Consumer Math Semester 1 Final

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  • 1/105 Questions

    When developing a personal financial plan, one of the first things you should do is assess your current financial situation. This includes your income, assets and liabilities.

    • True
    • False
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About This Quiz

The Consumer Math Semester 1 Final assesses key personal finance skills, emphasizing money management, financial behavior, and the importance of financial planning. It highlights the impact of savings and the historical context of credit usage.

Consumer Math Semester 1 Final - Quiz

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  • 2. 

    The number-one cause of divorce in North America today is stress and disagreements over money.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Stress and disagreements over money are widely recognized as major contributors to divorce rates in North America. Financial issues can lead to conflicts and tension within a relationship, causing strain on the marital bond. Financial stress can arise from various factors such as debt, unemployment, differing financial goals, and unequal financial contributions. These challenges can create a hostile environment, leading to increased arguments and ultimately divorce. Therefore, it is reasonable to conclude that stress and disagreements over money are the number-one cause of divorce in North America today.

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  • 3. 

    Teens are a huge target of credit card companies today.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Credit card companies often target teenagers as potential customers because they are seen as a lucrative market. Teens are considered to be more likely to spend impulsively and less likely to fully understand the consequences of credit card debt. Additionally, credit card companies may offer incentives or rewards specifically tailored to attract younger consumers. Therefore, it is true that teens are a significant target for credit card companies.

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  • 4. 

    You can start investing with a small amount of money. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    This statement suggests that it is possible to start investing with a small amount of money. This implies that there is no minimum investment requirement and individuals can begin investing even with limited funds.

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  • 5. 

    Writing and following a zero-based budget will help you avoid overspending and impulse purchases.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Writing and following a zero-based budget means allocating every dollar of your income towards a specific purpose, whether it's paying bills, saving, or spending. This method ensures that you have a plan for every dollar and helps you prioritize your expenses. By being aware of where your money is going, you can avoid overspending and impulsive purchases, as you are more likely to stick to your budget and financial goals. Therefore, the statement is true.

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  • 6. 

    You can and should obtain a free copy of your credit report annually in order to check for any suspicious activity.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Obtaining a free copy of your credit report annually is important in order to check for any suspicious activity. By reviewing your credit report, you can identify any unauthorized charges or accounts that may indicate fraudulent activity. This allows you to take immediate action to protect your financial well-being and prevent further damage. Regularly monitoring your credit report is a proactive measure to ensure the accuracy of your credit history and to detect any signs of identity theft or fraudulent behavior.

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  • 7. 

    The academic and financial choices you make in the next few years will affect the next 40 years of your life.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement suggests that the decisions made regarding education and finances in the near future will have long-lasting consequences for the next four decades. These choices can determine career opportunities, earning potential, and overall financial stability. It emphasizes the importance of making wise decisions early on to ensure a successful and fulfilling future.

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  • 8. 

    A good salesperson will answer a question with a question

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A good salesperson will answer a question with a question because it helps them understand the customer's needs and preferences better. By asking questions, the salesperson can gather more information about what the customer is looking for, their budget, and any specific requirements they may have. This allows the salesperson to tailor their pitch and offer the most suitable products or services. Additionally, answering a question with a question can also help the salesperson engage the customer in a conversation and build rapport, which can ultimately lead to a successful sale.

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  • 9. 

    Which of the following is a reason that people donʹt save money?

    • They lack discipline

    • They do not live on a budget

    • They lack focus

    • All of the answers

    Correct Answer
    A. All of the answers
    Explanation
    The correct answer is "All of the answers" because all the given options are valid reasons why people don't save money. Lack of discipline can lead to impulsive spending and inability to stick to a savings plan. Not living on a budget means there is no structured plan for managing finances, making it difficult to save. Lack of focus can result in prioritizing immediate wants over long-term financial goals. Therefore, all these factors contribute to why people may struggle to save money.

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  • 10. 

    When youʹre older and out of school, youʹll need to grow your emergency fund into a full three to six monthsʹ worth of expenses.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    As you grow older and leave school, it becomes important to have a larger emergency fund. This is because you will have more responsibilities and financial obligations. A full three to six months' worth of expenses is recommended as it provides a safety net in case of unexpected events such as job loss or medical emergencies. This fund can help cover your expenses during these challenging times and provide financial stability. Therefore, the statement is true.

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  • 11. 

    When youʹre in high school, you wonʹt have the same emergency expenses as your parents.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    When you're in high school, you typically don't have the same financial responsibilities and obligations as your parents. As a student, your parents usually cover your living expenses, education costs, and other necessities. Therefore, it is true that you won't have the same emergency expenses as your parents during this period of your life.

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  • 12. 

    Learning to be quiet is actually a powerful tool in negotiation.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Being quiet in negotiation can be a powerful tool because it allows the negotiator to listen and gather information from the other party. By staying quiet, one can observe the other person's body language, tone of voice, and subtle cues, which can provide valuable insights into their thoughts and intentions. Additionally, remaining silent can create a sense of discomfort or pressure on the other party, potentially leading them to reveal more information or make concessions. Overall, learning to be quiet in negotiation can give the negotiator a strategic advantage and increase their chances of achieving their desired outcome.

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  • 13. 

    Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Shopping for bargains is indeed part of a healthy financial plan because it allows individuals to stretch their hard-earned money further. By seeking out discounts, sales, and deals, individuals can save money on their purchases and potentially have more funds available for other important expenses or savings. This practice promotes smart financial management and helps individuals make the most of their income.

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  • 14. 

    What factors affect a credit score?

    • A) Type of debt

    • New debt

    • Duration of debt

    • All answers

    Correct Answer
    A. All answers
    Explanation
    All factors mentioned in the answer options can affect a credit score. The type of debt, such as credit card debt or mortgage debt, can impact a credit score differently. New debt can lower a credit score as it may indicate increased financial risk. The duration of debt, including the length of credit history and the average age of accounts, also influences a credit score. Therefore, all of these factors play a role in determining an individual's credit score.

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  • 15. 

    A wise college plan does not include:

    • Creating a budget and starting to save now

    • Shopping around for the most appropriate, low-cost academic option for your career choice

    • Scoring well on the ACT or SAT

    • Finding the most expensive, prestigious college so that you can impress future employers

    Correct Answer
    A. Finding the most expensive, prestigious college so that you can impress future employers
    Explanation
    A wise college plan focuses on practical aspects such as creating a budget and saving money, shopping around for affordable academic options, and scoring well on standardized tests. However, finding the most expensive and prestigious college solely to impress future employers is not a wise decision. Employers are more interested in skills, experience, and achievements rather than the name or cost of the college attended. Therefore, this option does not align with a wise college plan.

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  • 16. 

    If you plan to attend a community college for your first two years, youʹll want to work closely with your advisor to make sure that the classes you take will transfer to your four-year school of choice.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Attending a community college for the first two years can be a cost-effective way to complete general education requirements before transferring to a four-year school. However, it is important to ensure that the classes taken at the community college will transfer and be accepted by the four-year school. Working closely with an advisor will help in selecting the appropriate classes that will transfer and count towards the degree requirements at the chosen four-year school. Therefore, the statement is true.

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  • 17. 

    Why is having a fully funded emergency fund so important when it comes to your financial well-being?

    • As long as you have a good-paying job, you really donʹt need an emergency fund.

    • The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.

    • The purpose of an emergency fund is to have money set aside for large purchases, like vacations

    • None of these answers

    Correct Answer
    A. The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.
    Explanation
    Having a fully funded emergency fund is important for financial well-being because it allows individuals to be prepared for unexpected financial emergencies. By setting money aside specifically for these situations, individuals can avoid going into debt or relying on credit cards to cover unexpected expenses. Additionally, having an emergency fund provides a sense of financial security, knowing that there is a safety net in place in case of unforeseen circumstances such as job loss, medical emergencies, or major repairs.

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  • 18. 

    Budgeting is crucial to your financial success.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Budgeting is crucial to your financial success because it helps you track and control your expenses, prioritize your spending, and save for future goals. By creating a budget, you can ensure that you are living within your means, avoid unnecessary debt, and make informed financial decisions. Without a budget, it becomes difficult to manage your money effectively and achieve financial stability.

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  • 19. 

    Which of the following is not a good idea for getting out of debt?

    • Quit borrowing money

    • Get a part-time job or work overtime

    • Sell something

    • Borrow money from your parents to pay for the debt

    Correct Answer
    A. Borrow money from your parents to pay for the debt
    Explanation
    Borrowing money from your parents to pay for the debt is not a good idea for getting out of debt because it does not address the root cause of the problem, which is overspending and living beyond one's means. Depending on parents for financial support can create a cycle of dependency and may not teach the individual how to manage their finances effectively. It is important to focus on reducing expenses, increasing income through part-time jobs or overtime work, and selling unnecessary items to generate funds to pay off the debt.

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  • 20. 

    Our culture thinks student loan debt is normal and that itʹs an acceptable way to pay for college.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement suggests that our culture considers student loan debt as a normal and acceptable method of financing college education. This implies that borrowing money to pay for higher education is widely accepted and perceived as a common practice. This aligns with the prevailing belief that obtaining a college degree is crucial for future success, and the cost associated with it is often seen as a necessary investment.

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  • 21. 

    Which of the following is not a need?

    • Housing

    • Eating out

    • Utilities

    • Food

    Correct Answer
    A. Eating out
    Explanation
    Eating out is not a need because it is not essential for survival. While housing, utilities, and food are basic needs required for a person's well-being, eating out is a luxury or a want rather than a necessity. People can fulfill their nutritional needs by cooking and eating at home, whereas eating out is a choice that involves spending money on convenience or socializing. Therefore, eating out can be considered a discretionary expense rather than a fundamental need.

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  • 22. 

    You should save money for three basic reasons: emergency fund, purchases and wealth building.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Saving money is important for three main reasons: emergency fund, purchases, and wealth building. Having an emergency fund allows you to be prepared for unexpected expenses, such as medical bills or car repairs. Saving for purchases allows you to have the funds necessary to buy things you want or need without going into debt. Lastly, saving for wealth building means setting aside money for investments or long-term financial goals, such as retirement. Therefore, the statement that saving money is important for these three reasons is true.

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  • 23. 

    A debit card cannot be used for online purchases.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    This statement is false. A debit card can be used for online purchases. Debit cards are linked to a bank account and can be used to make purchases online by entering the card information and verifying the transaction. Many online merchants accept debit cards as a form of payment, making it convenient for consumers to shop online using their debit card.

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  • 24. 

    Most Americans today are wealthy and will have financial security when they retire.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is not accurate as most Americans are not wealthy and do not have financial security when they retire. Studies and surveys have consistently shown that a significant portion of Americans struggle with saving for retirement and face financial insecurity in their old age. Factors such as low wages, high living expenses, and inadequate retirement savings contribute to this reality. Therefore, the correct answer is false.

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  • 25. 

    Having debt keeps you from building wealth.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Debt can hinder wealth-building because it requires individuals to pay interest and fees, reducing the amount of money available for saving and investing. Additionally, debt can limit financial flexibility and increase financial stress, making it harder to focus on wealth-building strategies. By avoiding or minimizing debt, individuals can free up more money to save, invest, and build wealth over time.

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  • 26. 

    True financial security is achieved when your money begins to generate an income -your money starts working for you.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement suggests that true financial security is attained when an individual's money starts generating income and working for them. This implies that simply having money is not enough, but rather it should be invested or utilized in a way that it grows and generates additional income. This aligns with the concept of financial independence, where one's wealth is able to sustain their lifestyle without the need for active income. Therefore, the answer "True" accurately reflects the idea presented in the statement.

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  • 27. 

    Which of the following are ways that you can invest in yourself?

    • Find a mentor

    • Surround yourself with people who have similar goals and ambitions as you

    • Read books

    • All of the answers

    Correct Answer
    A. All of the answers
    Explanation
    All of the options listed are ways that you can invest in yourself. Finding a mentor allows you to learn from someone with more experience and gain valuable insights. Surrounding yourself with like-minded individuals can provide support and motivation in achieving your goals. Reading books is a great way to expand your knowledge and continuously learn. By choosing all of these options, you are actively investing in your personal and professional growth.

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  • 28. 

    Employee benefits packages:

    • Should not be a consideration when looking for a job

    • Never include retirement plans

    • Are the same regardless of the company you work for

    • Are non-wage compensations provided to employees in addition to their normal wages or salaries

    Correct Answer
    A. Are non-wage compensations provided to employees in addition to their normal wages or salaries
    Explanation
    Employee benefits packages are additional compensations provided to employees in addition to their regular wages or salaries. These benefits can include health insurance, paid time off, retirement plans, and other perks. They are an important consideration when looking for a job as they can greatly impact an employee's overall compensation and job satisfaction. The statement that employee benefits should not be a consideration when looking for a job is incorrect as these benefits can significantly contribute to an employee's overall financial well-being and work-life balance.

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  • 29. 

    Personal financial success is primarily the result of:

    • Managing your money behavior

    • Winning the lottery

    • Generous welfare and unemployment programs

    • Inheriting money from your parents

    Correct Answer
    A. Managing your money behavior
    Explanation
    Managing your money behavior is the most important factor in achieving personal financial success. This involves making wise financial decisions, budgeting, saving, and investing appropriately. It requires discipline, knowledge, and understanding of financial concepts. While winning the lottery or inheriting money may provide a sudden influx of wealth, without proper money management skills, it is likely to be squandered. Generous welfare and unemployment programs may provide temporary financial support, but they are not sustainable or conducive to long-term financial success. Therefore, managing your money behavior is the key to achieving personal financial success.

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  • 30. 

    The envelope system works great for managing spending on things that donʹt normally have a fixed monthly expense.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The envelope system is a budgeting method where you allocate a certain amount of cash to different envelopes representing different spending categories. This method is particularly useful for expenses that don't have a fixed monthly cost, such as groceries, entertainment, or personal care. By using cash and physically dividing it into envelopes, you can visually track your spending and ensure that you don't overspend in any category. Therefore, the statement "The envelope system works great for managing spending on things that donʹt normally have a fixed monthly expense" is true.

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  • 31. 

    If you do not have a FICO score, what factors will determine whether or not you qualify for a mortgage?

    • A) History of rental and utility payments

    • B) Amount of your down payment and employment history

    • C) You cannot get a mortgage without a credit history

    • A and B

    Correct Answer
    A. A and B
    Explanation
    If you do not have a FICO score, your history of rental and utility payments as well as the amount of your down payment and employment history will determine whether or not you qualify for a mortgage. These factors can be used by lenders to assess your creditworthiness and ability to repay the mortgage.

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  • 32. 

    Young single adults should find an accountability partner with whom to discuss big purchases

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Young single adults should find an accountability partner with whom to discuss big purchases because having someone to discuss and seek advice from can help them make more informed decisions and avoid impulsive or unnecessary spending. An accountability partner can provide guidance, share their own experiences, and offer different perspectives, ultimately promoting financial responsibility and preventing potential financial pitfalls. This partnership can also serve as a support system, encouraging young adults to stick to their financial goals and stay accountable for their spending habits.

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  • 33. 

    Getting the best deal on a purchase involves doing all of the following except:

    • Having patience

    • Negotiating

    • Being first in line for a new product

    • Shopping around to find the best deal

    Correct Answer
    A. Being first in line for a new product
    Explanation
    Getting the best deal on a purchase involves having patience, negotiating, and shopping around to find the best deal. However, being first in line for a new product does not necessarily guarantee the best deal. Being first in line may create a sense of urgency and limit the opportunity for negotiation or comparison shopping. Therefore, being first in line for a new product is not necessary to get the best deal.

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  • 34. 

    You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:

    • Comprehensive

    • Uninsured motorist protection

    • Collision

    • Liability

    Correct Answer
    A. Liability
    Explanation
    Liability insurance coverage is the correct answer in this scenario. Liability insurance is designed to cover the costs associated with injuries or damages caused by the insured party to others in an accident where they are at fault. In this case, since you are at fault in the two-car accident and the other driver is injured, your liability insurance would cover the medical expenses of the victim.

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  • 35. 

    You should not buy identity theft protection that only provides credit report monitoring

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Buying identity theft protection that only provides credit report monitoring is not sufficient because identity theft can occur through various means other than credit fraud. Identity theft protection should include additional features such as social security number monitoring, dark web monitoring, identity restoration services, and insurance coverage to provide comprehensive protection against all types of identity theft. Therefore, it is true that you should not buy identity theft protection that only offers credit report monitoring.

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  • 36. 

    You should visit your collegeʹs financial aid office if:

    • Your parentsʹ financial situation has changed

    • You have any problems with the financial aid application process

    • A medical situation has come up

    • All of the answers

    Correct Answer
    A. All of the answers
    Explanation
    If all of the answers are correct, it means that visiting your college's financial aid office is necessary in any of these situations. If your parents' financial situation has changed, it is important to update your financial aid information. If you have any problems with the financial aid application process, the office can provide guidance and assistance. Additionally, if a medical situation arises, the financial aid office may be able to provide additional support or resources. Therefore, visiting the financial aid office is recommended in any of these circumstances.

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  • 37. 

    Life insurance policy for a specific period of time is called:

    • Universal

    • Level

    • Term

    • Whole life

    Correct Answer
    A. Term
    Explanation
    Term life insurance is a type of life insurance policy that provides coverage for a specific period of time, usually ranging from 10 to 30 years. Unlike whole life insurance, term life insurance does not accumulate cash value and only pays out a death benefit if the insured individual passes away during the term of the policy. It is typically more affordable than other types of life insurance and is often chosen to cover specific financial obligations or provide income replacement during a specific period, such as when raising children or paying off a mortgage.

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  • 38. 

    Renterʹs insurance is not necessary if you donʹt have a lot of expensive things.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that renter's insurance is not necessary if you don't have expensive belongings. However, this is not true. Renter's insurance is important regardless of the value of your possessions because it provides coverage for various other risks such as liability protection, additional living expenses in case of displacement, and protection against theft or damage caused by natural disasters. It is always recommended to have renter's insurance to protect yourself financially in case of unforeseen events.

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  • 39. 

    Which of the following could be a negative consequence of taking out student loans?

    • Not having the freedom to be a stay-at-home parent because of student loan payments

    • Having to delay investing and saving for your future because of student loan payments

    • Not having flexibility in your career options because of student loan payments

    • All of the answers

    Correct Answer
    A. All of the answers
    Explanation
    Taking out student loans can have negative consequences such as not being able to be a stay-at-home parent due to the financial burden of loan payments. It can also result in having to delay investing and saving for the future, as a significant portion of income goes towards loan repayment. Additionally, student loan payments can limit flexibility in career options, as individuals may feel compelled to choose higher-paying jobs to meet their loan obligations rather than pursuing their desired career path. Therefore, all of the given answers could be potential negative consequences of taking out student loans.

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  • 40. 

    Which of the following best explains why students should learn about personal finance?

    • Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.

    • Personal finance skills are better learned through trial and error.

    • Personal finance skills are highly complex and require a great deal of time to learn.

    • Learning to manage money will help you achieve a profitable career.

    Correct Answer
    A. Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.
    Explanation
    Learning to manage money at an early stage can prevent individuals from making financial mistakes and instead, enable them to reap significant financial benefits in the future. By acquiring personal finance skills, students can avoid common pitfalls and develop good financial habits that will serve them well throughout their lives. This knowledge will empower them to make informed decisions, save money, invest wisely, and achieve financial stability and success.

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  • 41. 

    At your age, a fully funded emergency fund should be:

    • $1,000

    • $500

    • $100

    • $5,000

    Correct Answer
    A. $500
    Explanation
    A fully funded emergency fund is typically recommended to cover three to six months' worth of living expenses. However, the specific amount can vary based on individual circumstances such as income, expenses, and financial goals. In this case, $500 may be considered a reasonable amount for someone at a certain age, taking into account their income, expenses, and ability to save. It is important to note that this answer may not be applicable to everyone and individual financial situations should be considered when determining the appropriate amount for an emergency fund.

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  • 42. 

    A four-year degree is necessary regardless of which career youʹre entering

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement "A four-year degree is necessary regardless of which career youʹre entering" is false. While certain careers may require a four-year degree, there are many other career paths that do not necessarily require a four-year degree. Some careers may only require a two-year associate's degree or vocational training, while others may value work experience or specific skills over a formal degree. Ultimately, the educational requirements for a career can vary depending on the industry and specific job role.

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  • 43. 

    Youʹll only need to complete the FAFSA once during your college education

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because the FAFSA (Free Application for Federal Student Aid) needs to be completed every year in order to determine a student's eligibility for financial aid. The information provided on the FAFSA is used to calculate the Expected Family Contribution (EFC) which determines the amount of financial aid a student is eligible to receive. Since a student's financial situation can change from year to year, it is necessary to complete the FAFSA annually to ensure accurate and up-to-date information.

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  • 44. 

    Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Everyone has different financial situations, goals, and needs. What may work for one person may not work for another. Factors such as income, expenses, debts, and financial goals vary from person to person. Therefore, it is not reasonable to assume that one budget will be sufficient for everyone.

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  • 45. 

    If you are a victim of identity theft, you are only responsible for paying back half of the debt.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    This statement is false. If you are a victim of identity theft, you are not responsible for paying back any of the debt incurred by the thief. The responsibility lies with the thief and it is their obligation to repay the debt. It is important for victims to report the theft to the authorities and take necessary steps to clear their name and credit.

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  • 46. 

    Most of the items at a pawnshop are stolen.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement "Most of the items at a pawnshop are stolen" is not true. While it is possible for some items at a pawnshop to be stolen, it is not accurate to say that most of them are. Pawnshops operate legally and have protocols in place to ensure that they are not accepting stolen goods. They require customers to provide identification and often work closely with law enforcement to prevent the sale of stolen items. Therefore, it is incorrect to claim that the majority of items at a pawnshop are stolen.

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  • 47. 

    Any insurance with cash value or that combines insurance with investments is a bad idea

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Insurance policies that have a cash value or combine insurance with investments are generally considered a bad idea because they tend to have higher premiums and fees. These policies often provide a lower return on investment compared to other investment options available in the market. Additionally, the primary purpose of insurance is to provide financial protection against risks, and policies with cash value or investment components may not adequately fulfill this purpose. It is generally recommended to separate insurance and investments to ensure that both aspects are optimized for their intended purposes.

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  • 48. 

    The purpose of advertising is to:

    • Tease the consumer

    • Persuade the consumer

    • Inform the consumer

    • All of the answers

    Correct Answer
    A. All of the answers
    Explanation
    The correct answer is "All of the answers" because advertising serves multiple purposes. It can tease the consumer by creating curiosity and interest in a product or service. It also aims to persuade the consumer by using persuasive techniques to convince them to make a purchase or take a desired action. Additionally, advertising informs the consumer by providing them with information about the product or service, its features, benefits, and how it can meet their needs. Therefore, all of these purposes are fulfilled through advertising.

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  • 49. 

    Instead of borrowing money for large purchases, you should set money aside in a    ________________   over time and pay with cash.

    • Emergency fund

    • Credit card fund

    • Sinking fund

    • Mortgage fund

    Correct Answer
    A. Sinking fund
    Explanation
    A sinking fund is a separate account where you set aside money over time to save for a specific purpose, such as a large purchase. By setting money aside in a sinking fund, you can avoid borrowing money and instead pay with cash when the time comes. This allows you to avoid debt and the associated interest charges.

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  • Dec 14, 2017
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