PFL-Eco #2 Test Review

Employee benefits packages: A. Are non-wage compensations provided to employees in addition to their normal wages/salary B. Should not be a consideration when looking for a job C. Should never include retirement plans D. Are the same regardless of the company you work for

• Are non-wage compensations provided to employees in addition to their normal wages/salary

• Should not be a consideration when looking for a job

• Should never include retirement plans

• Are the same regardless of the company you work for

Kylee’s Personal Finance class has been discussing the importance of understanding liquidity and she is trying to explain the term to another student. Which statement is the most correct description of liquidity?

• How quickly and easily an asset can be converted into cash

• The amount of savings available

• A measurement of how much a person or household owns once all debts have been paid

• The amount of money needed to pay for the necessities and comforts currently enjoyed

Which of the following is an effective strategy for personal saving? A. Wait until the end of the month and save whatever is left in your checking account. B. Take out a payday loan so you can save before you receive your paycheck. C. Cover all of your wants and needs and save whatever is left over. D. Save a certain percentage of each paycheck every month when you get paid before you spend any money.

• Wait until the end of the month and save whatever is left in your checking account.

• Take out a payday loan so you can save before you receive your paycheck.

• Cover all of your wants and needs and save whatever is left over.

• Save a certain percentage of each paycheck every month when you get paid before you spend any money.

The purpose of loan products, like car loans and home loans, is to provide

• financing

• collateral

• income

• interest

You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for...

• A. A new cell phone, college tuition, a house down payment

• B. Retirement, a house down payment, college tuition

• C. A new cell phone, dinner with friends this weekend, a new bike

• D. Retirement, college tuition, a vacation

To make sure he develops a realistic personal budget, Tyson should always

• consult with an accountant.

• try to pay his bills on time.

• verify his past credit history.

• track and record monthly expenses.

You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?

• Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses

• Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods

• Aunt Tina and her family have high paying jobs and don’t worry much about money

• Aunt Tina only receives paper paychecks instead of direct deposit

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

• Your credit card company covers the cost

• It is deducted directly from your savings account

• Your credit card company provides you with a cash advance to cover the cost

• It is deducted directly from your checking account

Which of these loans would be most closely associated with this payment schedule?

• Credit Card Payment

• Loan for Housing Mortgage

• Automobile Installment Loan

• Payday Loan

FDIC Insurance is...

• Optional coverage consumers can purchase so that their bank deposits remain safe

• Insurance bank branches can buy to protect their business against fraud and scams

• Required if you want to do online or mobile banking

• Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business