Fp/101 Midterm Essay

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For the overall U.S. market, how is inflation measured? A. change in Producer Price Index B. change in Wholesale Price Index C. change in GDP D. change in Consumer Price Index 2) Which of the following is an advantage of using a debit card? A. They are not accepted at all retail stores. B. They free customers from carrying cash or checkbooks. C. They help control overspending. D. They cause an immediate electronic withdrawal from a bank account. 3) Which of the following is not a situation to re-evaluate and, possibly, revise your financial plan? A. When you graduate from college B. When you have a new baby C. When you get a new job that pays significantly more money than your current job D. When general economic conditions are stable. 4) Which of the following would be considered a savings alternative? A. checking account B. a NOW account C. certificate of deposit D. a debit card 5) Which of the following formulas is used to calculate personal net worth? A. Total Assets + Total Debts B. Total Assets - Total Debts C. Total Debts - Total Assets D. Liabilities - Unpaid Bills 6) According to the text, how long should you keep utility bills? A. only until the next bill arrives. B. six months. C. one year. D. three years. 7) Which of the following would not be used to create a personal balance sheet? A. Pencil, paper, and calculator B. Personal financial management software C. Spreadsheet software D. Slide presentation software 8) How might you use a personal balance sheet? A. To show income and expenditures over a period of one year B. To create the personal cash flow statement C. To show income and expenditures over a period of time D. To calculate your net worth 9) Which of the following is not normally considered an area of personal finance? A. budgeting B.

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