Money Management Exam Questions
Course Introduction
Money Management is a practical course designed to equip students with essential financial skills for personal and professional success. The course covers foundational topics such as budgeting, saving, investing, debt management, and credit usage. Students learn to analyze financial statements, set realistic financial goals, and make informed decisions about income, expenses, and financial products. Interactive exercises and real-life case studies help students understand concepts like risk management, retirement planning, and responsible borrowing. By the end of the course, students will be empowered to create effective financial plans and make sound monetary choices to enhance their financial well-being.
Recommended Textbook
Focus on Personal Finance 5th Edition by Jack R. Kapoor
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14 Chapters 1546 Verified Questions
1546 Flashcards
Source URL: https://quizplus.com/study-set/3062 Page 2
Chapter 1: Personal Financial Planning in Action
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86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/60778
Sample Questions
Q1) The 'borrowing' component in a financial plan relates to
A) Acquiring adequate insurance coverage
B) Investing for long-term growth
C) Setting up a budget
D) Obtaining financial resources from employment, investments or ownership
E) Maintaining control over credit-buying habits
Answer: E
Q2) Many Americans have money problems because of
A) Poor planning and weak money management habits
B) Too many clearly defined goals
C) Proper use of credit
D) Not enough advertising to make effective decisions
E) Controlled spending
Answer: A
Q3) Inflation is most harmful to people with incomes expected to increase.
A)True
B)False
Answer: False
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Chapter 2: Money Management Skills
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/60779
Sample Questions
Q1) The inability to pay debts when they are due because liabilities far exceed the value of assets is called
A) Liabilities.
B) Insolvency.
C) Net worth.
D) Cash flow.
E) Liquid assets.
Answer: B
Q2) When creating a personal balance sheet, which of the following is a real estate asset?
A) Cash value of life insurance
B) Vacation property
C) Possessions in your home
D) Investments for financing children's education
E) Retirement accounts
Answer: B
Q3) A mortgage is an amount borrowed to buy a tv or other personal possession.
A)True
B)False
Answer: False
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Chapter 3: Taxes in Your Financial Plan
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103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/60777
Sample Questions
Q1) Tom needs to complete his taxes. He should be able to find a tax preparation service to complete his simple tax return for as little as $15.
A)True
B)False
Answer: False
Q2) Tanya is a single low-income working parent, and Fred is a single high-income working parent. Because of her status, Tanya, but not Fred, may be eligible for the A) Alternative minimum tax.
B) Earned income credit.
C) Itemized deduction credit.
D) Student deduction.
E) Withholding credit.
Answer: B
Q3) Every taxpayer receives at least the standard deduction, a set amount on which no taxes are paid.
A)True
B)False
Answer: True
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5
Chapter 4: Financial Services: Saving Plans and Payment Accounts
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) The text discusses several types of bonds. Which bond pays interest for 30 years that is exempt from state and local taxes?
A) Series E
B) Series EE
C) Series HH
D) Series I
E) Series Q
Q2) Brenda lost her debit card. When she realized it was gone, her account had $173 in unauthorized charges. She notified her financial institution within two days. How much is she potentially liable for?
A) $0.
B) $25.
C) $50.
D) $173.
E) $500.
Q3) Financial service activities through your smartphone or tablet include text banking, mobile web banking, and banking apps.
A)True
B)False
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Chapter 5: Consumer Credit: Advantages, Disadvantages,
Sources, and Costs
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143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/60775
Sample Questions
Q1) When evaluating your credit application, a lender may NOT
A) Ask your date of birth.
B) Deny you credit if you receive public assistance.
C) Request a list of the ages of your dependents.
D) Inquire if you ever received credit before from that lender.
E) Ask your marital status
Q2) A credit card holder who pays off his balances in full each month is known as
A) An impulsive lender.
B) A convenience user.
C) A home equity holder.
D) A borrower
E) All of these are correct.
Q3) The easiest loans to obtain are also the least expensive.
A)True
B)False
Q4) The annual percentage rate is lower than the stated rate for loans that are repaid in monthly payments.
A)True
B)False
7
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Chapter 6: Consumer Purchasing Strategies and Wise
Buying of Motor Vehicles
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116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/60774
Sample Questions
Q1) Tracy went to a local restaurant and became ill from the meal she ate. She can contact her city or county health department to handle problems with the restaurant.
A)True
B)False
Q2) While evaluating alternatives, all of the following are appropriate questions you could ask before making a major purchase except
A) Is it possible to delay the purchase or to do without the item?
B) Should I pay for the item with cash or buy it on credit?
C) Which brands should I consider?
D) How do the price, quality, and service compare at different stores?
E) All of these are questions that should be asked.
Q3) A service contract is frequently called an extended warranty even though service contracts are not warranties.
A)True B)False
Q4) The unit price of a 32-ounce jar of honey that costs $8.32 is $0.13 per ounce. A)True B)False
Page 8
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Chapter 7: Selecting and Financing Housing
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) An approved mortgage application usually locks in an interest rate for 60-120 days.
A)True
B)False
Q2) Paul is looking for a low-interest, low-downpayment loan for his first home, but he is not a veteran.. He might be eligible for a(n)
A) ARM.
B) FHA loan.
C) Negative amortization.
D) Payment cap.
E) VA loan.
Q3) The most common conventional mortgage is the 20-year ARM.
A)True
B)False
Q4) Jim wants to make an offer to buy an older house. At this point, he should
A) Move into the house.
B) Set up a home inspection.
C) Contact the seller to purchase his lawn tools.
D) Close the purchase transaction.
E) Sign his mortgage papers.
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Chapter 8: Home and Automobile Insurance
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103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/60772
Sample Questions
Q1) The best place to keep a household inventory is
A) On a bookshelf in the family room.
B) In the freezer.
C) In the attic.
D) In a safe deposit box.
E) In the garage.
Q2) Cindy was contacted by her home insurance agent to discuss ways to decrease her premium. Which of the following should NOT reduce her premium?
A) Installing an alarm system.
B) Increasing the amount of coverage.
C) Installing smoke detectors or a fire extinguisher.
D) Increasing her deductible.
E) Installing dead-bolt locks.
Q3) Homeowner's insurance covers all of the following except
A) Personal property.
B) Personal liability and related coverage.
C) Additional living expenses.
D) Automobiles.
E) Building in which you live and any other structures on the property.
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Page 10
Chapter 9: Health and Disability Insurance
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) A provision in a health insurance policy that sets specific levels of repayment for certain services is called
A) Reimbursement.
B) Out-of-pocket limit.
C) Deductible.
D) Internal limit.
E) Indemnity.
Q2) This health insurance provision lets your insurer make direct payments to your doctor or hospital.
A) Assigned benefits
B) Benefit limits
C) Exclusions and limitations
D) Internal limits
E) Service benefits
Q3) A deductible is a set amount you must pay toward medical expenses before the insurance company pays benefits.
A)True
B)False
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11
Chapter 10: Financial Planning With Life Insurance
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91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/60770
Sample Questions
Q1) If you have a conversion term policy,
A) Your premium will not increase when you renew it.
B) You can convert your policy from permanent to term at any time.
C) You can convert your term policy to a permanent policy.
D) Your policy will have the same premium as other term policies.
E) Your benefit to your beneficiary will be less as time passes.
Q2) Georgia was supposed to pay her premium by the 15<sup>th</sup> of the month. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium (without penalty)?
A) Incontestability clause
B) Misstatement of age provision
C) Naming a beneficiary
D) Policy reinstatement
E) The grace period
Q3) Which of the following is NOT a type of permanent life insurance?
A) Whole life
B) Variable life
C) Universal life
D) Adjustable life
E) Decreasing term
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Chapter 11: Investing Fundamentals and Bonds
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/60769
Sample Questions
Q1) Speculative investments include all of the following except A) Options.
B) Commodities.
C) Precious stones.
D) Savings accounts.
E) Precious metals.
Q2) Business failure risk can be due to
A) A reduction in purchasing power.
B) Changes in interest rates.
C) Bad management and/or unsuccessful products.
D) Political or social conditions.
E) Predictable sources of income.
Q3) To investors, liquidity means their investments will increase in value.
A)True
B)False
Q4) Considering your role in the investment process, it is important to let the investments manage themselves after you invest.
A)True
B)False
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Chapter 12: Investing in Stocks
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142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/60768
Sample Questions
Q1) Sandy has invested in a stock. She is assured of receiving a dividend.
A)True
B)False
Q2) If the record date is Friday, April 7, then the ex-dividend date is Tuesday, April 11.
A)True
B)False
Q3) The findings of a stock advisory service is the only information that an investor should rely on in order to make decisions about buying or selling stocks.
A)True
B)False
Q4) The NYSE is an example of a(n)
A) Initial public offering.
B) Investment bank.
C) Primary market.
D) Intermediary market.
E) Securities exchange.
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Chapter 13: Investing in Mutual Funds
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85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/60767
Sample Questions
Q1) Melinda wants to withdraw some money from her mutual fund. She has a minimum asset value of $10,000. Which of the following is not an option available for her to systematically withdraw some money?
A) Withdraw a specified, fixed dollar amount each investment period until the fund has been exhausted
B) Sell off a certain number of shares each investment period
C) Withdraw a fixed percentage of asset growth
D) Withdraw all income dividends and capital gain distributions earned in an investment period
E) Withdraw all principal and leave interest dividends and capital gain distributions in the account
Q2) Mutual funds carry a "real risk" that they can decrease in value.
A)True
B)False
Q3) Mutual funds provide amateur management.
A)True
B)False
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Page 15
Chapter 14: Starting Early: Retirement and Estate Planning
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/60766
Sample Questions
Q1) An employer's contribution will vary according to the company's profits in a
A) 401(k) plan.
B) Money-purchase plan.
C) Stock bonus plan.
D) Profit-sharing plan.
E) Salary-reduction plan.
Q2) An "average" older (65+) household spends most of its money on
A) Entertainment.
B) Food.
C) Housing.
D) Medical care.
E) Transportation.
Q3) This tax is only imposed by state governments.
A) Estate tax
B) Gift tax
C) Inheritance tax
D) Trust federal income tax
E) Will tax
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