Unit 5 Test Review

Front

Destiny and Logan are both planning to attend college next year and are completing FAFSA forms. Destiny is a dependent student, while Logan is an independent student for the purposes of applying for federal student aid. Based on this information, which statement about their application processes is correct?

Back

Destiny must provide her parents' financial information; Logan does not.

Front

Christian has a choice between investing money in a popular new model car or buying a recently updated condominium in a popular part of town. Which would be more beneficial in the long-run?

Back

The condo is an appreciating asset that will gain value over time.

Front

If the state decides to raise the minimum wage, which employees will be most directly impacted? Options: salaried workers, hourly workers, independent contractors, Individuals who make income via capital gains

Back

hourly workers

Front

What type of investments have the highest risk and potential rewards? Options: stocks, bonds, savings accounts, certificates of deposit

Back

stocks

Front

What would happen if the APR was increased to 3%?

Back

The monthly payment would increase.

Front

Which situation would benefit the borrower most? Options: Take out a five year fixed interest loan just before a period of inflation. Take out a five year fixed interest loan just before a period of deflation. Take out a five year variable interest loan just before a period of inflation. Take out a five year variable interest loan just before a period of deflation.

Back

Take out a five year fixed interest loan just before a period of inflation.

Front

Voters in Jackson County approve a ballot initiative to build a new high school. How will the school district most likely raise money to build the school?

Back

The Jackson County council will raise property taxes.

Front

What type of tax system does each state have? Options: State 1 is progressive; State 2 is regressive, State 1 is regressive; State 2 is progressive, State 1 is proportional; State 2 is regressive, State 1 is proportional; State 2 is progressive

Back

State 1 is proportional; State 2 is progressive

Front

Ethan has an automobile insurance policy for which he is billed $220 four times per year. Which term is used to refer to that cost?

Back

premium

Front

What soft skill does Charlie exhibit that Mack does not?

Back

punctuality