Personal Finance Exam Part 1

Question 1

Follow-Up

Answer 1

Contact with a prospective employer after the interview. Send within 24-48 hrs after interview.

Question 2

Occupational Outlook Handbook

Answer 2

A good place to start job market research. Can learn the latest about jobs in a wide range of fields.

Question 3

Recession

Answer 3

People slow their buying and unable to pay high prices; jobs lost.

Question 4

Recovery

Answer 4

Economy is growing, people are spending because they are optimistic, good time to save money.

Question 5

Scarcity

Answer 5

The study of economics. Which occurs because people’s needs and wants are unlimited, while resources are limited.

Question 6

Job Shadowing

Answer 6

Spending time observing a worker in a type of job that interests you

Question 7

Social Network

Answer 7

A group of friends and acquaintances who keep in contact and share information.

Question 8

Values

Answer 8

A principle that reflects the worth you place on an idea or action

Question 9

1040EZ

Answer 9

A tax return for filers with no dependents or itemized deductions

Question 10

1.5

Answer 10

Overtime rate - 1 1/2 times regular pay

Question 11

Benefits

Answer 11

Forms of pay other than salary or wages

Examples: holidays, education (tuition reimbursement), perks, retirement plans, profit sharing plans (bonuses), stock option plans

Question 12

Business Plan

Answer 12

A document that describes the steps that will be taken to open and operate a business

Examples: funding, location, insurance, employees, benefits for employees

Question 13

Dependent

Answer 13

A person who depends on you for more than half of his or her support

Question 14

Entrepreneur

Answer 14

Someone who is self-employed and owns a business.

• -> lifestyle business (small) good income
• -> venture business (growth) goal is to become a corporation

Question 15

Profit-Sharing

Answer 15

A benefit whereby employees may share in the profits of the business.

Question 16

Regressive Taxes

Answer 16

Take a larger percentage of income from lower-income people than from higher-income people

Examples: Sales Taxes

Question 17

Ethics

Answer 17

A set of moral values that people consider acceptable

Question 18

Advertising

Answer 18

Informing consumers about products and encouraging them to buy

Question 19

Banner Ads

Answer 19

Ads that are on the page (ads that you can’t close)

Question 20

Customer Loyalty

Answer 20

Program designed to encourage a customer’s repeat business

Examples : Casey’s Pizza, Kohl’s Cash

Question 21

Demand-Pull Inflation

Answer 21

Higher prices, consumers want to buy more than producers can supply

Question 22

Food and Drug Administration

Answer 22

Enforces laws and prevents or stops the selling of mislabeled foods, drugs, cosmetics, and medical devices

Question 23

Infomercial

Answer 23

Paid TV ad that includes testimonials, demonstrations, and introductory prices

Question 24

Low-Balling

Answer 24

Advertising a basic service at a low price and then claiming additional repairs or services are needed. Way of deception.

Question 25

Productivity

Answer 25

Measure of the efficiency with which goods and services are made

Question 26

Time-Shifting

Answer 26

Recording video or audio for later viewing or listening

Question 27

Time Value of Money

Answer 27

A concept that says a dollar you receive in the future will be worth less than a dollar you receive today.

Question 28

Appreciating

Answer 28

Assets that are growing in value (investments, house)

Question 29

Assets

Answer 29

Money or items of value (car, house)

Question 30

Budget

Answer 30

Spending and saving plan

Question 31

Buyer’s Remorse

Answer 31

Someone regretting a purchase they had made

Question 32

Delayed Gratification

Answer 32

Doing without an item you would like to buy now in order to save money to fulfill a medium or long term goal

Question 33

Encryption

Answer 33

Process of converting data to a coded form

Question 34

Financial Plan

Answer 34

Plan with personal and financial goals along with steps and a timeline

Question 35

Financial Resources

Answer 35

Are used to acquire wants and needs

Question 36

Firewall

Answer 36

Software or a hardware device that filters information coming into your computer

Question 37

Net Worth

Answer 37

The difference between assets and liabilities

Question 38

Philanthropy

Answer 38

Form of charitable giving

Examples : money, time, personal resources

Question 39

Timeline

Answer 39

A visual display of how long it will take to achieve each phase of a plan

Question 40

Proverbs 12:11

Answer 40

Those who work their land will have abundant food, but those who chase fantasies have no sense.

Question 41

Proverbs 14:23

Answer 41

All hard work brings a profit, but mere talk leads only to poverty.

Question 42

Proverbs 15:22

Answer 42

Plans fail for lack of counsel, but with many advisers they succeed.

Question 43

Romans 13:7

Answer 43

Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.

Question 44

Matthew 16:26

Answer 44

What good will it be for someone to gain the whole world, yet forfeit their soul? Or what can anyone give in exchange for their soul?

Question 45

Luke 12:15

Answer 45

Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”

Question 46

Ecclesiastes 11:6

Answer 46

Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well.