Question 1

Some employers offer paid retirement accounts. These are called&#10;A) defined benefit plans.&#10;B) pensions.&#10;C) traditional IRAs.&#10;D) Both A and B

Accepted Answer

Defined benefit plans and pensions are both types of paid retirement accounts offered by some employers, making both A and B correct. Traditional IRAs are typically individual retirement accounts that individuals contribute to on their own, not through an employer.

Question 2

When you create a _____, you consider your financial goals and determine steps you will take to meet them.&#10;A) financial plan&#10;B) retirement plan&#10;C) budget&#10;D) balance sheet

Accepted Answer

A financial plan is a comprehensive overview of your financial goals and the steps you need to take to achieve them, encompassing aspects like budgeting, savings, investments, and planning for retirement.

Question 3

The Dow Jones Industrial Average is an index of stocks.

Accepted Answer

The Dow Jones Industrial Average (DJIA) is indeed an index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange and the NASDAQ.

Question 4

Bonds are typically short-term investments.

Accepted Answer

Bonds are typically considered long-term investments, as they have maturity dates that can range from one year to more than 30 years from the issue date.

Question 5

Cash flow statements are not as important now since companies typically handle transactions electronically.

Accepted Answer

Cash flow statements remain crucial for understanding a company's liquidity, regardless of whether transactions are electronic or physical, as they provide detailed information on how a company generates and uses cash.

Question 6

An income statement is usually prepared to show income and expenses for a month or fiscal year.

Accepted Answer

An income statement is a financial statement that shows a company's income and expenses over a specific period, typically a month or a fiscal year, to calculate the net income or loss.

Question 7

A(n) ____ shows the assets, liabilities, and owner's equity of an organization as of a given date.&#10;A) balance sheet&#10;B) income statement&#10;C) cash flow statement&#10;D) loan amortization schedule

Accepted Answer

A balance sheet is a financial statement that shows the assets, liabilities, and owner's equity of an organization as of a specific date, providing a snapshot of its financial condition at that point in time.

Question 8

Typically, a savings account gets the most activity of any personal banking account each month.

Accepted Answer

Checking accounts usually get the most activity each month because they are used for daily transactions like paying bills, withdrawing cash, and making purchases. Savings accounts are typically used for storing money over longer periods and thus see less frequent transactions.

Question 9

You should limit the amount you owe to less than _____ percent of your take-home pay.&#10;A) 20&#10;B) 5&#10;C) 30&#10;D) 50

Accepted Answer

Financial experts generally recommend that you limit your debt obligations to less than 20% of your take-home pay to maintain financial stability and avoid excessive debt burden.

Question 10

Marc just started a new job and receives medical and dental insurance coverage in addition to his salary. Benefits in addition to salary are known as _____ benefits.&#10;A) fringe&#10;B) extra&#10;C) unplanned&#10;D) deferred

Accepted Answer

Fringe benefits are additional benefits offered to employees on top of their regular salaries, such as medical and dental insurance, which are common examples.

Question 11

A loan amortization calculator shows how much interest you will pay during the life of a loan.

Accepted Answer

The answer of A loan amortization calculator shows how much...

Question 12

If you carry a balance on your credit card, it's wise to make only the minimum payment since you'll have to pay interest anyway.

Accepted Answer

The answer of If you carry a balance on your...

Question 13

_____ are the modern equivalent of petty cash.&#10;A) Purchasing cards&#10;B) Purchase orders&#10;C) Debit cards&#10;D) Credit cards

Accepted Answer

The answer of _____ are the modern equivalent of petty...

Question 14

_____ is the interest rate for a credit card expressed as a yearly amount.&#10;A) IRA&#10;B) SEP&#10;C) APR&#10;D) None of the above

Accepted Answer

The answer of _____ is the interest rate for a...

Question 15

_____ are the result of thinking about what you want to achieve and how you will pay for it.&#10;A) Financial goals&#10;B) Budgets&#10;C) IRAs&#10;D) Personal goals

Accepted Answer

The answer of _____ are the result of thinking about...

Question 16

A _____ consists of stocks, bonds, and other investments focused on a particular investment strategy.&#10;A) defined benefit plan&#10;B) stock purchase plan&#10;C) mutual fund&#10;D) simplified employee pension plan

Accepted Answer

The answer of A _____ consists of stocks, bonds, and...

Question 17

Ronald's car just died, and he needs to buy a new one very soon. He has investments, but it will take a while for him to get the cash from these investments. Ronald is having a _____ problem.&#10;A) liquidity&#10;B) penalty&#10;C) dividend&#10;D) diversification

Accepted Answer

The answer of Ronald's car just died, and he needs...

Question 18

You may have money taken out of your paycheck for retirement as a payroll deduction.

Accepted Answer

The answer of You may have money taken out of...

Question 19

Medicare is a health insurance program for people age 65 or older.

Accepted Answer

The answer of Medicare is a health insurance program for...

Question 20

The S&P 500 is an indicator of stock market trends.

Accepted Answer

The answer of The S&P 500 is an indicator of...

Question 21

Match between columns&#10;                        Premises: A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A social insurance program the beneficiaries of which are retired individuals, survivors, and people with disabilities&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;A spending and saving plan based on anticipated income and expenses&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;An IRA set up to benefit a husband or wife who does not work outside the home&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of a company's profits distributed to stockholders&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;A share of ownership in a corporation&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;An IRA for which money is deducted from gross income (reducing taxable income) and taxes are paid when the money is withdrawn during retirement&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;A tax-deferred retirement plan for employees of private companies and corporations&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;An IRA for which contributions are taxed at the time you make them&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A retirement plan for small business owners and their employees&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions&#10;A tax-deferred retirement plan for employees of nonprofit organizations or educational institutions

Accepted Answer

The Answer of 403(b) and Roth IRA and spousal IRA is...

Deck 13: Personal Finance and Investment Strategies