FIN 101 Final || 100% Verified Answers.
One can arrange auto loans through
a. Consumer finance companies
b. credit unions
c. auto dealers
d. banks
e. all of the above correct answers e. All of the above
WHich of the following household appliances could help you protect yourself against identity
theft ?
a. telephone answering machine
b. VCR
c. cell phone
d. home computer
e. shredder correct answers e. shredder
When rex lists his house on his balance sheet, he should record the
a. replacement value
b. insured value
c. fair market value
d. actual purchase price
e. sale price correct answers c. fair market value
Julie uses her credit card regularly, but she pays the total balance monthly. Julie should look for
a credit account with
a. no annual fee
b. low interest rates
c. long grace period
d. a&b
e. a&c correct answers e. a&c
When purchasing a vehicle, ____ should be settled first
a. cost of the vehicle
b. type of loan required
c. whether to take a rebate or low-interest loan offer
d. value of trade-in
e. c&d correct answers a. cost of the vehicle
You have $450 in your checking accoun when your ATM card and PIN are stolen. You could
lose up to ____ if you report the lost ATM card within 2 business days
a. $25
b. $450
c. $500
d. $0
e. $50 correct answers e. $50
,The following are methods used to obtain personal info for identity theft except:
a. corrupt employees
b. lost or stolen wallet/credit card
c. family, friends, acquaintances
d. stolen mail
e. all of the above methods are used correct answers e. all of the above methods are used
Your ___ is an example of a liquid asset.
a. home
b. charge account
c. car checking account
d. life insurance cash value
e. checking account correct answers e. checking account
____ is an ongoing cost of home ownership
a. closing costs
b. points
c. sales taxes
d. property taxes
e. the down payment correct answers d. property taxes
Candice purchased a vehicle six years ago for $25,000. She recently sold it for $5,000. Over the
years, she paid a total of $5,800 on auto insurance, $4,800 on gas and maintenance, and $2,500
in interest. What was her depreciation cost on this vehicle?
a. $5000
b. $10,800
c. $20,000
d. $25,000
e. $15,000 correct answers c. $20,000
Buddy Slaton has only one itemized deduction item, the $3,000 he gave to his church. His
standard deduction this year is $4,750 and he is in the 15% marginal tax bracket. How much will
his contribution to the church save buddy in taxes this year.
a. $0
b. $660
c. $4,400
d. $3,000
e. $450 correct answers a. $0
Which of the following are important safeguards when using on-line banking?
a. FDIC Insurance
b. firewall to protect data
c. 1128-bit encryption
d. guarantees to protect you against losses
e. all of the above correct answers e. all of the above
, ATM transactions require the use of a pin. T/F correct answers T
Molly invested $5,000 in an account she expects will earn 7% annually. Approximately how
many years will it take for the account to double in value?
a. 10
b. 9
c. 12
d. 11
e. 8 correct answers c. 12
Higher interest rates on certificates of deposit are associated with
a. higher account balances
b. shorter maturities
c. longer maturities
d. a&b
e. a&c correct answers e. a&c
A credit card users credit rating will be harmed if she pays only the minimum monthly payment
on a credit card T/F correct answers F
Social security taxes are paid on earned income but not on investment income. T/F correct
answers T
WHen buying a used car, it is very important to have it checked by a reputable mechanic. T/F
correct answers T
Balance sheets and income statements are most useful if prepared at least annually. T/F correct
answers T
Debit cards look just like credit cards but they work like checks T/F correct answers T
A loan-to-value ratio of 90% would require a buyer to make a 10% down payment. T/F correct
answers T
Kelly and Sam got married December 30. Since they were single for most of the year, they can
legally file as single taxpaters in the year of the wedding. T/F correct answers F
A lender will generally require mortgage insurance if the downpayment is less than 20% T/F
correct answers T
If your account balance at a bank is $115,000, you will have depositors insurance for only
$50,000 of this amount. T/F correct answers F
You should not talk with the car dealer about a trade in until after you have negotiated the final
price on the car you are purchasing T/F correct answers T
One can arrange auto loans through
a. Consumer finance companies
b. credit unions
c. auto dealers
d. banks
e. all of the above correct answers e. All of the above
WHich of the following household appliances could help you protect yourself against identity
theft ?
a. telephone answering machine
b. VCR
c. cell phone
d. home computer
e. shredder correct answers e. shredder
When rex lists his house on his balance sheet, he should record the
a. replacement value
b. insured value
c. fair market value
d. actual purchase price
e. sale price correct answers c. fair market value
Julie uses her credit card regularly, but she pays the total balance monthly. Julie should look for
a credit account with
a. no annual fee
b. low interest rates
c. long grace period
d. a&b
e. a&c correct answers e. a&c
When purchasing a vehicle, ____ should be settled first
a. cost of the vehicle
b. type of loan required
c. whether to take a rebate or low-interest loan offer
d. value of trade-in
e. c&d correct answers a. cost of the vehicle
You have $450 in your checking accoun when your ATM card and PIN are stolen. You could
lose up to ____ if you report the lost ATM card within 2 business days
a. $25
b. $450
c. $500
d. $0
e. $50 correct answers e. $50
,The following are methods used to obtain personal info for identity theft except:
a. corrupt employees
b. lost or stolen wallet/credit card
c. family, friends, acquaintances
d. stolen mail
e. all of the above methods are used correct answers e. all of the above methods are used
Your ___ is an example of a liquid asset.
a. home
b. charge account
c. car checking account
d. life insurance cash value
e. checking account correct answers e. checking account
____ is an ongoing cost of home ownership
a. closing costs
b. points
c. sales taxes
d. property taxes
e. the down payment correct answers d. property taxes
Candice purchased a vehicle six years ago for $25,000. She recently sold it for $5,000. Over the
years, she paid a total of $5,800 on auto insurance, $4,800 on gas and maintenance, and $2,500
in interest. What was her depreciation cost on this vehicle?
a. $5000
b. $10,800
c. $20,000
d. $25,000
e. $15,000 correct answers c. $20,000
Buddy Slaton has only one itemized deduction item, the $3,000 he gave to his church. His
standard deduction this year is $4,750 and he is in the 15% marginal tax bracket. How much will
his contribution to the church save buddy in taxes this year.
a. $0
b. $660
c. $4,400
d. $3,000
e. $450 correct answers a. $0
Which of the following are important safeguards when using on-line banking?
a. FDIC Insurance
b. firewall to protect data
c. 1128-bit encryption
d. guarantees to protect you against losses
e. all of the above correct answers e. all of the above
, ATM transactions require the use of a pin. T/F correct answers T
Molly invested $5,000 in an account she expects will earn 7% annually. Approximately how
many years will it take for the account to double in value?
a. 10
b. 9
c. 12
d. 11
e. 8 correct answers c. 12
Higher interest rates on certificates of deposit are associated with
a. higher account balances
b. shorter maturities
c. longer maturities
d. a&b
e. a&c correct answers e. a&c
A credit card users credit rating will be harmed if she pays only the minimum monthly payment
on a credit card T/F correct answers F
Social security taxes are paid on earned income but not on investment income. T/F correct
answers T
WHen buying a used car, it is very important to have it checked by a reputable mechanic. T/F
correct answers T
Balance sheets and income statements are most useful if prepared at least annually. T/F correct
answers T
Debit cards look just like credit cards but they work like checks T/F correct answers T
A loan-to-value ratio of 90% would require a buyer to make a 10% down payment. T/F correct
answers T
Kelly and Sam got married December 30. Since they were single for most of the year, they can
legally file as single taxpaters in the year of the wedding. T/F correct answers F
A lender will generally require mortgage insurance if the downpayment is less than 20% T/F
correct answers T
If your account balance at a bank is $115,000, you will have depositors insurance for only
$50,000 of this amount. T/F correct answers F
You should not talk with the car dealer about a trade in until after you have negotiated the final
price on the car you are purchasing T/F correct answers T
