Test Flashcards
What are some mistakes candidates make when preparing a resume or a cover letter ?
Too long a resume
Overuse of words like “team player” “energetic” “results” “focused”
Over complicated format
Attachment files
What are the opportunities offered to students by colleges to connect with several prospective employers in a short time span?
Campus career office
-career exploration+planning publications+other resources
-resume cover letter assistance
-practice interviewing
-networking + mentor programs
-internship placement
-available job listings
What’s the order of listing cash outflows on a cash flow statement
- Fixed expenses
2.variable expenses
Job internship definition
A professional learning experience that offers meaningful, practical work related to a students field of study or career interest can be paid or unpaid
Career definition
A long term professional journey regarding an occupation or profession. Normally requires special training, degree, etc
What are the economic factors affecting career opportunities ?
Economic growth rate
Inflation
Unemployment rates
Interest rates
Exchange rates
Government policies
Avoiding identity theft requires continuous effort regarding what to do and what not to do?
Never click on link or disclose personal data by phone to a questionable source
To avoid theft:
Use initials + last time on checks
Yale work phone/post office box on checks
Use security features
Shred financial documents
Traditional resume definition
A printed or digital documentation that provides a concise summary of qualifications, work experiences, education, skills
Infographic resume definition
Used to visually communicate skills and qualifications
Appropriate for advertising , journalism, photography, public relations
Chronological resume definition
Presents your education and experience in a reverse time sequence (the most recent item first)
What is the purpose of a resume and of a cover letter?
You must market yourself to prospective employers by developing a resume, creating a cover letter, and interviewing for available positions
Credit counselors are aware that most people who are in debt over their heads are usually…
Basically honest people that want to clear up their indebtedness
What is a chronological resume with respect to educational attainment and work experience?
Presents your education and experience in a reverse time sequence( the most recent item first)
What is the difference between tax evasion and tax avoidance?
Tax avoidance: use of legal methods to reduce or escape taxes
Tax evasion: use of illegal methods to reduce or escape taxes
How to calculate net worth when given assets and liabilities?
Assets-Liabilities=Net Worth
What are some career info sources?
Library and media
Online sources
Business and personal contacts
What is the main goal of financial planning?
To achieve personal economic satisfaction
What type of loan is the installment cash credit ?
A direct loan of money for personal purposes, home improvements, vacation expenses. You make no down payment and make payments in specified amounts over a set period.
Explain the purpose of networking in the process of seeking employment
The process of making and using contacts to obtain and update career info.
70% professionals find positions through personal contacts
(Community orgs, business contacts professional association)
Variable expenses definition
Flexible payments that change from month to month
Ex: utilities,food, medical expenses
Fixed expenses definition
Payments that do not vary from month to month
Example: mortgage, rent , loan
Net worth definition
The difference between total assets and total liabilities
How has the transfer of money for purchases evolved overtime with the use of checks and debit cards ?
Cash used to be dominant method
Online banking more at our hands can transfer money anywhere anytime
Which saving instrument should you use when interest rates are rising?
CD(certificate of deposit)
Allows you to lock in a higher interest rate for a set period, benefitting from the current high rates while your money stays deposited for a fixed term.
What are the economic factors affecting career opportunities?
High economic growth, low unemployment, inflation, interest rates, exchange rates, commodity prices, government policies, access to credit, competition level, disposable income
Social media resume definition
Contains links to professional social media profiles, LinkedIn, personal brand, video
Long term liabilities definition
Debts that are not required to be paid in full until more than a year from now
What approach should financial goals take ?
SMART approach
Personal property taxes usually apply to physical property such as…
Automobiles, boats, furniture, farm equipment
What’s the the main decision areas of personal finance?
- Spending: for daily living expenses, for major expenditures, for recreational activities
- Saving: for emergencies, for long term financial security
- sharing: for local and global programs to assist others in need
Current liabilities definition
Debts that must be paid within a short time, usually less than a year
With respect to tax obligations, what does a tax deferred employee benefit imply?
Required payment of income tax at some future time, such as retirement
Equal credit opportunity act (ECOA)
Bans discrimination in the extension of credit on the basis of race, color,age,sex,marital status, and other status
There are many different interest rates on the market, but the federal reserve system (FED) controls an important short term rate to influence lending and economic activity.
The federal funds rate
- interested rate at which banks lend reserve balances to other depository institutions overnight
-directly affects IR’s on loans mortgages credit cards savings accounts
If fed icnreased ffr more expensive for banks to borrow
What does SMART stand for ?
specific , measurable, action oriented, realistic, time based
Tax records are required to be kept for several years but you be held responsible for providing back up documentation for a much longer period ?
May look back up to 6 years
(No technical time limit for IRS to request documentation)
Installment sales credit definition
A loan that allows you to receive merchandise usually high priced items as large applicants or furniture
You make a down payment and usually sign a contract to repay the balances , plus interest and service charges, in equal installments over a specified period
Definition of installment cash credit
A direct loan of money for personal purposes, home improvements, or vacation expenses. You make no down payment and make payments in specified amounts over a set period.
What distinguishes mature consumers from non mature consumers?
Demonstrate self discipline, control impulses, use sound judgement, accept responsibility for money management, able to postpone and govern expenditures when overestimating of credit appears likely.
Financial literacy definition
The use of knowledge and skills for earning saving spending and investing money to achieve personal family and community goals
What is a chronological resume with respect to educational attainment and work experience?
Presents your education and experience in a reverse time sequence( the most recent item first)
What’s rule of 72 and how does it work?
We use it to find out how fast prices or savings will double . Take the 72 and divide by percent given
Present value formula
PV=FV/(1+i)^n
What are the states of career planning and advancement (detailed )
- Assess and research personal goals, abilities, and career fields
- Research the employee market and identify specific employee opportunities
- Develop a resume and cover letter, apply for available positions
- Interview for available positions, assess your interview performance
5 . Evaluate financial and other factors of positions you’re offered - Plan and implement a program for career development
Revolving check credit definition
A prearranged loan from a bank for a specified document
aka: bank line of credit
Present value definition
The current value for a future amount based on a certain interest rate and a certain time period ( aka discounting)
What are the credit unions and how have they changed their membership requirements in recent years?
Credit union: a user owned, nonprofit, cooperative financial institution that’s organized for the benefit of its members
- more inclusive/flexible
- relaxed geographic restrictions
-open membership to array of professions
-any willing membership
-online/digital
-removed family only restrictions
What are the components of personal financial planning?
- Planning your personal finances
- Managing your personal finances
- Making your purchasing decisions
4, insuring your resources - Investing your financial resources
- Controlling your financial future
(Obtaining, planning, borrowing, spending, managing risk, investing , retirement, and estate planning)
When reconciling a bank statement what do you usually subtract to make sure you had an accurate picture of your bank balance?
Outstanding checks , pending or unprocessed payments , bank fees, NSF (non sufficient funds), returned items, deposit in transit
Fair credit billing act
Sets procedures for promptly correcting billing mistakes, refusing to make credit card payments on defective goods and promptly credit payments
Main purpose of finance company
Non deposit institution
To provide loans to individuals and business acting as lender by offering credit for purchases
Main purpose of mortgage company
Non deposit institution
To provide and service mortgage loans for residential and commercial properties. Direct lenders
What is a tax refund loan and why is it not advisable ?
A type of credit that lets you get an advance on a tax refund . NOT ADVISABLE bc aprs as high as 774%
Main purpose of life insurance company
Non deposit institution
Provides financial security to policyholders beneficiaries after policyholder dies
Apprenticeship definition
A paid, work based learning program that combines classroom instruction with on the job training paid
What are the 5 Cs of Credit?
1.CHARACTER:Borrowers reputation and history of paying bills
2. CAPACITY: The borrowers ability to repay a loan, including their income and employment history
3. CAPITAL: the borrowers overall financial strength and other assets that could be used to repay a loan
4. COLLATERAL: the borrowers asset that could be taken by the lender if the borrower can’t repay the loan
5. CONDITIONS: other factors that can determine borrowers eligibility for credit and the terms of the loan
Functional resume definition
Emphasizes competencies in categories such as communication, supervision , project planning, human relations, and research
Appropriate for ppl with diverse skills and time gaps in experience
May be used when changing careers or if recent experiences are not directly related to new position
Main purpose of investment company
Non deposit institution
To hold and manage securities for investment purposes, typically offer investors a variety of funds and investment services
Truth in lending act
If a creditor fails to disclose info required, gives inaccurate information or does not comp with rule regarding credit cards or right to cancel them, then you can sue for actual damages
Fair debt collection practices act
A federal law, enacted in 1978 that regulates debt collection activities
Financial plan definition
A formalized report that summarizes your current financial situation analyses your financial needs, and recommends future financial activities
Main purpose of pawnshop
High cost financial service provider
To offer short term loans in exchange for collateral. Usually valuable items : jewelry, electronics , musical instruments
Lump sum credit definition
A loan that must be repaid in total on a specified day, usually within 30-90 days. Lump sum credit generally, but not always used to purchase a single item
Incidental credit definition
A credit arrangement that has no extra costs and no specific repayment plan
Cooperative employment experience definition
A program providing hands on work experience in an actual employment setting. A structured program that combines academic study with practical work experience
What are the steps of the financial planning process?
1 . Determine current financial situation
2. Develop your financial goals
3. Identify alternative courses of action
4. evaluate alternatives ( asses: risk, time value of money/opportunity cost, consider: life situation, personal values, economic factors)
5. Create and implement your financial action plan
6. Review and revise the financial plan
Fair credit reporting act
Regulates the use of credit reports, required deletion of obsolete information and gives consumers access to their files and the fight to have erroneous data corrected
Cash loans come with fees. Which loan providers are most expensive?
Payday loans, title loan providers, online lenders, credit card cash advances
What special accounts do investment brokers offer customers?
Asset management account: includes checking account, debit credit cards, online banking, app, line of credit for quick loans
Brokerage account: investment account held at licensed brokerage firm
What’s on a cash flow statement
Income ( cash inflows)
Salary
Less deductions
Interest earned on savings
Earnings investments
(Cash outflow)
Fixed expenses
Variable expenses
Allocation of surplus or deficit
What are the credit bureaus and what info do they look into?
Equifax, experian, transition
Collect info on savings account payment history payment behavior , capacity, capital , collateral, market conditions
What re the stages of career planning and advancement? (General)
A. Career entry
B change to different career
C, change employment within the same career field
D. Career advancement
Which financial service providers should be avoided bc the interest rates charged are high
Pawnshop , check cashing outlet , payday, loan company , rent to own center, car title loan company
