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.

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

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

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

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%

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

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

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

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

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

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

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

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

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

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.

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.

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

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

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

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