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Personal Finance > Unit 1 Test > Flashcards

Unit 1 Test Flashcards

1
Q

Samantha wants to learn more about financial issues that can affect her life. She is learning about

A

Personal Finance

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2
Q

The process will help George plan his financial future.

A

Personal Finacial Planning

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3
Q

Leon used money from his savings account for a down payment on an ATV. Money in his savings account is an example of

A

liquid asset

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4
Q

is a legal process filed when one is unable to pay their bills

A

bankruptcy

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5
Q

Allison wanted to spend the evening at the movies with friends instead of working at the grocery store. With this decision she incurred an

A

opportunity cost

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6
Q

The process of planning every aspect of your personal finances is known as

A

personal finacial planning

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7
Q

Liquid assets are those possessions that can be rapidly converted to

A

cash

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8
Q

All of the following are important in choosing a career except

A

gender

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9
Q

Which of these would not be considered an expense item in a budget

A

tax return

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10
Q

Good financial planning can help you achieve all of the following goals except

A

winning the lottery

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11
Q

Tara wants to have financial success, so she develops a

A

personal finacial plan

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12
Q

Clayton planned his spending and savings for the next three months by his money

A

budgeting

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13
Q

Rafael added up his assets and subtracted his liabilities to determine his

A

net worth

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14
Q

Lorenzo listed his motorcycle as an on his bank loan

A

asset

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15
Q

Lorenzo also listed the remaining $1,500 he owes on his motorcycle as a

A

liability

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16
Q

Susan has a car worth $6,000. She has paid off half of it so she has $3,000 in her car.

A

equity

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17
Q

Sarah makes $1,200 per month at her job and receives $50 a month from her parents in allowance. The $1,250 she brings in each month is listed as in her budget

A

income

18
Q

Tamara needed $150 by next week to pay for a new warm up for basketball. She looked at her to determine her ability to pay for the warm up.

A

liquidity

19
Q

good would help Tamara be prepared for extra expenses like a new warm up.

A

money management

20
Q

Javier received a credit card application in the mail. His parents talked with him about good before he applied for the card

A

credit management

21
Q

Javier noticed that the credit card company charges 18% each month he is late to pay off his card.

A

interest

22
Q

Javier’s parents went over the of the credit card with him so that he would fully understand when he would need to pay the card off so that he didn’t have to pay interest.

A

payment terms

23
Q

Jeff bought the least insurance coverage on his car. He is taking a because if he gets in a wreck, he may have to pay a lot out of pocket.

A

risk

24
Q

Rachel had little savings, so she knew she would have to the purchase of her car.

A

finance

25
Q

is not a very liquid investment because it is not easy or always possible to sell buildings and land quickly.

A

real estate

26
Q

Assume you have a car worth $3,200 and investments worth another $7,500. If your only debt is $1,300 on a credit card payment, what is your current net worth?

A

$ 9,400

27
Q

How much does Jill have in liquid assets if her car is worth $4,500 and she has $1,110 in a savings account and $532 in a checking account?

A

$ 1,642

28
Q

If you buy a house for $250,000 and put $20,000 in initially on a down payment, how much equity do you have in the house?

A

$ 20,000

29
Q

Mike makes $75 a week mowing lawns, he decides in July that he wants to take 2 weeks off and go on a vacation that will cost him a total of $300. What is his opportunity cost? And what is his total cost of this decision?

A

Opportunity: $150 total:$450

30
Q

You have decided to save 30% of your income for the next two years. You bring home $200 a week, how much will you save over that time?

A

$6,240

31
Q

Which of the following is not a component of a financial plan?

A

utilities

32
Q

Net worth is the difference between

A

assets and liabilities

33
Q

Which of the following is not a source of income?

A

car payment

34
Q

A person’s income may depend on all of the following except:

A

height

35
Q

Consumers tend to spend the highest percentage of their budget on:

A

housing

36
Q

Assume you intend to borrow $5,000. Which of the following payment terms would be the best deal?

A

5 percent for 4 years

37
Q

Which of the following is a key component of risk management?

A

insurance

38
Q

In general, the higher risk of a particular investment the higher the potential

A

return

39
Q

The most common investments include

A

stocks and bonds

40
Q

Good record keeping is important for

A

estate planning

Personal Finance (2 decks)

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