Wow your plan 2. What is the significance of the financial life cycle? u. To help you to compare your situation with other people's situation D. To better understand how your financial needs will most likely change c. To allow you to be more proactive in You To be more proactive in dealing with exnected changes in the future and take steps today to prepare for them. d. To help you realiz To help you realize that your original plan is sufficient and doesn't need to change. e. Both B and Care significant aspects of the financial life cycle. 3. What aspect of financial planning mig of Tinancial planning might you discuss with a friend who buys fancy coffee drinks twice a day. at least once a week for recreational shopping, and prefers impulse buying to carefully research purchasing? a. Just do it b. Nothing happens without a plan c. Mind games, financial personality, and your money d. Waste not, want not-smart spending matters 16. When using an ATM, keep in mind that a. computer errors can occur. b. it is never safe to deposit cash in an ATM. C. you should report electronic transaction mistakes to the bank immediately. d. human problems in handling the transactions can occur e. All of the above are correct which is also considered the true 17. The main factor that determines the cost of a line of credit is the Simple interest rate paid over the life of the loan. a. annual merchant rate (AMR) b. teaser rate c. annual percentage rate (APR) d. penalty rate 18. Which of the following is an advantage of credit cards? a. They make it easy to lose control of spending b. In general, they are an expensive way to borrow money c. They allow the consumer the ability to rent cars and make online reservations d. Using them means you will have less spendable money in the future d o you Social Security is a voluntary insurance program administered by the federal government that and your family in the event of death, disability, health problems or retirement TRUE or FALSE 38. When you automate your savings you are less likely to spend these dollars because they never bee the funde in your checking account TRUE or FALSE 39, with online banking, you can access your accounts and conduct business transactions through the eternal your mobile phone, and devices TRUE or FALSE 40. T-bills are extremely safe investments, having been issued by the federal government TRUE or FALSE 41. A debit card is something of a cross between a credit card and a checking account TRUE or FALSE cash advance is that the APR on the cash advance 42. One of the unpleasant secrets of using your credit card for is typically lower than the APR for normal purchases. TRUE or FALSE 43. Your credit card company is required to send you a notice 45 days before they can increase your interest rate change certain fees (such as annual fees, cash-advance fees, and late fees), or make other significant changes to the terms of your card. TRUE or FALSE 44. It is against the law for your potential employer to use your credit score for employment considerations TRUE or FALSE 45. People with high credit card balances still need to invest money on a regular basis. TRUE or FALSE 46. Lenders tend to like to see borrowers put down large down payments for loans because this is seen as increasing the borrower's desire to pay off the loan since the borrower now has equity in the collateral. TRUE or FALSE 47. The interest that you pay on your student loans will lower your taxable income if you meet IRS guidelines. TRUE or FALSE 48. Carrying credit cards can increase impulse purchasing. TRUE or FALSE 49. A 48-month lease on a car with a 36-month manufacturer's warranty is a gamble. TRUE or FALSE
