FCS 3500 - Financial Skills and
Planning Midterm/Final/Quiz Exam
2026 Exam question and answers
latest update 2026 RATED A+
The consumer price index measures: - CORRECT ANSWERS The change in prices in the U.S.
What is the name of the economic concept that describes the value of the second-best item or activity
that is given up when the best item or activity is chosen? - CORRECT ANSWERS Opportunity
cost
What is the name of the ratio that measures the number of months a household could meet its
expenses using only its monetary assets in the event of an emergency that caused all income to
immediately cease? - CORRECT ANSWERS Liquidity
Imagine a wealthy married couple. Their names are Casey and Remy. Casey works at the U of U and
Remy works for an advertising company in downtown Salt Lake City. They have $500,000 deposited in
the University branch of Wells Fargo bank in a joint account. Remy also has $500,000 deposited in the
downtown branch of Wells Fargo in an individual account. Wells Fargo is an FDIC-insured institution. In
the unlikely event that Wells Fargo became insolvent and couldn't pay its depositors, what level of
insurance protection would Casey and Remy, in total, receive? (Hint: Remember that the standard FDIC
insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.) -
CORRECT ANSWERS 750,000
In 2017 (the year used in your textbook), what were the LOWEST and HIGHEST marginal income tax
rates (or brackets) used by the U.S. government in collecting income taxes? These marginal tax brackets
have changed a lot through history and changed most recently with the passage of the Tax Cuts and Jobs
Act in December, 2017. - CORRECT ANSWERS 10% and 39.6%
Profits from the sale of an asset such as stocks, bonds, or real estate are taxable and are called: -
CORRECT ANSWERS Capital gains
,If you have $100 in your checking account but you charge $120 on your debit card, this act is called
a(an): - CORRECT ANSWERS Overdraft
Imagine that your debit card was lost or stolen on a Monday. You realize that your card is missing, but
before you can notify the card company, someone has already rung up charges of over $500. From
taking this class, you know how important it is to notify your debit card issuer about the lost card right
away. You do so on Tuesday of the same week. What is the maximum amount that you can owe for the
charges that were incurred on the card between Monday and Tuesday? - CORRECT ANSWERS
$50
Imagine a family with three people -- a husband, wife, and one young child. For their taxes, they are
filing jointly. The household's adjustable gross income was $50,000 in 2017. After accounting for their
personal exemptions and taking the standard deduction, their taxable income (to the nearest thousand)
would have been about: - CORRECT ANSWERS 25,000
When examining a budget, the numbers in it are: - CORRECT ANSWERS Realistic projection of
revenues and expenses`
The phrase "pay yourself first" means: - CORRECT ANSWERS The practice of making saving
the first monthly expenditure
What is the type ("chapter") of bankruptcy in which many of the debtor's assets may be sold to pay off
creditors but after that, almost all of a person's debts are wiped clean or "forgiven." (Student debt is one
of the exceptions.) - CORRECT ANSWERS 7
The person who is designated to receive the face value of a life insurance policy in the event of the
death of the insured person is called the: - CORRECT ANSWERS Beneficiary
The occurrence of which of the following events most commonly triggers life insurance purchases (or
increases in life insurance coverage): - CORRECT ANSWERS Birth of a child
, All of the following words or phrases are associated with cash value (sometimes called "permanent") life
insurance EXCEPT: - CORRECT ANSWERS Conditional
According to your textbook, which of the following is typically NOT a financial need that should typically
be considered at a person's death and therefore may justify the purchase of life insurance? - CORRECT
ANSWERS Offset decrease in standard tax deduction
Imagine a woman who purchased a cash-value life insurance policy at the age of 25 with a face value of
$100,000. She makes all of her payments for 55 years at which point the policy has a cash value of
$70,000. On the way to her exercise class, she has a heart attack. Which of the following statements is
correct about the amount her beneficiary will receive: - CORRECT ANSWERS $100,000
What is the correct name for a whole life insurance policy that requires premiums be paid only for a
specified period of time (say, until 65 years old) at which point the policy is paid up in full and the
insurance protection lasts for a person's remaining lifetime: - CORRECT ANSWERS Limited pay
Many households buy life insurance for the father but not the mother. This is a bad (and probably sexist)
idea EVEN IF the husband makes most or all of the household's income. The reason is: - CORRECT
ANSWERS Homemaker services have economic value
In describing "variable life insurance" policies, which of the following is the element that is most likely to
vary? - CORRECT ANSWERS Cash value
Assume that a person has a life insurance policy, and payment is due each year on July 1st. The person
has paid on time for ten years. This year, the insured person throws a big July 4th party and forgets to
pay the premium until July 24th. The policy will remain in effect because of something called the: -
CORRECT ANSWERS Grace period
Lots of people stop making payments on permanent/whole life/cash value insurance policies before the
anticipated end of the policy (usually the death of the insured). The policy holder still gets the cash value
Planning Midterm/Final/Quiz Exam
2026 Exam question and answers
latest update 2026 RATED A+
The consumer price index measures: - CORRECT ANSWERS The change in prices in the U.S.
What is the name of the economic concept that describes the value of the second-best item or activity
that is given up when the best item or activity is chosen? - CORRECT ANSWERS Opportunity
cost
What is the name of the ratio that measures the number of months a household could meet its
expenses using only its monetary assets in the event of an emergency that caused all income to
immediately cease? - CORRECT ANSWERS Liquidity
Imagine a wealthy married couple. Their names are Casey and Remy. Casey works at the U of U and
Remy works for an advertising company in downtown Salt Lake City. They have $500,000 deposited in
the University branch of Wells Fargo bank in a joint account. Remy also has $500,000 deposited in the
downtown branch of Wells Fargo in an individual account. Wells Fargo is an FDIC-insured institution. In
the unlikely event that Wells Fargo became insolvent and couldn't pay its depositors, what level of
insurance protection would Casey and Remy, in total, receive? (Hint: Remember that the standard FDIC
insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.) -
CORRECT ANSWERS 750,000
In 2017 (the year used in your textbook), what were the LOWEST and HIGHEST marginal income tax
rates (or brackets) used by the U.S. government in collecting income taxes? These marginal tax brackets
have changed a lot through history and changed most recently with the passage of the Tax Cuts and Jobs
Act in December, 2017. - CORRECT ANSWERS 10% and 39.6%
Profits from the sale of an asset such as stocks, bonds, or real estate are taxable and are called: -
CORRECT ANSWERS Capital gains
,If you have $100 in your checking account but you charge $120 on your debit card, this act is called
a(an): - CORRECT ANSWERS Overdraft
Imagine that your debit card was lost or stolen on a Monday. You realize that your card is missing, but
before you can notify the card company, someone has already rung up charges of over $500. From
taking this class, you know how important it is to notify your debit card issuer about the lost card right
away. You do so on Tuesday of the same week. What is the maximum amount that you can owe for the
charges that were incurred on the card between Monday and Tuesday? - CORRECT ANSWERS
$50
Imagine a family with three people -- a husband, wife, and one young child. For their taxes, they are
filing jointly. The household's adjustable gross income was $50,000 in 2017. After accounting for their
personal exemptions and taking the standard deduction, their taxable income (to the nearest thousand)
would have been about: - CORRECT ANSWERS 25,000
When examining a budget, the numbers in it are: - CORRECT ANSWERS Realistic projection of
revenues and expenses`
The phrase "pay yourself first" means: - CORRECT ANSWERS The practice of making saving
the first monthly expenditure
What is the type ("chapter") of bankruptcy in which many of the debtor's assets may be sold to pay off
creditors but after that, almost all of a person's debts are wiped clean or "forgiven." (Student debt is one
of the exceptions.) - CORRECT ANSWERS 7
The person who is designated to receive the face value of a life insurance policy in the event of the
death of the insured person is called the: - CORRECT ANSWERS Beneficiary
The occurrence of which of the following events most commonly triggers life insurance purchases (or
increases in life insurance coverage): - CORRECT ANSWERS Birth of a child
, All of the following words or phrases are associated with cash value (sometimes called "permanent") life
insurance EXCEPT: - CORRECT ANSWERS Conditional
According to your textbook, which of the following is typically NOT a financial need that should typically
be considered at a person's death and therefore may justify the purchase of life insurance? - CORRECT
ANSWERS Offset decrease in standard tax deduction
Imagine a woman who purchased a cash-value life insurance policy at the age of 25 with a face value of
$100,000. She makes all of her payments for 55 years at which point the policy has a cash value of
$70,000. On the way to her exercise class, she has a heart attack. Which of the following statements is
correct about the amount her beneficiary will receive: - CORRECT ANSWERS $100,000
What is the correct name for a whole life insurance policy that requires premiums be paid only for a
specified period of time (say, until 65 years old) at which point the policy is paid up in full and the
insurance protection lasts for a person's remaining lifetime: - CORRECT ANSWERS Limited pay
Many households buy life insurance for the father but not the mother. This is a bad (and probably sexist)
idea EVEN IF the husband makes most or all of the household's income. The reason is: - CORRECT
ANSWERS Homemaker services have economic value
In describing "variable life insurance" policies, which of the following is the element that is most likely to
vary? - CORRECT ANSWERS Cash value
Assume that a person has a life insurance policy, and payment is due each year on July 1st. The person
has paid on time for ten years. This year, the insured person throws a big July 4th party and forgets to
pay the premium until July 24th. The policy will remain in effect because of something called the: -
CORRECT ANSWERS Grace period
Lots of people stop making payments on permanent/whole life/cash value insurance policies before the
anticipated end of the policy (usually the death of the insured). The policy holder still gets the cash value
