Primavera Economics Unit 1 Exam 2023/2024 with Complete and Certified Solutions

Primavera Economics Unit 1 Exam 2023/2024 with Complete and Certified Solutions Read the scenario. Ronnie is 21 and has three credit cards, each of which has a balance. His debt-to-credit ratio is 80 percent, and he has applied for his first car loan. Why will his interest rate be higher than what is typical? His interest rate will be higher due to having several credit cards and a high debit-to-credit ratio. Why is most insider trading against the law? It helps insiders benefit from information that no one else can access. Read the scenario. Miguel knows he wants to join the military. What should Miguel do before enlisting to help with employment after his service? (Select all that apply.) He should speak with the recruiter about the specific opportunities and jobs that he will be able to pursue., He should investigate training opportunities available while in the service and tuition assistance available afterwards. Read the scenario. Joanne just changed jobs and has the option of receiving a paper check or using direct deposit. She has an account with a credit union 10 miles from her home and is a very busy person with little free time. Which is the most appropriate for Joanne? She should have her pay direct deposited so that she does not have to drive to the credit union every week. Read the scenario. June has $8,000 in an online savings account at six percent interest. She needs to reach $10,000 to pay off her credit cards. How long does June have to save to reach her goal? Five years. Read the sentence. You own a greeting card startup business with a limited advertising budget. Which form of advertising offers the greatest benefit at the lowest cost? Online, because it reaches the widest consumer base and is cost-effective. Read the sentence. Julian has an ATM card with his local bank and travels out of state. Which features can he use out of state? (Select all that apply.) Partial (0.67) Check his balance, Withdraw some cash. Read the scenario. Jorge lives in a country that uses a progressive tax system in which his taxable income is taxed at a specific percentage. In 2016, Jorge made $90,000 and was taxed at 25 percent. He is due for a $5,000 raise in 2017. At that time, his tax bracket will change to 30 percent. Which is true regarding Jorge's financial situation after his raise? After the raise, Jorge will take home $1,000 less per year. Which items can a person use to ensure the return of funds to a payday loan company? (Select all that apply.) Personal check, ACH authorization. Read the scenario. Larry needs a new computer because his old one just crashed. The computer he chooses costs $1,200. He has enough in his checking account to cover the cost. He also has a credit card with a $2,000 limit and $1,200 available on it. How should Larry purchase his new computer? He should use his debit card so that he does not risk paying extra money in interest over time. Where would an allowance be reflected on a budget sheet? Wrong - fixed expenses. Which correctly explains fixed expenses? Barbra paid the rent on the first day of the month to keep her apartment. Read the scenario. Sally wants a new exercise machine but does not want to pay for it right away. She has a private label card with a sporting goods store offering zero percent interest for six months and then 29 percent interest. She also has a general-purpose card offering 16 percent interest after 30 days. She will receive a bonus from work in three months that will cover the cost of the machine she wants. What is her best choice to pay the least amount of interest? The private label card. Read the sentence. Taxes are mandatory financial contributions to the government. What purpose to taxes serve in the United States? To pay for government expenses, To redistribute wealth, To decrease undesirable behavior. Read the scenario. Rob is balancing his checkbook. His beginning checking account balance was $1. He deposited a check for $77 from his part-time job and $37 in cash that he received in tips into the account. Using his debit card, he purchased $25 worth of gas. On a night out with friends, Rob used his debit card to spend $8 on a movie ticket and $12 on snacks. Rob's mother told him that he needs to put money into a savings account. So Ron withdrew the tip money from his checking account and put it into a new savings account. What is Rob's checking account balance? $33. Read the chart and the scenario. (Chart.) Last month, Diana traveled to another state for work. She used a non-bank ATM a total of eight times. How much in non-bank ATM fees will be charged to her account? $16. Which is the term for borrowing money to make purchases right away and then paying the money back later? Credit. What is one benefit of term life insurance over whole life insurance? Term life premiums are generally less expensive than whole life premiums. What is the main job of the Securities and Exchange Commission (SEC)? Protect investors. Why is the marketing mix important to advisers? (Select all that apply.) It helps advisers to spread the word about a product being available, It helps define a particular product and identify what makes it different. What are possible consequences for not monitoring your budget? (Select all that apply.) Your ability to save and invest for the future may be negatively affected, You may run low on available money to spend. Which factors impact returns on investments? (Select all that apply.) Length of time of the investment, Level of risk involved with the investment. Read the scenario. Marc just turned 16 and is looking to purchase a vehicle. The bank will grant him a loan under the condition that he opens a checking account and has the monthly payment debited directly from his account. Why would the bank grant Marc the loan under these specific conditions? The bank is trying to lessen the possibility of default on the loan. Read the scenario. Bill recently graduated from high school. He has decided to enter military service. Which statements best describe potential outcomes of joining the military? (Select all that apply.) Bill may have access to job training while he is earning a salary in the military, Bill may receive tuition assistance for school after serving for a certain number of years. Read the scenario. Alexa is balancing her checkbook before she leaves for college. She began with an account balance of $83. She deposited the $1200 that she earned from her summer job. She used her debit card to purchase a plane ticket back to college for $896. Going online, she was able to purchase all of her textbooks for $272. Then she put $115 into her meal account. What is the current balance in Alexa's checking account? $0. Which section on your credit report could cause the most damage to your credit score? Collection items. When actively applying for a loan, what should you avoid doing with your credit? Wrong - Using your credit cards to complete a shopping spree at the local mall. How is health insurance different from auto insurance? Wrong - People are required to have a minimum amount of auto insurance, which includes a deductible; people are required to have health insurance, but it does not include a deductible. Read the scenario. Company A uses social media to advertise, while company B places its product in the store. Which is an example of a push marketing strategy? Wrong - Company A. What is a major difference between banks and credit unions? Banks seek to make a profit for shareholders; credit unions are nonprofit.