Principles of Financial Planning — Unit test

Question 1

Yuri wants to pay for his new chair using a check. What must he consider before using that method of payment?

Revolt · Accepted Answer

Yuri must be sure he has enough left in his checking account for any expenses and automatic payments.

Question 2

Yarin’s gross pay for the year was $3,500. The federal income tax withholding from his pay was 9% of his gross pay. Yarin determined the federal income tax he owes is $115. How much of a refund can Yarin expect?

Revolt · Accepted Answer

$200

Question 3

Iliana’s gross pay is $2,130 per month. Her deductions total $270. She budgets for $1,000 in fixed expenses and $400 in variable expenses. How much money will Iliana be able to save?

Revolt · Accepted Answer

$460

Question 4

The Dumescu family made a chart to compare its budget items. Liliana noticed that the sum of three of the budget items was half of the budget. Which three items was she referring to?

Revolt · Accepted Answer

food, transportation, and clothing

Question 5

A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price or a rebate of $300. Which is the better choice, and what is the extra amount saved?

Revolt · Accepted Answer

The 25% discount is better; it saves $12.50 more.

Question 6

What is one cost of avoiding insurance?

Revolt · Accepted Answer

falling into debt if faced with a serious problem

Question 7

What are possible advantages and disadvantages of using automatic withdrawal to pay bills? Check all that apply.

Revolt · Accepted Answer

avoiding late payment fees; having to share your account information; not having to find a stamp and a mailbox; possible overdraft fees if there is not enough money in the account to cover the payment amount

Question 8

In some cases, it is safe to avoid insurance because

Revolt · Accepted Answer

it may not be needed.

Question 9

What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk?

Revolt · Accepted Answer

It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.

Question 10

Melanie is very concerned with avoiding late fees. The table shows her choices for paying her bills. MethodBill Payment Methods1Pay by check2Pay online3Set up automatic payments4Pay by telephoneWhich method should she use to pay her bills? Enter the response using the corresponding method number.

Principles of Financial Planning — Unit test Answers

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