Question 1

There are different kinds of income discussed in the book.Which one of the following does not belong.&#10;A)Discretionary&#10;B)Disposable&#10;C)Gross&#10;D)Aspirational

Accepted Answer

The three types of income mentioned in the book are discretionary income, disposable income, and gross income. Aspirational income is not a recognized category of income.

Question 2

__________ is the science or practice of managing money or other assets.&#10;A)Actuarial management&#10;B)Budgeting&#10;C)Accounting&#10;D)Financial management

Accepted Answer

Financial management is the most appropriate choice as it specifically refers to the science and practice of managing money or other assets. While the other options are related to financial management, they do not encompass the full scope of managing assets and finances.

Question 3

One way to approach saving is to have a goal of building an)______________ of three to six month's income.&#10;A)Emergency fund&#10;B)Umbrella reserve&#10;C)Quantity fund&#10;D)Production/consumption reserve

Accepted Answer

An emergency fund is a savings account specifically set aside for unexpected expenses or financial emergencies, such as job loss or medical bills. Financial advisors often recommend saving an amount equivalent to three to six months' income in such a fund.

Question 4

Which of the following is not one of the three major credit bureaus in the U.S.?&#10;A)Equifax&#10;B)Experian&#10;C)American Express&#10;D)Trans Union

Accepted Answer

American Express is not a credit bureau. The three major credit bureaus in the U.S. are Equifax, Experian, and Trans Union.

Question 5

An)_____ or a spending plan or guide can be helpful by providing a visible means of controlling money.&#10;A)Annuity&#10;B)Budget&#10;C)Net worth statement&#10;D)Money calendar

Accepted Answer

A budget acts as a spending plan or guide, offering a way to control finances by allocating where money should go.

Question 6

_____________ is a financial arrangement whereby people pay premiums tp aan)____________ company that reimburses them in the event of loss or injury.&#10;A)Stock&#10;B)Mutual Fund&#10;C)Insurance&#10;D)Investiture

Accepted Answer

Insurance is the correct term for a financial arrangement where individuals pay premiums to an insurance company, which in turn provides reimbursement in the event of loss or injury.

Question 7

An area that is rising significantly in cost is:&#10;A)Health care&#10;B)Home appliances and electronics&#10;C)College tuition&#10;D)both a and c are correct

Accepted Answer

Health care and college tuition are both industries that have seen a significant rise in costs in recent years. Both are essential services that people may find it difficult to live without, leading to a situation where there is a high demand for these services irrespective of the pricing. Additionally, many factors such as technology advancements, increasing number of consumers, government policies, and privatization can lead to the rising costs of these services.

Question 8

It is easy to sign contracts for gym membership,but if one rarely goes to the gym a gap exists between _______ and behavior.&#10;A)Resources&#10;B)Values hope)&#10;C)Attitudes&#10;D)Ethics

Accepted Answer

The answer of It is easy to sign contracts for...

Question 9

The main measure of inflation is the ________________ computed and reported each month by the Bureau of Labor Statistics.&#10;A)Consumer Price Index&#10;B)Product Producer Index&#10;C)Consumer Confidence Survey&#10;D)New Homes Sales Matrix

Accepted Answer

The Consumer Price Index (CPI) is the most commonly used measure of inflation as it tracks the changes in the prices of a basket of goods and services consumed by households over time. It is calculated and reported each month by the Bureau of Labor Statistics. Therefore, the correct answer is A) Consumer Price Index. B) Product Producer Index is a measure of the price changes of goods at the producer level, not at the consumer level. C) Consumer Confidence Survey measures the confidence of consumers regarding their economic prospects and spending plans, but it is not a measure of inflation. D) New Homes Sales Matrix is a report on the sales of new homes and is not related to inflation.

Question 10

In the United States,the Great Depression peaked in:&#10;A)1900&#10;B)1933&#10;C)1945&#10;D)1981

Accepted Answer

The Great Depression occurred from 1929 to 1939, with the peak of economic downturn in 1933. Therefore, the correct choice is B.

Question 11

Rent and car payments are examples of:&#10;A)Variable expenses&#10;B)Fixed expenses&#10;C)Net worth expenses&#10;D)Assets

Accepted Answer

The answer of Rent and car payments are examples of:&#10;A)Variable...

Question 12

___________ is the speed and ease of retrieving cash or turning another type of investment into cash.&#10;A)Morbidity&#10;B)Liquidity&#10;C)Asset building&#10;D)Lifetime earning credit

Accepted Answer

The answer of ___________ is the speed and ease of...

Question 13

One attitude shift in the United States is that people are beginning ___________ at an earlier age.&#10;A)Travel planning&#10;B)Career planning&#10;C)Retirement planning&#10;D)Estate planning

Accepted Answer

The answer of One attitude shift in the United States...

Question 14

Self-control issues exist for several areas for most people.Which of the following is not on the usual list?&#10;A)Using credit or debit cards&#10;B)Mail order clubs or buying online&#10;C)Malls,shopping centers or other types of in-person shopping&#10;D)Antiques

Accepted Answer

The answer of Self-control issues exist for several areas for...

Question 15

An)_______ is a numeric value assigned to credit habits,bill paying,and history.&#10;A)FICO Score&#10;B)Annual percentage score&#10;C)Financial Score&#10;D)FDIC Score

Accepted Answer

The answer of An)_______ is a numeric value assigned to...

Question 16

The _____________ is a measure of the goods and services affordable and available to consumers.&#10;A)standard of living&#10;B)level of living&#10;C)consumption standard&#10;D)online consumer survey

Accepted Answer

The answer of The _____________ is a measure of the...

Question 17

____________ also known as cash cards are computerized banking transactions,they remove money directly from your account.&#10;A)Credit cards&#10;B)Debit cards&#10;C)Smart cards&#10;D)Access cards

Accepted Answer

The answer of ____________ also known as cash cards are...

Question 18

The Business Cycle has three main parts,which of these is not one of them?&#10;A)Expansion&#10;B)Recession&#10;C)Inflation&#10;D)Recovery

Accepted Answer

The answer of The Business Cycle has three main parts,which...

Deck 13: Managing Finances