Term
| If you find a vehicle that you like and decide to lease it over four years instead of buying it over the same period, which of the following statements is true? |
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Definition
• Your monthly payments will be less if you buy rather than lease.
• Your monthly payments will be the same if you buy or lease the vehicle. (your response)
• Your monthly payments will be higher if you buy rather than lease. (correct answer)
• You will own the car when you have made your last regular lease payment. |
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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 individual against risk. (correct answer)
• Risk is an arrangement between an individual and an insurer to protect the individual against insurance. (your response)
• Risk is the fee paid to the insurer to be covered under specific terms of the insurance by the company.
• There is no relationship between insurance and risk because they are independent of each other. |
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Term
| Comparison shopping for a vehicle is necessary because |
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Definition
• Large purchases do not need to be planned.
• The price does not matter; choose the vehicle based on personal preference.
• Different dealers offer the same prices on different options. (your response)
• The vehicle price is not the only cost involved with owning a vehicle. (correct answer) |
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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
• only a W-4 (your response)
• W-2 and I-9
• W-4 and I-9 (correct answer)
• W-2 and W-4 |
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Term
| The average number of vacation days given annually to American workers who have just started a full-time, year-round job is closest to: |
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Definition
• One week.
• Two weeks. (correct answer)
• Three weeks.
• Four weeks. (your response) |
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Term
| Sally won a $150 cash prize 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. (correct answer)
• A savings account because it has the highest interest rate.
• A checking account because it is the most liquid cash management tool. (your response)
• A cash management tool would not benefit her; she can keep it in her closet. |
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Term
| Which of the following is NOT true of a debit card? |
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Definition
• You are spending money from your own bank account. (your response)
• It takes a few days for the money to be deducted from your account. (correct answer)
• It can work like a credit card.
• Using a debit card is like writing a check. |
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Term
| Kathy has found a great apartment that costs $800 per month. To move in, her new landlord requires the first month's rent in advance plus a damage deposit equal to a month's rent. If she signs a year's lease and does no damage to the apartment, which of the following will be true |
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Definition
• She must pay $800 before moving in and will get it back when she moves out.
• She must pay $1,600 before moving in and will get it back when she moves out.
• She must pay $800 before moving in and will get back $1,000 when she moves out. (your response)
• She must pay $1,600 before moving in and gets back $800 when she moves out. (correct answer) |
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Term
| What is an example of non-installment credit? |
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Definition
• Borrowing from a family member
• Credit card (correct answer)
• Student loans (your response)
• None of the above |
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Term
| Suppose you were selling an older computer you owned for $200 and a person you didn't know offered to write you a check for it. What would be the safest thing for you to do? |
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Definition
• Take the check because no one else may want to buy the computer.
• Tell the buyer you need to see some personal identification such as a driver's license. (your response)
• Tell the buyer to endorse the check to you for "cash."
• Tell the buyer to cash the check at his bank and then bring you cash to pay for the computer. (correct answer) |
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Term
| If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account? |
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Definition
• Earnings from savings account interest may not be taxed.
• Sales tax may be charged on the interest that you earn. (your response)
• Income tax may be charged on the interest if your income is high enough. (correct answer)
• You cannot earn interest until you pass your 18th birthday. |
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