Answers MPS SS131CA Citizenship S2Unit Test

Unit Test — Unit test Answers

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The simple interest on a loan of $200 at 10 percent interest per year is

$10 per year until the loan is paid off.

$15 per year until the loan is paid off.

$20 per year until the loan is paid off.

$25 per year until the loan is paid off.

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There are four steps in solving one’s personal financial challenges:1. considering opportunity costs2. assessing risks and returns 3. setting short- and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps?

2, 1, 3, 4

1, 2, 3, 4

4, 1, 2, 3

4, 2, 3, 1

Which of these is an advantage of checking accounts?

Checking accounts prevent the customer from having overdraft fees.

Checking accounts allow convenient ways to deposit or withdraw funds.

Checking accounts are processed immediately so customer and bank records always match.

Checking accounts offer limited checks but offer higher rates of interest.

What is included in an individual’s personal assets? Select three options.

number of dependents

money

career

property

investment

Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottles. Which of the following makes the most economic sense?

20 bottles of soda at $1.50 each

4 six-packs of soda at $5.00 each

one case of 24 sodas at $18.50

two cases of 24 sodas at $18.50 each

Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?

debit card

credit card

certificate of deposit

passbook

Which is an example of an income deduction?

an unexpected salary cut

wages lost due to illness

vacation budget

retirement savings

Which statement best defines tuition?

Tuition is federal money awarded to a student.

Tuition is aid given to a student by an institution.

Tuition is money borrowed to pay for an education.

Tuition is the price of attending classes at a school.

What is the purpose of comparison shopping?

ensuring you are not buying out of emotion

attempting to find the best deal on a product

determining whether you truly need a product

reading reviews to make sure a product is good

Leo’s car broke down, and he must find money in his limited budget to pay the repair bill.Which of the following is the best solution for Leo to handle the unplanned spending?

Leo forgoes going out to dinner.

Leo forgoes paying the rent on his apartment.

Leo forgoes paying his water bill.

Leo forgoes paying his electricity bill.

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?

Review her records again.

Wait for the bank to call her.

Ignore the fee because it is relatively small.

Check her records against her bank statement.

Which are types of income tax that people pay? Check all that apply.

federal

local

progressive

state

sales

flat

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.

careful consideration of short-term goals

recording the number of assets you currently own

creating a budget to consider future income and spending

learning more about different kinds of accounts to manage money

learning about opportunity cost

This graph shows student loan debt in the United States from 1994 to 2009.

Student loan debt will most likely decrease in the coming years.

Students have taken out higher and higher loans since 1994.

Enrollment for higher education will soon begin to decrease.

Tuition for higher education has risen steadily since 1994.

What is the major difference between a nationwide bank and a community bank?

The community bank offers more services.

The nationwide bank services only local customers.

The nationwide bank has fewer branches.

The community bank services only local customers.

Sara is 16 years old and would like to open a bank account. What will she need in addition to her parent or guardian? Select four answers.

government-issued ID or birth certificate

high school diploma

money to start the account

social security number or immigration form

proof of address

Why might variable expenses change a great deal at different times of year?

Heating and cooling costs might vary considerably.

Income taxes and withholdings may increase or decrease.

Car loan payments become higher in certain seasons.

Discretionary spending may rise when fixed expenses rise.

Kerry knows that a new car is in her future.Which would be the best strategy to help her accomplish this goal?

contribute to a savings account

give up paying for health insurance

stop paying the full amount of rent

apply for and open a new credit card

best

Spend less on mandatory expenses.

Eliminate short-term financial goals.

Increase discretionary expenditures.

Save more money from net income.

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

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 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 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 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.

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