Money Management
Mock Exam
Course Introduction
Money Management is a foundational course designed to equip students with essential financial skills for personal and professional success. The course covers topics such as budgeting, saving, banking, credit management, debt reduction, investing basics, financial planning, and understanding taxes. Through real-world examples and practical exercises, students learn to set financial goals, make informed spending decisions, and develop strategies for building long-term financial security. This course also emphasizes the importance of financial responsibility and the impact of financial decisions on both short-term and long-term well-being.
Recommended Textbook
Focus on Personal Finance An Active Approach to Help You 4th Edition by Jack R. Kapoor
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14 Chapters
1753 Verified Questions
1753 Flashcards
Source URL: https://quizplus.com/study-set/2803 Page 2
Chapter 1: Personal Financial Planning in Action
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90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/55824
Sample Questions
Q1) Purchasing a car is an example of a consumable-product goal.
A)True
B)False
Answer: False
Q2) The tangible and intangible factors that create a less than desirable situation is referred to as ____________ risk.
A) interest-rate
B) inflation
C) income
D) liquidity
E) personal
Answer: E
Q3) When prices are increasing at a rate of 6 percent,the cost of products would double in about 12 years.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Money Management Skills
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111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/55823
Sample Questions
Q1) Which of the following will increase the net worth of a household?
A) Decrease saving by $50 per month
B) Increase the amount borrowed for major purchases
C) Decrease spending by $5 per day
D) Invest in possessions whose values do not increase
E) Keep an extra $100 in a checking account instead of a savings account
Answer: C
Q2) Money management refers to day-to-day financial activities necessary to manage personal economic resources while working toward long-term financial security.
A)True
B)False
Answer: True
Q3) Financial advisers suggest that an emergency fund should cover one to two months of living expenses.
A)True
B)False
Answer: False
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Chapter 3: Taxes in Your Financial Plan
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119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/55822
Sample Questions
Q1) If Diane was in a 25% tax bracket and received a $1,000 tax credit,by how much would her taxes be reduced?
A) $25
B) $50
C) $250
D) $500
E) $1,000
Answer: E
Q2) Who is ultimately responsible for supplying accurate and complete information for completing a tax return?
A) Professional tax preparer
B) IRS enrolled agent
C) Taxpayer
D) Taxpayer's dependents
E) Taxpayer's attorney
Answer: C
Q3) Tax tables list average tax rates.
A)True
B)False
Answer: False
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Chapter 4: Financial Services: Savings Plans and Payment Account
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/55821
Sample Questions
Q1) What is the APY for a savings account with a $250 balance that receives $12 interest for the year?
A) 2.4%
B) 4.8%
C) 5%
D) 10.4%
E) 20.8%
Q2) Lydia found a check that she was given for her birthday nine months earlier.Her bank should refuse to cash the check.
A)True
B)False
Q3) The text discusses several types of bonds.Which bond,which is no longer sold,electronically deposits interest into your bank account every six months?
A) Series E
B) Series EE
C) Series HH
D) Series I
E) Series Q
Q4) Why should you avoid using payday loans?
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Chapter
Sources, and Costs
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170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/55820
Sample Questions
Q1) The use of property or savings to secure a loan relates to
A) Character.
B) Capacity.
C) Capital.
D) Collateral.
E) Conditions.
Q2) Which of the following acts sets procedures for promptly correcting billing mistakes,refusing to make credit card or revolving credit payments on defective goods,and promptly crediting your payments?
A) Experian Act of 1982
B) Fair Credit Reporting Act of 1971
C) Bills and Disputes Act of 1963
D) Equifax Act of 1979
E) Fair Credit Billing Act of 1975
Q3) Cassie received an $8,000 loan from the bank.The manager set up a 10% loan using the simple interest formula for one-year,but two payments.What are her total payments for the loan?
Q4) Economists recognize consumer credit as a major force in the American economy.
A)True B)False
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Chapter 6: Consumer Purchasing Strategies and Wise
Buying of Motor Vehicles
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124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/55819
Sample Questions
Q1) Thomas bought a toaster that would not toast bread,and he returned it.The manufacturer accepted the return because it was defective and came with a full warranty.
A)True
B)False
Q2) Choosing the payment method is part of the ____ phase of the decision-making process.
A) evaluating alternatives
B) postpurchase activities
C) preshopping activities
D) selection and purchase
E) More than one of these is correct.
Q3) A potential problem with having a long car loan is
A) Low monthly payments.
B) Low-interest loan.
C) Negative equity.
D) Loan preapproval.
E) All of these are potential problems.
Q4) Why are service contracts for vehicles not a good deal?
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Q5) What is the difference between an express warranty and an implied warranty?
Chapter 7: Selecting and Financing Housing
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111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/55818
Sample Questions
Q1) Which of the following is NOT correct?
A) Alex's daily maintenance and timely repairs around his home should increase his sale price.
B) Brenda's new hot tub will probably not increase the selling price more than her recently added storage space.
C) Caryn's suggestion to open drapes but keep lights turned off to conserve energy will give her property a positive image.
D) Darryl's decision to sell his house "by owner" could save him several thousands of dollars.
E) Eric's listing with a real estate agent will provide him with services such as advice on features of his home to highlight.
Q2) During a home purchase closing,you should
A) Order an appraisal.
B) Pay all closing costs, settle last-minute items, and sign documents.
C) Schedule an inspection of the condition of the home.
D) Sign documents and pay half of the settlement costs.
E) Review zoning laws for the municipality where the home is located.
Q3) Identify three services that a real estate agent can provide.
Q4) What are the financial benefits of home ownership?
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Chapter 8: Home and Automobile Insurance
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/55817
Sample Questions
Q1) An insurance claim is a request for payment to cover financial losses.
A)True
B)False
Q2) Anything that may possibly cause a loss is called a
A) Hazard.
B) Negligence.
C) Peril.
D) Premium.
E) Speculation.
Q3) Which of the following is correct?
A) The best risk management plan is constant through one's life.
B) Once a plan is set up, it should be reviewed every 10 years.
C) A solid risk management plan works well without insurance as a component.
D) One question that should be asked when developing a risk management plan is "What do I need to insure?"
E) The main goal of insurance should be to maximize personal, property, and liability risks.
Q4) Samuel should buy insurance in order to eliminate his risk.
A)True
B)False
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Chapter 9: Health and Disability Income Insurance
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/55816
Sample Questions
Q1) The type of health insurance coverage that may cover routine doctor visits,X-rays,and lab tests is
A) Dental expense.
B) Surgical expense.
C) Hospital expense.
D) Physician expense.
E) Major medical expense.
Q2) Medicare is offered to certain low-income individuals and families.
A)True
B)False
Q3) Anna contributes pretax dollars to an account managed by her employer for her health care expenses.If she does not spend all of her money by the end of the year,she may forfeit it.What kind of plan does she have?
A) FSA
B) HRA
C) HSA
D) Medicare
E) Self-funded health plan
Q4) Identify at least three types of health insurance coverage.
Q5) What are the main differences between FSAs,HRAs,and HSAs?
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Chapter 10: Financial Planning With Life Insurance
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/55815
Sample Questions
Q1) The Tax Reform Act of 1986
A) Preserved the tax advantage of annuities but curtailed deductions for IRAs.
B) Allowed whole life insurance policies to be sold.
C) Identified annuities to be the same as certificates of deposit.
D) Allowed annuities to be purchased for individual retirement accounts.
E) Made all annuities tax free.
Q2) Molly is thinking about buying a life insurance policy,but she is not sure about how much she will need in the next few years.She may need to change her coverage as her needs change.Which of the following policies would meet her needs?
A) Adjustable life
B) Group life
C) Limited life
D) Universal life
E) Variable life
Q3) The sooner a person is likely to die,the lower the premiums he or she will pay.
A)True
B)False
Q4) What is a group life insurance policy and who can benefit from it?
Q5) What are two things you should consider before buying life insurance?
Q6) People buy life insurance for many reasons.List three of these reasons.
Page 12
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Chapter 11: Investing Basics and Evaluating Bonds
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164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/55814
Sample Questions
Q1) The purpose of diversification is to spread your assets among several different types of investments to decrease risk.
A)True
B)False
Q2) If your main focus is to be able to buy or sell an investment quickly without substantially affecting the investment's value,you are most concerned with A) Income.
B) Growth.
C) Liquidity.
D) Business failure risk.
E) Market risk.
Q3) Asset allocation is the process of spreading your assets among several different types of investments to increase risk.
A)True
B)False
Q4) As a person ages,his or her investment choices may change.Why?
Q5) Municipal bonds generally are only tax-exempt at the state level. A)True
B)False
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Chapter 12: Investing in Stocks
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155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/55813
Sample Questions
Q1) The Yahoo! Finance website provides company-specific news,quotes,and charts.
A)True
B)False
Q2) Equity financing is money received from the sale of
A) Bonds.
B) Common stock.
C) Dividends.
D) A savings account.
E) A proxy.
Q3) Why might you want to invest in common stocks?
Q4) Faye sometimes borrows money from her broker to buy her stock.She is buying
A) A call option.
B) A direct investment.
C) On margin.
D) A put option.
E) A short sale.
Q5) Gloria bought GE stock on March 4,2009,at a price of $5.87 and then quickly sold it on March 19,2009,at $11.20.Gloria is classified as a speculator.
A)True
B)False
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Chapter 13: Investing in Mutual Funds
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/55812
Sample Questions
Q1) All of the following are valid ways to purchase mutual funds except A) A regular account transaction.
B) A voluntary savings plan.
C) A contractual savings plan.
D) A reinvestment plan.
E) All of the ways listed are valid purchase options.
Q2) Why have lifestyle funds become so popular with investors?
Q3) A fee charged to defray the costs of advertising and marketing for a mutual fund is called a ____ fee.
A) 3c
B) 12b-1
C) 14c-2
D) 401(k)
E) 403(b)
Q4) A load fund is allowed to collect a sales charge (commission)as high as A) 0%.
B) 2%.
C) 3-5%.
D) 8.5%.
E) 11.5%.
Page 15
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Chapter 14: Starting Early: Retirement and Estate Planning
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144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/55811
Sample Questions
Q1) What are two major assets that should be considered in retirement planning?
Q2) Your estate consists of everything you own.
A)True
B)False
Q3) Jason is updating his estate planning and wants to set up the legal document to leave half of the adjusted gross estate to his wife.He is writing a(n)
A) Exemption trust will.
B) Guardian will.
C) Simple will.
D) Stated amount will.
E) Traditional marital share will.
Q4) Another name for a will is a letter of last instruction.
A)True
B)False
Q5) The four primary sources of retirement income are employer pension plans,personal retirement plans,annuities,and public pension plans.
A)True B)False
Q6) What are four major sources of retirement income?
Page 16
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