Personal and Family Finance
Exam Materials
Course Introduction
Personal and Family Finance explores the fundamental principles and practical applications of managing financial resources for individuals and families. The course covers topics such as budgeting, saving, credit management, debt reduction, investment strategies, insurance planning, retirement preparation, tax considerations, and ethical decision-making. Through real-life scenarios and hands-on activities, students learn to set financial goals, analyze financial situations, and develop lifelong skills for responsible and informed financial decision-making that promote well-being and stability for themselves and their families.
Recommended Textbook
Personal Finance 2nd Edition by Robert B. Walker
Available Study Resources on Quizplus
17 Chapters
1143 Verified Questions
1143 Flashcards
Source URL: https://quizplus.com/study-set/3290
Page 2
Chapter 1: Money Matters: Values, vision, mission, and You
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/65328
Sample Questions
Q1) An example of "passive income" is
A)income received from your investments.
B)income received from your part-time job,where you do nothing.
C)money received from an inheritance.
D)lottery winnings.
Answer: A
Q2) Society is most in control of your finances.
A)True
B)False
Answer: False
Q3) How can you reach financial independence sooner?
A)Lower your expenses and increase your saving or investing
B)Increase your income and expenses
C)Decrease your income and increase your expenses
D)There is no way to speed up the financial independence process
Answer: A
Q4) Passive income is income received from your part-time job.
A)True
B)False
Answer: False
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Planning and Budgeting
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/65327
Sample Questions
Q1) When constructing a budget,you should take all the following into account except for A)spending habits.
B)extraordinary expenses.
C)value of assets.
D)income.
Answer: C
Q2) Is it worth it,from a financial perspective,to go to college and pursue a degree?
A)Yes - your future earnings will more than make up for the opportunity costs involved
B)No - college can cost too much to make it a good investment
C)If you plan to study hard and get good grades
D)If you do not have to borrow money to pay for it
Answer: A
Q3) A possible first step to gaining perspective into your financial situation is to keep a spending journal.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Financial Instruments and Institutions
Available Study Resources on Quizplus for this Chatper
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/65326
Sample Questions
Q1) With a reverse mortgage,upon the death of the last surviving homeowner,if there is negative equity in the home,the survivors will owe money to the bank.
A)True
B)False
Answer: False
Q2) What is a credit union?
A)A not-for-profit depository institution that serves members who have a common affiliation
B)A financial institution that accepts deposits and uses the funds to provide private business and personal loans
C)A group of workers who pay union dues for credit
D)A place where it snows
Answer: A
Q3) Accounts that are opened in the dependent life stage include A)savings.
B)college savings.
C)IRA.
D)both savings and college savings accounts.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Time Value of Money
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/65325
Sample Questions
Q1) All of the following are related to the time value of money except A)FVIF.
B)PVIFI.
C)PVIF.
D)FVIFA.
Q2) What two cities are currently producing coins for general circulation?
A)Denver and Philadelphia
B)Philadelphia and San Francisco
C)Denver and San Francisco
D)Fort Worth and Washington,D.C.
Q3) You have a long-term goal of paying off your school loans in five years.You will graduate with a loan debt of $20,000 and an interest rate of 6%.How much will you need to pay each month to have the debt paid off in five years?
A)$386.66
B)$400.00
C)$390.17
D)$368.08
Q4) The government has an unlimited supply of money.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Consumer Credit: Credit Cards and Student Loans
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/65324
Sample Questions
Q1) There are no advantages to the use of credit cards and they should be avoided at all cost.
A)True
B)False
Q2) What does APR stand for?
A)Automatic pay raises
B)Auto payment rates
C)Annual percentage rate
D)Annual pay rate
Q3) Title loan lenders are required to show you their interest rates in annual percentages which can approach 300% depending upon the state.
A)True
B)False
Q4) Which type of payment option postpones the repayment of principal for a certain time period?
A)Student loan refinancing
B)Deferment
C)Forbearance
D)Student loan refinancing AND forbearance
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Credit Bureau Reports and Identity Theft
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/65323
Sample Questions
Q1) People with the best credit scores use how much of their credit limits?
A)<50%
B)<7%
C)<30%
D)<10%
Q2) What percent of the FICO score comes from your length of credit history?
A)10%
B)15%
C)30%
D)35%
Q3) What is contained in a credit report?
A)Bankruptcy records
B)Unpaid child support
C)Addresses
D)All of the options are correct.
Q4) Which of the following are credit reporting agencies?
A)Equifax
B)TransUnion
C)Experian
D)All of the options are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Auto and Home Loans
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/65322
Sample Questions
Q1) What is the second step of the auto-purchase process?
A)Shop for financing
B)Comparison shop
C)Determine what you can afford
D)Analyze needs versus wants
Q2) A real estate agent works for the ________.
A)buyer
B)seller
C)buyer or seller
D)buyer and seller
Q3) A home equity loan for the purpose of debt consolidation is
A)never a good idea.
B)once in a while a good idea.
C)not always a good idea.
D)hands down,the best way to go.
Q4) What does LTV stand for when buying a home?
A)Lease to value
B)Loan times vestment
C)Loan to value
D)Lowered time value
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Debt,foreclosure,and Bankruptcy
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/65321
Sample Questions
Q1) There are some important habits to follow after your bankruptcy has been discharged.Which of the following is not one of them?
A)Change your lifestyle
B)Pay everything on time
C)Get all new credit cards
D)Establish a secured credit card
Q2) Ava decided to establish an emergency fund for herself.She established this fund by "paying herself first" and transferring money out of each paycheck into her new savings account.She established her emergency fund at a bank that is different from her usual bank where she has her checking account.Ava's emergency fund
A)is a smart idea because having her emergency fund at a different bank makes it more difficult for her to gain access to her money and make a transfer.
B)gives her more time to think twice about using her emergency fund if she has to physically go to a different bank other than her checking account bank for access to her money.
C)has helped her establish a life-long habit to develop her financial security.
D)All of the choices are correct.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Tax Management
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/65320
Sample Questions
Q1) Which of the following is an example of a refundable credit?
A)Child tax credit
B)Adoption credit
C)Earned income credit
D)All of the choices are correct.
Q2) What is the alternative minimum tax (AMT)?
A)The tax rate levied on your last dollar of taxable income
B)The tax rate that is calculated by dividing the total income taxes paid by the total income
C)The extra tax you have to pay on top of your regular income tax
D)An alternative tax you may opt for
Q3) You should consider your marginal tax rate when deciding how and when to sell investments.
A)True
B)False
Q4) What are the two kinds of education credits?
A)Hope and lifetime learning
B)Early and late
C)First and second
D)First and last
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Insurance: Covering Your Assets
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/65319
Sample Questions
Q1) Comprehensive and collision insurance do not cover repairs on your own car if you are at fault.
A)True
B)False
Q2) How do independent agents differ from company insurance agents?
A)Company insurance agents may represent a single company provider who sells insurance from many companies.
B)Independent insurance agents represent more than one insurance company and can sell insurance from a wide range of insurance companies.
C)There is no difference between an independent and company insurance agent.
D)Independent insurance agents represent one insurance company.
Q3) Homeowner's insurance generally does not cover earthquakes or floods.
A)True
B)False
Q4) The three major types of permanent life insurance policies are whole life,universal life,and variable life.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Investment Basics
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/65318
Sample Questions
Q1) The first question to ask when deciding whether to save or invest is:
A)How much money do I have in an emergency fund?
B)When will I need the money?
C)Is the money insured?
D)Can I get at least 10% return on this money?
Q2) Which is not one of the advantages of 529 college savings plans?
A)You pay no taxes on the account's earnings.
B)Anyone (your mom,dad,grandparents,uncles,aunts,etc.)can contribute to the account and,in some state-sponsored plans,the contribution is deductible from state taxes.
C)Even if you are currently in college,you can contribute to a 529 plan,and the earnings won't be taxed if they are used for qualified educational expenses.
D)Balances left over after completing your education can be rolled over into a Roth IRA.
Q3) A Roth IRA does not offer any tax advantage on the contribution,but it grows tax-free and all withdrawals over age 59 ½ (providing the account has been open over 5 years)are tax-free.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Mutual Funds
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/65317
Sample Questions
Q1) Since,in most cases,their compensation is tied to the performance of their funds,fund managers are motivated to make their funds grow.
A)True
B)False
Q2) An advantage of buying mutual funds from a full-service broker or financial planner is ________.
A)no fees or commissions
B)professional advice and help in making your investment decisions
C)knowing that all full-service brokers and financial planners do everything in the best interests of their customers
D)knowing that your returns are guaranteed
Q3) A(n)________ is a sales charge that can be charged when investments are made in the fund or when money is withdrawn from the fund.
A)Fund fee
B)Load
C)Expense ratio
D)Transaction fee
To view all questions and flashcards with answers, click on the resource link above.
14
Chapter 13: Stocks
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/65316
Sample Questions
Q1) Which company has a higher reliance on debt to support operations: Widget,with a debt ratio of 2; Mouse Trap,with a current ratio of 1.7; Gadget,with a current ratio of 1.6; or Better Trap,with a current ratio of 1.5?
A)Widget
B)Mouse Trap
C)Gadget
D)Better Trap
Q2) What is the Dow Jones Industrial Average?
A)Thirty well-known stocks that represent the United States' strongest companies
B)A market index that has had the same stocks since its inception
C)Another name for the S&P 500
D)A market index that is stronger than the S&P 250
Q3) What is involved in "going public"?
A)Offering goods and services to the public
B)Selling stock to the public in the primary market
C)Public speaking
D)Revealing corporate secrets to the public
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Bonds
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/65315
Sample Questions
Q1) Treasury bills ________.
A)pay interest semiannually
B)pay interest monthly
C)are typically issued at a discount from the face amount
D)are issued for greater than 10 years
Q2) If you had $10,000 to invest in bonds and your intent was to ladder the bond investments at segments of $1,000 every year,for what period of time would each bond be set?
A)each $1,000 would purchase a 10-year bond,one per year,for the next ten years
B)each year,$10,000 would purchase a single 1-year bond
C)purchase one 10-year bond for $10,000
D)each $1,000 would purchase a 1-year bond,one per year,for the next ten years
Q3) A bond ladder ________.
A)helps reduce the risk of interest rates changes by spacing out the maturities
B)refers to monthly contributions into a bond mutual fund
C)guarantees that you will always get the best interest rates on the bonds you invest in D)is a strategy that helps you achieve your financial goals by "climbing the ladder"
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Real Estate Investments
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/65314
Sample Questions
Q1) What is an S Corporation?
A)A company that has limited personal liability and allows you to pass the income for tax purposes or be taxed as a corporation.
B)A regular corporation that has 75 or less employees,is taxed like a partnership,and passes net income or losses on the shareholders.
C)A voluntary contract among two or more persons to place their capital,labor,and skills in a business corporation with the understanding that there will be a sharing of the profits and losses among the partners.
D)A corporation located in a state that begins with the letter 'S.'.
Q2) What options do you have in real estate investment if you do not have the time or skill to be a landlord?
A)Stay out of the business
B)Flip real estate
C)Quit your job so you have the time; the tax advantage will be worth it
D)Invest in a real estate investment trust (REIT)
Q3) Passive income is not one of the advantages of owning rental property.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
17
Chapter 16: Retirement and Estate Planning
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/65313
Sample Questions
Q1) The Social Security Act was signed into law in 1935 by President Franklin D.Roosevelt and was meant to provide a safety net against poverty brought on by all of these except A)unemployment.
B)illness.
C)disability.
D)All of the options are correct.
Q2) While earlier is better,when you ________ ,you should start putting money toward retirement.
A)are born
B)get married
C)get your first career job
D)turn 18
Q3) What documents should not be kept in your safety deposit box?
A)Life insurance policies and your will
B)Military services records
C)Divorce papers
D)Birth certificate
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Financial Planning for Life
Available Study Resources on Quizplus for this Chatper
23 Verified Questions
23 Flashcards
Source URL: https://quizplus.com/quiz/65312
Sample Questions
Q1) To be frugal is to ________.
A)be cheap
B)not be wasteful
C)be deprived
D)be in drudgery
Q2) At the end of each year,as part of a yearly review,you should ________.
A)review and revise your budget
B)treat yourself to one luxury
C)refinance your home
D)All of the options are correct.
Q3) What is frugality?
A)Spending your money according to your priorities and vision for the future
B)Being creative and finding savings and more efficient ways to achieve your objectives
C)Being in control of your income and expenses
D)All of the options are correct.
Q4) It is important to prioritize,minimize,organize,and economize things that exhaust you in your life.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19