Test 1 Part 2 Flashcards
If a $100 item was discounted 20% then what would be the new price?
None of the Above.
How much is 7% of $100?
$7
Which of the following is the best example of a wholesale price?
The price Sony charges Walmart for a television.
Which of the following statements makes the most sense concerning investing your money?
Putting your money in real estate and the stock market are two very popular investment methods.
Which of the following auto loans for $10,000 would be the best loan for most people?
A 4 year loan at 4% APR with a monthly payment of $225.79
What date of the year do taxes need to be filed by most individuals?
April 15
If a television costs $700 in Indiana, what is the total cost of the TV once you add the sales tax to the total?
$749
What is a capital gains tax?
A tax on the profit from property or investments.
Which of the following is true about the IRS?
This agency deals primarily with collecting taxes.
What is the total cost of gasoline if you drive 900 miles in a month with a car that averages 20 miles per gallon at a cost of $3.50 per gallon?
None of the Above
Let’s say you have a $500 auto deductible and then have a $2100 accident. How much will the insurance company pay for the accident?
$1600
In “The Millionaire Next Door”, a strong offense and strong defense refers to which of the following?
Your income level and your ability to spend wisely.
Which of the following is NOT true about the findings in “The Millionaire Next Door”?
Most millionaires inherited most of their money.
What is the best example of volatility?
Seeing stock prices change a lot from day to day.
If someone owes $10,000 in credit card debt but only charged $8,000 on their card, then the $8,000 is known as which of the following?
The principal amount.
Which is true about 90 days same as cash?
Answers A and D
What is the best example of collateral?
The car you purchased with an auto loan.
What factors help determine a stock price?
Answers A, B, D
What is the price of one share of Google Stock?
Between $900 and $1200
Which concept best applies to the CPI Index?
Answers B and E.
A payment you receive for stock that you own is called a:
Dividend
Dave Ramsey would say which of the following?
None of the above.
Which of the following is true about the stock market?
Over the period of many years, stocks will usually average over a 8% interest rate.
The best thing about compound interest is:
Answers A and C.
Dave Ramsey strongly urges the following:
Diversify your investments.
What types of things would create conditions for a recession?
A long term Bear Market
If your house is worth $150,000 and you owe $100,000 on your mortgage, then how much equity do you have in your house?
$50,000
If you put $1,000 in the bank and you earn 10% interest for two years, then how money would you have in the bank after two years?
$1210
When the stock market loses value over time then this is an example of what kind of market?
Bear Market
When a home increases in value over time then this is know as which term?
Appreciation
