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64 terms

PersonalMoneyManagement

STUDY
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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