Topic Test Answers

The following table shows the assets and liabilities of the Chang family in 2007 and 2008.20072008home valued at $315,000home valued at $325,000mortgage of $265,000mortgage of $240,000car valued at $10,000car valued at $6,000car loan of $5,000car loan of $1,000savings of $2,000credit card debt of $1,500Based on the table, which of the following is true?a.From 2007 to 2008, both assets and liabilities decreased.b.From 2007 to 2008, both assets and liabilities increased.c.From 2007 to 2008, assets decreased and liabilities increased.d.From 2007 to 2008, assets increased and liabilities decreased.

What is true about the way you should approach financial goals across different stages of your life?a.Failure to meet a financial goal is a sign of personal weakness, so you should never alter a goal until you have completed it exactly as you imagined it.b.You need to be consistent and determined when it comes to financial goals. The financial goals you make as a young adult should stay in place for the rest of your life.c.Most people tend to make more money as they grow older and more experienced. After a certain point in your life you should have enough money to meet all of your financial goals, at which point you will no longer need to concern yourself with long-term goals.d.As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time.

The following table shows the assets and liabilities of the Chang family in 2007 and 2008.20072008home valued at $315,000home valued at $325,000mortgage of $265,000mortgage of $240,000car valued at $10,000car valued at $6,000car loan of $5,000car loan of $1,000savings of $2,000credit card debt of $1,500Based on the table, which of the following is true?a.From 2007 to 2008, both assets and liabilities decreased.b.From 2007 to 2008, both assets and liabilities increased.c.From 2007 to 2008, assets decreased and liabilities increased.d.From 2007 to 2008, assets increased and liabilities decreased.

To be able to go on the band trip, four band members each get a part-time job. Each person has 5 weeks in which to save his or her money. Analyze the four individual plans below and decide which of the four people will reach his or her goal of saving $285? Member A: Works 8 hours per week at $6.15 per hour Member B: Works 10 hours per week at $5.85 per hour Member C: Works 7 hours per week at $7.25 per hour Member D: Works 9 hours per week at $6.35 per hour a. A and B b. A and C c. B and C d. B and D Please select the best answer from the choices provided

To be able to go on the band trip, four band members each get a part-time job. Each person has 5 weeks in which to save his or her money. Analyze the four individual plans below and decide which of the four people will reach his or her goal of saving $285? Member A: Works 8 hours per week at $6.15 per hour Member B: Works 10 hours per week at $5.85 per hour Member C: Works 7 hours per week at $7.25 per hour Member D: Works 9 hours per week at $6.35 per hour a. A and B b. A and C c. B and C d. B and D Please select the best answer from the choices provided

A professor expects the education and health service industries to increase total employees by 14.8% from 2009 to 2016. Based on the employment graph below, approximately how many new jobs will the education and health service industries gain between 1/2009 and 1/2016? Education and Health Services - All Employees, 2000-2009 a. 21,926,800 b. 2,826,800 c. 16,273,200 d. 1,790,600 Please select the best answer from the choices provided

Planning for the possiblity that your home might get struck by lightning and catch on fire is part of a plan for _____.a.financingb.managing incomec.managing liquidityd.protecting assets

Greg and Josh want to go whitewater rafting in 3 weeks. Josh is able to save the $480 he needs to go on the trip by saving the pay he received for 5 hours of work each week. Greg must save 8 hours worth of pay each week in order to have enough money. How much more money does Josh make than Greg?a.$10b.$12c.$14d.$20

Mike and Kate plan to save money for their wedding over a 20 month period. They will need to save $8,000 to help pay for the wedding. They set aside the same amount each month. After a year they saved $4,000. Mike and Kate know they must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the same amount they've been saving each month but postpone the wedding 2 months. Option B: Increase the amount of money they save each month by $80 from what they've been saving. Which of the following is a true statement? a. Only option A will allow them to meet their goal. b. Only option B will allow them to meet their goal. c. Saving by either option A or option B will allow them to meet their goal. d. Neither option A nor option B will allow them to meet their goal. Please select the best answer from the choices provided

A professor expects the education and health service industries to increase total employees by 14.8% from 2009 to 2016. Based on the employment graph below, approximately how many new jobs will the education and health service industries gain between 1/2009 and 1/2016? Education and Health Services - All Employees, 2000-2009 a. 21,926,800 b. 2,826,800 c. 16,273,200 d. 1,790,600 Please select the best answer from the choices provided

The car owned by a person is part of his or her ____.a.investment assetsb.liquid assetsc.long term assetsd.use assets

Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7 thousand jobs per year from 2008 to 2018. Assuming this holds true, what will be this industry’s percent change from 2008 to 2018?a.70%b.-27%c.-17%d.-75%

Based on the information provided in the graph, for which of the following situations could you expect to have the greatest increase in salary? a. Having a high school diploma and going to college for a year. b. Having an associate’s degree and getting a bachelor’s degree. c. Having a bachelors degree and getting a master’s degree. d. Having a master’s degree and getting a doctorate degree. Please select the best answer from the choices provided

Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7 thousand jobs per year from 2008 to 2018. Assuming this holds true, what will be this industry’s percent change from 2008 to 2018?a.70%b.-27%c.-17%d.-75%

Mariah is single and has a monthly disposable income of $3,200. Her monthly cash outflow is approximately $2,800. Mariah includes contributions to a retirement plan and money for investments as part of her cash outflow. She has car insurance and a life insurance policy. Mariah has saved $15,000, but wishes to use $10,000 for a down payment on a house. She has also purchased furnishings for a house, which she has in the spare bedroom of her apartment. Mariah hires a financial planner to examine her money management, and he determines that her plan needs work. What part of Mariah’s financial plan would he encourage her to work on and why? a. Her plan for managing income. Her net cash flow is negative. b. Her plan for managing her liquidity. She is spending all of her savings on her down payment. c. Her plan for retirement. She does not have a retirement plan set up. d. Her plan for protecting her assets. In case of an emergency, she should have renters insurance for her apartment. Please select the best answer from the choices provided

Error

You give up a full-time salary of $45,000 a year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree?a.$51,000b.$60,000c.$69,000d.$75,000

Mike and Kate plan to save money for their wedding over a 20 month period. They will need to save $8,000 to help pay for the wedding. They set aside the same amount each month. After a year they saved $4,000. Mike and Kate know they must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the same amount they've been saving each month but postpone the wedding 2 months. Option B: Increase the amount of money they save each month by $80 from what they've been saving. Which of the following is a true statement? a. Only option A will allow them to meet their goal. b. Only option B will allow them to meet their goal. c. Saving by either option A or option B will allow them to meet their goal. d. Neither option A nor option B will allow them to meet their goal. Please select the best answer from the choices provided

Planning for the possiblity that your home might get struck by lightning and catch on fire is part of a plan for _____.a.financingb.managing incomec.managing liquidityd.protecting assets

The table below is comparing level of education achieved to the rate of unemployment and the median weekly earnings in 2008. Based on the information provided, the unemployment rate decreases the most when moving between which two consecutive educational levels? a. “Less than high school” and “High School Graduate” b. “High school graduate” and “Some college, no degree” c. “Associate degree” and “Bachelor’s degree” d. “Professional degree” and “Doctoral degree” Please select the best answer from the choices provided

You give up a full-time salary of $45,000 a year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree?a.$51,000b.$60,000c.$69,000d.$75,000

The amount of money in a savings account is an example of which of the following?a.investment assetb.liquid assetc.long term assetd.use asset

Tyrone’s hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses. If Tyrone works 40 hours per week and has no other sources of income, what is his total monthly cash inflow? (Hint: Assume that there are 4 pay periods per month.) a. $273.60 b. $1,080.00 c. $1,800.00 d. $2,073.60 Please select the best answer from the choices provided

Which of the following spreadsheets shows the financial plan with the greatest net cash flow? a. b. c. d. Please select the best answer from the choices provided

Over the period of a year, Julie’s net worth decreased. Which of the following could be true?a.Julie’s assets and liabilities decreased by the same amount.b.Julie’s assets and liabilities increased by the same amount.c.Julie’s assets increased by more than her liabilities.d.Julie’s assets decreased by more than her liabilities.

Based on the information provided in the graph, for which of the following situations could you expect to have the greatest increase in salary? a. Having a high school diploma and going to college for a year. b. Having an associate’s degree and getting a bachelor’s degree. c. Having a bachelors degree and getting a master’s degree. d. Having a master’s degree and getting a doctorate degree. Please select the best answer from the choices provided

Tyrone’s hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses. If Tyrone works 40 hours per week and has no other sources of income, what is his total monthly cash inflow? (Hint: Assume that there are 4 pay periods per month.) a. $273.60 b. $1,080.00 c. $1,800.00 d. $2,073.60 Please select the best answer from the choices provided

What is true about the way you should approach financial goals across different stages of your life?a.Failure to meet a financial goal is a sign of personal weakness, so you should never alter a goal until you have completed it exactly as you imagined it.b.You need to be consistent and determined when it comes to financial goals. The financial goals you make as a young adult should stay in place for the rest of your life.c.Most people tend to make more money as they grow older and more experienced. After a certain point in your life you should have enough money to meet all of your financial goals, at which point you will no longer need to concern yourself with long-term goals.d.As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time.

James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be $56,000 per year. How many years will it take James to recover his investment? a. 1.3 years b. 2.5 years c. 10 years d. 20 years. Please select the best answer from the choices provided

Which of the following would not be listed under cash outflows in a financial plan?a.car paymentsb.insurance premiumsc.interest earnedd.mortgage payment

Kendra is working on her financial plan and lists all of her income and expenses in the spreadsheet below. What is Kendra’s net cash flow? a. $295 b. $285 c. $275 d. $255 Please select the best answer from the choices provided

What should be included in a financial plan to protect assets?a.how much money you will makeb.how much money you will have in savingsc.how much money you will investd.how much insurance you will carry

In considering career options, Ella would like to enter an industry with at least 50% growth from 2000 to 2010. Based on the above graph, which of the following industries is not in that category? a. Health services b. Computer and data processing c. Residential care d. Management and public relations Please select the best answer from the choices provided

If there is a positive correlation between number of years of education and the amount of company pension contributions, which of the following professions would you expect to have the best company pension contributions? a. police officer, associates degree b. accountant, bachelor’s degree c. lawyer, master’s degree d. pharmacist, doctorate degree Please select the best answer from the choices provided

The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000?a.$7,000b.$14,000c.$21,000d.$28,000

Based on the above chart, which industry’s average annual rate of change is projected to decrease the most in the 2006-2016 period as compared to its average annual rate of change during 1996-2006? a. Utilities b. Educational services c. Federal government d. State and local government Please select the best answer from the choices provided

Justin is married with one child. He works 40 hours each week at a rate of $16 per hour. His wife began working part time after their daughter was born, but still contributes about $350 to the cash inflow each month. Their monthly cash outflow is generally about $3,000. They have a balance of $2,000 in their savings account. Justin has retirement contributions taken out of his paycheck at work. They have renter’s, car and life insurance coverage.Based on this information, what part of their financial plan should Justin and his wife work on?a.managing incomeb.managing liquidityc.protecting assetsd.retirement

It is important to re-evaluate financial goals periodically. In which of the following situations would it be necessary to change an existing financial goal?a.You fell sharply behind your expected schedule with regard to saving.b.You recovered from an unexpected expense and are rattled that you did not see it coming.c.You married, and your spouse has a similar financial goal.d.You came across unexpected income.

Yvonne continues to work full-time at her job while she attends college part-time. It takes 5 years for Yvonne to complete the program, but when she does she is able to increase her salary from $37,000 per year to $45,000 per year. At this rate, Yvonne will have recovered her college costs after 4.5 years. How much did it cost Yvonne to go to college?a.$36,000b.$45,000c.$40,000d.$32,000

Data seems to indicate that there is a negative correlation between years of education and unemployment rates. Which of the following describes what this means?a.As education increases unemployment increases.b.As education increases unemployment decreases.c.As education decreases unemployment decreases.d.None of the above.

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000?Recreational Vehicle valued at $110,000.Car valued at $27,000.Medical bills totaling $8,700.Loan balance of $80,000.Savings of $5,000.Retirement fund of $50,000.Credit card balance of $2,300.a.recreational vehicle value decreasing to $100,000b.borrowing $10,000 more in loansc.withdrawing $20,000 from the retirement fundd.adding $1,000 in credit card debt

You are trying to save up for a spa package that costs $300. After looking at your paycheck, you decide that you will be able to set aside $50 a week for the next 6 weeks. Knowing this information, you call the spa to make a reservation for this package for 2 months from now. Which type of goal does this situation best describe? a. Immediate b. Long term c. Short term d. Unrealistic Please select the best answer from the choices provided

Jim and Jackie are married with three children at home and a mortgage. Jim’s net pay per year is $67,000 and Jackie does not have income. Their mortgage payment of $2,800 includes insurance on their home. They have additional monthly expenses of $2,700.Jim contributes 15% of his earnings to a retirement fund and they have $5,000 in savings. There is a $500,000 life insurance policy on Jim and a $100,000 policy on Jackie.As their financial advisor, what part of Jim and Jackie’s financial plan would you encourage them to work on?a.They should work on their plan for managing income.b.They should work on their plan for managing their liquidity.c.They should work on their plan for protecting their assets.d.They should work on their plan for protecting their income.

Niah works as a retail sales clerk earning $18,000 per year. She plans to go to school for medical billing that has a median salary of $35,000. The cost of her education will be $20,000. If Niah does not work for the 2 years that she is in school, about how long will it take her to recover her investment if she gets a medical billing job making the median salary when she graduates? a. less than 1 year b. 1.2 years c. 1.6 years d. 3.3 years Please select the best answer from the choices provided

James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be $56,000 per year. How many years will it take James to recover his investment? a. 1.3 years b. 2.5 years c. 10 years d. 20 years. Please select the best answer from the choices provided

Samantha’s college runs on a trimester schedule so she receives a bill 3 times a year for tuition. Each trimester costs $1,450, and Samantha must complete 2 years of college to receive her degree. The average cost for books each trimester is $350. Approximately what will be the total cost for Samantha to get her degree?a.$4,700b.$5,400c.$9,050d.$10,800

The average hourly earnings for a construction worker is projected to be $24.50 in 2012. Jason wants to join the construction work force after he graduates in 2012. His friend tells him that average hourly earnings for construction workers will rise by 2% from 2009 to 2012. Based on the data below, assuming that the projected hourly earnings are correct, is Jason’s friend’s statement accurate? Construction Industry - Average Hourly Earnings, 2000-2009 a. His friend’s statement is accurate. The average hourly earnings will increase by 2%. b. His friend’s statement is not accurate. The percent increase will be more than 2% c. His friend’s statement is not accurate. The percent increase will be less than 2% d. His friend’s statement is not accurate. The average hourly earnings will decrease. Please select the best answer from the choices provided

The projected number of employed writers and authors in 2016 is 153,000. 12.4% of those will have some college experience but no degree, and 84.1% will have a bachelor’s degree or higher. If this holds true, how many more writers and authors with bachelor’s degree will there be than those with only some college experience and no degree? a.147,645b.109,701c.134,028d.128,673

The Greens want to put an addition on their house 18 months from now. They will need to save $10,620 in order to achieve this goal. They set aside the same amount each month, and after a year discover they have saved $6,120. The Greens must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the original amount each month but put the addition on one month later than originally planned. Option B: Increase the amount of money they save each month by $120 from their original plan. Which of the following statements is true? a. Only option A will allow them to meet their goal. b. Only option B will allow them to meet their goal. c. Both options A and B will allow them to meet their goal. d. Neither option A nor option B will allow them to meet their goal. Please select the best answer from the choices provided

The Anderson family wants to look at their cash flow over a year. They decide to write out their cash flow for 4 months as given in the spreadsheet below. In which of the months did they have the greatest net cash flow? a. January b. April c. August d. December Please select the best answer from the choices provided

Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true? a. Sheila will meet her goal and does not need to adjust her plan. b. Sheila must save $50 per month to achieve her goal. c. Sheila must save $60 per month to achieve her goal. d. Sheila will not be able to achieve her goal. Please select the best answer from the choices provided

Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true? a. Sheila will meet her goal and does not need to adjust her plan. b. Sheila must save $50 per month to achieve her goal. c. Sheila must save $60 per month to achieve her goal. d. Sheila will not be able to achieve her goal. Please select the best answer from the choices provided

Which of the following is true? a. net cash flow - cash outflow = cash inflow b. net cash flow + cash outflow = cash inflow c. net cash flow + cash inflow = cash outflow d. cash inflow + cash outflow = net cash flow Please select the best answer from the choices provided

Fran brings home $225 per week working 15 hours of which she is able to save $40. Fran wants to have $1,400 saved at the end of 20 weeks. She may work up to 18 hours per week if she wants. She can save all of the money earned working the extra hours. Which of the following statements is true? a. Fran must work at least 15 hours per week to meet her goal. b. Fran must work at least 17 hours per week to meet her goal. c. Fran must work at least 18 hours per week to meet her goal. d. Fran will not be able to reach her goal. Please select the best answer from the choices provided

Based on the above graph, in 2016, which occupation is projected to have about 2,500,000 more workers than there will be computer systems analysts? a. Registered nurses b. Postsecondary teachers c. Waiters and waitresses d. None of these Please select the best answer from the choices provided

Trevor earns $7.80 an hour take home pay and works 20 hours each week. Trevor wants to buy a new laptop computer to take to college that costs $780. How many weeks will it take for Trevor to achieve his goal?a.4 weeksb.5 weeksc.6 weeksd.7 weeks

Chuy wants to buy a new television. The television costs $1,350. Chuy decides to save the same amount of money each week, for 27 weeks. After 8 weeks Chuy saved $440. Which of the following conclusions can you make about Chuy's plan?a.Chuy has a good plan and will have exactly $1,350 saved at the end of 27 weeks.b.Chuy must increase the amount he saves each week in order to meet his goal at the end of 27 weeks.c.Chuy will save more than he needs and will meet his goal in less than 27 weeks.d.There is not enough information given to make a conclusion about Chuy's plan.

Which of the following could be true if one decreases their long term liability and increases their liquid assets?a.Paid off credit card balance and added money to savings.b.Paid off medical bills and invested money. c.Paid down mortgage and received a cash prize.d.Paid taxes owed and bought a car.

Your friend has prepared his monthly budget and asks you if he has overlooked anything in this planning. Which of the following questions points out his most serious omission? a. What if your income from stocks is lost? b. What if you need to go to the doctor? c. What if the electric bill increases? d. What if you need to replace the furnace? Please select the best answer from the choices provided

Mariah is single and has a monthly disposable income of $3,200. Her monthly cash outflow is approximately $2,800. Mariah includes contributions to a retirement plan and money for investments as part of her cash outflow. She has car insurance and a life insurance policy. Mariah has saved $15,000, but wishes to use $10,000 for a down payment on a house. She has also purchased furnishings for a house, which she has in the spare bedroom of her apartment. Mariah hires a financial planner to examine her money management, and he determines that her plan needs work. What part of Mariah’s financial plan would he encourage her to work on and why? a. Her plan for managing income. Her net cash flow is negative. b. Her plan for managing her liquidity. She is spending all of her savings on her down payment. c. Her plan for retirement. She does not have a retirement plan set up. d. Her plan for protecting her assets. In case of an emergency, she should have renters insurance for her apartment. Please select the best answer from the choices provided

Yvonne has a goal of buying a brand new home within a year. She's afraid that she will be unable to save the money that she needs for a down payment. Which of the following should not be part of Yvonne's plan for achieving her goal of buying a home?a.Delay buying the home for a few monthsb.Borrow the money for the down payment and pay it back laterc.Adjust her budget to save more each monthd.Take on a part-time job to earn extra income

Which of the following modifications to the list of assets and liabilities below would result in a positive net worth?Home owned $105,000.Mortgage owed $100,000.Car valued at $26,000.Car loan of $22,000.Investment fund of $4,500.Savings of $1,500.Credit card balance of $15,000.a.Lowering mortgage by $1,000.b.Increasing investment fund by $500.c.Adding $100 to savings.d.All of the above.

What is meant by the term financial planning?a.Long-term goals are reached over an extended period of time, so your current income does not affect them.b.It is creating a road map of everything you do with your money.c.It is hoping you will have enough money to pay all your bills on time. d.If your income exceeds your expenses, you will be able to save money for the future.

Mark currently works part-time with a salary of $8,000 per year. Mark plans to quit working and attend college for 4 years. If his college costs will total $64,000, how long will it take Mark to recover his investment assuming he has a salary of $32,000 upon graduating?a.2 yearsb.3 yearsc.4 yearsd.5 years

There is a correlation between higher education and greater degrees of both income and job stability. What is one downside of continuing education that might cause someone to choose not to seek a higher level of education despite the benefits?a.If you have too much income, you will reach your goals too quickly. b.Most employers feel that pursuing a college degree shows a lack of decisiveness or conviction compared to diving straight into the workforce.c.Higher education can be expensive, and most students who seek degrees must accept some burden of debt.d.Getting a degree in one subject can disqualify you from getting a job in another field.

Yvonne has a goal of buying a brand new home within a year. She's afraid that she will be unable to save the money that she needs for a down payment. Which of the following should not be part of Yvonne's plan for achieving her goal of buying a home?a.Delay buying the home for a few monthsb.Borrow the money for the down payment and pay it back laterc.Adjust her budget to save more each monthd.Take on a part-time job to earn extra income

Construction Industry-All Employees (Millions), 2000-2009 Construction Industry - Average Hourly Earnings (Dollars), 2000-2009 Based on trends displayed in the graphs above, which answer choice represents a likely situation for 2010? a. There will be more than 6.5 million construction employees in 2010, and those employees will have average hourly earnings of $24.00. b. There will be over 6 million construction employees in 2010, and the average hourly earnings will be less than twenty dollars. c. There will be roughly 6 million employees in 2010, and those employees will have average hourly earnings of $22.75. d. There will be over 7.5 million employees in 2010, and those employees will earn, on average, $23.00 per hour. Please select the best answer from the choices provided

Aaron is a high school graduate working as a retail clerk. He earns a median salary for a high school graduate. Aaron is thinking about going to college to get an associate's degree. If he completes his degree in 2 years and college costs total $30,000, how long will it take Aaron to recover his investment, assuming that he earns the median salary and continues to work full time while he is attending school? a. about 2.5 years b. about 5.5 years c. about 8.5 years d. about 11.5 years Please select the best answer from the choices provided

It is important to re-evaluate financial goals periodically. In which of the following situations would it be necessary to change an existing financial goal?a.You fell sharply behind your expected schedule with regard to saving.b.You recovered from an unexpected expense and are rattled that you did not see it coming.c.You married, and your spouse has a similar financial goal.d.You came across unexpected income.

Breanna works in the mall and her hours increase during busy shopping times of the year. Breanna has a plan to save $25 each week for 5 weeks, and then increase that amount by $20 for the next 7 weeks during the busy time, then go back to $25 per week. If Breanna’s plan is to save $540, how many weeks total will she need to save? a. 11 weeks b. 16 weeks c. 22 weeks d. 23 weeks Please select the best answer from the choices provided

Vicki works 19 hours per week. Her take home pay is $17.30 per hour. If Vicki is able to save all of her earnings, how long will it take her to save at least $4,000?a.12 weeksb.13 weeksc.14 weeksd.15 weeks

Drake wants to save $750 so that he can take a class on computer analysis for cars. The class is being held on various dates over the next several months. Drake is planning to take the class 6 weeks from now, so he plans to save $125 each week. Unfortunately, Drake had to take out a little money from his savings in the 3rd week. After 4 weeks, Drake has $470. He knows that he must adjust his plan in order to meet his goal. Drake came up with the following options: Option A: Stay with saving the original amount each week but take the class a week later than originally planned. Option B: Increase the amount of money he saves each week by $15 from his original plan. Which of the following is a true statement? a. Only option A will allow him to meet his goal. b. Only option B will allow him to meet his goal. c. Both options A and B will allow him to meet his goal. d. Neither option A nor option B will allow him to meet his goal. Please select the best answer from the choices provided

Which of the following increases liabilities but not assets?a.Taking out a loan to buy a new carb.Taking out a loan to go on vacationc.Using a credit card to buy a computerd.Paying off a student loan

The Svensons find a refrigerator valued at $2,300 on sale for $1,900. They decided to withdraw $500 from savings to use as a down payment on the purchase of the refrigerator and took out a loan to pay the balance. Choose the true statement. a. The Svensons’ assets increased by $1,400. b. The Svensons’ assets increased by $1,800. c. The Svensons’ assets increased by $1,900. d. The Svensons’ assets increased by $2,300. Please select the best answer from the choices provided

There is a correlation between higher education and greater degrees of both income and job stability. What is one downside of continuing education that might cause someone to choose not to seek a higher level of education despite the benefits?a.If you have too much income, you will reach your goals too quickly. b.Most employers feel that pursuing a college degree shows a lack of decisiveness or conviction compared to diving straight into the workforce.c.Higher education can be expensive, and most students who seek degrees must accept some burden of debt.d.Getting a degree in one subject can disqualify you from getting a job in another field.

Vicki works 19 hours per week. Her take home pay is $17.30 per hour. If Vicki is able to save all of her earnings, how long will it take her to save at least $4,000?a.12 weeksb.13 weeksc.14 weeksd.15 weeks

Which of the following could be true if one decreases their long term liability and increases their liquid assets?a.Paid off credit card balance and added money to savings.b.Paid off medical bills and invested money. c.Paid down mortgage and received a cash prize.d.Paid taxes owed and bought a car.

If there is a positive correlation between number of years of education and the amount of company pension contributions, which of the following professions would you expect to have the best company pension contributions? a. police officer, associates degree b. accountant, bachelor’s degree c. lawyer, master’s degree d. pharmacist, doctorate degree Please select the best answer from the choices provided

Data seems to indicate that there is a negative correlation between years of education and unemployment rates. Which of the following describes what this means?a.As education increases unemployment increases.b.As education increases unemployment decreases.c.As education decreases unemployment decreases.d.None of the above.

Aaron is a high school graduate working as a retail clerk. He earns a median salary for a high school graduate. Aaron is thinking about going to college to get an associate's degree. If he completes his degree in 2 years and college costs total $30,000, how long will it take Aaron to recover his investment, assuming that he earns the median salary and continues to work full time while he is attending school? a. about 2.5 years b. about 5.5 years c. about 8.5 years d. about 11.5 years Please select the best answer from the choices provided

Two people quit work and begin college at the same time. Their salary and education information is given in the table below. Salary prior to school Years attending college Total cost of college Salary upon graduating Person A $18,000 3 $45000 $33,000 Person B $27,000 4 $30,000 $37,000 Choose the true statement. a. Person A recovers their investment in a shorter amount of time. b. Person B recovers their investment in a shorter amount of time. c. They recover their investments in the same amount of time. d. There is too little information to compare the time to recover their investments. Please select the best answer from the choices provided

Greg and Josh want to go whitewater rafting in 3 weeks. Josh is able to save the $480 he needs to go on the trip by saving the pay he received for 5 hours of work each week. Greg must save 8 hours worth of pay each week in order to have enough money. How much more money does Josh make than Greg?a.$10b.$12c.$14d.$20

Drake wants to save $750 so that he can take a class on computer analysis for cars. The class is being held on various dates over the next several months. Drake is planning to take the class 6 weeks from now, so he plans to save $125 each week. Unfortunately, Drake had to take out a little money from his savings in the 3rd week. After 4 weeks, Drake has $470. He knows that he must adjust his plan in order to meet his goal. Drake came up with the following options: Option A: Stay with saving the original amount each week but take the class a week later than originally planned. Option B: Increase the amount of money he saves each week by $15 from his original plan. Which of the following is a true statement? a. Only option A will allow him to meet his goal. b. Only option B will allow him to meet his goal. c. Both options A and B will allow him to meet his goal. d. Neither option A nor option B will allow him to meet his goal. Please select the best answer from the choices provided

Justin is married with one child. He works 40 hours each week at a rate of $16 per hour. His wife began working part time after their daughter was born, but still contributes about $350 to the cash inflow each month. Their monthly cash outflow is generally about $3,000. They have a balance of $2,000 in their savings account. Justin has retirement contributions taken out of his paycheck at work. They have renter’s, car and life insurance coverage.Based on this information, what part of their financial plan should Justin and his wife work on?a.managing incomeb.managing liquidityc.protecting assetsd.retirement

Which of the following is an example of increasing both current liability and use assets?a.paying off car loan and investing money in retirement fundb.paying down mortgage and putting money in savingsc.selling a motorcycle to pay off a debtd.trading in an old car for a newer car and financing the balance

Which of the following is not a good plan for achieving goals?a.Set goals higher than what you feel you can achieve.b.Be positive about achieving your goals.c.Continue to monitor your plan for achieving your goals.d.Keep reminding yourself of your goals.

Which of the following is most likely missing from your financial plan if you are not prepared for an emergency?a.financingb.a budgetc.investmentsd.savings

The total employment for police officers in 2006 was 648,000. If there are 719,000 police officers in 2016, what will the percent increase have been? a. 5.12% b. 10.96% c. 11.09% d. 22.07% Please select the best answer from the choices provided

Which of the following would not be listed under cash outflows in a financial plan?a.car paymentsb.insurance premiumsc.interest earnedd.mortgage payment

Mr. Chavez has assets of $250,000 and liabilities of $18,000. He decides to finance the entire amount of the purchase of a car valued at $26,000. Which of the following is true?a.Mr. Chavez increased his assets.b.Mr. Chavez increased his net worth.c.Mr. Chavez increased both his assets and net worth.d.Mr. Chavez did not increase his assets or his net worth.

The table below is comparing level of education achieved to the rate of unemployment and the median weekly earnings in 2008. Based on the information provided, the unemployment rate decreases the most when moving between which two consecutive educational levels? a. “Less than high school” and “High School Graduate” b. “High school graduate” and “Some college, no degree” c. “Associate degree” and “Bachelor’s degree” d. “Professional degree” and “Doctoral degree” Please select the best answer from the choices provided

Mr. Chavez has assets of $250,000 and liabilities of $18,000. He decides to finance the entire amount of the purchase of a car valued at $26,000. Which of the following is true?a.Mr. Chavez increased his assets.b.Mr. Chavez increased his net worth.c.Mr. Chavez increased both his assets and net worth.d.Mr. Chavez did not increase his assets or his net worth.

Approximately how many more job openings are expected for security guards than pharmacy technicians? a. 2,000 b. 11,100 c. 21,000 d. 32,000 Please select the best answer from the choices provided

You are trying to save up for a spa package that costs $300. After looking at your paycheck, you decide that you will be able to set aside $50 a week for the next 6 weeks. Knowing this information, you call the spa to make a reservation for this package for 2 months from now. Which type of goal does this situation best describe? a. Immediate b. Long term c. Short term d. Unrealistic Please select the best answer from the choices provided

The amount of money in a savings account is an example of which of the following?a.investment assetb.liquid assetc.long term assetd.use asset

Based on the spreadsheet below, which of the following is a true statement? a. The net cash flow is negative. b. The net cash flow is zero. c. The net cash flow is positive. d. The net cash flow can’t be determined. Please select the best answer from the choices provided

Why is it useful to identify or analyze occupational and industrial trends when considering your career path?a.Jobs are all pretty much the same, so looking at trends will give you a precise picture of what the future should look like.b.Watching the trends within your chosen industry can tell you when you should expect to be promoted, so you can base your long-term goals around statistical trends.c.Occupational trends can give you an idea of whether a certain industry is improving or declining, and might help you identify how competitive your specific job market will be.d.Analyzing trends is not useful since statistics tend to be incorrect or misleading.

Fran brings home $225 per week working 15 hours of which she is able to save $40. Fran wants to have $1,400 saved at the end of 20 weeks. She may work up to 18 hours per week if she wants. She can save all of the money earned working the extra hours. Which of the following statements is true? a. Fran must work at least 15 hours per week to meet her goal. b. Fran must work at least 17 hours per week to meet her goal. c. Fran must work at least 18 hours per week to meet her goal. d. Fran will not be able to reach her goal. Please select the best answer from the choices provided

In order to reduce their debt, the Johnsons sold some real estate property valued at $165,000 for $143,000. They paid off a loan balance of $100,000 and put the rest in savings. Which of the following is a true statement?a.The Johnsons increased their liabilities.b.The Johnsons increased their liquid assets.c.The Johnsons increased their net worth.d.The Johnsons increased their use assets.

Over the period of a year, Julie’s net worth decreased. Which of the following could be true?a.Julie’s assets and liabilities decreased by the same amount.b.Julie’s assets and liabilities increased by the same amount.c.Julie’s assets increased by more than her liabilities.d.Julie’s assets decreased by more than her liabilities.

What does a negative net worth indicate?a.Your assets exceed your liabilities.b.Your assets equal your liabilities.c.Your liabilities exceed your assets.d.You have only assets and no liabilities.

Error

Which of the following increases liabilities but not assets?a.Taking out a loan to buy a new carb.Taking out a loan to go on vacationc.Using a credit card to buy a computerd.Paying off a student loan