AnswersDX Personal Finance ACumulative Exam

Cumulative Exam — Cumulative exam Answers

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21
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What is an advantage of an adjustable-rate mortgage?

A
A borrower always knows how much to pay the bank each month.
B
A borrower can purchase a home with little financial risk.
C
A drop in interest rates may result in lower monthly payments.
D
A rise in interest rates may result in lower monthly payments.
22
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Which financial tool is most important when planning for your future financial goals?

A
Enrolling in a high interest savings account
B
Creating a budget
C
Mortgaging a house
D
Taking on extra debt
23

An annual percentage rate, or APR, represents how much

A
interest is paid over a year.
B
interest is paid over many years.
C
principal is paid over a year
D
principal is paid over many years.
24

How does a socialist government with a command economy manage its economy?

A
The government lets producers set wages for workers.
B
The government owns all homes and other forms of housing.
C
The government allows consumers to make their own choices.
D
The government controls factories and other forms of production.
25

What is one reason why the government would provide financial assistance to an entrepreneur?

A
to decrease the high rate of failure of new businesses
B
to encourage the invention and development of products
C
to stimulate the economy while decreasing unemployment
D
to limit the amount of personal funds used to start the business
26

Julia’s gross pay was $4,500 last year. The federal income tax withholding from her pay was 13% of her gross pay. Julia determined the federal income tax she owes is $495. How much of a refund can Julia expect?

A
$64.35
B
$90.00
C
$430.65
D
$585.00
27

The graph shows the marginal cost of producing soccer cleats for Sabrina’s Soccer. At which level of production does the company make the most profit?

Question illustration
A
the first pair of cleats
B
the second pair of cleats
C
the third pair of cleats
D
the fourth pair of cleats
28

In a free market system, price control can include both a floor and a .

Answer not available
29

indexesquotesfuturestrades

A
indexes
B
quotes
C
futures
D
trades
30

The graph shows a demand curve with the price of a good compared to the quantity demanded.What does this graph demonstrate?

Question illustration
A
the amount of microwaves produced increases the price
B
the amount of microwaves produced decreases the price
C
the price decreases with a larger quantity demanded
D
the price increases with a larger quantity demanded
31

Which statement best explains a scholarship?

A
A scholarship is federal money awarded to a student.
B
A scholarship is aid given to a student by an institution.
C
A scholarship is money borrowed to pay for an education.
D
A scholarship is the price of attending classes at a school.
32

An interest in supervising other workers would be useful for someone who wanted to become

A
an office manager or warehouse manager.
B
a freelance writer or graphic designer.
C
a grocery clerk or supermarket cashier.
D
a letter carrier or delivery person.
33

Joaquin used the table to predict the cost of one year of education at a four-year public university. CategoryPredicted Costtuition$9,450room and board$7,920transportation$2,680books and fees$1,875other$930He received a grant for $1,900. What is the minimum amount Joaquin will need to contribute to his education annually if he chooses to live at home?

A
$13,035
B
$14,935
C
$20,955
D
$22,855
34

The factors of production include the number of

A
customers needed to make a profit on a good.
B
consumers who show an interest in a good.
C
employees needed to manufacture a good.
D
producers who supply the same good.
35

The chart shows the marginal cost of producing apple pies.This chart demonstrates that the marginal cost

Question illustration
A
initially decreases as production increases.
B
initially increases as production increases.
C
eventually decreases as production increases.
D
eventually increases as production decreases.
36

What is one main objective in the study of economics?

A
recognizing the types of services available to everyone
B
recognizing the relationship between producers and consumers
C
recognizing the reasons why consumers supply services
D
recognizing the difference between producers and consumers
37

In a mixed market economy, what is a typical way the government can reduce unemployment?

A
The government can pay for projects to create work.
B
The government can control new factories to provide jobs.
C
The government can create new farm fields to hire workers.
D
The government can raise taxes to encourage employment.
38

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.
39

Geoff rents an apartment with a monthly rent of $850. He owns the furniture in the apartment, which is worth $3,500, and he owns his car, which is worth $6,000. Geoff has a balance of $1,225 on his credit card and has $3,560 in a savings account.Which is one of Geoff’s liabilities?

A
the car
B
the furniture
C
the savings account
D
the credit card
40

If a computer costs $600.00 and the sales tax rate is 7.5 percent, what is the total cost of the computer?

A
$607.50
B
$615.00
C
$622.50
D
$645.00

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