AnswersMO-Personal FinanceUnderstanding Checking and Debit Accounts

Understanding Checking and Debit Accounts — Unit test Answers

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1
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The advertisement demonstrates a popular way companies try to sell a product.

Question illustration
A
It includes shipping and handling costs.
B
It takes into account maintenance costs.
C
It explains why this price is a good deal.
D
It makes the full cost appears lower than it is.
2
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Which activity does the IRS allow nonprofit organizations to engage in?

A
advertising tax deductions for donations
B
compensating business owners based on profits
C
filing the same tax forms as for-profit organizations
D
collecting a profit as a means to generate income
3

Read the quote from philanthropic businessperson Ewing Kauffman.We cannot finance everybody who wants to get into business, but we have the capability of guiding them to the point where they can get seed money.—From Philanthropy Roundtable

A
money for startup companies
B
empty office space to expanding companies
C
electronic components for updating manufacturing systems
D
expertise to develop business plans to include in bank loan applications
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

Which financing option has the highest overall costs?

A
rent to own
B
credit card
C
installment
D
cash
6

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
7

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
8

[BLANK]

A
marginal
B
comparison
C
emotional
D
research
9

What can be researched about a nonprofit organization through a regulatory agency?

A
the current number of active volunteers
B
the schedule for distributing profits to owners
C
the calendar of upcoming organizational events
D
the level of compliance to nonprofit status regulations
10

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
11

The Hendersons are hosting a barbecue for five people and want to purchase enough chicken for everyone to have two pieces. Which option makes the most financial sense?

A
10 individual chicken breasts at $3 each
B
5 two-packs of chicken breasts at $5 each
C
a 12-pack bag of chicken at $20
D
a 20-pack bag of chicken at $35
12

Which action is an example of a service provided by an organization receiving charitable donations?

A
maintaining a public broadcasting radio station
B
renting booths at an art show on privately owned fairgrounds
C
training a competitive dance troupe within a teacher-owned studio
D
hosting children’s parties at a paint-your-own-pottery franchise
13

Omar’s income statement for the month of October is shown. What is Omar’s net income for October?

Question illustration
A
$1,000
B
$1,500
C
$2,500
D
$3,500
14

A drawback to an installment plan is that

A
it takes longer to buy a product.
B
a large down payment is required.
C
interest rates are generally very high.
D
interest rates are generally very low.
15

Tricia listed her assets and liabilities. Credit Card BillCar LoanBondsPianoBank AccountBicycleWhich are Tricia’s liabilities? Select two choices..

A
credit card bill
B
car loan
C
bonds
D
piano
E
bank account
16

Becca has $500 to open a checking account. She wants an account with the lowest fees. She writes about 12 checks per month and her employer has direct deposit. She plans to only use her bank’s ATM four times a month. Bank Account Terms and ConditionsWhich checking account would be best for Becca?

Question illustration
A
Account A
B
Account B
C
Account C
D
Account D
17

What helps a consumer determine the quantity of something to buy?

A
marginal cost
B
marginal error
C
marginal benefit
D
marginal comparison
18

Which statement best describes how the Fed responds to recessions?

A
It sells more securities.
B
It charges banks more interest.
C
It increases reserve requirements.
D
It increases the money supply.
19

What is the full name of the US central bank, known as the Fed?

A
the Federal Reserve Bank
B
the Federal Deposit Insurance Corporation
C
the Federal Financial Institution
D
the Federal Bank
20

Samantha has $200 to spend on school clothes. She can buy two designer blouses that all of her friends have, or she can buy four generic blouses for the same amount. She decides to buy the designer blouses.What is Samantha’s motivation behind buying the designer blouses?

A
conspicuous consumption
B
consideration for the future
C
confusion of needs and wants
D
desire to get the best deal

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