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Personal Finance Literacy Exam 5
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Personal Finance Literacy Exam 5
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25 Questions

1. Which of the following is a disadvantage of using cash as a form of financial exchange:
2. Financial planning is important because it can help you
3. If Cheryl earns 3% compound interest on a $700 investment, how much will her investment be worth in four years?
4. When Jeremy develops his personal budget, he should categorize the money that he spends on food, clothing, and entertainment as
5. Before you begin planning your estate, what should you do?
6. Erin plans to use the income she earns from her part-time job to attend college part-time. So far, Erin has saved $2,000 to use for a tuition bill of $1,900 in a few weeks. Unfortunately, her car needs repairs costing $1,000. Without a car, Erin won't be able to travel to work, causing her to lose $500 in wages each week. Which of the following solutions would help Erin make the best use of her resources:
7. Which of the following is the result of both parties using the collaborative negotiation style during a negotiation:
8. Landon wants to start a home-based T-shirt printing business. Which of the following are the most critical equipment and supplies that Landon will need to get his business up and running?
9. Taryn is choosing between two apartments. Which of the following factors is most important for her to consider in order to make a responsible financial decision:
10. What is an example of good debt?
11. When you receive a bank statement, you should always
12. Which of the following statements best describes the difference between an occupation and a career:
13. An existing business should update its business plan when it is
14. Regular credit accounts are sometimes called open accounts because they allow
15. To learn objective information about a news topic, you should
16. Why do companies providing financial loans and leases for new automobiles often require the car owner to carry gap insurance?
17. When setting your financial goals, you should choose goals that are
18. When you are just beginning your career, what should be the main emphasis of your retirement planning efforts?
19. Before recommending specific products or services to clients, what should a finance professional do?
20. Rhonda is doing research for a paper in her business class. She should use sources that
21. Investors continue to purchase the Cutting Edge company's stock even though its stock price is increasing. As a result, the company's __________ value is also increasing.
22. To make sure it was billed correctly, the Westworth Agency compared the bill that it received from the Cyan Printing Company against the original
23. Monitoring financial accounts and reading bank statements on a regular basis can help detect activities associated with
24. For a job seeker to find the most satisfactory job, s/he needs to
25. One reason that the balance on your bank statement would be higher than your checkbook register would be that