ORELA Business Education: Consumer Economics & Personal Finance Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What's the best explanation of disposable income?

Question 2 2. Are wages and salaries considered fixed or variable income?

Question 3 3. What's the name of a disclosure document required by the SEC to be provided to potential investors of publicly traded securities?

Question 4 4. What is a key difference between pension plans and 401(k) plans?

Question 5 5. What role does a price index play in cost of living?

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Question 6 6. What's the difference between a primary securities market and a secondary securities market?

Question 7 7. What are two criticisms often leveled against COLAs?

Question 8 8. What is the IRS publication number that should be reviewed prior to establishing and funding a Roth IRA?

Question 9 9. A debtor gets to keep some assets, even after declaring bankruptcy. These assets are known as which of the following?

Question 10 10. What does the 'IRA' stand for in a Roth IRA account?

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Question 11 11. According to data collected on U.S. median household income from 1990 to 2011, what can we say about the state of consumer income?

Question 12 12. Which of the following is the best explanation of cost of living?

Question 13 13. Which type of credit requires you to pay the total balance in 30, 60, or 90 days?

Question 14 14. What's the best explanation of the statistical term ''median?''

Question 15 15. Which expense is not likely to be included in a cost of living index?

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Question 16 16. What's a COLA?

Question 17 17. What type of pension plan guarantees that the employee will receive a particular amount of benefit once he or she retires, even if the employer's investments don't do well?

Question 18 18. Which one of the following government agencies collects data on consumer income?

Question 19 19. Which statement about capital gains is true?

Question 20 20. Joseph's family owns several assets, including three cars and two houses. Between Joseph and his wife, the family makes an income of approximately $300,000, which is more than the median income in their state. Their overall debt is almost $1 million, with more than half of that in unsecured debt like credit cards and medical bills. What type of bankruptcy is BEST for Joseph?

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Question 21 21. Justin makes $1000 per paycheck. He has a 401(k) plan and his employer has a 3% matching program. Justin decides he'd like to be more aggressive with his contributions, so he decides he's going to contribute 5% per paycheck. How much does this mean his employer will contribute per paycheck?

Question 22 22. Not all debts can be discharged through personal bankruptcy. Which of the following must still be paid, even after a successful bankruptcy?

Question 23 23. Mary is in a car accident, and her car is completely destroyed. Her policy limit for damage to the car is $35,000. Her deductible is $1,000. The value of the car is $28,000. The insurance company is required to pay which amount?

Question 24 24. Which statement is true about sales tax?

Question 25 25. Which of the following are examples of fixed expenses?

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Question 26 26. Which of the following is an example of installment credit?

Question 27 27. What's the best explanation of a bond?

Question 28 28. What is the 2014 contribution limit for eligible individuals under 50 to a Roth IRA?

Question 29 29. Alex wants to retire but is not vested. Why is this a bad idea?

Question 30 30. What is the amount of the penalty imposed by the IRS for non-qualified early withdrawal distributions?

ORELA Business Education: Consumer Economics & Personal Finance Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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