2GroupsGet in groups of 4 or 5, no more than 5. Each group needs 4 blank sheets of paper.No need for computers
3Rules No computers. Leave them shut off Groups of 5 or 4. No other number combination.A person may not answer a question more than once before all members of their group have answered.All groups will have the chance to answer questions. Don’t be impatient or go crazy because you get the answer in second because you are so brilliant. On the flip side, when I say time is up, that means for everyone.You HAVE a chance, even if you don’t have the most points from getting the right answers. You just don’t have as good a chance.All groups will hold upI will subtract points for: getting on the computer, cheating, being obnoxious to another team or me, or for whatever reason I come up with.
4Least of all....These are questions from YOUR final!!! No one is stopping you from taking notes. You can’t use computers because I want you all to pay attention, and some of you would spend the whole time playing games but Paper and pencil will work!!!!
5FinallyTHIS CLASS IS REQUIRED TO GRADUATE. IF YOU ARE BORDERLINE OR NOT PASSING.....
7Choose the statement which best describes the relationship between values and financial decisions. a. Because a value is a fundamental belief, it has no effect on a person’s financial decisions.b. Financial decisions are not determined by values; they are determined only by the amount of income one has.c. Because values are not influenced by family, friends, and experiences, they have an effect on financial decisions.d. Because values are influenced by family, friends, and experiences, they affect a person’s financial decisions.
9A well written financial goal includes the following elements: a. Specific, money, action, result, and time bound.b. Specific, measurable, attainable, realistic, and time bound.c. Personal values, financial planning, direction, and action.d. Specific, measurable, action, realistic, and time bound.
11How are financial decisions influenced by a person’s interpretation of needs and wants? a. Financial decisions are influenced because everyone has the same needs and wants.b. Financial decisions are not influenced because everyone has the same needs and wants.c. Financial decisions are influenced by needs and wants because they guide a person’s choices.d. Financial decisions are not influenced by needs and wants because choices are influenced only by values.
13A person would choose to take an interest inventory test to: a. Learn about available jobs in the area.b. Build a personal inventory of household goods.c. Learn about possible career areas related to one’s interests.d. Develop personal values and goals.
17Deductions taken from a person’s paycheck include: a. Net pay, FICA, and employee benefits.b. Regressive taxes, gross pay, and city withholding tax.c. progressive taxes, gross pay, and medical.d. Federal withholding tax, state withholding tax, and FICA.
21Using the rule of 72, what rate of return is needed for a person to double an investment in six years.a. 6%b. 8.3%c. 10%d. 12%(Remember, Rule of 72 is how you figure out how long it will take to double your invest at a given rate, and you divide it into 72. This question is asked a little backwards.)
23According to the time value of money, the power of time benefits an individual because: a. The longer a person holds onto money, the less likely they are to spend it.b. Money paid out or received in the future is not equivalent to money paid out or received today.c. The more time a person has to save, the lower the return on the money.d. Time does not benefit an individual because the value of money does not change over time.
25Which of the following is true about saving and/or investing? a. Savings cannot be converted into cash easily for emergencies.b. Investing allows people to have cash easily accessible for emergencies.c. The money in both savings and investing is considered liquid.d. Savings are generally considered liquid and easily accessible.
29What can a person do to work toward the goal of buying a house? a. Continue the current financial plan and with luck, be able to buy a house within the next 2 years.b. Create a financial plan and start using credit cards to pay for current expenses in order to save money for a house quicker.c. Create a financial plan to save up for the down payment and other housing costs; this probably means cutting current expenses to save money.d. Pay for all large purchases in cash and apply for numerous credit cards in order to increase his/her credit rating.
31Sally won a $150 cash prize for winning the school science fair Sally won a $150 cash prize for winning the school science fair. She wants to save the money for her senior trip in five years. What type of cash management tool is the best option?a. A certificate of deposit because it would be for a specified time length.b. A savings account because it has the highest interest rate.c. A checking account because it is the most liquid cash management tool.d. A cash management tool would not benefit her; she can keep it in her closet.
33Which of the following statements does not describe a housing lease? a. The terms of the lease agreement are not legally binding.b. It is a legal contract between the tenant and the landlord.c. It specifies the responsibilities and rights of both parties involved.d. It should not be signed until the tenant understands the entire document.
34End of Round 1You will add your team points to the points your team scores
38What is true about automobile loan variables? a. The higher the APR, the less interest is paid.b. The shorter the length of the loan, the smaller the payments.c. The larger the down payment, the higher the principle.d. The lower the APR, the more interest paid.
43Tom has liability insurance for his truck Tom has liability insurance for his truck. With this insurance what is covered if he gets in an accident?a. Injuries to himself.b. Injuries to the other driver and their automobile.c. Damages to his truck.d. Towing charges for his truck.
45Comparison shopping for a vehicle is necessary because: a. Large purchases do not need to be planned.b. The price does not matter; choose the vehicle based on personal preference.c. Different dealers offer the same prices on different options.d. The vehicle price is not the only cost involved with owning a vehicle.
47Electronic banking allows customers to: a. Access accounts only during business hours 9 hours a day.b. Perform transactions with the help of a teller during business hours.c. Perform transactions via electronic fund transfers 24 hours a day.d. Stop reconciling accounts because of the electronic tracking.
49Identify how a young adult can begin to establish a good credit rating. a. Get a small bank loan or credit card and make your payments on time.b. Keep high balances on various credit cards.c. Open as many credit card accounts as you can.d. Nothing. A person begins with a good credit rating.
51When referring to investments what is the relationship between risk and return? a. Higher risk indicates lower returns.b. Higher risk indicates higher returns.c. Lower risk indicates higher returns.d. No relationship exists between risk and return.
55An advantage of using credit is: a. The many forms of hidden fees on the credit card bill.b. The increased cost of the purchase because of interest charges.c. The increase of being a victim of fraud or rip-offs.d. Not having to carry large amounts of cash.
57What is compound interest? a. The interest earned on the principle only.b. The interest earned on both interest and principle.c. The number of days of investing times the original investment.d. All of the above.
59What is inflation?a. The steady rise in the general level of prices of a market basket of goods.b. The uncertainty the yield on an investment will deviate from what is expected.c. The number of times something happens to money.d. The projected value of an investment at the end of a specified time frame.
61What is a deductible?a. The contract between the individual and the insurer.b. The arrangement to protect an individual against risk.c. The amount paid by the policy holder for the initial portion of a loss.d. The fee paid to the insurer to be covered under the specified terms.