Personal and Family Finance Exam Review
Course Introduction
Personal and Family Finance is a foundational course designed to equip students with the essential knowledge and practical skills required to make informed financial decisions for themselves and their families. Topics covered include budgeting, saving, investing, credit management, insurance, retirement planning, taxes, and strategies for managing financial risks. Emphasis is placed on goal setting, understanding financial products, and developing lifelong habits that support financial well-being. Through real-life examples and hands-on activities, students learn to analyze financial situations, create plans for achieving personal financial goals, and address common financial challenges faced by individuals and families.
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) Place the following steps for a personal financial plan in the proper order:
1. Review and revise the financial plan
2. Identify alternative courses of action
3. Create and implement your financial action plan
4. Determine your current financial situation
5. Evaluate alternatives
6. Develop your financial goals
A) 6, 1, 2, 5, 3, 4
B) 4, 2, 6, 5, 3, 1
C) 3, 6, 4, 2, 5, 1
D) 4, 6, 2, 5, 3, 1
E) 6, 2, 5, 4, 1, 3
Answer: D
Q2) Which of the following is correct?
A) A car purchase is a consumable-product goal
B) Entertainment is a durable-product goal
C) Appliances and sporting equipment are intangible-purchase goals
D) Leisure and education are durable-product goals
E) Food and clothing are consumable-product goals
Answer: E
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Page 3
Chapter 2: Money Management Skills
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/60779
Sample Questions
Q1) An example of a fixed expense is
A) Medical expenses.
B) Gifts.
C) Utilities.
D) A mortgage payment.
E) Recreation.
Answer: D
Q2) Brokerage statements are an example of a(n) ____________ record.
A) investment
B) insurance
C) estate planning
D) tax
E) consumer purchase
Answer: A
Q3) Net worth is the amount owed to others.
A)True
B)False
Answer: False
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Page 4
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) The types of tax services available that offer professional tax assistance include:
A) National Firms (such as H&R Block)
B) Enrolled Agents
C) Accountants
D) Attorneys
E) All of the above
Answer: E
Q2) Determining adjusted gross income is the final step in calculating federal income tax.
A)True
B)False
Answer: False
Q3) In 2014, the U.S. federal tax tables included tax rates of
A) 0%, 10%, 20%, 30%, 40%, and 50%.
B) 7%, 15%, 30%, 33%, 38%, and 52%.
C) 0%, 25%, 50%, and 75%.
D) 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
E) 0%, 5%, 20%, 30%, and 50%.
Answer: D
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Page 5
Chapter 4: Financial Services: Saving Plans and Payment Accounts
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114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/60776
Sample Questions
Q1) Nora bought a used car and was told that she needed a personal check with guaranteed payment. She obtained a
A) Certified check.
B) Cashier's check.
C) Traveler's check.
D) Money order.
E) None of the above.
Q2) Which of the following is correct?
A) Canceled checks are typically returned to customers.
B) Overdraft protection is a loan banks make to their checking account customers who have large balances.
C) Bank customers typically are provided with online access to view and print checks that have been paid.
D) Overdraft protection is usually more costly than fees charged for checks with insufficient funds.
E) Checking accounts packaged with several services (safe deposit box, travelers checks, low-rate loans, etc.) for a single fee usually are a good value.
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6
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) The least expensive loans (loans with low interest) are often provided by parents or other family members.
A)True
B)False
Q2) A personal bankruptcy remains on a credit file for no more than 5 years.
A)True
B)False
Q3) Researchers have discovered a link between credit scores and impatience.
A)True
B)False
Q4) Which of the following is an example of open-end credit?
A) An automobile loan
B) A department store credit card
C) An installment loan for purchasing furniture
D) A mortgage loan
E) Single lump-sum credit
Q5) Many people use credit to live within their means.
A)True
B)False
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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) Jennifer is thinking about leasing a sports car. She will make monthly payments based on a money factor and the price of the vehicle, which is called the
A) Invoice price.
B) Sticker price.
C) Set price.
D) Capitalized cost.
E) Residual value.
Q2) A vehicle lease has several costs. Which of the following is the expected value at the end of the lease?
A) Capitalized cost
B) Money factor
C) Payment schedule
D) Residual value
E) Trade-in value
Q3) After two or three years of making loan payments on a new car, the balance owed is greater than the value of the car, which is a situation referred to as upside-down.
A)True
B)False
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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) When interest rates are high and the demand for homes is low, prices of homes will likely be higher .
A)True
B)False
Q2) Diane purchased her house and had it assembled before it was moved to her lot.
She purchased a
A) Condominium.
B) Cooperative housing.
C) Manufactured home.
D) Single-family dwelling.
E) Townhouse.
Q3) This gives the landlord the right to take legal action against a tenant for nonpayment of rent or destruction of property.
A) Lease
B) Lessee
C) Lessor
D) Rental statement
E) Sublease
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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) Motor vehicle crashes cost over ______ in lost wages and medical bills every year.
A) $10,000
B) $750,000
C) $12 million
D) $150 billion
E) $2 trillion
Q2) The failure to take ordinary or reasonable care to prevent accidents from happening is called
A) Hazard.
B) Negligence.
C) Peril.
D) Premium.
E) Risk.
Q3) A brick home will usually cost less to insure than a similar structure made of wood.
A)True
B)False
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Chapter 9: Health and Disability Insurance
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106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/60771
Sample Questions
Q1) Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from
A) A public income insurance program.
B) Her health insurance plan.
C) Medicare.
D) Social Security.
E) Worker's compensation.
Q2) Health care costs have decreased because of aging baby boomers using fewer health care services.
A)True
B)False
Q3) 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
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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) Another name for permanent life insurance is
A) Whole life.
B) Renewable term.
C) Conversion term.
D) Decreasing term.
E) Return-of-Premium term.
Q2) Which of the following statements is incorrect?
A) A deferred annuity allows an individual to receive payments from an annuity at some future date.
B) An immediate annuity allows an individual to receive income payments from an annuity beginning at once.
C) A life insurance policy allows the beneficiary to receive proceeds at some future date.
D) An annuity is more advisable for people in poor health than for those who are likely to live longer than average.
E) An annuity is a financial contract written by an insurance company that provides you with regular income.
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Chapter 11: Investing Fundamentals and Bonds
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) Which of the following investors would mostly prefer speculative investments with higher risks over conservative investments with less risk?
A) A 25-year-old single investor who does not have an emergency fund
B) An unemployed single parent who just received a $300,000 divorce settlement
C) A 70-year-old who uses his dividends and interest to pay his monthly bills
D) A dual-career couple (with no children) in their 30s whose combined income is $95,000
E) A retired couple with $850,000 in retirement savings
Q2) If you are unable to make your credit card payments, you should not contact your credit card company.
A)True
B)False
Q3) Investments that earn a lower rate of interest will have a higher total dollar return than those that earn a high rate of interest.
A)True
B)False
Q4) Municipal bonds generally are only tax-exempt at the federal level.
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) A legal form that requests that stockholders transfer their voting rights to individual(s) is called a
A) Bond.
B) Common stock.
C) Dividend.
D) Savings account.
E) Proxy.
Q2) The EPS of a company can be compared to the industry's average EPS.
A)True
B)False
Q3) Given the information shown here for NMOP Inc., calculate the dividend yield.
Annual dividend = $4.00
Current market price per share = $60.00
A) 6.7%.
B) $0.67.
C) 15%.
D) $1.50.
E) $4.00.
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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) An example of a lifecycle fund is a fund that
A) Assists investors with planning for retirement by a specific date.
B) Initially invests in conservative securities, then changes to invest in more risk-oriented securities as time goes by.
C) Invests in shares of other mutual funds in order to increase diversification and asset allocation.
D) Has principal protection as its main objective.
E) None of these is an example of a lifecycle fund.
Q2) Which of the following is a fund that invests in the stocks or securities contained in a specific stock or securities index?
A) Closed-end fund
B) Exchange-traded fund
C) Net asset value fund
D) No-load fund
E) Open-end fund
Q3) The only way to get reliable information about mutual funds is to pay a fee for it.
A)True
B)False
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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) The maximum gift that can be given to another person without incurring gift taxes is
A) $0.
B) $1,000.
C) $10,000.
D) $14,000.
E) $16,500.
Q2) A traditional marital share will leaves everything to your spouse.
A)True
B)False
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
Q4) A stated amount will identifies the amount that will not go to your spouse.
A)True
B)False
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Page 16