Deck 8: Managing Economic Resources

Question 1

Many couples do not create and stick to a _____.

Answer 1

budget

Question 2

A family's net worth is calculated by adding up all their _____ and subtracting all their _____.

Answer 2

assets; liabilities

Question 3

The aim of financial resources management is to achieve economic goals and _____ in relationships.

Answer 3

harmony

Question 4

People with an individualist worldview typically use resources to better themselves,by doing things such as:

A) buying a bigger house.
B) furthering education.
C) investing in the stock market.
D) all of these

Question 5

In regards to diversity and financial style there are many differences between income level,ethnicity,and worldview.Specifically,low-income families tend to view things from a(n):

A) collective perspective.
B) individualistic perspective.
C) egalitarian perspective.
D) socialistic perspective.

Question 6

There are both advantages and disadvantages to using _____.

Question 7

All of these are strengths of happy couples,compared to unhappy couples,regarding finances EXCEPT:

A) We agree on how to spend money.
B) I am satisfied with our decision to save.
C) We used credit cards to cover most of our expenses.
D) Major debts are not a problem for us.

Question 8

Many low-income and minority families do not put their money in the _____.

Question 9

In terms of annual expenditures,couples and families spend the largest percentage of their income on food,housing,and _____.

Question 10

Which statement is TRUE about a collective worldview:

A) Few cultural groups have this view.
B) People with this view tend to place high priority on helping family and friends.
C) These people place personal needs first,then family.
D) Often European Americans see this view as a cultural strength.

Question 11

When you see helping your friends and family as more important that helping yourself,you are demonstrating a _____ worldview.

Question 12

The study by Skogrand,Schramm,Marshall and Lee identified _____ as the second most cited problem in new marriages.

A) alcohol
B) debt
C) infidelity
D) in-laws

Question 13

Generally,it is found that rich people are _____ than poor people.

Question 14

In general,what percentage of Americans report that they are "very happy"?

A) 25%
B) 33%
C) 50%
D) 66%

Question 15

Most couples planning to marry find it _____ to talk about financial issues.

Question 16

Money is a _____ topic for many families.

Question 17

Which of the following is NOT more likely during times of dramatic economic decline?

A) infanticide
B) domestic violence
C) alcohol and other drug abuse
D) increased marital tensions

Question 18

Research indicates that there is a _____ relationship between money and marital happiness.

Question 19

Research shows that in generally,after the household income reaches about $50,000:

A) happiness continues to increase along with money earned.
B) happiness starts to decrease along with money earned.
C) the relationship between money and happiness is no longer strong.
D) money and happiness are not necessarily related.

Question 20

In a study of 1,000 newlywed couples married three to nine months,couples were asked to indicate their level of debt in all areas EXCEPT:

A) school loans.
B) credit cards.
C) home mortgage.
D) auto loans.

Question 21

Many European American middle class folk view the _____ as being fiscally irresponsible when in fact it is a cultural strength.

A) collective perspective.
B) individualistic perspective.
C) egalitarian perspective.
D) socialistic perspective.

Question 22

The average housing cost for a divorcing family is:

A) $12,000.
B) $15,500.
C) $20,000.
D) none of these

Question 23

In 2003,how many people were in poverty?

A) 1.3 million
B) 3.5 million
C) 10 million
D) 46.2 million

Question 24

What does living in poverty mean?

A) living from paycheck to paycheck
B) not having adequate food or a decent place to sleep
C) having enough money to pay for medicine,food,and shelter,but nothing else
D) making just the minimum payment on credit cards

Question 25

Before couples divorce,some states may require:

A) driver's education.
B) divorce education.
C) parenting classes.
D) self-awareness training.

Question 26

Because many low-income families may have suffered financial stresses,they may not have:

A) savings.
B) retirement accounts.
C) bank accounts.
D) all of these

Question 27

Which of the following is NOT a reason given by economists and other social observers for income differences between women and men in the United States?

A) Men gain seniority in the labor force while women often drop out of the labor force to have children.
B) Fields dominated by women tend to have lower salaries than those dominated by men.
C) Discrimination and sexism do not exist in the U.S.workplace today.
D) Once a woman has formally accepted a job at a particular pay rate,she has little legal recourse for the lower wages.

Question 28

What is the median income level for Asian families?

A) $50,233
B) $66,103
C) $54,920
D) $38,679

Question 29

In addition to racial and ethnic prejudice,which of the following reasons accounts for Whites (as a group)earning more than Blacks or non-white Hispanics (as groups)?

A) type of employment
B) urban or suburban place of residence
C) length of time in the job market
D) all of these

Question 30

What is the average median income level across all ethnic groups?

A) $60,088
B) $46,103
C) $54,920
D) $38,679

Question 31

What is the relationship between gender and income differences?

A) There is a large difference in the average income of females and males at all educational levels.
B) Because of Affirmative Action initiatives in recent years,women as a group now earn slightly more than men as a group.
C) Salary differences between men and women remain the same across educational levels.
D) Earning a college degree decreases differences in income level between men and women.

Question 32

Which of the following families would be considered lower-income?

A) A family that makes $14,000 per year.
B) A family that makes $19,500 per year.
C) A family that makes $75,000 per year.
D) A family that makes $20,000 per year.

Question 33

When it comes to stepfamilies,finances may need to accommodate:

A) children who are "yours,mine and ours."
B) previous financial commitments,including child support.
C) possible inheritances.
D) all of these

Question 34

Approximately how much more yearly does the average college graduate make more than the average high school graduate?

A) They are the same.
B) $5,000
C) $10,000
D) $17,000

Question 35

According to the textbook how much could a year of divorce cost in total?

A) $7,000
B) $14,000
C) $3,000
D) $15,500

Question 36

Sometimes for a family to stay in the relationship instead of divorcing,there other costs besides financial,such as:

A) physical.
B) emotional.
C) mental well-being.
D) all of these may apply.

Question 37

The U.S.Census Bureau defines middle-income families as those making between

A) $8,000 and $20,000 per year.
B) $12,000 and $35,000 per year.
C) $15,000 and $75,000 per year.
D) $20,000 and $40,000 per year.

Question 38

For many Latino families,family is the highest priority and the primary source of financial support.In regards to diversity and financial style they are likely to adopt a(n):

A) collective perspective.
B) individualistic perspective.
C) egalitarian perspective.
D) socialistic perspective.

Question 39

Listed in order,the top three average annual expenditures for urban households in America are

A) housing,apparel,food.
B) transportation,housing,clothing.
C) food,health care,housing.
D) housing,health care,food.

Question 40

Why do financial problems start for some families?

A) Money is a taboo topic.
B) Many couples do not create and stick to a budget.
C) Some families overspend on credit.
D) All of these.

Question 41

Garman and Forgue report that median net worth in 2001 of White American households was about

A) $27,000.
B) $56,000.
C) $78,000.
D) $117,000.

Question 42

What group is most likely to fall into credit card debt?

A) Twenty-somethings
B) Thirty-somethings
C) Families married with kids
D) None of these

Question 43

Which of the following is seldom a cause for personal debt?

A) credit spending
B) crisis spending
C) compulsive spending
D) comparative spending

Question 44

Which of the following statements about U.S.families and credit cards is FALSE?

A) About 2/3 of families carry a monthly balance on their credit cards.
B) Having a savings account is rare,compared to having credit card debt.
C) The average credit card debt for the typical U.S.family is now about $9000.
D) None of these are false statements.(That is,all of the statements are true.)

Question 45

Which of the following is NOT part of a good budgeting process?

A) establishing how much income can be expected
B) ascertaining real costs and estimating amount of money needed to pay for expenses
C) treating credit as income
D) recording expenses on a regular basis

Question 46

Saffi tends to buy items in the mall on the spur of the moment even though she knows she could get the item for less online or at other discount store.This will lead to excessive debt due to:

A) credit spending
B) crisis spending
C) impulsive spending
D) comparative spending

Question 47

Sophia and Marcel just found out that they need a new roof and that it will cost $20,000.This will lead to excessive debt due to:

A) credit spending
B) crisis spending
C) compulsive spending
D) comparative spending

Question 48

When comparing credit cards,what should you look at?

A) interest rates
B) late fees
C) charges for cash advances
D) all of these

Question 49

How much should a family spend per month on housing expenses?

A) 1 week's take-home pay
B) 1 1/2 weeks' take-home pay
C) 2 weeks' take-home pay
D) 2 1/2 weeks' take-home pay

Question 50

Which of the following is NOT a part of the overall definition of budgeting?

A) the regular,systematic balancing of income and expenses
B) a personal system for making sure there is enough money to cover the essentials
C) the regular,systematic commitment of having enough money to pay the minimum payment on credit cards each month
D) a personal system that,hopefully,will pay for a few extras in addition to essential expenses

Question 51

The term used in this text to describe individuals who are very likely to get into credit card trouble is:

A) twenty-somethings
B) Baby Boomers
C) Gen X-ers
D) Millennials

Question 52

Frederick likes to go out to eat with his friends during the week even when he doesn't have the money for it.He often uses his credit cards to pay for lunches even though he really can't afford it.He also opens new cards to transfer balances.This will lead to excessive debt due to:

A) credit spending
B) crisis spending
C) compulsive spending
D) comparative spending

Question 53

Bankruptcy

A) is a good solution for financial problems.
B) makes financial concerns much easier to handle.
C) offers some protection from creditors.
D) has very few social implications.

Question 54

Which of the following is NOT an asset?

A) cash on hand
B) mortgage balance
C) savings and retirement funds
D) trust account

Question 55

Generally speaking,it is wiser to buy a home than to rent,because each mortgage payment gradually increases one's _________ in the home.

A) emotional investment
B) tax liability
C) personal debt
D) equity

Question 56

According to the chart in the book,is it better to buy or rent?

A) Buy.
B) Rent.
C) Neither is better or worse.
D) The book does not take a stance.

Question 57

According to the textbook,in a middle class family,how much does it cost to raise a baby to the age of 2?

A) $24,000
B) $32,000
C) $50,000
D) $191,000

Question 58

Yolanda enjoys watching QVC at night and often finds herself purchasing items that she feels she "must" have.This may lead to excessive debt due to:

A) credit spending
B) crisis spending
C) compulsive spending
D) comparative spending

Question 59

Assume you have a credit card with the balance of $1000,and an interest rate of 17% (a common interest rate on credit cards).Assuming you make no new purchases,but you pay the minimum payment,it would cost you $2590 and it would take you _____ to pay off the debt.

A) 7 months
B) 17 months
C) 7 years
D) 17 years

Question 60

If a family is budgeting their income effectively,they should spend no more than one week's take-home pay on

A) food,including meals out.
B) entertainment.
C) all of their housing expenses,including insurance and taxes
D) car payments,taxes,and insurance.

Question 61

Mauricio finds himself fiscally overextended and seeks counseling from a bankruptcy expert.The expert urges him to try to change his debt management behaviors to avoid bankruptcy.Which of the following is likely NOT one of the things he is instructed to do?

A) Develop and stick to a balanced budget.
B) Work to reduce the total number of debts.
C) Pay off debts with low interest rates first.
D) Avoid debt consolidation loans.

Question 62

There is not a strong relationship between marital happiness and money.

Question 63

A woman with a doctorate degree on average will make more money than a man with just a master's degree.

Question 64

Past experiences affect how one manages finances.

Question 65

People with a collective worldview use resources to better themselves.

Question 66

Even though financial matters are rarely discussed in the dating phase,they are the most commonly discussed topic among married couples.

Question 67

The aim of financial resource management is to achieve economic goals and harmony.

Question 68

One study found that debt caused the most problems in newlywed marriages,rather than finances in general.

Question 69

Money problems are seldom related to an inability to develop an open and well-organized family system.

Question 70

Women have little legal recourse when they are paid lower wages for jobs that require essentially similar skills,even though it is illegal to pay women less for doing the same job.

Question 71

Money is not a taboo subject in families.

Question 72

One of the major differences between unhappily married and happily married couples is that happily married couples are much more likely to agree on how to spend money.

Question 73

Being poor has multiple stresses.

Question 74

The total average cost of divorce is $30,000.

Question 75

Families who are overextended and who have made no progress in 3 to 6 months should.

A) Maintain status quo.
B) Seek financial counseling.
C) Increase eating and drinking.
D) Keep feelings private

Question 76

In the United States,as of 2007 the difference in average income for males and females at any given educational level had become negligible.

Question 77

The number of U.S.citizens living in poverty has decreased during the 2000s.

Question 78

As measured by net median worth,African American and Latino families have about as much cushion against hard times as White American families.

Question 79

The phrase living in poverty means living from paycheck to paycheck,with no extra money each month.

Question 80

Salary differences between U.S.female and male workers decrease as the level of education increases.