Term
| Choose the statement which best describes the relationship between values and financial decisions. |
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Definition
| Values are influenced by family,friends and experiences,they affect a person's financial decision |
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Term
| A well written financial goal includes the following elements: |
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Definition
| specific,measurable,attainable,realistic, and time bond |
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Term
| How are financial decisions influenced by a person's interpretation of needs and wants? |
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Definition
| influenced by needs and wants because they guide a person's choices |
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Term
| A person would choose to an interest inventory test to: |
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Definition
| learn about possible career areas related to one's interests |
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Term
| Basic wealth protection, wealth accumuulation, and distribution are the three stages of: |
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Definition
| An individual's financial life cycle |
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Term
| Deductions taken from a person's paycheck include: |
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Definition
| federal withholding tax, state withholding tax, and FICA |
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Term
| when starting a new job, what form(s) must an employee complete to receive a paycheck? |
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Definition
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Term
| Using the rule of 72, what rate of return is needed for a person to double an investment in six years? |
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Definition
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Term
| what correctly decribes a financial statement used in a financial plan? |
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Definition
| an income and expense shows assects, liabilities, and net wroth on a particlar date |
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Term
| According to the time value of money, the power of time benefits an individual because: |
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Definition
| money paid out or received in the future is not equivalent to money paid or received today |
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Term
| The steps to a spending plan process include: |
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Definition
| setting financial goals, organizing, deciding, implementing, controlling, and evaluating |
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Term
| write a true statement about and/or investing? |
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Definition
| savings are generally considered liquid and easily accessible |
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Term
| What do financial experts recommend an individual have for emergencies ina savings account? |
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Definition
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Term
| what can a person do to work toward the goal of buying a house? |
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Definition
| create a financial plan to save for the down payment and other housing cost; this probably means cutting expenses to save money. |
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Term
| Sally won $150 cash for winning the school science fair. she wants to save the money for her senior trip in five years. what type of cash management tool is the best option? |
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Definition
| A certificate of deposit because it would be for a specified time length |
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Term
| write a true statement that describes a housing lease? |
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Definition
| the terms of the lease agreement are not legally binding |
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Term
| a customer is protected against loss at a financial instution if it is insured by the: |
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Definition
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Term
| what is true about loan variables? |
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Definition
| the larger the down payment, the lower the principle |
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Term
| A vehicle is considered a "lemon" if: |
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Definition
| the defect remaind unfixed after four repair attempts |
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Term
| Tom has liability insurance for his truck. what type of covrage this include if gets in an accident? |
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Definition
| injuries to the other driver |
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Term
| comparison shopping for a vehicle is necessary because: |
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Definition
| the vehicle prices is not the only cost involved with owning a vehicle |
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Term
| characteristics of a new vehicle include: |
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Definition
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Term
| what services are available at a credit union? |
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Definition
| share accounts and share draft accounts |
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Term
| electronic banking allows customers to: |
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Definition
| preform transaction via electronic fun tranfers 24 hours a day |
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Term
| what should you not to do on the atm plastic card? |
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Definition
| do writethe pin down in case it is forgotten |
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Term
| what is an example of installment credit? |
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Definition
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Term
| what is an example of non-installment credit? |
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Definition
| borrowing from a friend, personal loan from a friend, department store cards |
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Term
| identify how a young adult can begin a good credit rating. |
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Definition
| pays off loans as rather than quickly |
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Term
| an example of identify theft is: |
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Definition
| an individual uses another's persnal info to open an account |
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Term
| if a consumer is a victim of identity theft, what should they do? |
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Definition
| call all major credit bureaus to request a "fraud alert" be put on file |
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Term
| describe the relationship between insurance and risk. |
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Definition
| insurance is an arrangement between an individual and an insurer to protect the indiviual against risk |
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Term
| when referring to investments what is the between risk and return? |
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Definition
| higher risk indicates higher returns |
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Term
| what is the purpose of a diversified portfolio? |
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Definition
| an individual decreases his/her risk |
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Term
| an advantage using credit is: |
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Definition
| not having to carry large amounts of cash |
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Term
| What type of information is not found on a consumer's credit report? |
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Definition
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Term
| What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? |
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Definition
insure federally charted commerical bank against loss
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Term
| What is a checking account? |
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Definition
| paper checks or debit cards are used to withdraw money deposited into the account pay for items |
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Term
| which of the following is a characteristic of electronic banking? |
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Definition
| 24 hours, fast and paperless, variety of methods available |
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Term
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Definition
| the portion of current income not spent on consumption |
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Term
| what does the 70-20-10 rule represent? |
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Definition
| 70% of income is spent, 20% of income is saved, and 10% of income is invested |
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Term
| what is the difference between a savings account and a money market deposit account? |
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Definition
| money market deposit accounts haved tiered interest rates. |
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Term
| Using the "rule of 72," how many years will it take to double one's money at an 8% rate of return? |
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Definition
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Term
| what is compound intreset? |
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Definition
| the intrest earned on both interest and principle. |
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Term
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Definition
| the steady rise in the general level of a market basket of goods |
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Term
| what are the types of taxes? |
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Definition
| progressive and regressive |
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Term
| which is necessary step in making an career decision? |
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Definition
| self-evalution of aptitudes and interests research of future career opportunities development of personal goals |
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Term
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Definition
| a commitment to a profession which requires continued training |
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Term
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Definition
| an employment position obtained to earn money |
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Term
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Definition
| goods,services, or money received in exchange for a promise to pay a define sum of money at a future date |
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Term
| what is a charateristic of installment credit? |
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Definition
| equal payments billed on a regular basis |
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Term
| what are the advantages of credit? |
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Definition
| for emergencies ,convenience, make reservation |
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Term
| what is a tip to remember when establishing a good credit reputation? |
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Definition
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Term
| why should an individual comparison shop for a credit card? |
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Definition
| to know key terms and condition to avoid hidden cost decrease the cost of borrowing |
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Term
| which type of credit card is defined as an account which allows for a customer to make credit card purchases at a particular retailer such as the buckle or old navy? |
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Definition
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Term
| which type of credit card is defined as an account similar to bank credit cards except the entire balance must be repaid in 30 days? |
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Definition
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Term
| A credit report could be characterized as: |
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Definition
| a record of a consumer's credit history |
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Term
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Definition
| a person guaranteeing a loan for the original borrower |
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Term
| name three variables that are included in an automobile loan? |
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Definition
| down payment, annual percentage rate, time period |
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Term
| a typical lender option for purchasing is an automobile is: |
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Definition
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Term
| consumer rights must be defined according to what consumer protection law? |
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Definition
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Term
| the truth in lending act requires lenders to include what three things? |
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Definition
| lender can advise a good deal as long it is available to at least one consumer. ads need to include ther terms. if goods/ services are to be paid in 4 installments. |
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Term
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Definition
| the amount paid by the policy holder for the initial portion or a loss |
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Term
| what type of coverage is available for automobile insurance? |
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Definition
| physical damage insurance |
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Term
| what is the minimum amount of insurance required by law for automobiles? |
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Definition
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Term
| what does a liability insurance limit 25/50/10 mean? |
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Definition
| $25,000 per person bodily injury limit, $50,000 per accident bodily injury limit, and $10,000 per accident property damage liability limit |
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Term
| what is a way for consumers to save money when purchasing automobile insurance? |
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Definition
| shop around, buy appropriate coverage, take advantage of discounts |
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Term
| what is NOT a characteristic of a new vehicle include: |
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Definition
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Term
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Definition
| someone wrongfully acquires and uses a consumer's personal identification. |
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Term
| what is a safety tip for shopping safely online? |
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Definition
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Term
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Definition
| an arrangement between an individual and an insurer to protect the individual |
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Term
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Definition
| uncertainty about a situation's outcome |
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Term
| what does comprehensive physical damage insurance NOT cover? |
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Definition
| collisions with other cars |
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