02.00 It All Begins With You Pre-Assessment – Flashcards

Unlock all answers in this set

Unlock answers
question
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?
answer
Entertainment 10%, Clothing 10%
question
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?
answer
Direct tax
question
Banks often compete for business by offering
answer
different interest rates on loans
question
Buying things with credit means you
answer
pay more for the item overall
question
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?
answer
Bonds
question
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?
answer
Her income will probably not allow her to make the loan payments.
question
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?
answer
Money market account, stocks, futures
question
How could Brian, who doesn't want his car insurance premiums to increase, show he poses a low risk to his insurance company?
answer
Drive safely to avoid accidents and traffic citations
question
Who would pay the least as a percentage of income under a progressive tax?
answer
Grill master earning $10,000 per year
question
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?
answer
Accept a secured credit card with a low, fixed interest rate
question
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?
answer
$400
question
What should you do if your expenses exceed your income?
answer
Reduce your spending
question
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
answer
warranties
question
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?
answer
No, the cost of the annual premium for six years was less than the accident claims
question
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
answer
he prefers designer brands
question
A borrower may be able to get a lower rate on a loan if he or she offers to the lender a sizeable
answer
down payment
question
To earn money on your investments, the rate of return must be higher than the
answer
rate of inflation
question
Which item is a need?
answer
Food
question
Look at the graph. What kind of tax does the first half (lowest 20 percent to fourth 20 percent) of the graph illustrate?
answer
Progressive
question
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?
answer
60 months
question
It would be least expensive to purchase goods with
answer
cash
question
Love to Learn Daycare is over budget for 2013. Which is the easiest category in which to cut costs?
answer
Miscellaneous
question
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?
answer
$10,000
question
One benefit of attending a technical school program is
answer
lower costs to attend
question
Column A Column B water energy drink clothing celebrity magazines food sushi meal Which label is appropriate for Column A?
answer
Need
question
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?
answer
Variable interest rate
question
A common marketing strategy used by retailers to make products appear more attractive is to list an $8 item for
answer
$7.99
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New