Personal Finance Final

Megan's mother suggested that she was experiencing the consequences of her trade off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment?

Megan had shopped at several stores when she found the prom dress of her dreams and she purchased it. She used the money she had saved for the dress PLUS most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job.

Megan had shopped at several stores when she found the prom dress of her dreams. She checked online and found a coupon that enabled her to save 30% when she returned to the store to purchase the dress.

Megan had shopped in several stores and found six prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was the least expensive of the 3 she liked best.

Megan had shopped in the store her mother recommended for her prom dress. She found two dresses she liked a lot. Megan purchases the one that was the most comfortable even though it cost $28 more than the other one.

Amber's academic adviser has asked her to set 3 academic goals for this semester. These goals are MOST LIKELY to be accomplished if:

Amber discusses her goals with her parents.

Amber lets her friends set her goals.

Amber writes her goals down.

Amber thinks about her goals weekly.

Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in her Personal Finance class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students' comments were based on face while others were based on myths. Which aspect of security at a depository institution is NOT TRUE?

Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit.

All money stored at a depository institution is kept safe at all times by numerous security measures.

Information about depositors and their accounts are kept in secure data storage.

Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has more than $100,000.

Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered they have a net gain. What does this mean and what should they do?

Amanda and Marcus are spending more money than they are earning. They need a way to balance their income and expenses by spending less on non-contractual expenses.

Amanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses.

Amanda and Marcus are spending more money than they are earning. One of them should consider getting a second job for a time to help boost their income.

Amanda and Marcus are earning more money than they are spending. They should increase spending for non-contractual items to bring their income into balance with the expenses.

Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit in that category?

Cell phone bill, gasoline, and car payment

Internet bill, entertainment, and clothing

Motorcycle payment, food, and cell phone bill

Gasoline, food, and entertainment

Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step?

Decide what income and spending categories would reflect his values, needs, and wants.

Decide how much money he can spend for each of the bills he pays each month.

Track his current income and expenses. If he has already created an Income and Expense Statement, then he has completed this step.

Develop a control system that will work with his life style.

Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer won’t be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement below is most likely to be true?

Hunter does not need to pay taxes.

It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so.

Hunter will need to pay his federal and state taxes on his own since his employer is not paying these required taxes for him

Hunter's employer is doing his a favor by offering to pay him in cash. Hunter will potentially earn more by this method of payment.

Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her pay stub and sees several deductions. Which of the following would be TRUE?

Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions.

Federal Income Tax, State Income Tax, Workers Compensations, and Life Insurance are all required deductions.

Social Security, Medicare, Life Insurance, and Health Insurance are all required deductions.

Social Security, Medicare, Federal Income Tax, and Workers Compensation are all required deductions.

Personal Finance Final

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