Personal Money Management Review
Questions
Course Introduction
Personal Money Management is a comprehensive course designed to equip students with the essential skills and knowledge needed to effectively handle their personal finances. The course covers topics such as budgeting, saving, managing credit and debt, understanding loans and interest rates, basics of investing, and planning for major life expenses like education, housing, and retirement. Students will learn practical strategies for setting financial goals, avoiding common pitfalls, and making informed decisions to achieve long-term financial stability and security. Through real-life scenarios, tools, and case studies, the course empowers students to take control of their personal 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) To develop financial goals, one should
A) Set several general goals for the short-term
B) Only set long-term goals after short-term goals have been accomplished
C) Focus on intermediate goals first
D) Identify specific, realistic goals that are measurable along with a time frame and an action plan
E) Not worry about whether or not the goals can be achieved based on one's income and life situation
Answer: D
Q2) The rising or falling of prices that causes changes in buying power is referred to as ____________ risk.
A) interest-rate
B) inflation
C) income
D) personal
E) liquidity
Answer: B
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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) Take-home pay is also called
A) Monthly savings.
B) Discretionary income.
C) Net pay.
D) Gross income.
E) Deductions.
Answer: C
Q2) Which of the following situations describes a person who could be insolvent?
A) Assets $56,000; annual expenses $60,000
B) Assets $78,000; net worth $22,000
C) Liabilities $45,000; net worth $6,000
D) Assets $40,000; liabilities $55,000
E) Annual cash inflows $45,000; liabilities $50,000
Answer: D
Q3) A balance sheet reports what an individual or family owns and owes.
A)True
B)False
Answer: True
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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) Nancy is married to Jerry and needs to complete her tax form. They both earn about the same amount of money each year. What filing status would be best for them?
A) Single
B) Married, filing a joint return
C) Head of household
D) Qualifying widow or widower
E) Married, but filing individually
Answer: B
Q2) A taxpayer less than 65 years old can only deduct medical and dental expenses greater than 10% of AGI for 2014.
A)True
B)False
Answer: True
Q3) Adjusted gross income is increased by the itemized or standard deduction.
A)True
B)False
Answer: False
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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) Evan had three accounts as listed below. In 2014, how much was his total insurance coverage by the FDIC?
Bank A: $150,000
Bank B: $50,000
Bank C: $350,000
A) $150,000
B) $200,000
C) $350,000
D) $450,000
E) $550,000
Q2) Kylie went to a post office to obtain a A) Certified check.
B) Cashier's check.
C) Money order.
D) Personal check.
E) Merchant's check.
Q3) A $200 savings account that earned $5 after one year would have a rate of return, or yield, of 5 percent.
A)True
B)False
Page 6
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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) Which is NOT true about the Fair Credit Reporting Act?
A) It regulates the use of credit reports.
B) It requires deletion of out-of-date information.
C) It places limits on who can obtain your credit report.
D) It places limits on who can obtain a report.
E) It gives borrowers the right to know why they are denied credit.
Q2) Carrie thought she misplaced her checkbook for a few days. When she found it, she noticed that two checks, her cash, and her debit card were missing. She immediately thought about the increase in identity theft in her area and decided to take some action. She should take all of the following steps except
A) Stop payment on the missing checks.
B) Cancel her debit card.
C) Get a new debit card with a new personal identification number (PIN).
D) Close her bank account and open a new one.
E) All of these steps are appropriate to take if she suspects identity theft.
Q3) The most expensive loans are often provided by parents or other family members.
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) The amount printed on a label with the suggested retail price that is posted on a vehicle is called the
A) Invoice price.
B) Sticker price.
C) Set price.
D) Capitalized cost.
E) Residual value.
Q2) Small claims court is used to take legal action by a few individuals on behalf of all who have suffered the same alleged injustice.
A)True
B)False
Q3) Problem identification is part of the ____ phase of the research-based buying process.
A) evaluating alternatives
B) postpurchase activities
C) preshopping activities
D) selection and purchase
E) More than one of these is correct.
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Chapter 7: Selecting and Financing Housing
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97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/60773
Sample Questions
Q1) Most new mortgages are assumable.
A)True
B)False
Q2) Walt has decided to sell the home he has lived in for 50 years. The house has two bedrooms on the first floor, a finished basement, and a finished attic with a low ceiling.
To prepare his home for sale, he should
A) Exaggerate the size of his yard.
B) Keep everything "as is."
C) List his house as a three-bedroom.
D) Take steps to remove excess furniture to make areas look larger.
E) Underestimate the cost of utilities.
Q3) Yvette has a flexible-rate mortgage that limits the amount to which her monthly payments can rise. This feature is called a(n)
A) Rate cap
B) FHA loan.
C) Negative amortization.
D) Payment cap.
E) VA loan.
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9
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) Which of the following questions should one ask when developing a risk management plan?
A) What do I need to insure?
B) How much should I insure something for?
C) What kind of insurance should I buy?
D) Whom should I buy insurance from?
E) All of these questions should be asked when developing a risk management plan.
Q2) If you choose to take responsibility for the negative results of a risk, you are using
A) Risk avoidance.
B) Risk reduction.
C) Risk assumption.
D) Risk shifting.
E) Risk increasing.
Q3) Renter's insurance is quite expensive while mobile home insurance is relatively inexpensive.
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) Which of the following about individual health insurance policies is correct?
A) They are used by employees of large organizations.
B) All insurance companies that offer this type of policy are required to charge the same rates.
C) They are primarily for employees of small companies.
D) They are permitted for individuals only, not for families.
E) They are available for the self-employed or others who are dissatisfied with the coverage that their group plan provides.
Q2) A flexible spending account (FSA) is funded by an employer.
A)True
B)False
Q3) You may be exempt from the requirement to maintain minimum essential coverage if you have no affordable coverage options, because the amount you must pay for the annual premium is more than 8% of your household income.
A)True
B)False
Q4) FSAs and HSAs provide tax advantages for health care expenses.
A)True
B)False
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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) Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 4 and 10. They have determined that their annual income is $70,000 and their net worth is now $150,000. What is the amount of life insurance they should carry using the easy method?
A) $140,000
B) $343,000
C) $490,000
D) $700,000
E) $750,000
Q2) The sooner a person is likely to die, the lower the premiums he or she will pay.
A)True
B)False
Q3) Of the 868 life insurance companies in the United States, about ___ are stock companies.
A) 5%
B) 25%
C) 50%
D) 75%
E) 95%
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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) The taxable equivalent yield for a municipal bond will be lower than the tax-exempt yield for that bond.
A)True
B)False
Q2) According to some financial experts like Suze Orman, how much of an investment program should a 50-year-old invest in safe (nongrowth) investments?
A) 30%
B) 40%
C) 50%
D) 60%
E) 70%
Q3) Safe investments include all of the following except
A) Government bonds.
B) Savings accounts.
C) Certificates of deposit.
D) Certain corporate bonds.
E) Commodities.
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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) Faye sometimes borrows money from her broker to buy her stock. She is buying
A) A call option.
B) A direct investment.
C) On margin.
D) A put option.
E) A short sale.
Q3) Kenny wants to sell his stock at a specified price or higher without a guarantee that his order will be executed. He should use a stop order.
A)True
B)False
Q4) Some investors believe they have found a bargain when a stock's share price is greater than its books value.
A)True
B)False
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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) Time is an important factor when evaluating a managed mutual fund for which of the following?
A) The existence of the underlying index.
B) The life of the companies in the fund.
C) The length of time that the present fund manager has been managing the fund.
D) The status of the economy.
E) None of these.
Q2) Cynthia received an IRS Form 1099DIV. This form is sent at the end of each quarter to specify how much she received in income dividends and capital gain distributions.
A)True
B)False
Q3) Stephanie wants to invest in a mutual fund that invests in companies within the same industry. She should put her money into a regional fund.
A)True
B)False
Q4) Many people can invest in mutual funds through their retirement accounts.
A)True
B)False
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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) If a will is found to be invalid, the result is called in-probate.
A)True
B)False
Q2) An "average" older (65+) household spends most of its money on
A) Entertainment.
B) Food.
C) Housing.
D) Medical care.
E) Transportation.
Q3) Lawrence is self-employed and wants to establish the simplest type of retirement plan. He should set up a
A) 401(k) plan.
B) Regular IRA.
C) Roth IRA.
D) SEP plan.
E) Spousal IRA.
Q4) Housing and life insurance are so important to your retirement income that other investments can be ignored as you review your assets.
A)True
B)False
Page 16
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