Personal Finance
Exam Bank
Course Introduction
Personal Finance is an essential course designed to equip students with the knowledge and skills necessary to manage their personal financial resources effectively. The course covers a range of topics including budgeting, saving, investing, credit management, insurance, tax planning, and retirement strategies. Through practical case studies and real-world applications, students learn to make informed decisions that support their short-term and long-term financial goals. Emphasis is placed on creating financial plans, understanding the impact of economic factors on personal finances, and recognizing the significance of responsible financial behavior in achieving financial stability and independence.
Recommended Textbook
Focus on Personal Finance 5th Edition by Jack R. Kapoor
Available Study Resources on Quizplus
14 Chapters
1546 Verified Questions
1546 Flashcards
Source URL: https://quizplus.com/study-set/3062 Page 2
Chapter 1: Personal Financial Planning in Action
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/60778
Sample Questions
Q1) _________ goals relate to infrequently purchased, expensive items.
A) Short-term
B) Intangible-purchase
C) Durable-product
D) Consumable-products
E) Intermediate
Answer: C
Q2) Financial Plans are only created by financial planners.
A)True
B)False
Answer: False
Q3) If a $10,000 investment earns interest of $500 in one year, what is its rate of return?
A) .5 percent
B) 10 percent
C) 50 percent
D) 75 percent
E) 100 percent
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Money Management Skills
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/60779
Sample Questions
Q1) The current financial position of an individual or family is best presented with the use of a
A) Budget.
B) Cash flow statement.
C) Balance sheet.
D) Bank statement.
E) Time value of money report.
Answer: C
Q2) Financial documents that you may need quick access to should be kept in a safe deposit box.
A)True
B)False
Answer: False
Q3) Money management refers to day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Taxes in Your Financial Plan
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/60777
Sample Questions
Q1) Evan is not concerned about immediate tax benefits but instead wants his investment to grow in value on a tax-free basis. Which of these would be the best for him to invest in today?
A) Municipal bonds
B) A tax-deferred annuity
C) A Section 529 savings plan
D) A 401(k) plan
E) A Roth IRA
Answer: E
Q2) Form 4868 allows a taxpayer to obtain a six-month extension on filing and paying federal taxes without penalty.
A)True
B)False
Answer: False
Q3) All individuals with taxable income are subject to the AMT calculation.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Financial Services: Saving Plans and Payment Accounts
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/60776
Sample Questions
Q1) A bump-up CD allows an investor to increase the amount invested at various intervals.
A)True
B)False
Q2) Another name for a regular savings account is a
A) Certificate of deposit.
B) Checking account.
C) Money market account.
D) Money market fund.
E) Passbook or statement account.
Q3) Patrick is interested in opening a different account that will allow him to write a few checks each month for a fee per check, but he is unable to maintain a minimum balance. He should open a(n)
A) Regular savings account.
B) Activity account.
C) Interest-earning checking account.
D) Share draft account.
E) Passbook account.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Consumer Credit: Advantages, Disadvantages,
Sources, and Costs
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/60775
Sample Questions
Q1) Which of the following is NOT a valid reason for borrowing?
A) Borrowing for a college education.
B) Paying for everyday living expenses.
C) Buying a car so a homemaker can return to work.
D) Paying for a medical emergency.
E) All of these are valid reasons for borrowing.
Q2) If a loan is being paid in installments instead of one lump sum at the end of the loan period, the actual rate of interest
A) Will be lower than the stated rate.
B) Will be the same as the stated rate.
C) Will be higher than the stated rate.
D) Will be unrelated to the stated rate.
E) Cannot be determined without knowing the length of the loan period.
Q3) If you are denied credit,
A) You have a legal right to sue the credit bureau.
B) Your parent can purchase a copy of your credit report.
C) You have a legal right to sue the company that denied you credit.
D) The denial will remain in your credit file for 10 years.
E) You are entitled to a free copy of your credit report.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Consumer Purchasing Strategies and Wise
Buying of Motor Vehicles
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/60774
Sample Questions
Q1) Craig wants to get his old car repaired, but he doesn't want to spend much money. He probably will NOT want to go to the most expensive repair service, which is from a(n)
A) Car dealer.
B) Independent auto repair shop.
C) Mass merchandise retailer.
D) Service station.
E) Specialty shop.
Q2) Studies of consumer problems consistently rank auto repairs as one of the best consumer services with few consumer complaints.
A)True
B)False
Q3) Which of the following is not a legal option for high-income consumers?
A) Class action lawsuits
B) A lawyer
C) A legal aid society
D) Prepaid legal services
E) Small claims court
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Selecting and Financing Housing
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/60773
Sample Questions
Q1) Pauline just submitted an offer on her dream home. As evidence of good faith , she also included a(n)
A) Appraisal.
B) Contingency clause.
C) Dual agent.
D) Earnest money.
E) Counteroffer
Q2) Which of the following is a form of housing in which the owners pay a monthly fee for maintenance of the common areas?
A) Condominium
B) Cooperative housing
C) Manufactured home
D) Single-family dwelling
E) Apartment
Q3) The primary benefit of a home equity loan is
A) Its limited availability.
B) The deductibility of the loan interest on federal taxes.
C) The required monthly payments.
D) Tax-free income in the form of a loan.
E) All of the above are primary benefits.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Home and Automobile Insurance
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/60772
Sample Questions
Q1) If you choose to wear your seatbelt, you are using
A) Risk avoidance.
B) Risk reduction.
C) Risk assumption.
D) Risk shifting.
E) Risk increasing.
Q2) Personal property insurance covers
A) The theft of jewelry valued at $25,000.
B) Furniture and appliances, but not clothing or some electronics.
C) Clothing and some electronics, but not furniture and appliances.
D) All items up to 200% of the insured value of the home.
E) Personal property items up to 55-75% of the insured value of the home.
Q3) Madeline had a severe allergy attack and crashed her car into a telephone pole while sneezing. The damage to the telephone pole would be covered under Madeline's
A) Uninsured motorist's protection.
B) Property damage liability coverage.
C) Collision coverage.
D) Comprehensive physical damage coverage.
E) Bodily injury liability coverage.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Health and Disability Insurance
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/60771
Sample Questions
Q1) A health insurance policy that pays you back for actual expenses is called a reimbursement policy.
A)True
B)False
Q2) The duration of benefits for a disability income insurance plan can be
A) For only a few years.
B) Until age 65.
C) For life.
D) All of these are possibilities.
E) None of these is correct.
Q3) Administrative costs in the United States consume half of the health care dollars. spent.
A)True
B)False
Q4) The copayment provision deals with the amount that someone will pay for a bill such as 20% coinsurance.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Financial Planning With Life Insurance
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/60770
Sample Questions
Q1) Which of the following annuities is purchased with a lump-sum payment and allows an individual to receive income payments beginning now?
A) Term insurance
B) Deferred annuity
C) Whole life insurance
D) Immediate annuity
E) Universal life insurance
Q2) Amy bought a life insurance policy and named Ben as her beneficiary. She has since died. Who will receive the benefits from her policy?
A) Ben.
B) Ben's beneficiaries.
C) Her contingent beneficiaries.
D) Her parents.
E) None of these.
Q3) If you change your mind about your insurance policy, you have 60 days to return it to receive a refund of your premium.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Investing Fundamentals and Bonds
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/60769
Sample Questions
Q1) Assume that you purchase a $1,000 bond issued by GE that pays 5% interest each year. What is the annual interest amount?
A) $5.00
B) $25.00
C) $40.00
D) $50.00
E) $1,000
Q2) At the least, you should keep purchase records of the actual dollar cost of your investments plus any commissions or fees paid.
A)True
B)False
Q3) The purpose of diversification or asset allocation is to spread your assets among several different types of investments to decrease risk.
A)True
B)False
Q4) Bond ratings range from AAA (the highest) to D (the lowest) for Standard & Poor's Corporation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Investing in Stocks
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/60768
Sample Questions
Q1) Gloria bought ABC stock on March 4, 2014, at a price of $5.87 and then quickly sold it on March 19, 2014, at $11.20. Gloria is classified as a speculator.
A)True
B)False
Q2) Buying 100 shares of stock in an IPO is a primary market transaction.
A)True
B)False
Q3) NYSE stands for
A) New York Securities Exchange.
B) New York Stock Exchange.
C) New York School of Engineering.
D) Never Yet So Even.
E) New Year Selling Exchange.
Q4) If you buy common stock, you may receive income from A) Dividends.
B) Dollar appreciation of stock value.
C) Possible increases in value from stock splits.
D) Two of these are correct.
E) All of these are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Investing in Mutual Funds
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/60767
Sample Questions
Q1) Professional advisory services provide detailed information about mutual funds. Which of the following is not a professional advisory service?
A) Dun and Moody's.
B) Lipper Analytical Services.
C) Morningstar, Inc.
D) Value Line.
E) All of these are professional advisory services that provide information about mutual funds.
Q2) Fred wants to invest in a "no-load" fund. This means that the fund has no 12b-1 fees.
A)True
B)False
Q3) Thomas wants to invest in a fund that invests in stock, bonds, and money market instruments. Which of the following will meet his needs?
A) Asset allocation funds
B) Aggressive growth funds
C) Junk bond funds
D) Midcap funds
E) Short-term corporate bond funds
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Starting Early: Retirement and Estate Planning
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/60766
Sample Questions
Q1) A legal arrangement that helps manage the assets of your estate for your benefit or that of your beneficiaries is called a
A) Formal will.
B) Trust.
C) Holographic will.
D) Guardian.
E) Statutory will.
Q2) Social Security covers 97% of all workers in America.
A)True
B)False
Q3) When you retire, you will probably spend more money on A) Clothing.
B) Transportation.
C) Taxes.
D) Health insurance.
E) All of these.
Q4) Only people who are retired can receive a benefit from Social Security.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16