1. You should reconcile your bank account immediately after you receive your statement.
2. It is not possible to transfer money electronically through an automated teller machine.
3. Interest can be compounded
d. as often as the financial business decides.
4. When you sell stock at a lower price than you originally paid you claim a
a. capital gain.
b. capital loss.
5. The Fair Credit Reporting Act of 1971 gave consumers a way to check their credit reports.
6. When you save, you trade spending now for the ability to spend in the future.
7. The annual summary of your earnings and withholdings you get from your employer is your
a. Form W-4
b. Form W-2.
c. Form 1099-INT
d. Form 1040EZ
8. It is unwise to give your PIN number to friends.
9. Interest on an unsecured loan is usually higher than on a secured loan.
10. Most young people qualify to use the simplest of the tax forms—the 1040EZ.
11. A business that is based in one country, but has branches or plants in other countries is a(n)
b. multinational corporation.
c. proprietorship. d. international syndicate.
12. Taxes that are added to the price of goods and services that you buy are considered
a. income taxes.
b. personal property taxes.
c. sales taxes. d. business taxes.
13. The book in which a person keeps record of the checks he or she has written and the deposits made is called a
a. deposit book.
b. debit register.
c. balance book.
d. check register.
14. When making a budget, your goals should be prioritized and ranked.
15. The time between the billing date and the payment due date on a credit card when no interest is charged is the
a. credit period.
b. grace period.
c. interest period.
d. free period.
16. Stuffing all your receipts into a grocery bag won’t create an efficient filing system.
17. The best way to get the most from your money is through careful evaluation of your alternatives.
18. Adjusting a budget will be easier if you attempt to change fixed spending rather than flexible spending.
19. Important things you hope to achieve in more than one year are
a. long-term goals.
b. short-term goals.
d. future goals.
20. An endorsement is your signature on the front of a check.
21. A nation that is able to produce a product at a lower cost than other nations is known as having a(n)
a. comparative advantage.
d. absolute advantage.
22. The maximum amount you are allowed to charge on your credit card account is your
b. account ceiling.
c. credit limit.
23. The Right to Be Heard states that the government must consider consumer opinions when creating laws.
24. A share of stock is a
a. unit of ownership in a corporation.
b. dividend paid by a corporation.
c. municipal bond.
d. deed of ownership in property.
25. Deliberate deception designed to secure unfair or unlawful gain is
d. none of these.
26. Nations create trade barriers to protect their young industries from
b. national security.
c. domestic jobs.
27. The income you earn on an investment is its
28. A purchase made on a whim without using a decision-making process is a(n)
a. trade-off purchase.
b. option purchase.
c. impulse purchase.
d. rational purchase.
29. Countries usually do not benefit from trading with each other.
30. In a market economy, customers and businesses must contend with a great deal of government interference.
31. The law that requires workers to contribute to Social Security and Medicare is the Federal Insurance Contributions Act.
32. A loan that is not backed by something of value pledged to ensure payment is a(n)
a. secured loan.
b. unsecured loan.
c. signature loan.
d. co-signed loan.
33. The equilibrium price for a product is the price at which the quantity supplied is ___________ the quantity demanded.
a. more than
b. less than
c. exactly equal to
d. none of these
34. Insider trading is trading stock based on information that is not available to the general public.
35. The law of demand says that consumers will demand less of a product at a lower price than at a higher price.
36. The more often interest is compounded, the more interest you will earn.
37. Free trade is a nation’s economic policy of permitting its citizens to buy and sell where they please without restrictions.
38. Having the bank deduct a certain amount from your checking account each month to pay a bill is a(n)
c. automatic withdrawal.
39. The Consumer Bill of Rights was created to protect consumers.
40. Which of the following would be an expense?
b. money from a gift
c. cell phone charges
d. your wages
41. The amount of your return on stock you own depends only on how much profit the corporation makes.
42. Tax preparers in the United States are particularly busy every November.
43. A plan for dividing your income among spending and saving options is a
a. filing system.
c. life-span goal.
d. financial diary.
44. The Right to Consumer Education makes certain that consumers have a variety of goods and services from which to choose.
45. Savings accounts are
a. offered by all savings institution.
b. a place in which you can deposit money.
c. a place in which you can earn interest. d. all of these.
46. The decision-making process helps you approach buying decisions in an organized, logical manner.
47. The limit that nations sometimes set on the amount of product that can be imported is called a(n)
48. Interest paid annually at the end of the year on the average balance in a savings account is
a. simple interest.
b. compound interest.
c. consumer interest.
d. fixed interest.
49. The practice of pressuring consumers to buy a more expensive product than they intended is called
a. lowering prices.
b. freezing prices.
c. implied warranty.
d. trading up.
50. Advertising that educates you about a product’s qualities is called
a. informative advertising.
b. comparative advertising.
c. persuasive advertising.
d. brand advertising.