PFIN FINAL EXAM WITH 100%
CORRECT ANSWERS
Which of the following are important safeguards when using on-line banking? - Answer-
Guarantees to protect you against losses, FDIC insurance, 128-bit encryption
The more frequently a bank compounds interest, ____ will be. - Answer-the higher the
APY
The most important rule for establishing a savings plan is to - Answer-pay yourself first
Joe is a very busy person who likes to handle all of his financial services with one
account if possible. Which of the following accounts would best suit his need? - Answer-
asset management account
Alice lost her ATM card at the lake and reported it missing the next day. She found that
$800 had been withdrawn from her savings account. The most Alice will be legally liable
for is - Answer-$50
________ is a fixed auto ownership cost - Answer-installment loan payment
Advantages to buying a car used rather than new are - Answer-will depreciate less
quickly, more choices, less expensive
The highest average cost housing to purchase would be a - Answer-single-family
detached home
______ could be deducted from your federal income tax - Answer-Homeowner's
insurance and real estate taxes
It is not a good idea to use credit to - Answer-live beyond one's means
_______ is the benefit of borrowing - Answer-ability to buy high price items, providing
payments that fit into a budget, having a permanent record of transactions
As well as being the cheapest form of credit these offer shelters from taxes - Answer-
Home equity loans
CORRECT ANSWERS
Which of the following are important safeguards when using on-line banking? - Answer-
Guarantees to protect you against losses, FDIC insurance, 128-bit encryption
The more frequently a bank compounds interest, ____ will be. - Answer-the higher the
APY
The most important rule for establishing a savings plan is to - Answer-pay yourself first
Joe is a very busy person who likes to handle all of his financial services with one
account if possible. Which of the following accounts would best suit his need? - Answer-
asset management account
Alice lost her ATM card at the lake and reported it missing the next day. She found that
$800 had been withdrawn from her savings account. The most Alice will be legally liable
for is - Answer-$50
________ is a fixed auto ownership cost - Answer-installment loan payment
Advantages to buying a car used rather than new are - Answer-will depreciate less
quickly, more choices, less expensive
The highest average cost housing to purchase would be a - Answer-single-family
detached home
______ could be deducted from your federal income tax - Answer-Homeowner's
insurance and real estate taxes
It is not a good idea to use credit to - Answer-live beyond one's means
_______ is the benefit of borrowing - Answer-ability to buy high price items, providing
payments that fit into a budget, having a permanent record of transactions
As well as being the cheapest form of credit these offer shelters from taxes - Answer-
Home equity loans
