6/22/25, 5:22 AM Praxis 5101
PRAXIS 5101 (ECONOMICS\FINANCE) ACTUAL EXAM 2025
\UPDATED QUESTIONS AND CORRECT DETAILED
ANSWERS|COMPLETE EXAM 2025 \VERIFIED ANSWERS
\ALREADY GRADED A+
- Taxes
- Fee's
Factors Affecting a Purchase's - Other purchases to use the product. (Drivers license with a car.)
Total Cost - Life of product
- Maintenance of product
- When the economy is doing well, businesses will also
be doing well and may be more likely to be expanding
Factors Influencing and hiring new people. When the economy is doing
Employment Opportuities poorly, a person may have more difficulty finding a
job.
- Job supply (some jobs will always have a supply, like nursing)
- Geographic Location
- Industry/ sector
- Education
Personal Factors Affecting - Skills
Employment - Experience
- Housing Market
- Location
Factors Influencing Cost of
- Family Size
Living
- Inflation
- Level of Education
- Experience & Skills
Factors Influencing Personal
- State of Economy & Job Market
Income
- Location
show the chances that someone will pass away before
Actuarial tables
their birthday, used by life insurance companies when
developing plans and pricing.
1/29
,6/22/25, 5:27 AM Praxis 5101 Flashcards | Quizlet
-financial protection for dependents
-protection from creditors
Benefits of Life Insurance
-tax benefits
-savings
- who is counting on the income
Factors that Determine - how long dependents will rely on the income,
Whether to Carry Life - the needs of the dependents
Insurance - long-term savings (someone with life-savings will need less
insurance)
- Individual Policies: Usually ineligible to receive
government plan; high premiums and limited
benefits.2
Types of Health Insurance - Group Policies: Provides coverage for employees under
a single contract. This type of coverage is
characterized by greater benefits, and low
premiums.
- Government Plans: Available to large groups of people who
meet specific
eligibility criteria. TRICARE, Medicare, Medicaid, and
Worker's Compensation are examples.
- Financial assets that can be traded. These investments
include many different types, including stocks and
Securities bonds, and are not tangible items; two types of debt
securities are bonds and banknotes.
- Securities are advantageous because they can provide
a great deal of ROI, the risk is the disadvantage -
greater the risk, greater the reward
The investor is the lender.
- Bonds (entity promises to pay back the amount of
Debt Securities
money load in the future + interest. LOW RISK!!)
- Bank Notes (think bearer bond)
Shares of ownership in a company; advantageous to
Stocks the investor as there are no limits to what they can
make - as the company does well, the investor does
well. Diversification lessens the risk of losing
everything.
2/29
, 6/22/25, 5:27 AM Praxis 5101 Flashcards | Quizlet
Businesses that take money from a variety of investors
and put it in a portfolio of bonds, socks, securities, and
Mutual Funds assets, to be professionally managed by a fund
manager. A person who buys into a mutual fund will
hold a portion of ownership of the portfolio and reap
the rewards when the portfolio gains value;
diversifies investment.
- Character (How well they live up to load requirements)
The 5 Cs of Credit are the five
things a - Capital (Borrower's Assets)
lender looks at when - Collateral (Assets that can be claimed to secure the loan)
- Capacity (can the borrower will repay the loan in a timely
trying to determine how
manner.)
well a borrower will be able
- Condition (outside economic factors that might affect loan)
to repay a loan. What are
they?
Allowed investment companies, banks, and
Financial Services
insurance companies to sell similar products in
Modernization Act (also
competition with one another. In other words, banks
known as the Gramm-
could now sell insurance, stocks, and bonds.
Leach-Bliley Act) 1999
Conversely, insurance companies and investment
companies were now allowed to offer banking
services.
The flow of financial capital from one bank to another.
Federal Funds Market
Allows banks that fall short of the reserve requirement
to borrow funds from banks with excess reserves
The amount of money the Fed requires banks to keep
Define the Reserve
Requirement Ratio on hand to meet their liabilities. Its size helps
determine how much banks can lend.
The Federal Reserve's Control the amount of money in the American Economy
primary responsibility
3/29
PRAXIS 5101 (ECONOMICS\FINANCE) ACTUAL EXAM 2025
\UPDATED QUESTIONS AND CORRECT DETAILED
ANSWERS|COMPLETE EXAM 2025 \VERIFIED ANSWERS
\ALREADY GRADED A+
- Taxes
- Fee's
Factors Affecting a Purchase's - Other purchases to use the product. (Drivers license with a car.)
Total Cost - Life of product
- Maintenance of product
- When the economy is doing well, businesses will also
be doing well and may be more likely to be expanding
Factors Influencing and hiring new people. When the economy is doing
Employment Opportuities poorly, a person may have more difficulty finding a
job.
- Job supply (some jobs will always have a supply, like nursing)
- Geographic Location
- Industry/ sector
- Education
Personal Factors Affecting - Skills
Employment - Experience
- Housing Market
- Location
Factors Influencing Cost of
- Family Size
Living
- Inflation
- Level of Education
- Experience & Skills
Factors Influencing Personal
- State of Economy & Job Market
Income
- Location
show the chances that someone will pass away before
Actuarial tables
their birthday, used by life insurance companies when
developing plans and pricing.
1/29
,6/22/25, 5:27 AM Praxis 5101 Flashcards | Quizlet
-financial protection for dependents
-protection from creditors
Benefits of Life Insurance
-tax benefits
-savings
- who is counting on the income
Factors that Determine - how long dependents will rely on the income,
Whether to Carry Life - the needs of the dependents
Insurance - long-term savings (someone with life-savings will need less
insurance)
- Individual Policies: Usually ineligible to receive
government plan; high premiums and limited
benefits.2
Types of Health Insurance - Group Policies: Provides coverage for employees under
a single contract. This type of coverage is
characterized by greater benefits, and low
premiums.
- Government Plans: Available to large groups of people who
meet specific
eligibility criteria. TRICARE, Medicare, Medicaid, and
Worker's Compensation are examples.
- Financial assets that can be traded. These investments
include many different types, including stocks and
Securities bonds, and are not tangible items; two types of debt
securities are bonds and banknotes.
- Securities are advantageous because they can provide
a great deal of ROI, the risk is the disadvantage -
greater the risk, greater the reward
The investor is the lender.
- Bonds (entity promises to pay back the amount of
Debt Securities
money load in the future + interest. LOW RISK!!)
- Bank Notes (think bearer bond)
Shares of ownership in a company; advantageous to
Stocks the investor as there are no limits to what they can
make - as the company does well, the investor does
well. Diversification lessens the risk of losing
everything.
2/29
, 6/22/25, 5:27 AM Praxis 5101 Flashcards | Quizlet
Businesses that take money from a variety of investors
and put it in a portfolio of bonds, socks, securities, and
Mutual Funds assets, to be professionally managed by a fund
manager. A person who buys into a mutual fund will
hold a portion of ownership of the portfolio and reap
the rewards when the portfolio gains value;
diversifies investment.
- Character (How well they live up to load requirements)
The 5 Cs of Credit are the five
things a - Capital (Borrower's Assets)
lender looks at when - Collateral (Assets that can be claimed to secure the loan)
- Capacity (can the borrower will repay the loan in a timely
trying to determine how
manner.)
well a borrower will be able
- Condition (outside economic factors that might affect loan)
to repay a loan. What are
they?
Allowed investment companies, banks, and
Financial Services
insurance companies to sell similar products in
Modernization Act (also
competition with one another. In other words, banks
known as the Gramm-
could now sell insurance, stocks, and bonds.
Leach-Bliley Act) 1999
Conversely, insurance companies and investment
companies were now allowed to offer banking
services.
The flow of financial capital from one bank to another.
Federal Funds Market
Allows banks that fall short of the reserve requirement
to borrow funds from banks with excess reserves
The amount of money the Fed requires banks to keep
Define the Reserve
Requirement Ratio on hand to meet their liabilities. Its size helps
determine how much banks can lend.
The Federal Reserve's Control the amount of money in the American Economy
primary responsibility
3/29
