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Financial Literacy Unit 1 Part 1 Flashcards | StudBud
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Financial Literacy Unit 1 Part 1
Financial Literacy Unit 1 Part 1
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1
Key components of financial planning include all of the following EXCEPT:
allow financial planner to make all money decisions
write out detailed plan for accomplishing goals
regularly monitor and reassess financial plan
replace money myths with money truths
2
During your first interview with a company, you should NOT:
show interest and be enthusiastic
be personable and try to connect with interviewer
ask about salary
bring extra copies of your resume
3
The government relies on taxes to:
pay for services such as roads, education, & social service
all of the above
remind citizens of the government's power
burden the public with an extra expense
4
Which of the following are characteristics of an effective personal goal?
it should be determined by your friends or parents
it should be easy to accomplish
it should be vague
it should be measurable and specific
5
Most Americans today are wealthy and have financial security when they retire.
False
True
6
Personal financial success is primarily the result of:
inheriting money from your parents
winning the lottery
managing your money behavior
generous welfare and unemployment programs
7
Gross income - deductions = __________
employee benefits
Medicare
net income
Social Security
8
Which of the following is NOT a true statement?
Americans learned to borrow amid post-WWII prosperity
credit industry in America hasn't changed much since 1917
as banks made higher profits, they were willing to lend more
after 1970, consumer debt skyrocketed
9
True financial security is achieved when money begins to generate income--money works for you.
True
False
10
Which of the following should NOT be a major consideration when selecting your career?
what you are naturally good at
what your parents think you should do
what you are passionate about
what your interests are
11
Jamie has elected to be paid by direct deposit. This means:
She will receive her check mailed directly to her.
She will receive her pay automatically on a payroll card.
She will receive her pay directly into her checking account.
She will receive her check directly delivered to her at work
12
Expensive houses and new cars are a true indication of wealth.
True
False
13
When it comes to managing money, success is about __% knowledge and __% behavior.
60, 40
20, 80
50, 50
80, 20
14
Everyone should have the same financial plan. What works for one person, works for everyone.
False
True
15
The IRS is the federal government agency responsible for:
writing tax laws
filling out your tax forms
tax collection and tax law enforcement
keeping the unemployment rate low
16
Most Americans avoid use of credit when it comes to buying big ticket items like a car.
True
False
17
An obligation of repayment owed by one party to a second party...
ownership
debt
18
Which of the following is a consequence of spending more than you make?
missed opportunity to save and invest
stress
a cycle of debt
all of the above
19
The most secure method for an employer to pay employees is to use:
printed check
payroll card
direct deposit
in-store credit
20
Which of the following is NOT a reason credit is marketed heavily in the U.S.?
there's a strong consumer demand for big-ticket items
since 1920, laws in the U.S. have been relaxed
use of credit is not socially acceptable in the U.S.
credit industry has become extremely profitable
21
A system by which goods and services are produced and distributed...
economy
assets
22
Since you're a teen what you do now with money will have little effect on your financial future
True
False
23
When a company hires you, you will fill out a ___ form. This determines taxes withheld.
W-4
W-2
1040EZ
1040
24
Which of the following about goal setting is false?
your goals should have time limits
once written down, put your goals away and check in a year
make your goals challenging yet attainable
you should share your goals with people close to you
25
Having debt keeps you from building wealth.
True
False
26
Which of the following BEST explains why income alone does not determine wealth?
what you make doesn't dictate spending/saving behavior
income alone DOES determine person's wealth
only people who are natural savers can be wealthy
investing is only one factor that contributes to wealth
27
What is the difference between gross pay and net pay?
gross and net pay are the same
none of the above
gross pay is after deductions, net pay is before
net pay is after deductions, gross pay is before
28
Mark is looking at his pay stub to see what she made before deductions. Where does he look?
net income
employer contributions
hours and earnings
gross income
29
Why was the use of credit uncommon prior to 1917?
laws prevented lenders from charging high interest rates
lending money to others was not profitable
all of the above
borrowing money was generally not socially acceptable
30
The widespread financial insecurity of Americans is primarily because:
income of Americans is low
most Americans save a high proportion of their income
saving rate of Americans is low and many borrow to spend
government programs are unavailable to help people
31
The regular schedule that employers pay their employees is called the ____.
pay period
employer contributions
employee benefits
worker's compensation
32
The day that income tax filings are due in the United States:
January 1
June 15
December 1
April 15
33
When applying for a job, you should:
all of the above
follow up with the employer
provide a resume and cover letter
present yourself well
34
A person or organization that uses a product or service...
borrower
consumer
35
When it comes to personal finance, the math is easy. What's challenging is managing your __.
friends
bank account
income
behavior
36
A fee paid by a borrower to the lender for the use of borrowed money...
bills
interest
