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Cumulative Exam — Cumulative exam Answers

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Kendrick is planning to buy a house. Which explains why he should establish a positive credit history before buying the house?

A
He will get the house for a lower price.
B
It will be easier for him to get a loan to buy the house.
C
He will be able to get a higher interest rate when buying the house.
D
He will be able to find a house he likes more quickly.
2
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$
$31,570
$
$34,030
$
$45,570
$
$48,030
3

Which best describes a way people can use personal loans?

A
to buy a house
B
to buy a car
C
to pay for college
D
to pay for groceries
4

This year, Mr. Thomas has a higher credit score than he did last year. Which of the following should Mr. Thomas expect with the improved score? Check all that apply.

A
a more difficult time borrowing money to buy a house
B
an easier time getting a car loan
C
an easier time renting an apartment
D
a denial when opening a bank account
E
higher interest rates on credit cards
5

Quintina decided to increase the deduction percentage of her federal income tax rate from 14% to 16%. Quintina’s gross pay per month is $2,100. Her deductions before the change are listed in the table. DeductionDollar AmountFederal Income Tax$294State Income Tax$89Social Security $85Medicare$35 What is her new monthly net pay? Round your answer to the nearest dollar.

A
$1555
B
$1591
C
$1595
D
$1639
6

A company that makes mobile phones introduces a new, faster model that has strong consumer interest. However, the old model is still available. What will most likely happen to the price of the old model, and why?

A
The price will fall to encourage consumers to continue to purchase it.
B
The price will rise to encourage the producer to make more old models.
C
The price will fall to discourage the producer from making more old models.
D
The price will rise to encourage consumers to buy both models in equal amounts.
7

Student-specific scholarships are awarded to students who

h
have impressive athletic accomplishments.
h
have impressive academic achievements.
d
demonstrates a specific skill
a
are members of a certain group.
8

If Massachusetts has a sales tax of 6 percent and New Hampshire has no sales tax, how much money can be saved by buying a $1,000 television in New Hampshire?

A
$6
B
$16
C
$60
D
$600
9

The document shows a personal allowances worksheet.

Question illustration
A
affect who pays taxes.
B
increase overall taxes.
C
lower overall taxes.
D
affect when to pay taxes.
10

What is the difference between marginal cost and marginal revenue?

A
Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.
B
Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.
C
Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.
D
Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.
11

Marco predicts he will have $18,750 in expenses for one year of college. He expects to receive $3,450 in grants annually. How much will Marco need to contribute to one semester of his education?

A
$5,925
B
$7,650
C
$11,850
D
$15,300
12

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.

A
careful consideration of short-term goals
B
recording the number of assets you currently own
C
creating a budget to consider future income and spending
D
learning more about different kinds of accounts to manage money
E
learning about opportunity cost
13

Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report?

t
to determine which company has the best credit card features
t
to determine if he has a history of good credit
t
to determine if he needs a credit card
t
to determine his credit limit
14

Pete is trying to get a loan. He has a credit score of 480. How is Pete’s lender likely to view this credit score?

A
Pete is responsible and will pay the loan back on time.
B
Pete is responsible but will not pay the loan back on time.
C
Pete is irresponsible but will pay the loan back on time.
D
Pete is irresponsible and will not pay the loan back on time.
15

Read the scenario.Jamal is passionate about education and believes that everyone should have access to quality learning opportunities. He decides to donate to a local nonprofit organization that provides scholarships to underprivileged students. During tax season, Jamal finds out that his charitable donations impacts his taxes.How does Jamal's charitable donation to the nonprofit organization impact his taxes?

A
The donation reduces Jamal's taxable income, lowering the total amount of owed taxes.
B
The donation does not affect Jamal's taxes at all, as it is not a tax-deductible contribution.
C
The donation increases Jamal's tax refund, as the organization provides him with a tax credit.
D
The donation results in Jamal owing more in taxes, as it is considered additional income.
16

Beth withdrew $35 from her checking account. In which column should she record the $35 withdrawal?

Question illustration
A
Check Number
B
Debit
C
Deposit
D
Balance
17

A monthly fixed rate mortgage payment

A
could change.
B
never changes.
C
increases annually.
D
decreases annually.
18

good credita bank accounttax returns

A
good credit
B
a bank account
C
tax returns
19

Though it is seen as a last resort, bankruptcy allows a consumer to

A
temporarily stop paying debts.
B
eliminate certain types of debt.
C
easily reestablish good credit.
D
receive credit in an emergency.
20

The graph shows the market for graphic T-shirts.

Question illustration
A
As the amount of a product goes up, the price goes up.
B
As the amount of a product goes down, the price goes up.
C
As the interest in a product goes up, the price goes up.
D
As the interest in a product goes down, the price goes up.

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