ____ if you have some savings set aside as an emergency fund.
A)shortened
B)lengthened
C)costly
D)risky
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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) Term insurance is more profitable for the life insurance companies and agents than cash-value insurance.
A)True
B)False
Q2) Cash dividends are paid only on participating life insurance policies.
A)True
B)False
Q3) The policyholder may increase or decrease the amount of premium paid with a variable life insurance policy.
A)True
B)False
Q4) Which of the following policy features typically cost extra?
A)Nonforfeiture values
B)Waiver of premium
C)Guaranteed insurability
D)Both waiver of premium and guaranteed insurability
Q5) You should rely on an insurance agent to determine how much life insurance you need.
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) People seeking moderate returns should consider investing in A)dividend-paying common stock.
B)growth and income mutual funds.
C)high-quality corporate bonds.
D)(Any of these)
Q2) Investment risk represents the uncertainty that the yield on an investment will deviate from what is expected.
A)True
B)False
Q3) The real rate of return on a taxable investment yielding 12 percent annually would be ____ percent if the investor were in the 25 percent marginal tax bracket and inflation were 3 percent.
A)6.00 percent
B)6.48 percent
C)8.64 percent
D)9.00 percent
Q4) An investment that faces high marketability risk also has high liquidity risk. A)True B)False
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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) Stocks with low price/earnings ratios tend to have
A)lower yields.
B)higher risk.
C)higher prices.
D)a slower earnings growth rate.
Q2) In general,stocks that are expected to grow rapidly have low price/earnings ratios.
A)True
B)False
Q3) ____ are sold on a discount basis with the gain at maturity representing the interest earned.
A)Treasury bills
B)Treasury notes
C)Treasury bonds
D)Federal agency bonds
Q4) Interest income is generally received semiannually on zero-coupon bonds. A)True
B)False
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Page 16
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) Mutual fund investors must pay federal income taxes on
A)ordinary income dividend distributions.
B)capital gains distributions.
C)capital gains from selling their shares.
D)(all of these)
Q2) Investing in a mutual fund rather than an individual stock reduces
A)systemic risk.
B)pure risk.
C)market risk.
D)random risk.
Q3) A key figure to look for in assessing a mutual funds fees is the expense ratio found in the standardized expense table in the prospectus.
A)True
B)False
Q4) Financial risk is reduced through mutual fund investments because the fund is able to diversify investments.
A)True
B)False
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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) If you put money into collectibles,limit your investment to no more than 20 percent of your portfolio.
A)True B)False
Q2) One receives an actual title to property with the right-to-use purchase of a timeshare
A)True B)False
Q3) Examples of residential real estate investments include office buildings,medical centers,and gas stations.
A)True B)False
Q4) Commercial property purchased to rent to other is designed for residential living such as houses,duplexes,apartments,mobile homes,and condominiums.
A)True B)False
Q5) A buyer of a futures contract benefits if the price of the commodity increases. 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) One can create a trust without an attorney.
A)True
B)False
Q2) Divorce terminates an ex-spouse's status as the named beneficiary of a retirement plan or a life insurance policy.
A)True
B)False
Q3) For individuals age 50 and above,the largest permissible yearly IRA contribution is A)20 percent of AGI.
B)$5,500.
C)$1,000.
D)$6,500.
Q4) A beneficiary designation on an asset allows that asset to go directly through the probate process.
A)True
B)False
Q5) Commissions are not charged when purchasing an annuity.
A)True
B)False
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