Personal Finance Final Exam

Which of the following is NOT a common feature of a financial institution?

• Access to ATMs
• Access to investment products
• Paper checks
• Direct deposit

Which of the following statements is true about education and lifetime earnings?

• Generally, the more education you receive, the higher your lifetime earnings will be
• Generally, the less education you receive, the higher your lifetime earnings will be
• There is no relationship between education and lifetime earnings.
• Generally, the more education you receive, the lower your lifetime earnings will be

What does FAFSA aid pay for?

• tuition, room and board and books
• apartment at college
• furniture for your dorm
• a car

What do Federal taxes not pay for?

• military
• veterans affairs
• interest on national debt
• employer provided insurance

State taxes pay for all of the following except...?

• national defense
• public education
• road repairs
• health coverage for low income families

What does FICA pay for?

• national defense
• social security and Medicare
• Veterans affairs
• public education

Which of the following is a small share in ownership of a company?

• Bond
• IRA
• Stock
• Mutual Fund

Why would someone choose to invest in a Roth IRA over a Traditional IRA?

• With a Roth IRA, you can withdraw money tax free at any time.
• With a Roth IRA, you can withdraw money tax free after age 59 1/2.
• With a Roth IRA, you get a tax-break up front.
• With a Roth IRA, you pay no taxes on money until you withdraw it.

The beneficiary of a life insurance policy is defined as

• a person or entity who receives money or benefits from a benefactor
• A person who makes financial decisions for a person at the end of their life
• A person who decides how their financial assets will be allocated after their death
• The person designated to arrange the funeral of a deceased person

Which type of auto insurance protects you financially if you're responsible for someone else's injuries or property damage.

• collision
• comprehensive
• uninsured
• liability