Question: Georgia is trying to save money for a vacation. She has not been on one in a while and wants to reward herself when she graduates from Ashford. Which of the following is NOT a component of an effective savings plan?
Answer Choices:
Put a loose change into a piggy bank.
Pack a lunch every day instead of eating out.
Go to McDonald’s for coffee every day instead of Starbucks.
Write herself a check every week and deposit it into a “vacation” account.
Answer: Go to McDonald’s for coffee every day instead of Starbucks.
Question: According to the text, it is always better to respond to urgent or time-sensitive e-mails within ______ hours.
Answer Choices:
12
24
36
48
Answer: 24
Question: A temporary law that Congress passes when an appropriations bill has not been decided by the beginning of the fiscal year is an:
Answer Choices:
A. emergency resolution.
B. budget resolution.
C. continuing resolution.
D. privilege budget.
E. temporary budget.
Answer: C. continuing resolution.
Question: Shirley is a single, 52-year-old woman, and she just got a new job with a yearly salary of $50,000. She has not had any kind of retirement plan, but she wants to open an IRA. Her employer does not offer a 401(k), so she is trying to decide between opening a traditional IRA or a Roth IRA. Which of the following is TRUE for both plans?
Answer Choices:
Shirley can add an extra $1,000 to her contribution as a catch-up, since she is over age 50.
Shirley can contribute even if she has a 401(k) at work.
Shirley’s contributions are made with after-tax income.
Shirley will not pay taxes on the money when she withdraws funds.
Answer: Shirley can add an extra $1,000 to her contribution as a catch-up, since she is over age 50.
Question: James has the option of borrowing $20,000 or $40,000 in student loans. If he only borrows $20,000, he knows he will have to work while in school to continue to support his lifestyle, but if he borrows $40,000, then he can go to school without having to work too. To make an effective and sound decision, he should do some comparisons between the two amounts by calculating which of the following?
Answer Choices:
The amount of payment he can afford each month assuming an interest rate of 5%.
The length of repayment, total interest paid over the life of the loan, and total repayments.
The amount borrowed divided by the number of payments by which to raise.
The length of repayment and interest paid per month.
Answer: The length of repayment, total interest paid over the life of the loan, and total repayments.
Question: Which of the following items is an example of an expenditure?
Answer Choices:
Monthly salary
Groceries
Inheritance from a relative
Interest from an investment
Answer: Groceries
Question: Approximately how much does nursing turnover cost?
Answer Choices:
A. $8,000 per lost nurse
B. $22,000 per lost nurse
C. Nothing per lost nurse, they are a dime a dozen.
D. $10,000 per lost nurse
E. $20,000 per lost nurse
Answer: A. $8,000 per lost nurse
Question: Simple and compound interest vary in the total amount of interest paid out. Borrowing $1000 with a 10% interest rate would result in which of the following scenarios in the second year of the loan?
Answer Choices:
Both simple and compound interest in the second year would result in the same payment of $100.
Simple interest in the second year would total $200.
Compound interest in the second year would total $225.
Simple interest in the second year would total $100 and compound interest would total $110.
Answer: Simple interest in the second year would total $100 and compound interest would total $110.
Question: Tonya just realized that someone has stolen her credit card information and is attempting to open several credit card accounts. The first thing Tonya should do is inform her credit card company that her card was stolen. The second thing Tonya should do is notify a credit bureau about the situation and ask it to create a fraud alert on her credit file. How long will the alert remain on her file?
Answer Choices:
90 days
45 days
60 days
120 days
Answer: 90 days
Question: Which of the following is the primary reason for the presence of many Old French loan words in the English vocabulary?
Answer Choices:
A) Old French had words for many things that English had no words for.
B) All languages borrow words from nearby languages.
C) The English were ruled for some time by the Normans, who spoke Old French.
D) The English had extensive trade contacts with France throughout most of history.
Answer: C) The English were ruled for some time by the Normans, who spoke Old French.
Question: While Trey is shopping at a local department store for new clothes, the cashier at the register strongly suggests that he complete an application for a store credit card and receive an instant 20% discount off his current purchase. Which of the following statements is one reason why Trey should decline the offer?
Answer Choices:
Store credit cards will not help him build a solid credit score.
Customers with store credit cards spend less money in the store.
Customers with store credit cards receive fewer 25% off coupons.
The interest on store credit cards is typically more than twice that of a national credit card.
Answer: The interest on store credit cards is typically more than twice that of a national credit card.
Question: Which of the following is an example of a ‘hard credit inquiry’ on a credit report?
Answer Choices:
Application for a credit card
Inspection of credit reports by a current creditor
Credit check by a potential unaffiliated lender
Credit checks by insurance companies to form quote prices
Answer: Credit check by a potential unaffiliated lender
Question: Max and Andi have just bought a car as a couple, spent their first Christmas vacation together visiting both sets of parents, and have been attending the same church. They are at which stage of a relationship?
Answer Choices:
Intensive
Integrating
Bonding
Circumscribing
Answer: Integrating
Question: Which of the following is NOT true of simple interest?
Answer Choices:
It is calculated using the original principal balance.
It does not include any interest that has accumulated on the loan.
It is used for automobile loans.
It costs more over time than compound interest.
Answer: It costs more over time than compound interest.
Question: Loans come in all shapes and sizes and some options cost the borrower significantly more than others. What is the key variable when considering taking a student loan?
Answer Choices:
The reputation of the lender
The profit made by the lender
The loan term and the way interest is calculated
The amount of the loan itself
Answer: The loan term and the way interest is calculated
Question: Public Library systems form partnerships with local universities to offer resources to the public. This program is often referred to as _________.
Answer Choices:
Interlibrary loan.
Intra-library loan.
Institutional loan.
Special borrowing privileges.
Answer: Interlibrary loan.