02.00 It All Begins With You Pre-Assessment – Flashcards

Zoe's new job will require her to drive a farther distance. She budgets 10 percent more for gas, for a total of 20 percent for gas in her new budget, but that means she must change what she is willing to spend in other categories. Which of these could represent new values in Zoe's budget?

Julio earns $300 a week working a summer job. The paycheck he deposits in the bank is for $250. Which of these accounts for the difference in amounts?

Banks often compete for business by offering

Buying things with credit means you

Marlon wants to save money over a long period of time. He does not need to have easy access to the money, and he is worried about losing his investment. He would like to know the interest rate up front. Which of the following options would best suit his needs?

Veronica takes home $1100 per month at her current job. She seeks a loan from her local bank for $40,000 to purchase a new car. Her estimated monthly payment will be $900 per month. Why will the bank probably deny her request, even if she has a perfect history of repaying past loans?

Faisal, Age 24 Has a large amount to invest Can make regular, large deposits Does not need easy access Willing to accept moderate to high risk Does not want a set interest rate Torie, Age 28 Has a small amount to invest Can make regular, small deposits Does not need easy access Willing to accept low to moderate risk Does not want a set interest rate Faisal and Torie each want to make an investment, but they have different needs. Based on the information, which of the following investments are more suitable for Faisal than for Torie?

How could Brian, who doesn't want his car insurance premiums to increase, show he poses a low risk to his insurance company?

Who would pay the least as a percentage of income under a progressive tax?

Shamar has no credit history. He has a reliable job with a good income. He receives several offers in the mail for different types of credit cards. What would be the most responsible credit decision?

Henry has a $10,000 car insurance policy with a $400 per claim deductible. Henry is involved in an accident, and his car sustains $7,000 worth of damage. How much will Henry pay?

What should you do if your expenses exceed your income?

Stephan is shopping for a new dishwasher. He is looking for the product with the best manufacturer's promise to rectify any problems with the device within the next five years. By doing this, he is wisely comparing

Edward paid an annual premium of $2,000 in total coverage for his homeowner's insurance, including $250,000 in damage coverage and $250,000 in liability coverage. Six years into his policy, a tree fell on Edward's home and caused $50,000 worth of damage. Edward's insurance company paid the claim. Did the cost of the annual premiums outweigh the benefit of transferring the risk to the insurance company?

Matthew decides to buy expensive designer jeans. Less expensive jeans are available, but the added cost of the designer brand is worth it to Matthew most likely because

A borrower may be able to get a lower rate on a loan if he or she offers to the lender a sizeable

To earn money on your investments, the rate of return must be higher than the

Which item is a need?

Look at the graph. What kind of tax does the first half (lowest 20 percent to fourth 20 percent) of the graph illustrate?

Loan Term Interest Rate Monthly Payment 24 months 2.5% $213.80 36 months 3% $145.41 48 months 4% $112.90 60 months 5% $94.36 Roger is getting a $5,000 loan. Which option will allow Roger to pay off the loan and keep his payments under $100?

It would be least expensive to purchase goods with

Love to Learn Daycare is over budget for 2013. Which is the easiest category in which to cut costs?

You earn $50,000 per year, and paid 10 percent in taxes this year. The government increased the tax rate to 20 percent for next year. Which amount will you pay in taxes next year?

One benefit of attending a technical school program is

Column A Column B water energy drink clothing celebrity magazines food sushi meal Which label is appropriate for Column A?

Credit Card 1 Secured Limit $1,000 Fixed interest rate 10% No rewards Credit Card 2 Unsecured Limit $1,000 Fixed interest rate 8% No rewards Credit Card 3 Unsecured Limit $2,000 Variable interest rate, starting at 6.5% Rewards The chart above compares credit card offers. Which option for Credit Card 3 should make consumers the most cautious?

A common marketing strategy used by retailers to make products appear more attractive is to list an $8 item for