Personal Finance Final Exam

A reason that people need to save and invest is to:

• Enable their money to make money

• Increase the money supply

• Be able to get anything they want

• Have an opportunity to talk with financial service providers

A retirement plan found in nonprofit organizations such as churches, hospitals, and schools

• GIC

• 457

• 401(k)

• 403(b)

Employee benefits packages:

• Should not be a consideration when looking for a job

• Never include retirement plans

• Are the same regardless of the company you work for

• Are non-wage compensations provided to employees in addition to their normal wages or salaries

Single stocks and mutual funds carry the same amount of risk.

• True

• False

You should start investing as soon as you have your college education funded.

• True

• False

Getting the best deal on a purchase involves doing all of the following except:

• Having patience

• Negotiating

• Being first in line for a new product

• Shopping around to find the best deal

Which of the following is typically not a good place to find a deal?

• Online Auctions

• Individuals

• Malls

• Consignment shops

Which of the following describes why using cash is a great bargaining tool?

• Cash is emotional

• Cash has immediacy

• Cash is visual

• All answers are correct

Using cash gives you more bargaining power than using credit.

• True

• False

Making informed choices as a consumer will usually yield savings.

• True

• False