AnswersGeneral Financial Literacy - Brinkerhoff - 2000 - 202627Planning for the Cost of College

Unit 2: Mastery Form & Test Answers

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1
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Patrick has assets that total $9,500. His liabilities total $1,900. Which expression will find Patrick’s net worth?

A
9,500 dollars divided by 1,900 dollars
Option A
B
1,900 dollars minus 9,500 dollars
Option B
C
1,900 dollars minus 9,500 dollars
Option C
D
9,500 dollars minus 1,900 dollars
Option D
2
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Rosetta listed her assets and liabilities on a personal balance sheet. Rosetta’s Balance Sheet (April 2013)AssetsLiabilitiescash$900credit card$4,000investments$1,100student loan$2,000 house$150,000mortgage$100,000car$8,000car loan$5,000Total Total If Rosetta sells her house and pays off the mortgage, how much should she receive (assuming there are no other costs associated with selling the house)?

A
$42,000
B
$50,000
C
$52,000
D
$60,000
3

Aisha’s income statement for the month of June is shown. Which expression will find Aisha’s net income for June?

Question illustration
A
2,700 dollars divided by 1,300 dollars
Option A
B
1,300 dollars minus 2,700 dollars
Option B
C
1,300 dollars + 2,700 dollars
Option C
D
2,700 dollars minus 1,300 dollars
Option D
4

Dante listed his assets and liabilities on a personal balance sheet. Dante’s Balance Sheet (August 2013)AssetsLiabilitiescash$900credit card$4,000investments$1,100student loan$1,000house$150,000mortgage$100,000car$8,000car loan$5,000Total Total Which statement is true about the value of Dante’s assets and liabilities?

A
He has $50,000 more in assets than in liabilities.
B
He has $50,000 more in liabilities than in assets.
C
He has $110,000 more in liabilities than in assets.
D
He has $160,000 more in assets than in liabilities.
5

Category

$
$600
$
$700
$
$850
$
$950
6

Marco predicts he will have $18,750 in expenses for one year of college. He expects to receive $3,450 in grants annually. How much will Marco need to contribute to one semester of his education?

A
$5,925
B
$7,650
C
$11,850
D
$15,300
7

Liam is a computer systems analyst and is looking to change to a company that offers more opportunities for advancement. He has job offers from two companies that look promising. Liam’s Job Offer Comparison Job 1: Seattle, WAJob 2: Silicon Valley, CASalary$78,000$100,000Benefits$4,000 bonuses,health insurance,401K$2,500 bonuses,health insurance,401KAverage Monthly Rent & Utilities$1,350$3,150Which company is a better choice based on annual income after housing and utility costs?

A
Job 2 is a better choice because it will have a salary and benefits worth $20,500 more than job 1.
B
Job 2 is a better choice because the annual income after housing is expected to be $140,300 but job 1 is expected to be $98,200.
C
Job 1 is a better choice because the annual income after housing is $65,800 but that of job 2 is $64,700.
D
Job 1 is a better choice because annual income after benefits and housing will be $109,800 but the annual income for job 2 will be $92,200.
8

This graph compares consumer expenditures in three American cities from 2007 to 2010.

Question illustration
A
workers in Houston are more likely to have jobs with high growth rates.
B
workers in New York may face a cost of living that will exceed their salaries.
C
jobs in San Francisco may have higher salaries to offset the cost of living.
D
jobs in Cleveland tend to pay based on an hourly wage instead of a salary.
9

Read the scenario.Jamal is passionate about education and believes that everyone should have access to quality learning opportunities. He decides to donate to a local nonprofit organization that provides scholarships to underprivileged students. During tax season, Jamal finds out that his charitable donations impacts his taxes.How does Jamal's charitable donation to the nonprofit organization impact his taxes?

A
The donation reduces Jamal's taxable income, lowering the total amount of owed taxes.
B
The donation does not affect Jamal's taxes at all, as it is not a tax-deductible contribution.
C
The donation increases Jamal's tax refund, as the organization provides him with a tax credit.
D
The donation results in Jamal owing more in taxes, as it is considered additional income.
10

In addition to federal income tax, many people also pay

A
corporate tax.
B
state income tax.
C
local medicare tax.
D
local social security tax.
11

Which statement is an example of post-secondary education?

A
core classes such as math and English that one takes in high school
B
vocational classes such as marketing or computer-aided design that one may take in high school
C
a class in a specific computer application or language that one may take to advance in a career
D
a dance class that one takes after retiring for enrichment and enjoyment
12

Which factor would be a valid influence on a career choice in the United States?

A
gender
B
race
C
birthplace
D
interests
13

The image shows a W-2 form.

Question illustration
A
It shows how much a person paid in taxes, and how much more is due.
B
It shows how much a person earned, and how much was withheld in taxes.
C
It shows how much a person earned, and how much tax is to be refunded.
D
It shows how much a person paid in taxes, and whether they have a spouse.
14

Enzo’s balance sheet for the month of July is shown. Enzo’s Balance Sheet (July 2013)AssetsLiabilitiescash$600credit card$4,000investments$500student loan$2,500house$120,000mortgage$80,000car$6,000car loan$2,000Total$127,100Total$88,500Which expression finds Enzo’s net worth?

Question illustration
A
127,100 dollars minus 88,500 dollars
Option A
B
127,100 dollars divided by 88,500 dollars
Option B
C
88,500 dollars + 127,100 dollars
Option C
D
88,500 dollars minus 127,100 dollars
Option D
15

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
16

Brenda created this personal balance sheet. Brenda’s Balance Sheet AssetsLiabilitiesjewelry food wages health insurance commission rent bank account tips Total Total Brenda says her assets are definitely greater than her liabilities. Which explains whether Brenda is correct?

A
Brenda is correct because she has five assets and only three liabilities.
B
Brenda is correct because all the items should be in the assets column of the balance sheet.
C
Brenda is not correct because the total value of her assets could be less than the liabilities.
D
Brenda is not correct because she needs to list more liabilities.
17

Anna is creating a personal balance sheet. She plans to list these items.Bank AccountJewelryHealth InsuranceRentWhich statements about the balance sheet are correct? Select three choices.

A
Health insurance, and rent will be listed in the liabilities column.
B
Anna will need to find the total value of her jewelry and bank account.
C
The period of the balance sheet will be one year.
D
Anna will add the value of the assets and subtract the value of the liabilities.
E
The items in the table will be listed in four columns.
18

Brenden wants to set aside money for times when he may be without work due to illness or layoffs. Which method would be best?

A
college savings account for his daughters
B
checking account
C
personal savings account
D
home equity line of credit
19

How is a federal loan different from a private loan for an education?

A
A federal loan is available for any student who meets the government’s lending standards. A private loan is only available for students who show a need.
A
A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank’s lending standards.
A
A federal loan can only be used to pay for a student’s tuition. A private loan can be used to pay for a student’s tuition and any other expenses.
A
A federal loan can be used to pay for a student’s tuition and any other expenses. A private loan can only be used to pay for a student’s tuition.
20

Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pays $175 a month for utilities. Mr. Morgan owns a rental property for which he receives $680 per month.Which is a liability?

A
the yearly salary
B
the commission
C
the mortgage
D
the rental property

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