Question 1

___________ are service organizations typically controlled by members of a family or by a small group of individuals and receive much of its financial support from fewer sources.

Accepted Answer

Private Foundations

Answer

Non-Profit Organizations

Answer

Public charities

Answer

Crowdfunding websites

Question 2

Altruism is ___________.

Accepted Answer

Contagious and promotes social connection

Answer

Pointless because no one notices

Answer

Not a good way to strengthen positive feelings about yourself

Answer

Not a good way to strengthen communities

Question 3

Polls show that charitable donations are _______.

Accepted Answer

At the lowest level on record

Answer

Are higher than usual

Answer

On average levels

Answer

There is not sufficient data to collect such polls

Question 4

How can someone make money from investing in a stock?

Accepted Answer

They receive dividends from the company they bought the stock of and/or they sell the stock at a higher price than what they bought it for.

Answer

They sell the stock for the same price they bought it for.

Answer

The stock loses value but the overall market experiences a positive return.

Answer

They sell the stock for a lower price than what they bought it for.

Question 5

Carl is a young adult and always has money left over in his account at the end of the month and has saved something. He doesn't really know how much he spends or exactly how much he makes, but he doesn't really think too much about it since he sees his savings account grow. What is true about Carl in terms of a financial plan?

Accepted Answer

determining his expenditures and developing a more specific savings plan (with targeted goals for the money left over). This plan should take into account his needs for the future

Answer

Carl has a great financial plan because he is saving each month. That's all that matters.

Answer

Carl should be speculating. Since he is young, he must be taking some riskier moves with his money to have a good financial plan

Answer

investing some money or saving for retirement with some of the money left over. As long as he is putting some money away for the future, he will be fine.

Question 6

How is a bond different from a stock?

Accepted Answer

A bond is a loan you give to an organization while a stock is partial ownership in the company.

Answer

Bonds are typically riskier than stocks but have the potential to earn higher returns.

Answer

A bond is usually issued by smaller, startup companies while stocks are with well-established organizations.

Answer

Bonds are best for earning high returns while stocks are best for providing a stable source of income.

Question 7

All of the following are examples of donations EXCEPT:

Accepted Answer

Community service

Answer

Crowdfunding

Answer

Goods

Answer

Financial contributions

Question 8

The amount of money you have left over after you list your assets and subtract your debt is called ______.

Accepted Answer

Wealth

Answer

Budgets

Answer

Financial Plan

Answer

Cost of living

Question 9

The biggest difference between altruism and philanthropy is ________.

Accepted Answer

Philanthropy has the goal of increasing the well-being of the world and/or mankind.

Answer

Philanthropists focus on donating money, and if you are being altruistic you are donating your time or performing a service for someone.

Answer

Altruism involves supporting an organization and philanthropy involves everyday kind acts.

Answer

Altruism has the goal of increasing the well-being of the world and/or mankind.

Question 10

Which of the following is NOT a reason for altruism?

Accepted Answer

Gives us a good reputation

Answer

Moral reasons

Answer

Makes us happy

Answer

Good for health

Question 11

If Zach wants to find someone to professionally manage his investments with a mix of stocks and bonds, what should he do research on?

Accepted Answer

Mutual Funds

Answer

Day-trading

Answer

Certificates of Deposits

Answer

Money Market Accounts

Question 12

Fraudulent charities frequently collect donations in the following ways:

Accepted Answer

email, phone, door-to-door

Answer

email, phone, commercials

Answer

fundraiser events, email, phone

Answer

commercials, phone, door-to-door

Question 13

Judi has some disposable income that she would like to see if she can get a high return for in a short amount of time. She is a risk taker and is willing to gamble her money knowing there is a high potential for loss, as well as gain. What would you suggest for Judi?

Accepted Answer

Speculating

Answer

Paying off debt

Answer

Saving

Answer

Investing

Question 14

Sam's employer matches a portion of his contributions to a 401k. This is essential for Sam to consider when planning how to allocate his cash flow because ______.

Accepted Answer

It's essentially getting free money. The more he puts away in his 401k account, the more free money he gets.

Answer

It means his company is going to provide dividends each year from the growth that occurs in those accounts.

Answer

It really doesn't impact him at all. This is a standard practice for all companies that he doesn't need to take advantage of.

Answer

He doesn't have to save as much knowing he can collect money from his company at retirement age.

Question 15

Why do people recommend diverse portfolios?

Accepted Answer

Diversifying your portfolio helps reduce risk.

Answer

Investing in a diversified portfolio guarantees that you won’t lose money with your investments.

Answer

If you tell your fund manager to use diversification, they’ll charge you lower fees.

Answer

If you diversify your portfolio, you are guaranteed to make a high return.

Question 16

Shawna has added up all her current expenditures and revenues and developed a plan for what she wants to do with all of her cash flow. She has included in this plan some money to put away for her 401k based on what she will need in the future. What is missing from Shawna's actions to make sure this is a sound financial plan?

Accepted Answer

Shawna needs to make sure she revisits this plan on an ongoing basis.

Answer

Shawna needs to invest. You can't have a sound financial plan without investing.

Answer

Shawna should begin speculating on the market to potentially grow her extra income quickly

Answer

Shawna needs to consult with a financial advisor to make sure she has not missed any details.

Question 17

Doing all of these things will increase the likelihood that the charity you are donating to is not a scam EXCEPT:

Accepted Answer

Donating with a gift card

Answer

Donating with a credit card or check

Answer

Checking out the organization's website and literature

Answer

Reviewing the wording of the organization's name

Question 18

What is one question an investor should ask before investing in a Roth IRA or a Traditional IRA?

Accepted Answer

Do I want to pay taxes now (Roth IRA) or later (Traditional IRA)?

Answer

Do I want to make a guaranteed return of 6% or 8%?

Answer

What type of investments do I want to make?

Answer

Do I want to pay taxes now (Traditional IRA) or later (Roth IRA)?

Question 19

Maria is in the process of determining how much she wants to keep in her savings account for emergencies. If she is following the advice of most advisors, how should she calculate this?

Accepted Answer

She should be saving 3-6 months of essential living expenses.

Answer

She should save 3-6 months of what she typically spends on non-essential and essential expenses.

Answer

She should save 12 months of her salary.

Answer

She should save 12 months of her family's total income.

Question 20

One of the biggest events that surround fraudulent collection of donations are __________________.

Accepted Answer

natural disasters

Answer

conservation efforts

Answer

political campaigns

Answer

animal support

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