PersonalMoneyManagement

Created by kmplummer 

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The main goal of personal financial planning is:

Achieving personal economic satisfaction

The stages that an individual goes through based on age, financial needs, and family situation is called the:

adult life cycle

The study of how wealth is created and distributed is:

Economics

Attempts to increase income are part of the ______ component of financial planning

Obtaining

The ability to convert financial resources into usable cash with ease is referred to as:

Liquidity

The problem of bankruptcy is associated with poor decisions in the _______ component of financial planning.

Borrowing

A question associated with the saving component of financial planning is:

Do you have an adequate emergency fund?

When an individual makes a purchase without considering the financial consequences of that purchase, they are ignoring the aspect of financial planning:

Spending

As Jean Tyler plans to set aside funds for her young children's college education, she is setting a(n) ______________ goal

Long-term

The first step of the financial planning process is to:

Analyze your current personal and financial situations

The uncertainty associated with decision making is referred to as:

Risk

The financial planning process concludes with efforts to:

Review and revise your actions

Changes in income, values, and family situation make it necessary to:

Evaluate and revise your actions

John Garic has just moved into a new house and needs a lawn mower since he has always lived in apartments and now he has a lawn to mow. What type of goal would this be for John?

Durable-products goal

A _______ is an employment position that is obtained mainly to earn money.

Job

A commitment to a profession that requires continued training and offers a clear path for occupational growth is a(n):

Career

The first step to career planning process is to:

assess your interests, abilities, and goals.

The final step of the career planning process is to:

Plan for career development

A lack of willingness to accept a variety of employment positions is a common career planning mistake associated with weak:

flexibility

Efficient work habits are an example of:

an employee's initiative

A common criticism of including a career objective on a resume is that it:

may be too vague

The education section of a resume should include:

schools attended

Tom Husson recently coordinated a fund raising project for an organization that assists homeless youth. This would most likely be an example of experience in _______

Obtaining financial planning and budgeting skills

Special class projects can be presented on a resume as ___________ experience.

Research

A chronological resume presents personal data based on:

time

A __________ resume presents a person's education, work experience, and other information in a reverse time sequence.

Chronological

A __________ resume is designed to obtain a specific job.

targeted

For an entry-level position, a person's resume is likely to be:

one page

Creative resumes or those with a gimmick are most appropriate for careers in:

advertising

The purpose of a cover letter is to:

apply for a job

An interview designed to reduce the number of candidates for a position to a workable size is a(n) ___________ interview

screening

The purpose of a selection interview is to:

question candidates for a job in detail

Which of the following would likely lead to the most added income over an individual's working career?

Professional or doctorate degree

Which of the following would be a competency commonly associated with successful people?

All of the above.

The main purpose of taxes is to:

generate revenue for funding government programs

A taxpayer with a taxable income of 47,856 and a total tax bill of 5,889 would have an average tax rate of ____ percent

12.3

Money received by an individual for personal effort is _________ income.

Earned

Money received in the form of dividends or interest is __________ income

investment

An expense that would be included in the itemized deductions of a taxpayer is:

real estate property taxes

Which of the following would qualify a person for an exemption when computing taxable income?

A dependent

Most people pay federal income tax by:

having amounts withheld from income

A taxpayer whose spouse recently died is most likely to use the ______ filing status

qualifying widow or widower

Which type of tax expert would be of most value when you have a difference of opinion with the IRS?

An attorney

The use of legitimate methods to reduce one's taxes is tax ______

avoidance

Drew Davis earns 4,500 per month from his job at Cisco Systems; $900 is withheld from this amount each month for taxes. What type of tax is this most likely to be?

Income tax

The storage of funds for future use is a purpose of _____ services

savings

The purpose of a debit card is to:

transfer money electronically

Traditionally, the greatest victory of financial services has been offered by a

commercial bank

To avoid high fees for loans, a person should not borrow from a

pawnshop

In recent years, membership in credit unions has:

continued to increase

A financial institution organized for the main purpose of providing loans to purchase homes is a:

mortgage company

The business hours and location of a financial institution refer to the ______ factor of selecting a financial institution.

Convenience

A saver will usually earn the highest rate with which of the following types of savings plans?

certificate of deposit

Savings compounded ______ would have the highest effective yield.

daily

The Federal Deposit Insurance Corporation provides deposit insurance for:

Commercial banks and savings and loan associations

A ______ endorsement is especially useful when you are depositing checks.

blank

which of the following is a deposit institution?

A credit union

Which of the following is not a deposit institution?

A life insurance company

Which of the following institutions is organized primarily to provide loans to purchase homes?

A mortgage company

Which of the following institutions makes loans based on the value of tangible possessions?

A pawnshop

Which type of organization does not provide home mortgages?

Consumer Finance Companies

What type of account would you expect to provide the poorest yield?

A passbook savings account

What type of account would be considered the most liquid?

A checking account

A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ____ percent.

33

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