Personal Finance Final E Review

Sandra wants to develop a positive credit history. How should she do this?

• Maintain reasonable amounts of available credit
• Have one type of credit account
• never open an open or closed account
• open credit in others names

Priscilla is 18 years old and has applied for credit for the first time. Her credit application was declined because she has no credit history. What should be recommended in order for Priscilla to build a positive credit history?

• Priscilla should acquire several credit cards to establish that she can manage them responsibly.
• Priscilla should obtain a secured credit card.
• Priscilla should reapply for the same credit but include a letter of recommendation from someone who knows her well and can vouch for her character.
• Priscilla should never put more than 75% of her maximum allowed on several credit cards

Which is not included in an individual’s credit report?

• Medical information 
• Bankruptcies 
• Foreclosures
• Account balances

Madison is creating a Statement of Financial Position and needs to list his assets. Which of the following should he not list as an asset?

• Money in his checking account
• his skating equipment
• The market value of his car
• Money in the paycheck he will receive next week

Mary earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier?

• Mary, because her income minus her net worth is a smaller amount than Samantha’s.
• Mary, because her net worth is higher than Samantha’s.
• Samantha, because her income minus her net worth is a larger amount than Mary’s.
• Samantha, because her annual income is higher than Mary's.

To increase her net worth, Angie could:

• decrease her assets.
• increase her liabilities.
• increase her market value.
• increase her assets.

John is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:

• the market value of his car.
• the balance on his credit card.
• the combined total of his savings and checking accounts.
• the value of his retirement account.

Lisa is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lisa is investing in her:

• human capital.
• family
• salary
• career assessment inventories

Jake has been challenged by his academic advisor to develop some human capital this school year. Which activity would be theleast effective way to reach that goal?

• Spend additional time playing video games to further develop his eye-hand coordination.
• Volunteer to pick up trash along the roadsides.
• Attend a workshop on a topic he has little knowledge of.DAsk his employer if there are any new tasks at work that he might be assigned.
• Ask his employer if there are any new tasks at work that he might be assigned.

Which statement would be true in most states?

• Teens under the age of 18 may write their own will, but it may not be a legal document.
• Teens under the age of 18 may not write their own will.
• Teens under the age of 18 may be named an executor of a will.
• Teens under the age of 18 may not accompany their parent/guardian to an attorney’s office.