Money Skills

Question 1

Which of the following statements is NOT true about

ATM cards?

Answer 1

You can get cash anywhere in the world for free.

Question 2

When do many employer-sponsored dental insurance plans encourage visits to dental offer twice a year by making them free?

Answer 2

Regular cleaning and checkups can reduce the cost of expensive dental work.

Question 3

What would happen to the expense line if both Andrew and his wife continued to work full time after they had children in full-time day care?

Answer 3

It would be higher

Question 4

The average number of vaction days given annually to American workers with a full-time, year-round job is:

Answer 4

16

Question 5

If you make tips from waiting tables, how does the government collect income tax on the tips you get?

Answer 5

Your employer withholds taxes on at least eight percent of the total bills paid by the consumers you served.

Question 6

What is the advantage of a fixed rate mortgage over a variable rate motrgage?

Answer 6

The interest on a fixed rate mortgage can’t rise.

Question 7

Lisa lives in a state that has a state sales tax of seven percent. Her county charges an additional sales tax of 1%. If she buys a dress that costs $100.00, what is the total cost, including salestax?

Answer 7

$108.00

Question 8

f you have a $1,000 loan from your local bank and also have $1,000 in your savings account at that bank that you need to pay the rent in two days, what can happen if you get behind on your loan and notify the bank that you won’t be able to make your payments?

Answer 8

The bank can seize your savings account and use it to repay the loan.

Question 9

Why does the ank generally print the adress of the check writer on the upper left hand corner of the check?

Answer 9

To give the merchant a way to contact the person if the check bounces.

Question 10

If Joey takes a class in welding at a community college but doesn’t get a degree, which of the following is true?

Answer 10

An education that helps people do their jobs better and earn money is considered to be a human capital.

Question 11

n what way is the purchase of a washing machine an investment in a consumers durable rather than a consumption expense?

Answer 11

It can wash your clothes for many years

Question 12

How can you buy a US Saving Bond?

Answer 12

Online, through a Treasury Direct account

Question 13

When does the Federal Government begin to charge interest borrowed on an Direct Unsubsidized student loan?

Answer 13

Immediately, as soon as the first amount is borrowed.

Question 14

. Which of the following is an advantage of using cash over a credit card?

Answer 14

It is easier to control the amount you spend.

Question 15

Andrea has $500 in the bank that she wants to invest in the stock market. She also wants to add $35 per month into this account from her part-time job. Which is the best way for Andrea to build up a diversified portfolio of sticks?

Answer 15

By investing her money in a stock mutual fund.

Question 16

Why are so many e-commerce businesses started in the entrepreneur’s home?

Answer 16

Renting an office takes money from struggling new businesses

Question 17

What is your budget?

Answer 17

Your planned income and your planned expenses.

Question 18

If you had a savings account at a bank, which would be correct concerning the interest that you would earn on this account?

Answer 18

Income tax may be charge on the interest if your income is high enough.

Question 19

Colege seems to be important part of Andrews plan. ow much more can Andrew expect to make per hour in a salary and wages over his lifetime by getting a bachelor’s degree from a four-year college than he could make if he does not go to college?

Answer 19

As a college graduate, Andrew can expect to make nearly twice as much per hour as a high school graduate over his lifetime.

Question 20

Agnews and Dwayne marries recently and have decide to wait ten years to have their first child. If, instead of savin their extra income, they use it to travel during those ten years, what will happen?

Answer 20

They will probably not be able to retire as earlyas they had their children earlier.

Question 21

Bob and Cindy are the same age. At age 25 Cindy began saving $2,000 a year while Bob saved nothing. At age 50, Bob realized that he needed money for retirement and started saving $4,000 per year while Cindy kept saving her $2,000. Now they are both 75 years old. Who has the most money in his or her retirement?

Answer 21

Cindy, because her money has grown for a longer time at compound interest.

Question 22

Which of the following drivers is likely to be charges the highest insurance premiums for driving a vehicle?

Answer 22

A 19 year-old man living in a large city.

Question 23

Jim and Jill are a married couple with twi children. Jll is a wing walker who gets out of an open airplane and baleneces on the wing, and Jim is the pilot who flies the plane for her act. Their famous, death-defying stunts play at air shows all over the world. Relative to their next-door neighbors who are teachers, which of the following best describes their need for life insurence?

Answer 23

It is much higher than their nieghbors because their jobs are dangerous and not diversified.

Question 24

The Brown family just bought a home for $200,000. Of that amount, the land is valued at $50,000. How much would the Brown’s have to carry in fire insurance in order to collect the full amount from fire that casued $50,000 in damages?

Answer 24

$120,000

Question 25

Which of the following finacial assets is safest in terms of not losing your money?

Answer 25

Money in a bank certificate of deposit

Question 26

Rob quit his job working 20 hours per week at a Subway sandwitch shop to make sandwitches in his college dorm roo that he sells to hungry students. If he had been paid $8 per hour at Subway and now works the same 20 hours per week but sells his sandwitches for $300 per week and pays only $100 per week for supplies, how much economic profit does he make?

Answer 26

$40 per week

Question 27

If Stuart buys a $20,000 car with a down payment of 2,000 and is given a 3-year loan with an APR of 10.4 percent and monthly payments of $584.20, what is the dollar amount of the finance charge on this loan?

Answer 27

$3,031

Question 28

Which of the following statements about transportation in the United States is NOT true?

Answer 28

The cost of gasoline is higher in the U.S than anywhere else in the world.

Question 29

Two jobs are advertised in the newspaper, one by the state government and the other by a fairly young, private company. The jobs appear to be the same in terms of work, salary and benifits. The only difference is that the state government job offers lifetime employment hile the private company offers “employment at will”, which means that you can be fired or laid off at any time. Which job is likely to have more applicants?

Answer 29

The job with the sate government.

Question 30

Why do stocks tend to be riskier investment than bonds?

Answer 30

They promise no set payments

Question 31

They promise no set payments

Answer 31

Tax brackets

Question 32

Why does Marias income graph go up so much at age 25?

Answer 32

She gets married

Question 33

Jen and Walter are a young, married couple with a 5-year old son. They are looking for a house with a yard, in a nice nighborhood in a good school district where they can plan to live until their child is grown. Which of the following is an advantage of renting a home than buying it?

Answer 33

They wont have to put down a large down payment

Question 34

Mike has saved $6,000 for his college expenses by working part-time. He plans to start college next year and needs all of the money he saved. Which of the following is the safest for his college money?

Answer 34

A bank savings account

Question 35

Kevin lives in the city and doesn’t own a car. He takes a bus to work, teaching math in a local high school that pays him $30, 000 per year. A similar job has become avalible in a nearby suburb that pays $40, 000 per year. Howveer, he needs a car to get to this job. He figures that he could buy a reliablle car with monthly payments of $300. Insurance, parking, tolls, gas and oil will cost an extra $100 per month. Is this a good deal for him finacially?

Answer 35

yes

Question 36

If your wallet is lost or stole, which of the following shouln’t you do:

Answer 36

Advertise it