FL Final Exam Review

Where is the best place to store the Title to your car?

• In my car glove box
• In my family's junk drawer
• In my backpack
• In a safe deposit box or a separate container that holds my important papers

Lacy keeps a strict budget for groceries. She noticed over the last six months she went from spending $600 a month to $650 a month reducing her discretionary income. This is due to which type of risk?

• Inflation risk
• Personal risk
• Income risk
• Interest rate risk

401k and 403b accounts are what type of accounts?

• Mortgage
• Retirement
• Bond
• Education

James received two job offers. One is an opportunity to work for his friend making $30,000 with no benefits. The second job offer is from a local bank for $28,000 with full benefits. If James is making the decision based on purely finances, which should he choose?

• James should accept the job with the bank.
• James should accept the job with his friend.
• There is not enough information for him to make a decision.
• Both are so close in salary, it doesn't matter.

Ethan left $500 in a savings account earning 1% interest. He could have invested the $500 in a S & P 500 account and earned 10% return.

• The opportunity cost is 9%.
• The opportunity cost is 1%.
• The opportunity cost is 10%.
• Ethan does not have an opportunity cost.

The FDIC in the United States insures some financial accounts up to what amount?

• $10,000
• $50,000
• $250,000
• $500,000

People are more likely to accomplish "SMART" Goals

• because they were created by an intelligent person
• because they are prioritized first
• because they are a realistic, meaningful, particular goal that is trackable with a due date
• they have to accomplish these for their job

What is true about financial planning?

• Only long term goals are important
• Once you have a plan, you shouldn't revise it
• Financial plans should be reviewed regularly
• All of the above

Which of the following does NOT generally pay interest to the depositor?

• Certificates of Deposit
• savings account
• checking account
• government bond

What is his take home pay (actual amount on his check for the pay period)?

• $290.26
• $709.74
• $1000.00
• $1451.29