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WorksheetsDistrict Exam Study Guide
Total questions: 111
Worksheet time: 2hrs 33mins
coverage that protects against financial loss because of legal liability for motor vehicle related injuries (bodily injury and medical payments) or damage to the property of others caused by accidents arising out of ownership, maintenance or use of a motor vehicle (including recreational vehicles such as motor homes). Commercial is defined as all motor vehicle policies that include vehicles that are used primarily in connection with business, commercial establishments, activity, employment, or activities carried on for gain or profit. No Fault is defined by the state concerned.
Auto Physical Damage
Automobile Liability Insurance
Auto Liability
Chartered Property Casualty Underwriter (CPCU)
Which statement describes the law of demand?
As prices rise, quantity demanded decreases
As prices rise, demand decreases.
As prices fall, quantity demanded decreases.
As prices fall, demand decreases.
Which explains why a supply line is upward sloping?
the Law of Demand states there is an indirect relationship between price and quantity
the Law of Supply states there is a direct relationship between price and quantity
the Law of Supply compares marginal costs and marginal benefits in a constant rate
the Law of Demand shows a positive relationship between two goods, creating the slope
Which is an example of the Law of Demand at work?
The price of the pizza goes up when the price of cheese goes up.
Demand for pizza goes down when tacos become more popular
The price of pizza falls when the demand for pizza falls
Demand for pizza rises when the price of pizza falls
What causes a shift in the demand curve?
A decrease in price
An increase in price
A change in an area other than price
A change in price and availability
The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.
Supply
Demand
Factor of Production
Production
The market equilibrium price is the price at which
surpluses depress the number of goods supplied
shortages and surpluses will have no effect on the market
the government will not intervene in the market
the quantity demanded is the same as the quantity supplied
What is the Equilibrium Price?
1
2
3
4
When there is a shortage the price will usually?
rise
fall
remain the same
equilibrium
The diagram represents a(n)
increase in supply
decrease in supply
change in quantity supplied
none of the above
The diagram represents a
increase in demand
decrease in demand
change in quantity demand
none of the above
Fiscal Policy is controlled by...
The Government
The Federal Reserve System
The states
The Department of Commerce
The two "tools" of Fiscal Policy are:
the power to tax
the power to spend
the power to borrow money
the power to print money
During a economic expansion, the Federal Government should use...
an expansionary fiscal policy
a contractionary fiscal policy
During a contraction / recession, the Federal Government should use
an expansionary fiscal policy
a contractionary fiscal policy
Which of the following statements is true?
Contractionary monetary policy would increase government revenue & slow down the economy.
Contractionary fiscal policy would decrease the reserve requirement & slow down the economy.
Contractionary fiscal policy would lead to an increase in the national debt.
Contractionary monetary never works
What makes up the largest area of government spending?
Food Stamps
Medicare
Social Security
Interest payments
Who is responsible for making fiscal policy decisions?
The Federal Open Market Committee
The federal government's overall approach to spending and taxes is called
The Federal Open Market Committee
Fiscal Policy
The Federal Reserve
Monetary Policy
Which of the following would stimulate the economy? Choose all that apply!
Decrease taxes
Raise taxes
Government spends more on Science research
Government cuts organizations like the National Science Foundation
The headline below indicates which type of policy:
"Fed unleashes another big rate hike in bid to curb inflation"
Fiscal policy
Monetary policy
Monetary policy decisions are made by:
Congress
Senate
The Fed
President
Taxing and Spending are tools of
fiscal policy
monetary policy
Is a joint effort between the executive and legislative branches
fiscal policy
monetary policy
In order to help the economy grow, the government will decrease or lower taxes. This allows people to have more money and buy more goods and services.
fiscal policy
monetary policy
What can the government do to slow the economy in order to reduce inflation?
lower taxes
raise taxes
spend more
To help the economy grow, the government can
increase spending
decrease spending
lower the minimum wage
raise taxes
The action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.
fiscal policy
monetary policy
In order to help the economy grow, the FED may____________the reserve requirement, allowing banks to loan more people money so that they spend more
lower
raise
ignore
end
In order to slow the economy, the FED may____________ the reserve requirements and there will be less money to loan out to people.
increase
decrease
spend more
tax more
The amount that all banks have to keep in the reserve and they can't loan out to people
monetary lending
fiscal spending
reserve requirement
lending policy
The interest rate the FED charges banks to borrow money will be lowered to help the economy grow and raised to slow the economy
reserve requirement
discount rate
bank rate
monetary bank
cause interest rates to decrease because low interest rates encourage business growth and expansion
cause interest rates to rise because high interest rates encourage business growth and expansion
increase the discount rate it charges banks, which would increase the money supply
increase consumer spending by reducing the money supply
Owned by members or employees of a local employer
Bank
Credit Union
Both
Offers an ATM
Bank
Credit Union
Both
Caters to individuals
Bank
Credit Union
Both
Offers Savings and Checking Accounts
Bank
Credit Union
Both
Caters services to businesses but also serves individual customers
Bank
Credit Union
Both
Nonprofit
Bank
Credit Union
Both
Profit
Bank
Credit Union
Both
No membership required
Bank
Credit Unions
Both
Generally lower savings rates and higher fees
Banks
Credit Cards
Both
May be more limited in the financial products offered
Bank
Credit Union
Both
NCUA provides deposit insurance
Bank
Credit Union
Both
Membership required
Bank
Credit Union
Both
Often higher savings rates and lower fees
Bank
Credit Union
Both
FDIC provides insurance
bank
credit union
both
doesn't have as many branch locations
bank
credit union
both
What is debt?
Another word for death
Something, typically money, that is owed or due
A loan on which you do not have to pay interest
That which is incurred during childhood and consummated in college
What is a credit card?
The ace of diamonds
A large plastic card designed to ruin consumer's finances
A small plastic card issued by the government attached to a line of credit
A small plastic card issued by a bank and attached to a line of credit
An amount of credit extended to a borrower is known as a...?
Line of Extension
Several dollars lined up in a straight line
Available Credit
In the finance world it is referred to as a "long nose"
Revolving credit is...
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
a spinning door with money in it
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
Which of the following is not a characteristic of an installment loan?
repaid over time
scheduled payments
accompanied by an interest rate
also known as a revolving loan
What is a credit score?
a number between 300 and 850 representing your creditworthiness
a statistical number that evaluates a consumer's creditworthiness and is based on credit history.
Often referred to as a FICO score
All of the above
What is an interest rate?
it is your level of interest about a certain topic expressed as a percentage of your total interest
The amount in terms of dollars that you have to pay back on a purchase
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
The process of collecting funds that are owed and past due is called...
gathering
dollar collecting
overdrafting
collections
What are the qualities of a charge-off account
the declaration by a creditor (usually a credit card) that an amount of debt is unlikely to be collected
the point at which a financial institution reports poor credit performance to a credit bureau
the point at which an account that has not been paid has a negative impact on your credit score
all of the above
What is bankruptcy?
A point in time where everything a person owns has been given to charity
A legal proceeding involving a person or business that is unable to repay outstanding debts in which the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt
When a bank is built on top of a volcano and the volcano erupts causing a bank(e)ruptcy
A legal proceeding involving a person or business that is more than capable of repaying outstanding debts in which all of the debtor's assets are measured and evaluated, and then given away to those in need
What is a loan term?
The amount of time a revolving line of credit can be open
The payment of income to a savings account in regular payments over a set period of time.
The period in which the loan is to be repaid, each payment broken down into individual installments
Specifically related to the black market for human organs, and typically meant as the length of time one's kidney will be used for other purposes
What is a benefit of going to college and having a college degree?
Lower lifetime earnings
Lower interest rates on future loans
Expanded professional and social netowrk
Guaranteed starting salary of $50,000 after graduation
All of the following are costs of going to college EXCEPT...
Tuition and fees
Room and board
Textbooks and school supplies
Scholarships and grants
Which is TRUE about sticker price and net price?
Net price is the sticker price minus loans
Sticker Price is the published cost of going to a school
Net price is the sticker price minus loans
Sticker price is the net price minus scholarships & grants
When does the FAFSA filing period open every year?
January 1st
June 1st
October 1st
December 1st
Why should you file the FAFSA as early as possible?
It can help your chances of being accepted into schools
Aid is given out on a first-come, first-serve basis
You're guaranteed to get more merit-based scholarships
You'll get a lower interest rate on federal student loans
When filing the FAFSA, you are eligible for all of the following EXCEPT:
Grants and Scholarships
Private Student Loans
Work-Study
Federal Student Loans
How do scholarships and grants differ?
Scholarships are need-based; grants are merit-based
Grants are private forms of aid; scholarships are federal
Grants are need-based; scholarships are merit-based
They're not different; they are one and the same
What do you need to file your FAFSA if you're a dependent?
Just your tax forms
Your high school student ID number
Your and your parents' tax forms from 2 years priors
A pay stub if you had a job in the past year
Which is TRUE about the FAFSA?
You only need to file the FAFSA 1x in your college career
Your parents must earn below a set amount for you to apply
You need to file it at the start of every quarter/semester
There is no cost to file the FAFSA
Which is TRUE about the Student Aid Index (SAI)?
It's the cost of filing the FAFSA
It's how much you & your family are expected to pay for college
It's another term for "net price"
It's how much your parents must contribute towards college
Which of the following is the correct flow of submitting/receiving these documents?
FAFSA Submission Summary > FAFSA > Financial Aid Package
Financial Aid Package > FAFSA Submission Summary > FAFSA
FAFSA > Financial Aid Package > FAFSA Submission Summary
FAFSA > FAFSA Submission Summary > Financial Aid Package
What must you do if you accept a Federal student loan?
Agree to an official credit check by the government
Pay off all credit card debt
Pay a refundable deposit to secure your loan
Sign a Master Promissory Note
Which of the following is TRUE about how you get your financial aid?
All financial aid is paid directly to you in one payment
All financial aid is paid to you in installments
Aid is 1st applied to your account; you get the rest
The school receives all of your financial aid
Which of the following is TRUE about federal and private student loans?
Private loans may be subsidized; federal ones are not
Both types offer the same repayment plans
Private loans always offer fixed interest rates
Fed. loans don't have prepayment penalties; private ones may
How can you lower the total amount you in pay in student loans?
Choose a repayment plan with a longer term
Accept private loans first, then federal ones
Make interest payments during your grace period
Accept loans with variable interest rates, not fixed ones
If you select a repayment plan with a longer term for your loans...
You will have a larger monthly pyament
You will have a smaller monthly payment
You will pay less in interest
You will pay the same amount in interest
Which is TRUE about loan payments?
$ goes 1st towards the principal, then the accrued interest
Interest rate has little impact on total cost of the loan
Payments are not split between interest and principal
Interest can be added to the principal if it goes unpaid
What can happen if you don't make payments towards your student loans?
You may lose your car or home
Your loan balance may become due in full, but no interest
You may lose your car or home
Your credit score may suffer
When looking at a financial aid award letter, which type(s) of aid would you have to pay BACK?
Federal Pell Grant
Direct Subsidized Loan
Merit Scholarship
Federal Work-Study
In what order should you accept different types of financial aid?
Work-study, scholarships, federal loans, private loans
Private loans, scholarships, work-study, federal loans
Scholarships, work-study, federal loans, private loans
Scholarships, work-study, private loans, federal loans
