A key difference between commercial banks & credit unions is:

Commercial are "for Profit" & CU are not

Which formula is correct for determining Net Gain or Net Loss?

Income - Expense = Net Gain/Loss

Which statement is true?

Payroll taxes fund Social security & Medicare programs

Property taxes do all EXCEPT:

Charge by states or local government to pay for schools

Which statement is not true about interest earned on a depository institution Savings Tool?

When earning interest, look for low rates

Maggie earns $62,000/yr w/ a NW of $20K. Sam earns $96,000 w/ a NW of $15K. Who is wealthier?

Maggie, b/c her NW is higher than Sam's

To calculate Net Worth, use what formula?

Assets - Liabilities = Net Worth

studbud

Personal Finance Unit 2

19 termsStudBud Administration395 plays

Imported from external platform

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
The ___ of continuing your education is the $ you would have earned if you have worked instead.
Benefit
Opportunity Cost
Total Estimated Cost
Debt-to-income ratio
2
A key difference between commercial banks & credit unions is:
Commercial offer more services
Commercial pay higher interest rate than CU
Commercial are "for Profit" & CU are not
CU located in rural areas & commercial are urban
3
Which formula is correct for determining Net Gain or Net Loss?
Net Gain - Expense = Net Loss
Income + Expenses = Net Gain/Loss
Income - Expense = Net Gain/Loss
Expenses - Income = Net Gain/Loss
4
What is the additional charge on a shirt purchased at a store?
Income tax on the shirt
Sales tax on the shirt
An excise tax on the shirt
Property tax on the shirt
5
The regular schedule that employers pay their employees is called the:
Employer Contributions
Pay Period
Employee Benefits
Worker's compensation
6
Who is Medicare designed to help?
Single Parents
Low Income Families
Senior Citizens
Children of unemployed parents
7
Which statement is true?
Amount of tax paid depends on diff. factors
Payroll taxes are paid on both earned & unearned income
Payroll taxes fund Social security & Medicare programs
Payroll taxes fund diff. operations of fed. gov.
8
Taxes charged on consumption items such as gas, hotels & airline tickets are called?
Federal Use
Sales
Property
Excise
9
Which of the following is not listed as an asset?
Market Value of car
Money in checking account
Money in future paychecks
Sports equipment
10
To increase net worth, you should?
Decrease assets
Increase assets
Increase liabilities
Increase market value
11
Property taxes do all EXCEPT:
Most often paid only once or twice a year
Rate is set by the federal gov. to be equal in every state
Charge by states or local government to pay for schools
Fee paid to license a car
12
Which item should be included as a liability on a Statement of Financial Position?
Combined total of savings & checking accounts
Market value of car
Value of retirement account
Balance on a credit card
13
The most secure way to be paid is:
Payroll Card
Printed Check
In-Store Credit
Direct Deposit
14
Which statement is not true about interest earned on a depository institution Savings Tool?
When paying interest, look for low rates
When earning interest, look for low rates
Amount of interest earned or paid is determined by the rate
Interest is the price paid for using someone else's money
15
Maggie earns $62,000/yr w/ a NW of $20K. Sam earns $96,000 w/ a NW of $15K. Who is wealthier?
Maggie, b/c her NW is higher than Sam's
Maggie, b/c her income - her NW is smaller than Sam's
Sam, b/c her income - her NW is larger than Maggie's
Sam, b/c her income is higher than Maggie's
16
David made a mistake in his account and spent $10 more than he had. He will be charged an:
Safe Deposit Fee
Overdraft Fee
ATM Fee
Contact Fee
17
Gross Income - Deductions =
Medicare
Social Security
Net Income
Employee Benefits
18
Common fees that may be charged by a depository institution include all EXCEPT:
Overdraft Fee
ATM Fee
Late Fee
Minimum Balance Fee
19
To calculate Net Worth, use what formula?
Assets / Liabilities = Net Worth
Assets + Liabilities = Net Worth
Assets x Liabilities = Net Worth
Assets - Liabilities = Net Worth

Personal Finance Unit 2 Flashcards | StudBud