Personal Finance Review
Questions
Course Introduction
Personal Finance introduces students to the fundamental principles and practices necessary to manage individual and household financial resources effectively. Topics include budgeting, saving, investing, credit management, insurance, retirement planning, and understanding taxes. Students will gain practical skills to make informed decisions about spending, borrowing, and planning for both short-term and long-term financial goals. The course emphasizes the development of critical thinking to understand financial risks, set priorities, and build a foundation for lifelong financial well-being.
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) The Great Recession that began in December,2007
A)lasted eighteen months.
B)lasted eighteen months
C)lasted 4 years.
D)continues to this day.
Answer: A
Q2) Which of the following should be the easiest for a person to forecast?
A)Income
B)Inflation
C)Interest rates
D)Economic growth
Answer: A
Q3) Which of the following is the one key interest rate to focus on when trying to forecast interest rate trends in the future?
A)Prime rate
B)Federal funds rate
C)Discount rate
D)Mortgage rate
Answer: B
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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) All of the following would be considered wise moves in career planning except A)learning as much as possible about a company before your interview.
B)transferring your 401(k) to your new employer's plan when you change jobs.
C)continued participation in your previous employer's health care plan until you are covered by a new employer's plan.
D)assuming that your need for higher education is finished once you obtain a job in your chosen field.
Answer: D
Q2) The _____ is a short,persuasive summary of your experiences and skills when networking.
A)elevator speech
B)job interview
C)job application
D)reference letter
Answer: A
Q3) The main purpose of a cover letter is to indicate a desired a salary.
A)True
B)False
Answer: False
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Page 4
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) A cash-flow statement shows the value of your assets and liabilities as of a specific date.
A)True
B)False Answer: False
Q2) Paying off debts is an example of a financial goal even though it does not involve a direct purchase.
A)True
B)False Answer: True
Q3) Reconciling budget estimates includes reconciling conflicting needs and wants. A)True
B)False Answer: True
Q4) Most people keep track of their finances on a cash basis rather than on an accrual basis.
A)True
B)False Answer: True
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Chapter 4: Managing Income Taxes
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201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/26521
Sample Questions
Q1) You can file an amended tax return to obtain deserved refunds for the previous five years.
A)True
B)False
Q2) If your tax is $3,728 on a taxable income of $27,825 and your tax is $3,743 on a taxable income of $27,925 you are in the 15 percent tax bracket.
A)True
B)False
Q3) The Affordable Care Act provides that individuals and families may take a tax credit called the?______ to help them purchase health insurance through a health insurance exchange.
A)Health insurance tax deduction
B)Modified Adjusted Gross Income (MAGI) Credit
C)Health Insurance Premium Tax Credit
D)American Opportunity Tax Credit
Q4) It is illegal to prepay the next year's professional association dues and take the deduction during the current year.
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) Diana and Kim are roommates in college and Diana owes Kim for last month's rent.When Diana receives a check from her mother for the rent,what type of endorsement should Diana use to sign this check over to Kim?
A)Blank endorsement
B)Restrictive endorsement
C)Special endorsement
D)Trailing endorsement
Q2) Andy and Marjorie have very little will power when it comes to spending.They want to put their savings in an instrument that cannot be accessed by their ATM card.Which instrument would meet this criterion?
A)Savings account
B)Super NOW account
C)Money market mutual fund
D)NOW account
Q3) Brokered certificates of deposit are available through stockbrokers.
A)True
B)False
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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) The credit scores needed for credit approval vary from lender to lender.
A)True
B)False
Q2) Negative credit information (excluding bankruptcy) can generally be included on a credit file for ____ years.
A)three
B)five
C)seven
D)ten
Q3) Negative credit information of all types can be kept on your credit bureau file for up to five years.
A)True
B)False
Q4) The most commonly used forms of credit by consumers are loans and credit cards.
A)True
B)False
Q5) Credit cannot be used to own expensive products sooner.
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) A fixed interest rate means that the rate will not change over the life of the loan.
A)True
B)False
Q2) Hillary borrowed $2,000 from her credit union to purchase a new computer.This is an example of
A)a cash loan.
B)a purchase loan.
C)a sales credit.
D)All of these.
Q3) "Gold," "silver," or "platinum" cards are all examples of ____ cards.
A)revolving
B)prestige
C)affinity
D)travel and entertainment
Q4) A lien is a legal right to seize and dispose of (usually sell) property for payment of a claim.
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) All states have enacted new-vehicle lemon laws.
A)True
B)False
Q2) Implied warranties required by state law include a warranty of
A)merchantability.
B)merchantability
C)repair.
D)both merchantability and fitness.
Q3) The gross capitalized cost includes the price of the vehicle plus what the dealer paid to finance the purchase plus any other items,including insurance or a maintenance agreement over the life of the lease.
A)True
B)False
Q4) The Better Business Bureau is an example of which channel of complaint?
A)Local business
B)Self-regulatory organizations
C)Consumer-action agencies
D)Small claims court
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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) Which real estate agent works solely for the home buyer?
A)Dual agent
B)Buyer's agent
C)Listing agent
D)Selling agent
Q2) Lenders may reduce interest rates in return for larger down payments.
A)True
B)False
Q3) With ____,the agreement stays in effect unless either party gives proper notice.
A)a periodic tenancy lease
B)a tenancy for a specific time
C)a security deposit
D)All of these
Q4) Homeowners may find it advantageous to refinance a mortgage when interest rates rise.
A)True
B)False
Q5) The actual transfer of ownership of real estate occurs at the closing.
A)True
B)False
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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) Floater policies provide insurance protection for
A)all personal property.
B)movable property.
C)certain classes of personal property.
D)personal property of others.
Q2) The large-loss principle recommends that you insure the losses you can afford to suffer and assume the losses that you cannot afford to suffer.
A)True
B)False
Q3) Losses to ____ are not covered under a standard homeowner's policy.
A)detached structures on your property
B)your landscaping
C)the lot that your house is built on
D)your personal property
Q4) Risk avoidance is always a practical way of handling risk.
A)True
B)False
Q5) All insurance is sold and serviced through insurance agents.
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) Long-term custodial care is not covered by health insurance because the care is A)very expensive.
B)not medically necessary
C)provided by nonlicensed practitioners
D)(All of these)
Q2) Both Medicare Part A and Part B pay 100 percent of covered expenses
A)True
B)False
Q3) One cannot rely on worker's compensation to cover your health care needs because it
A)covers only disability income needs
B)is too expensive for the average worker to carry.
C)covers only job-related injuries and illnesses
D)is paid out at the discretion of the employer
Q4) The most obvious health related financial loss is the need for income replacement when one is unable to work.
A)True
B)False
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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) If a beneficiary wants to make sure that the life insurance proceeds being paid out are not exhausted before he or she dies,the beneficiary would choose which of the following settlement options?
A)Lump sum or income for life
B)Income for life or interest income
C)Interest income or income for a specific period
D)Income of a specific amount or income for a specific period
Q3) Since homemakers do not have money income,no financial loss results from the premature death of a homemaker.
A)True
B)False
Q4) If you receive income from a former spouse through either alimony or child support,life insurance on that person is advisable.
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) Four strategies of portfolio management for long-term investors are portfolio diversification,asset allocation,buy-and-hold,and
A)dollar-cost averaging.
B)real return on investment.
C)market risk.
D)leverage.
Q2) A risk premium constitutes the difference between the riskier investment's return and the totally safe return on the T-bill.
A)True
B)False
Q3) Bear markets on average last about
A)9 months.
B)24 months.
C)18 months.
D)14 months.
Q4) Capital gains (losses) are not realized until one actually sells the investment.
A)True
B)False
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Page 15
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) A month order is good until the close of trading on the last business day of the current month.
A)True
B)False
Q2) Gloria purchased a $1,000 bond for $935.The coupon rate of interest is 7.5 percent,and the bond matures in 12 years.What is Gloria's current yield on this bond?
A)8.38 percent
B)7.88 percent
C)8.02 percent
D)9.35 percent
Q3) Investment banking firms specialize in serving as intermediaries between companies issuing new stocks and bonds and the investing public.
A)True B)False
Q4) Municipal bonds almost always offer a lower stated return than other bonds. A)True B)False
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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) A closed-end investment company issues a limited and fixed number of shares and does not buy them back.
A)True
B)False
Q2) A switching privileges on mutual funds allows shareholders to exchange shares of one mutual fund for shares of A)common stock.
B)any mutual fund sold in the United States. C)any mutual fund in the same family of funds. D)bonds.
Q3) Publications that offer comparative performance information about mutual funds generally rank each fund according to one-year and ten-year performance only.
A)True
B)False
Q4) The Securities and Exchange Commission requires specific disclosure of all types of charges on mutual funds.
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) What is the price-to-rent ratio for a condominium that rents for $1,200 per month and has a market value of $279,000?
A)3.9
B)7.8
C)232.5
D)19.4
Q2) Raw land and residential lots are the safest forms of real estate investment.
A)True
B)False
Q3) Deeded timesharing provides buyers with actual titles and deeds to limited time periods of use of real estate.
A)True
B)False
Q4) The advantages of real estate investing do not include
A)a potential positive cash flow.
B)a potential for price appreciation.
C)the availability of leverage.
D)a high level of liquidity.
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Page 18
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) The primary purpose of the Employee Retirement Income Security Act (ERISA) is to
A)regulate employer-sponsored pension plans.
B)regulate employer-sponsored pension plans
C)collect taxes on retirement benefits.
D)regulate employer-sponsored pension plans and require employer-sponsored pension plans for large companies.
Q2) Which of the following is most likely to have to go through probate?
A)Ownership of a vehicle
B)A retirement account
C)A joint bank account
D)A home owned by a married couple
Q3) People receiving either survivor's or disability benefits from an employer are entitled to an amount equal to the full retirement amount.
A)True
B)False
Q4) Surviving relatives have an obligation to repay the decedent's creditors for debts that exceed the assets of the estate.
A)True
B)False
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