BUSN 115: MIDTERM EXAM 100%
ACCURATE
Even though a regular savings account is suitable when you are saving $500 for your
beginner emergency fund, why is a money market mutual fund a better place to keep
your completed emergency fund? - ANSWER All of the above
How much money should a couple who makes $54,000 a year have in their beginner
emergency fund if they have a $3,000 credit card bill and a mortgage? - ANSWER
$1,000
Saving is about - ANSWER Discipline and contentment
Which statement is true? - ANSWER When you pay with cash, you have a higher
chance of negotiating a better deal
Which of the following is true about the concept of saving? - ANSWER You must pay
yourself first
What is the most sensible way to buy a $4,000 car? - ANSWER Use the sinking-fund
approach and save $400 a month for ten months
Which is not a key to saving money? - ANSWER Your income being more than $75,000
annually
Which of the following is not true of a zero-based budget? - ANSWER If you have extra
money left at the end of the month, your budget was successful
What is the fee for an overdrawn account called? - ANSWER non-sufficient (insufficient)
funds
Bounced checks are a sign of ____ living - ANSWER crisis
How often should you balance your checking account? - ANSWER once a month
Which of the following is true about using credit? - ANSWER when using credit, one
spends more
Payday lending and cash advance companies are aggressively targeting which group of
people? - ANSWER military
If 80% of millionaires are first-generation rich, then one can conclude - ANSWER they
started with nothing, did smart stuff, and became millionaires
ACCURATE
Even though a regular savings account is suitable when you are saving $500 for your
beginner emergency fund, why is a money market mutual fund a better place to keep
your completed emergency fund? - ANSWER All of the above
How much money should a couple who makes $54,000 a year have in their beginner
emergency fund if they have a $3,000 credit card bill and a mortgage? - ANSWER
$1,000
Saving is about - ANSWER Discipline and contentment
Which statement is true? - ANSWER When you pay with cash, you have a higher
chance of negotiating a better deal
Which of the following is true about the concept of saving? - ANSWER You must pay
yourself first
What is the most sensible way to buy a $4,000 car? - ANSWER Use the sinking-fund
approach and save $400 a month for ten months
Which is not a key to saving money? - ANSWER Your income being more than $75,000
annually
Which of the following is not true of a zero-based budget? - ANSWER If you have extra
money left at the end of the month, your budget was successful
What is the fee for an overdrawn account called? - ANSWER non-sufficient (insufficient)
funds
Bounced checks are a sign of ____ living - ANSWER crisis
How often should you balance your checking account? - ANSWER once a month
Which of the following is true about using credit? - ANSWER when using credit, one
spends more
Payday lending and cash advance companies are aggressively targeting which group of
people? - ANSWER military
If 80% of millionaires are first-generation rich, then one can conclude - ANSWER they
started with nothing, did smart stuff, and became millionaires
