Unit 5 Personal Finance

Which factor is used to determine a person’s

credit worthiness?

• work ethic

• home location

• level of education

• yearly income

Which type of investment does numeral I represent?

• savings accounts

• mutual funds

• savings bonds

• stocks

Based on the passage, what must Mitchell do to become a better employee?

• He needs to learn to be a better leader.

• He needs to have a more positive attitude.

• He needs to improve his punctuality.

• He needs to be friendlier with his coworkers.

A good example of the effect of education on income would be that

• People with college degrees usually earn more than those with less education

• Workers who learn to make high demand products are well paid

• Employees who learn to perform high risk jobs get paid more

• Only job applicants with high school diplomas get job interviews.

The increases in property value are cause for celebration for those wanting to sale their house, but it leads to

• An decrease in excise taxes

• An increase in income taxes

• An increase in sales taxes

• An increase in property taxes

Which institutions hold money on deposit, loan money to individuals and businesses, and are owned and operated by their members?

• banks

• payday lenders

• credit unions

• title pawn lenders

Most insurance policies include a stipulated amount of money that the insured must pay when a claim is filed with the insurance company. What is the name for this insurance term?

• Shared liability

• Asset protection

• Premium

• Deductible

A bank charges 6% interest on personal loans and pays 3% interest on individual savings accounts. Why is there a difference in the two amounts of interest?

• The bank wants to make a profit.

• The government regulates interest rates.

• The bank wants to encourage people to save.

• The government allows a system of credit buying.

A high school student is trying to decide whether to go to college, join the military, or get a job after high school. Which tool would be most helpful in this situation?

• A rational decision-making model

• A production possibility curve

• A personal budget

• A supply and demand graph

When Jason bought a car and went to register it with the state Department of Motor Vehicles, he needed to show proof of insurance. What kind of insurance did Jason need to have?

• Disability insurance

• Health insurance

• Life insurance

• Automobile insurance