Personal Finance Final Exam Fall 2020

What decision-making strategy weighs the costs against the benefits of an action, purchase, or financial decision?

• marginal analysis

• opportunity costs

• cost-benefit analysis

• common sense

Forms of communication designed to reach a large number of people refers to _____.

• technology

• media

• economics

• globalization

Which tax form is the simplest form to use?

• Form 1040

• Form 1040A

• Form 1040EZ

• E-filing form

Which of the following type of valuable goods can be considered an investment?

• gemstones

• previous metals

• collectibles

• All of the above

Which type of defined-contribution plan is an employer-sponsored plan in which contributions are made with after-tax earnings, but withdrawals are not taxed?

• 401(k)

• 403(b)

• Roth 401(k)

• SEP

An example of open-end credit is _____.

• a mortgage issued for the purchase of a home

• a credit card

• a payday loan

• a loan issued to purchase a vehicle

Which of the following actions helps protect against credit fraud?

• Carry all cards with you at all times.

• Allow others to use or carry your card.

• Destroy cards that have expired.

• Throw credit statements in the garbage.

What best describes a printed or electronic offer giving a discount at the register for goods or services bought before a certain date?

• rebate

• customer loyalty program

• coupon

• clearance

When moving to a new home or apartment, which of the following actions helps your move go more smoothly? Check all that apply.

• Getting rid of items you do not need or want before moving.

• Timing the move to not occur during the peak season for better service and rates.

• Checking whether you need additional insurance protection when moving your belongings.

• All of the above.

Which of the following is true regarding vehicle options?

• Additional safety options are free, but convenience options are not.

• The US Automotive Administration regulates what is considered “standard.”

• Standard options come at an increased cost.

• Different makes and models come with different sets of standard options.