AnswersTX-Economics CRUnit Test

Unit Test — Cumulative exam Answers

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21
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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
22
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Besides the cost of tuition, what additional educational expenses must students pay? Check all that apply.housingmealssuppliestextbooksclasses

h
housing
m
meals
s
supplies
t
textbooks
c
classes
23

Bryan receives an e-mail from a group posing as a police officers association and asking for bank account information. This is an example of

A
social engineering.
B
phishing.
C
counterfeiting.
D
forgery.
24

Which statement best describes how lenders determine borrowing conditions for a customer?

A
They access the customer’s credit reports.
B
They see how large of a down payment the customer makes.
C
They look into how much the customer has saved for emergencies.
D
They access the customer’s work history.
25

Which investment has the least liquidity?

A
property
B
stocks
C
a savings account
D
a 401k
26

[BLANK]

A
rates
B
returns
C
risks
D
rewards
27

Which of these is the best reason for Nina to monitor her bank account statements online or on her cell phone app?

A
to know when her bills are due
B
to determine the exact date she can retire
C
to ensure she's paying her fair share in taxes
D
to know how much money she has for budgeting
28

Which describes an example of using unsecured credit?

A
Someone buys new gutters for a home with a credit card.
B
Someone buys a new vehicle with a loan from a car dealer.
C
Someone buys a new home with a mortgage from a bank.
D
Someone buys a new boat with a loan from a boat dealer.
29

Why might people choose to rent a home rather than buy a home?

A
They have a lot of money saved for a down payment.
B
The property maintenance is the owner's responsibility.
C
The interest rates on equity are too high.
D
They have a long-term commitment to the area.
30

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
31

Ida is 25 years old and invests a one-time lump sum of $10,000 in her company's 401(k), which earns an average annual return of 6% compounded annually.Using the Rule of 72, about how many years will it take for Ida's investment to double?

A
2 years
B
6 years
C
10 years
D
12 years
32

The tables show two ways to pay off $500 in credit card debt.

Question illustration
A
$15 a month because it will let the person keep more spending money
B
$100 a month because it will free up credit to buy other things
C
$15 a month because it will save money in the long run
D
$100 a month because it will reduce the amount of interest paid
33

How can an employer's retirement matching program encourage an employee to save for their retirement?

A
It increases an employee’s regular paycheck.
B
It ensures financial stability in the short term.
C
It boosts savings by adding extra funds to the employee's contribution.
D
It enhances employee knowledge through mandatory financial seminars.
34

Property taxes are based on

A
where a property is located.
B
who lives on a property.
C
how much a property is worth.
D
when a property was purchased.
35

What is an insurance premium?

A
the value of something lost or damaged
B
the highest payout available by an insurer
C
the amount paid for an insurance policy
D
the best type of insurance available
36

Karina keeps excellent records and always knows precisely how much is in her bank account. However, when she receives her bank statement, she’s surprised to see that she has been charged a $5.00 overdraft fee. After reviewing her well-kept records, she cannot find anything that is incorrect. Which would be the best action for Karina to take?

A
Review her records again.
B
Wait for the bank to call her.
C
Ignore the fee because it is relatively small.
D
Check her records against her bank statement.
37

This is a table that could be used to maintain a record of account transactions. It is similar to what is found in a checkbook ledger. Some of its column headings are missing. How should these columns be labeled?

Question illustration
A
Balance, Transaction Code, Description
B
Check Number, Description, Balance
C
Transaction Code, Balance, Notes
D
Description, Check Number, Balance
38

How does an employer's presentation of retirement savings options affect employees' decisions to save?

A
by automatically enrolling employees to tap into their default bias
B
by assigning employees to different saving courses in the retirement plan
C
by offering various saving courses in the retirement plan
D
by making the plan more complex to get employees more involved
39

These lists provide information about two jobs.

Question illustration
A
Job A has a lower salary than job B, but the benefits make job A a more attractive pay package.
B
Job B has a lower salary than job A, but the benefits make job B a more attractive pay package.
C
Job A has a higher salary than job B plus benefits that make job A a more attractive pay package.
D
Job B has a higher salary than job A plus benefits that make job B a more attractive pay package.
40

Which of these are considered both short- and long-term investments? Select four options.CDsstockssavings accountsmutual fundsbondscommodities

A
CDs
B
stocks
C
savings accounts
D
mutual funds
E
bonds
F
commodities

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