BUS 12 MIDTERM

Which of the following items is not one of the four core elements of a budget?

Assets

What is Budgeting?

Short term forecast of your income and spending

Which one of the following items is not a Budget Building Block according to the Personal Financial Well-Being materials?

Financial net worth

What is the most important tool to manage your budget per the "Financial Well-Being" materials on Budgeting?

Understanding real-time Financial Cause and Effect

Given the following information for the month of June calculate the surplus or deficit for the month:1. Net Wages received - $5,0002. Rent paid - $1,2003. Car valued at $4,3004. Food for the month - $3005. Gas for your car - $500

Surplus of $3,000

Given the following information for the month of December calculate the surplus or deficit for the month:1. Food for the month - $5002. Credit charges for the month of $1,000 - no payment made in December due to Christmas3. Net wages received - $5,5004. Christmas bonus received - $5005. Rent paid - $2,000

Surplus of $3,500

Which of the following is the correct formula to determine Financial Net Worth?

Assets minus Debts = Financial Net Worth

An Asset that "Appreciates" in value:

Increases in value over time

Which one of the following items is not considered an asset?

Monthly expenses

If your assets go up $60,000 in value and your Debt outstanding goes up $65,000 and your expenses do not change, "What is the effect on your financial net worth?

Financial net worth goes down

Which of the following is most true about managing your time?

Time management is a lot like money management

Learning to manage your time helps to satisfy which area E learning objective?

Recognize yourself as an individual undergoing a particular stage of human development ... and how you can facilitate your development within the university environment.

Managing your time necessarily means:

Knowing where your time goes

The steps for managing your time can also be applied to:

Any limited resource

Managing your time means making time for:

Your values and goals

Good time management necessarily means being as healthy as possible because:

If you are healthy each hour is more productive

Which one of the following is NOT involved in managing your time? Figuring out:

What an hour is worth to you

College is a good time to learn time management because:

You are still very flexible in learning new things

Which of the following is FALSE?

Most people can get more done by multitasking

If you are having trouble understanding a lesson (in any class) a good pointer is to take notes. Which one of the following is NOT one of the reasons why?

Most people cannot read very well

What is the relationship of Bond prices to interest rates?

b. Bond prices and interest rates move in opposite directions

Compound interest simply means:

Earning (or paying) interest on interest

Which two stock sectors are considered "defensive" and often in favor during difficult economic times?

Consumer (staples) and utility stock sectors.

According to the Financial Well-Being materials which one of the following is not a building block of basic investing?

Renting Assets

What is investment financial leverage?

Borrowing money to reduce out-of-pocket investment amount and possibly increasing investment yield.

What is the relationship between risk and reward in investing?

They go up and down together

Which one of the following is not someone who typically provides comprehensive personal financial planning services?

RIA - Registered Investment Advisor

According to the Financial Well-Being materials which one of the following statements is not a basic premise of investing and accumulating wealth:

Buy assets which depreciate in value

Which one of the following is not an advantage of investing in mutual funds?

Tax timing may not align to fund value

How long must you hold an investment for it to qualify for reduced taxes under Long-Term Capital Gain treatment?

12 months

'Amortization' means:

Paying off a debt over time in regular installments

What Legal Act expanded banks' ability to enter into higher risk financial businesses and transactions?

Gramm-Leach-Bliley Act (Modernization Act)

What is collateral?

The property that guarantees a loan.

When is compounding your enemy?

When you are borrowing money

Credit card interest is typically compounded:

Was monthly - now most do it daily

The FDIC insures a single account per person and per bank up to:

$250,000

What Legal Act restricted banks from entering high risk financial businesses and transactions?

Glass-Steagall Act

Which one of the following home mortgages is the most dangerous?

Negative amortization mortgage

A fixed rate fully amortized home mortgage includes all of the following characteristics except:

The monthly payment may change due to outstanding principal balance.

Which one of the following may possibly be "good debt?

A student loan used to obtain a college degree.

Who typically issues a form 1099?

All of the above

Which of the following is not one of the (3) building blocks of personal income taxes per the Personal Financial Well Being lectures?

Internal Revenue Audits

What is the holding period for an investment to qualify for long-term capital gains tax treatment?

12 months

Which one of the following is the correct form to file your Federal income tax?

Form 1040

Which one of the following statements is true?

Tax avoidance is legal and tax evasion is not.

Which of the following is not one of the (3) ways to avoid paying higher taxes per the Personal Financial Well Being lectures?T

Ignore income earned on form 1099

Which one of the following behaviors is typically NOT addressed by our tax system?

Studying to receive a high grade point average

What is form W-2?

An employer annual wage form providing necessary information for you to file your income taxes

If you file a Federal Tax Extension form 4868 - when is your tax payment due?

Due April 15th

Which one of the following items is typically not a deduction or withholding from your payroll check?

Property tax