1. If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
C. Social security (FICA)
D. Vesting plan
2. Car insurance that pays for your injuries when you're in an accident in your car is _______.
3. Jane Marko buys a car for $11,400.00. In three years, the car depreciates 48% in value. How much is the car worth in three years?
4. Which of the following devices imparts ownership in a corporation?
C. Savings account
D. U.S. Treasury Bill
5. Ray Cupple bought a basic car costing $10,150.00, with options costing $738.00. There is a 6% sales tax in his state and a combined $50.00 license and registration fee. What was Ray's total cost?
6. The Hamilton Brush Company issued 2,500 shares of common stock worth $100,000.00 total. What is the par value of each share?
7. Which of the following is intended primarily to enhance a person's tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
8. A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
A. You made a profit of $75.00.
B. You suffered a loss of $75.00.
C. You made a profit of $705.00.
D. You suffered a loss of $630.00.
9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.
10. Jane has a checkbook balance of $68.00. She then writes two checks, one for $5.00 and one for $62.50. She also deposits $75.00. She then uses her calculator to determine her new balance. Which of the following is the correct series of keys she should press?
A. 6 8 + 7 5 - 5 - 6 2 . 5 0
B. ON/C 6 8 - 5 - 6 2 . 5 0 + 7 5 =
C. 6 8 + 7 5 - 6 2 5 0 - 5 =
D. ON/C 6 8 + 7 5 = 5 = 6 2 . 5 0
11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
12. On which of the following types of policies is it a certainty that the insurance company will have to make payment? (We have assumed that the policy has been kept current, payments have been made, and the insurance company remains in business.)
A. Life insurance
B. Comprehensive car insurance
C. Medical insurance
D. Liability insurance
13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.
14. Your _______ should furnish enough money to live on, in an emergency, for six months.
15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.
16. All insurance is based on a principle called
A. premium earnings.
B. investment premiums.
C. division of risk.
D. cash value coverage.
17. In a health insurance policy, a statement that an applicant won't be covered for a certain pre-existing condition is called a/an
C. waiting period.
D. major medical coverage.
18. The coverage included in an automobile insurance policy that covers property damage is _______ insurance.
C. major medical
19. A master plan is devised for
C. short-term goals.
D. long-range goals.
20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
1. The Brady Bill is related to gun control, and the Wagner Act is related to
A. the right to privacy.
B. organized labor.
C. due process.
D. civil rights.
2. In the state of Minnesota, Jude Flaw appears in court as plaintiff. The defendant charges that Mr. Flaw failed to complete plumbing work he promised to do. He and his workmen also left a lot of water damage. This kind of case is most likely to be tried in
A. a civil court as a misdemeanor.
B. a civil court as breach of contract.
C. a criminal court as a misdemeanor.
D. a criminal court as breach of contract.
3. Suppose a bill arrives on the desk of the president of the United States. It originated in the Senate. He decides on a pocket veto. This will be possible for him only if
A. Congress is about to adjourn.
B. the House still has the bill in committee.
C. the Senate is in recess, but about to convene.
D. the House has not passed the Senate bill.
4. The Senate power of advice and consent does not apply to
A. executive orders.
B. federal judges.
D. the chief justice.
5. In a felony case, the purpose of a grand jury is to
A. decide if the offender should be tried by a jury.
B. judge on a civil indictment.
C. decide if the evidence warrants prosecution.
D. judge the merits of the case against the state constitution.
6. The system of checks and balances failed under XXXXX XXXXX when he
A. passed the Wagner Act.
B. failed to repeal the Patriot Act.
C. acted against a ruling of the Supreme Court.
D. declared war without a declaration of war from Congress.
7. If you visit the Senate chamber during a session on an average day, you're most likely to find the session presided over by
A. a speaker for the house.
B. a president pro tem.
C. the vice president of the United States.
D. the majority leader.
8. In states, cities, and townships, traffic courts are courts of limited
9. What was the purpose of Franklin Roosevelt's WPA?
A. To prepare America for victory in World War II
B. To improve the quality of health care in America
C. To improve America's relations with foreign powers during the Cold War
D. To help get America through the Great Depression
10. On a tour of several states, you discover a county governed under a state law that permits home rule. The county chooses its own form of government. You're probably in the state of
11. Today, people being arrested are read their rights. The right to remain silent is guaranteed under
A. the Fifth Amendment.
B. Roe v. Wade.
C. Marbury v. Arizona.
D. the First Amendment.
12. Suppose you have the job of assigning the proper number of House of Representatives seats for various states. To do that, you must know the _______ in that state.
B. number of counties
D. number of districts
13. Suppose you walk into the capitol building in Washington and ask to interview the most prominent person in the entire Congress. If you're lucky, you'll get an appointment with the
A. president pro tempore of the Senate.
B. Speaker of the House.
C. vice president of the United States.
D. chair of the House Appropriations Committee.
14. If you're a member of the U.S. Navy, your organization is part of the
A. Department of Defense.
B. Department of Transportation.
C. Department of the Interior.
D. Department of Commerce.
15. Why did Elbridge Gerry of Massachusetts redraw the congressional districts in his state?
A. To get a president elected
B. To give each major party fair representation
C. To get elected to the Senate
D. To give his party unfair political advantage
16. Suppose you're studying the forms of city government. To do that, you visit the old cities of Boston, Massachusetts; New Haven, Connecticut; and Providence, Rhode Island. What form of city government were you most likely to find in these cities?
A. Commission form
B. City manager form
C. Board of supervisors form
D. Mayor-council form
17. The House of Representatives has the special power to
A. vote to impeach a government official.
B. conduct a trial of impeachment if approved by the Senate.
C. impeach a government official who has been found guilty by the Senate.
D. impeach members of the Senate, but not the House.
18. If both the president and the vice president are unable to fulfill their duties, who takes over as president?
A. President pro tempore of the Senate
B. Speaker of the House
C. Secretary of state
D. Attorney general
19. One main difference between the United States Constitution and state constitutions is that state constitutions
A. don't have bills of rights.
B. can't be amended.
C. don't provide for a legislature.
D. are much longer.
20. Suppose Bill HR612 is currently in Congress. One thing you know about this bill is that it
A. originated in the House of Representatives.
B. has been vetoed by the president.
C. has no riders attached.
D. is currently in committee.
1. If you were a specialist working for the National Security Agency, your main job would likely be
A. electronic surveillance.
B. analyzing and breaking coded messages.
C. analyzing data from spy satellites.
D. working in the field to carry out covert operations.
2. The largest proportion of federal revenues comes from
A. social insurance taxes.
B. excise taxes.
D. personal income taxes.
3. Which one of the following individuals would be most likely to vote?
A. A 19-year-old high school graduate who likes to complain about the government
B. A 22-year-old computer programmer
C. A 30-year-old college graduate who has just moved to a new state
D. A 50-year-old corporate executive who holds a master's degree in business
4. Which one of the following statements is most accurate for law enforcement?
A. Law enforcement agencies are employed by the court system.
B. Ordinary police officers aren't required to understand how to gather evidence.
C. Law enforcement officers are mainly required to uphold the law.
D. There is no county law enforcement department.
5. Suppose you're interested in finding information on your senators and representatives and on current bills before Congress. Which one of the following resources would be best for this purpose?
A. Your public library
B. Your local newspaper
D. History books
6. Under the Constitution of the United States, you may not be deprived of life, liberty, or property, without
A. due process of law.
B. being charged with a crime.
C. due respect for law.
D. being suspected of a crime.
7. A war in Mexico would be under the _______ Command.
8. The outcome of the 2000 presidential election was decided by a
A. careful recount of the Florida votes.
B. majority of the popular vote.
C. majority vote of the electoral college.
D. decision of the Supreme Court.
9. You don't really approve of the idea of political parties. However, you're known as a Federalist and are soon associated with that party. Chances are good that your name is
A. James Madison.
B. Abraham Lincoln.
C. Thomas Jefferson.
D. XXXXX XXXXX.
10. The XYZ PAC operates on behalf of the XYZ interest group. Which campaign behavior of the XYZ PAC would be against current law?
A. The PAC creates its own campaign for candidate Kroll and contributes to the campaign of candidate Loon.
B. The PAC contributes $6,000 to candidate Kroll and $2,000 to candidate Loon.
C. The PAC contributes $4,000 to the campaigns of Kroll, Loon, Marble, and Noonkester for a total of $16,000.
D. The PAC contributes $2,000 to Kroll and $4,000 to Loon because both claim to support the PAC's legislative goals.
11. During the Cold War, the United States foreign policy of containment consisted of
A. wars and covert operations.
B. wars and mutual assured destruction.
C. deterrence and covert operations.
D. deterrence and mutual assured destruction.
12. To become a citizen of the United States, you must
A. be at least 21 years old.
B. pass an English and government test.
C. have lived in the United States for at least six months.
D. file a request form in a federal court.
13. A basic position in American foreign policy has been that America must defend its foreign interests related to trade and security. The main foreign policy position opposed to this American policy is called
14. You're most likely to pay your county or town taxes in the form of a/an _______ tax.
15. Which one of the following political interest groups falls into the organized labor category?
A. National Education Association
B. American Rifle Association
C. National Broadcasting Corporation
D. National Audubon Society
16. By tradition, when does the presidential campaign begin?
A. When a candidate is officially nominated at the national convention
B. After a candidate has gained enough electoral votes in the primaries
C. In September, following the national convention
D. With the New Hampshire primary
17. Which one of the following is an example of an entitlement?
A. The right to vote
B. Receiving Social Security
C. Freedom of speech
D. Serving in the military
18. In the United States, your legal right to express your political opinions to government officials is granted under the _______ Amendment.
19. Why does the Central Intelligence Agency have more freedom of action than other federal agencies?
A. Both its budget and operations are secret.
B. It carries out U.S. foreign policy under the FBI.
C. It answers to Congress only for its financial needs.
D. The agency doesn't report to anyone.
20. In general, you would expect the platform of a political party to
A. lead to a national convention.
B. guide the political issues of the party's candidate.
C. consist of party leaders called planks.
D. determine the outcome of a general election.