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ANSWER KEY
Large Losses Likely
stays in effect until the victim is fully repaid.
14. F 15. B 16. B 17. D 18. D 19. Attorneys fees, restitution, diversion fees, fines and lost income if she has to miss work to attend court and the diversion program. 20. Addicts make their addiction a priority and start to underperform on responsibilities such as showing up for class or work. Those have definite economic impacts. They drain savings and divert their income to their use/ habit in greater and greater amounts. They pay with credit for the things they would normally buy by debit. Their credit scores suffer. They lose their jobs and drop out. They have expensive health problems and rehab is expensive. Goin’ Bananas for Bankruptcy In the old days when someone couldn’t pay off their debt they could be sent to debtor’s prison or forced into indentured servitude to pay off their creditor. They could also be forced to sell off all assets and be left destitute and in poverty. If you could go to jail for nonpayment of debt, few people would risk starting a business or buying anything on credit. The economy would implode. Bankruptcy also provides for uniform treatment of debtors and creditors from state to state; prevents people from being left destitute. An accountant, attorney and/or a qualified credit counselor.
18. D 19. The convenience of online gambling is hard to resist. It’s available 24/7 right from the comfort of home! There are thousands of internet gambling sites for all kinds of gambling.
1. 2.
T
high rates of absenteeism, high job turnover rates, poor job performance, injured on or causes injuries on the job, quits frequent absences from class, tests poorly, misses deadlines, poor grades/low GPA, fails class, high remediation rates, drops out (quits); drops out yet remains liable for repayment of student loans.
3.
20. Male teens
College Readiness Includes Having a Drug and Alcohol Avoidance Strategy Student’s discretion.
4. 5. 6. 7. 8. 9.
income; benefits; prospective/future
memory; sleeping patterns
remediation; tuition
internet/online
Are You Financially Literate? Chapter 17 Quiz PRODUCT PREVIEW 1. 2. 3. D A Acceptable answers include: cost of additional tuition to remediate a failed class, possible loss of a scholarship or financial aid, loss of value for missed classes, loss of economic/earnings potential for dropping out, continued liability for student loan repayment, loss of ability to compete to get into a good grad school. 4. 5. B Students should indicate that many rehab facilities offer sliding scale fees that reduce the costs for those who are unable to pay the full price of a rehab program out of pocket, as well as charity-run and government-funded rehab programs. T 1. 2. 3.
T
Turnover creates a sketchy job history which can impact employability; going from job to job reduces the likelihood of building a relationship with an employer for future references; appearance of instability. Job quitters do not stay long enough on the job to build a relationship with the employer; job quitters do not build retirement savings and/ or leave before vesting. 10. Consequences may include a substantially lower income over a lifetime, lower benefits, reduced employability, reduced job security and satisfaction; the student remains liable for their student loans but does not get the degree they have partially paid for. 11. They party too much and deplete cash reserves in bank accounts. Some actually drain retirement accounts; They use credit cards to pay for things normally paid for in cash/debit; they make bad financial decisions such as payday loans and become unable to meet their credit card debt. They can fail drug tests or violate their job’s alcohol policies and lose their job, including income and benefits; they develop health problems which can be costly, especially if they have lost their healthcare benefits. Credit scores fall which can make it difficult to find housing. 12. 6 13. zero; condition 14. 193 15. Yes to all 16. Student’s discretion. 17. An order of restitution requires the criminal to compensate a victim for financial losses suffered as a result of the crime. The order
6. 7. 8.
D
4. 5. 6. 7. 8. 9.
bankruptcy; financially
Yes, honesty on the job application is a condition of her employment.
F
9. She will not be able to complete her plan. People with felonies are usually not able to obtain the necessary security clearances to advance to higher ranks in the military. 10. His passport application may be denied. Even if he manages to get one, its likely an overseas travel or work visa application will be denied. 11. Kenshiro is not correct. Employers are allowed to fire employees if they fail a drug test. It doesn’t matter when the drug was ingested.
They are named after the chapters of the Bankruptcy Code that describe them.
liquidation; non
The creditors who have filed a Proof of Claim The jewelry is exempt up to $1500 in value. The rest will be liquidated to pay his creditors. 10. businesses; operating 11. reorganization; terminate; contracts; leases 12. discharge; profitability 13. 12 14. income
12. D 13. E
Answer Key 386
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