AnswersVHS-Economics and Personal FinanceManaging Financial Information

Managing Financial Information — Unit test Answers

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22
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What is included in an individual’s personal assets? Select three options.

A
number of dependents
B
money
C
career
D
property
E
investment
23
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Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank. What is the best option for him to pay his bills?

A
Frank should telephone in his payment to the company.
B
Frank should pay his bill online.
C
Frank should set up automatic withdrawals for the company he is paying.
D
Frank should mail a check to the company.
24

Personal finance skills have the most significant impact on an individual’s

A
career
B
education
C
quality of life
D
neighborhood safety
25

Ted has $55.00 in his pocket. Which purchase will he be able to pay for with cash?

A
two books for $29.95 each
B
headphones for $29.99 and a portable speaker set for $30.95
C
an MP3 player for $35.99 and a $20.00 gift card for downloading music
D
three books for $16.99 each
26

Mikkel pays a 4 percent state income tax on his earnings. If he earns $1,867, how much state income tax can he expect to pay?

A
$46.68
B
$74.68
C
$466.75
D
$746.80
27

Beth withdrew $35 from her checking account. In which column should she record the $35 withdrawal?

Question illustration
A
Check Number
B
Debit
C
Deposit
D
Balance
28

Amanda wants to buy a new car. What questions of financial responsibility should she ask herself before she makes the purchase? Select three options.

A
Do I need this car or should I walk, bike, and take the bus to save money?
B
Is this a reliable vehicle or will I have to make costly repairs?
C
What will my friends think when I buy this car?
D
Will I be able to afford the insurance, gas, maintenance of battery, oil, tires, and also repairs?
E
Will this new car be fast and my favorite color?
29

Veronique and Lily each bought a piece of luggage that had the same price in different stores. The table below shows how they will pay for the item. Payment for PurchasesNamePayment TypePayment Amount (Including Finance Charges)Number of Months to Pay for ItemVeroniqueStore financed$2510LilyCredit card$357Who made the better financial decision and why?

A
Veronique because her payments are lower.
B
Veronique because her final cost, including finance charges, is less than Lily’s.
C
Lily because she is paying off her purchase sooner.
D
Lily because her final cost, including finance charges, is less than Veronique’s.
30

What is the best reason for Jacinta to have a savings account in addition to a checking account?

A
A savings account accepts all direct deposits and processes all direct withdraws.
B
A savings account ensures she will never go into debt.
C
A savings account guards her money against inflation.
D
A savings account keeps her money safe and separate from her spending money.
31

Hillary’s family is thinking of relocating to a different city to save money. They set up a budget comparing the cost of living in four cities. OaklandPhoenixSanta FeSan DiegoItemCostCostCostCostHousing$565$465$505$1200Food$545$495$475$655Health Care$245$215$200$495Taxes$450$415$385$625Other Necessities$350$305$295$495Monthly Total$2155$1895$1860$3470Based on cost of living alone, which city should they choose to live in?

A
Oakland
B
Phoenix
C
Santa Fe
D
San Diego
32

Why do prices increase when demand for a product is high?

A
Companies know they can make more money by selling fewer products at higher prices.
B
Companies know that people will be willing to spend more to get an in-demand product.
C
Companies take advantage of the demand to make people spend more money on excess products.
D
Companies know they can stop production and still make money on sales.
33

What do financial planning skills ultimately enable an individual to do?

A
to prepare for the future
B
to process their own tax returns
C
to stop spending
D
to become wealthier without saving money
34

It is important for victims of identity theft to contact the authorities

A
after determining whether they have lost any money.
B
quickly to protect themselves from embarrassment.
C
after determining how someone stole their identity.
D
quickly to protect themselves from financial losses.
35

What might you expect to find out about people who are described as credit risks?

A
They are usually given a low interest rate.
B
They have a history of not making their payments on time.
C
They find it easy to get a loan from the bank.
D
They have a history of paying in full each month.
36

Question text not available

Question illustration
A
She pays her bills on time and has a higher amount of debt.
B
She has a lot of debt with a history of making late payments.
C
She pays her bills on time and has a lower amount of debt.
D
She has a lot of money and tends to pay her bills on time.
37

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.
38

A car dealership analyzing whether it will loan money to William to buy a new car finds that his credit score is in the "very good” range.Which statement best describes the lender’s viewpoint of William?

A
He is a low-risk borrower who qualifies for lower interest rates.
B
He is a low-risk borrower who will struggle to obtain a loan.
C
He is a high-risk borrower who will get multiple loan offers.
D
He is a high-risk borrower who qualifies for higher interest rates.
39

When companies spend millions of dollars developing logos and slogans, or use celebrity endorsements to encourage consumers to buy particular products, this is called

A
false advertising.
B
undue influence.
C
product branding.
D
quality assurance.
40

Sarah transferred $450.00 from her savings account to her checking account. She’ll use the check register to record her transaction. What will be her new balance?$

Question illustration
Answer not available
41

How do short-term financial goals differ from long-term financial goals?

A
Short-term goals involve more planning than long-term goals.
B
Short-term goals are more affordable than long-term goals.
C
Short-term goals cost more than long-term goals in the long run.
D
Short-term goals are more immediate than long-term goals.

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