A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:

Question 1 1 points Save

The purpose of small claims court is to

regulate fair business activities.

provide hearing on proposed consumer protection laws.

allow consumers with similar complaints to take action as a group.

resolve minor consumer complaints.

assist low-income consumers who need legal help.

Question 2 1 points Save

Renter's insurance would include coverage for

flood damage.

personal property.

building and other structures.

umbrella liability.

earthquake damage.

Question 3 1 points Save

A personal opportunity cost associated with a consumer purchase refers to

buying on credit.

selecting a commonly known brand.

the influence of advertising on consumers.

time used to compare prices.

government regulation of deceptive business-government activities in an effort to prevent consumer fraud.

Question 4 1 points Save

The purpose of a security deposit is to

pay for potential damages.

cover the costs of utilities.

pay for the tenant's portion of real estate property taxes.

cover increases in monthly rent.

meet government housing regulations for a safe building.

Question 5 1 points Save

A risk premium associated with interest rates refers to

expanded exports.

lower consumer prices.

higher earnings due to uncertainty.

a loan with a short maturity.

expected lower inflation.

Question 6 1 points Save

Which federal consumer credit law regulates the advertising of credit terms?

Fair Debt Collection Practices Act

Equal Credit Opportunity Act

Fair Credit Billing Act

Fair Credit Reporting Act

Truth in Lending Act

Question 7 1 points Save

Which type of credit insurance repays your debt in the event of a loss of income due to illness or injury?

credit life insurance

credit accident and health insurance

credit property insurance

credit casualty insurance

Question 8 1 points Save

A term that refers to the borrower's assets or net worth is called

capacity.

character.

capital.

collateral.

conditions.

Question 9 1 points Save

The purpose of a screening interview is to

make business contacts.

reduce the number of applicants for a job.

locate potential people for advancement within the company.

judge the best qualified candidates for a position.

obtain information on available jobs in an area.

Question 10 1 points Save

A certificate of deposit usually has

high interest-rate risk.

low safety for savers.

limited liquidity.

a variable rate of return.

no minimum deposit amount

Question 11 1 points Save

The Roth IRA differs from the regular IRA in that

earnings on the account are tax free after five years.

contributions may exceed $2,000.

deposits must be in federally-insured accounts.

funds are only to be used for education expenses.

only self-employed workers can use this account.

Question 12 1 points Save

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today. Which aspect of the 5Cs of lending is loan officer most likely looking at?

Character

Capacity

Capital

Collateral

Conditions

Question 13 1 points Save

If you are denied credit by a bank or a credit union, you should

reapply for a loan after thirty days.

question your ability to afford the loan.

run to the nearest loan shark for a loan.

beg your friends for a loan.

file a complaint with the Better Business Bureau.

Question 14 1 points Save

Open dating provides information on

freshness.

pricing.

nutrition.

common product use.

government inspection.

Question 15 1 points Save

The interest rate on a collateralized loan is relatively low, but one of the disadvantages of such loans is that

the loan must be repaid in a short period of time.

the assets used as collateral are tied up until the loan has been repaid.

the loan is difficult to obtain.

commercial banks do not make such loans.

you ruin your credit rating.

Question 16 1 points Save

Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $150,000, $75,000, and $75,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance?

$150,000

$100,000

$50,000

None. The total amount would be covered by insurance

Question 17 1 points Save

The purpose of the Official Used Car Guide is to

monitor safety problems of existing vehicles.

provide price data.

reduce sales of stolen vehicles.

list cars available for sale from government agencies.

Question 18 1 points Save

A VA-guaranteed loan program provides assistance to

military veterans.

recent college graduates.

low-income homebuyers.

government employees.

the elderly.

Question 19 1 points Save

Melissa Morano has a concern about the deceptive advertising aimed at older consumers in her neighborhood. A government agency she might contact about this problem is the

Federal Trade Commission.

Better Business Bureau.

Consumers Union.

Underwriters Laboratories.

Bureau of Labor Statistics.

Question 20 1 points Save

Which of the following goals would be the easiest to implement and measure its accomplishment?

"Reduce our debt payments."

"Save funds for an annual vacation."

"Save $100 a month to create a $4,000 emergency fund."

"Invest $2,000 a year for retirement."

Question 21 1 points Save

Membership in credit unions has been

growing steadily.

declining gradually.

static.

restricted by the Tax Reform Act of 1986.

restricted by state laws.

Question 22 1 points Save

Itemized deductions are recorded on

Form 1040A.

Schedule A.

Schedule B.

Form 2106.

Question 23 1 points Save

The 25 in 50/100/25 refers to ____________ coverage.

collision

bodily injury liability

comprehensive physical damage

medical payments

property damage liability

Question 24 1 points Save

Money received in the form of dividends or interest is ____________ income.

passive

earned

excluded

capital gain

investment

Question 25 1 points Save

____________ coverage would pay for damage to your vehicle in an accident for which another driver with insurance was legally at fault.

Property damage liability

Collision

Comprehensive physical damage

Uninsured motorists protection

Assigned risk

Question 26 1 points Save

The purpose of a household inventory is to

reduce insurance costs.

document owned property.

obtain personal property floater coverage.

increase liability coverage.

lower the chance of negligence.

Question 27 1 points Save

Which of the following is a local organization affiliated with the National Foundation for Consumer Credit that provides debt counseling services for families and individuals?

Credit Bureau

Chamber of Commerce

Consumer Credit Counseling Service

Internal Revenue Service

None of the above.

Question 28 1 points Save

Impulse buying refers to

evaluating alternatives.

gathering information.

comparison shopping.

selecting the least desirable alternative.

unplanned purchasing.

Question 29 1 points Save

The funds deposited in a checking account can be restricted for use by

a holding period.

outstanding checks.

interest earned.

service charges.

electronic banking.

Question 30 1 points Save

Earnest money has the purpose of

paying real estate property taxes.

reducing the mortgage interest rate.

serving as good faith by a homebuyer.

paying the real estate agent's commission.

being a mortgage application fee.

Question 31 1 points Save

Creative résumés or those with a gimmick are most appropriate for careers in

accounting.

finance.

advertising.

sales.

human relations.

Question 32 1 points Save

If you default on your automobile loan,

an advance notice to you is required before your car is repossessed.

no advance notice is required before repossession.

the federal consumer credit laws give you protection.

you don't have to pay the full balance due on the loan.

the creditor pays the towing and storage costs.

Question 33 1 points Save

Natural abilities that people possess are

interests.

aptitudes.

attitudes.

survival skills.

occupation techniques.

Question 34 1 points Save

Higher prices are likely to result from

lower demand by consumers.

increased production by business.

lower interest rates.

increased spending by consumers.

an increase in the supply of a product.

Question 35 1 points Save

Which of the following is an example of opportunity cost?

renting an apartment near school

saving money instead of taking a vacation

setting aside money for paying income tax

purchasing automobile insurance

using a personal computer for financial planning

Question 36 1 points Save

The Bankruptcy Act of 1978

was aimed to protect the creditors.

was later declared unconstitutional by the U.S. Supreme Court.

prevents dishonest people from declaring bankruptcy.

made personal bankruptcy easier.

made personal bankruptcy difficult.

Question 37 1 points Save

If you have a complaint against The First National Bank of Edmond, who should you contact?

National Credit Union Association.

The Federal Home Union Association.

The Federal Reserve

The Comptroller of the Currency

None of the above

Question 38 1 points Save

If you have trouble paying your bills,

skip the town and hope for the best.

turn to a company that claims to offer assistance in solving debt problems.

check with your local Better Business Bureau for help.

seek assistance from a collection agency.

try to solve the problem with your creditor(s).

Question 39 1 points Save

What would be the maximum limit for an individual's debt-to-equity ratio, excluding the home mortgage?

0.5

0.33

1.00

2.00

none of the above

Question 40 1 points Save

If your credit application is denied, you

can sue the credit rating agency.

can file a complaint against the merchant.

don't have any rights provided by law.

are entitled to know the specific information.

can reapply for credit after 30 days.

Question 41 1 points Save

The financial planning process concludes with efforts to

develop financial goals.

create a financial plan of action.

analyze your current personal and financial situation.

review the financial plan.

review and revise your actions.

Question 42 1 points Save

Which bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time?

Chapter 7

Chapter 11

Chapter 13

Chapter 15

Question 43 1 points Save

Which of the following would increase the risk of a loan?

higher consumer prices

a short time to maturity

lower consumer prices

constant interest rates

a good credit rating

Question 44 1 points Save

A $200 savings account that earns $13 interest in a year has a yield of ____________ percent.

6

13

7

11. 25

6. 5

Question 45 1 points Save

In determining your credit capacity, you first provide for basic necessities, such as

furniture.

home furnishings.

mortgage or rent.

automobile.

durable goods.

Question 46 1 points Save

In a Chapter 7 bankruptcy, a debtor

is required to draw up a petition listing all assets and liabilities.