Economics Unit 5 Personal Finance Test Review

Front

Review the summary of two individuals' credit information and answer the question: Cheyenne pays off the remaining balance on her credit cards.

Back

Cheyenne pays off the remaining balance on her credit cards.

Front

What best explains the trend related to cryptocurrency shown on the graph?

Back

Financial speculation often results in unexpected losses because investments are not guaranteed reliable returns.

Front

Which numbered box identifies the employee's gross pay? Options: Wages, Deductions, Total Deductions, Pay

Back

Wages

Front

What is true of different methods by which consumers can lodge complaints about businesses? Options: Posting on social media will directly engage with the company's executives and earn the customer a refund. Speaking with customer service will allow the customer to establish contact with a company representative. Complaining to the Better Business Bureau will force businesses to adjust their practice within 24 hours. Submitting a complaint to a company's online portal will generate an instant and automatic refund to customers.

Back

Speaking with customer service will allow the customer to establish contact with a company representative.

Front

Rudy is purchasing a new home and needs to acquire a mortgage. He is considering two institutions in his area to work with, a bank and a credit union. Which option should Rudy select? Options: the bank, because it will likely charge lower fees for taking out the loan, the bank, because it will likely require smaller monthly payments on the loan, the credit union, because it will likely offer a lower interest rate on the loan, the credit union, because it will likely not require membership to secure a loan

Back

the credit union, because it will likely offer a lower interest rate on the loan

Front

Based on the individual's assets and liabilities, what is this individual's net worth? AssetsLiabilitiesMarket Value of Home$200,000Mortgage$70,000Emergency Fund$10,000Student Loans$10,000Car Value$20,000Car Loan$10,000Retirement Savings$50,000Credit Card Debt$10,000Investments$20,000 TOTAL Assets: $300,000 TOTAL Liabilities $100,000

Back

$200,000

Front

Bankruptcy: A legal designation used by individuals and businesses that can no longer pay their outstanding debts or have insufficient assets that allow the government to take control of their finances to re-establish financial solvency. Which individual would most likely consider filing for bankruptcy to address her financial problems? Options: Naomi, who cannot pay her substantial medical bills after being injured and unable to work; Annie, who resigned from her job and is deciding what career she wants to pursue next; Farah, who refinanced her mortgage and discovered her monthly payment is now slightly lower; Julianne, who missed a payment on her utility bill and wants to avoid further fees.

Back

Naomi, who cannot pay her substantial medical bills after being injured and unable to work.

Front

Juliette regularly monitors her credit report and bank statement. Why does she take these actions regularly?

Back

to help protect her from becoming a victim of fraud

Front

Which employee likely has a higher salary?
Options:
Employee X, because they have more on-the-job experience
Employee Y, because they have more on-the-job experience
Employee X, because they have proven their proficiency in the position
Employee Y, because they have proven their proficiency in the position

Back

Employee Y, because they have proven their proficiency in the position

Front

How will the cost of car insurance for Paul and Alejandra likely compare?

Back

Paul will pay a higher rate because insuring him is a higher risk for the insurance company.