Personal Finance Test Review

If a person buys too much on credit that they cannot afford to pay back they may face all of the following except

• lower interest rates
• damage to credit score

• debt collection calls
• bankruptcy

Today most people make payments for goods and services using

• credit cards

• debit cards

• checks

• cash

How do investors in stock reduce the risk in stock purchases?

• Buy bonds

• Buy certificates of deposit

• Take out loans to purchase bigger shares

• Invest in mutual funds

What is one of the best ways to make good financial decisions?

• Invest in multiple types of investments

• Make purchases only on credit to build a high credit score

• Create a personal budget

• Take out loans to pay off credit card debt

When prices rise faster than wages, how does this impact an individual’s spending decisions?

• People can afford less and spend less

• People can afford less and spend more

• People can afford more and spend less

• People can afford more and spend more

What is a system of spreading risks over large numbers of people?

• mutual fund investment

• insurance
• credit bureau

• lottery

What type of policy would a person take out to provide their family with money in the event of their death?

• Home insurance
• Life insurance
• Car insurance
• Health insurance

If a company is projected to make a loss in profit, how might this impact the company’s stock?

• The company's stock may remain the same.
• The company's stock may decrease.
• The company's stock may increase.
• The company's stock may be unaffected.

Which of the following is an example of long-term credit?

• Car loan

• Personal loan

• Life insurance

• Mortgage

Enacted in 1935, the Social Security Act created __________ and __________.

Which of the following complete the statement above?

• federal minimum wage; public works projects for the unemployed

• collective bargaining; the Congress of Industrial Organizations

• unemployment insurance; old-age pensions

• codes of fair practice for industries; the Federal Deposit Insurance Corporation