Marriage and Family State Test

Question 1

what is financial planning

Answer 1

setting goals and developing a plan for finances

Question 2

financial institutions

Answer 2

bank, credit unions and savings and loan firms

Question 3

what are FDIC, SAIF, and NCUA

Answer 3

insurance for banks, credit unions and savings and loan

Question 4

what are ooutstanding checks

Answer 4

checks that havent cleared the bank

Question 5

what is overdraft protection

Answer 5

an instant loan that guarantees checks up to a specified amount

Question 6

debit vs. credit card

Answer 6

debit card transactions are deducted out of checking, credit cards are loans

Question 7

what is the cost of credit

Answer 7

the interest you pay to use other’s money

Question 8

what is a credit limit

Answer 8

the max amount you can borrow

Question 9

what does APR stand for

Answer 9

annual percentage rate

Question 10

credit history/credit report

Answer 10

a record of your personal financial transactions used to determine risk. kept by credit bureaus

Question 11

what is bankruptcy

Answer 11

two types: chapter 7 and chapter 13

Question 12

what is the Fair Credit Reporting Act

Answer 12

law that says you can see your credit report and dispute anything that is false

Question 13

what is interest

Answer 13

the amount you pay for the money you borrow

Question 14

what is the principle loan amount

Answer 14

the original amount you borrow

Question 15

what is a cosigner

Answer 15

a person who accepts responsibility to pay the loan if you default

Question 16

what is a flexible expense

Answer 16

expenses that change from month to month

ex. groceries, recreaction

Question 17

fixed expense

Answer 17

expenses that stay the same every month

Question 18

review and revise or update your budget

Answer 18

update and make changes to spending plan as needed

Question 19

recommended percentages for budgeting household expenses

Answer 19

housing 30-35%
food 10-15%
savings 10%
transportation 15%

Question 20

savings

Answer 20

money set aside for emergencies or short term needs

Question 21

PYF

Answer 21

pay yourself first 10% before anything else

Question 22

emergence funds

Answer 22

money saved that is easily accessible in case of an emergency

Question 23

3 major taxes

Answer 23

federal
state
local- property and sales

Question 24

1040EZ

Answer 24

easiest tax form to do

Question 25

compounding interest

Answer 25

earning interests on interest | principle*interest*interest

Question 26

rule of 72

Answer 26

how long it takes to double your money | 72/the interest=how long it takes to double

Question 27

interest

Answer 27

percentage charged to borrow money. (higher rate=more cost)

Question 28

risk and return principle

Answer 28

the higher the investment risk the higheer the investment return

Question 29

stocks

Answer 29

you have part ownership in a company

Question 30

liquidity

Answer 30

an asset that can be easily converted into cash

Question 31

mutual funds

Answer 31

and investment security that is a diversified portfolio

Question 32

diversification

Answer 32

reducing investment risk by putting money in several different types of investments

Question 33

retirement

Answer 33

when you live off your pension and your savings

Question 34

IRA

Answer 34

individual retirement account

Question 35

what is estate planning

Answer 35

a plan to use wills and trusts to distribute assets

Question 36

purpose of a honeymoon

Answer 36

to get to know each other, to provide relaxation, time alone together and time to adjust to marriage

Question 37

purpose of engagement

Answer 37

showing commitment, plan wedding, and making sure it is the right person

Question 38

marital roles: traditional vs. equalitarian

Answer 38

roles in a marriage are defined as masculine and feminine vs. roles are divided up equally

Question 39

marital risks

Answer 39

getting married too young, unhappy childhood, different values, parents are divorced, parents disprove, emotionally or physically unhealthy

Question 40

discussing finances in marriage

Answer 40

finances are the #1 cause of divorce

Question 41

communication in marriage

Answer 41

focus on positive, constructive communication

Question 42

touch oriented person

Answer 42

enjoys hugging, holding hands, and physical closeness

Question 43

verbally oriented person

Answer 43

enjoys physical closeness, sharing feelings, and heart to heart conversations

Question 44

task oriented person

Answer 44

want achievements recognized, want things, value hard work

Question 45

conflict resolution

Answer 45

use communication to solve problems and compromise and accommodate each others needs

Question 46

5 stages of grief

Answer 46

1. denial 2. anger 3. bargaining 4. depression 5. acceptance and recovery

Question 47

strengthen families

Answer 47

1. commitment 2. time together 3. sharing values 4. appreciating one another 5. decision making 6. share responsibility/chores 7. problem solving

Question 48

homeowners insurance

Answer 48

replacement value. protects home and loss in house

Question 49

liability insurance (auto)

Answer 49

pays for your car to get fixed