W!SE Test Prep for Money & Money Management

Question 1

FIAT currency is any money the U.S. Government declares as legal __________

Accepted Answer

tender

Question 2

Because gift cards could _______ in value, it is best to ask the merchant about gift card rules

Accepted Answer

decrease

Question 3

Selling something for a profit will increase your __________

Accepted Answer

income

Question 4

Brand named items cost more than generic/store brand items in order to ___________

Accepted Answer

pay for advertising

Question 5

The_____ form tells your employer how much tax to withhold from your paycheck

Accepted Answer

W4

Question 6

Checking accounts NEVER pay interest.

Accepted Answer

False

Question 7

When lumped together, Social Security & Medicare taxes are known as ...

Accepted Answer

All 3 of the other answers

Question 8

More $$ was spent for entertainment than you budgeted. What do you do to balance your budget?

Accepted Answer

reduce your variable expenses

Question 9

You should write a _______ if you own something of value

Accepted Answer

will

Question 10

If your check register's balance does not match the balance in your bank statement, you should

Accepted Answer

detemine if all transactions have cleared the bank

Question 11

You should keep _________ of emergency savings in case you have an unexpected financial crisis

Accepted Answer

3 to 6 months

Question 12

________ is the government agency that produces COINS (i.e., penny, nickel, dime)

Accepted Answer

U.S. Mint

Question 13

What does the FED do to encourage more spending and borrowing by consumers?

Accepted Answer

Lowers interest rates

Question 14

Inflation hurts _________________ the most, as well as savers.

Accepted Answer

people on a fixed income

Question 15

Important documents should be placed in a safety deposit box, in particular ____________

Accepted Answer

mortgage papers

Question 16

The main BACKGROUND COLOR of paper money is __________

Accepted Answer

green

Question 17

What figures do you need when using the Rule of 72?

Accepted Answer

interest rate & the number 72

Question 18

Money that you have left over after you have paid your monthly bills is called ________ income

Accepted Answer

discretionary

Question 19

Since gift cards can decrease in value or even expire, check with the merchant about the rules

Accepted Answer

True

Question 20

To pay yourself _____ is to take $ from your paycheck & put it in savings BEFORE you spend it

Accepted Answer

first

Question 21

You are a young adult with several $1000 to invest. Before you do that, you should have a __

Accepted Answer

savings account

Question 22

The _________ means a dollar TODAY is worth more than a dollar in the FUTURE

Accepted Answer

time value of money

Question 23

Investments such as CDs and savings accounts are __________

Accepted Answer

taxable

Question 24

The "FED" uses rules called ______ to regulate the $$ supply that is in circulation in the U.S.

Accepted Answer

monetary policy

Question 25

It's a good idea to know your ___________ before you make major financial decisions

Accepted Answer

financial goals

Question 26

The organization that collects Federal taxes and enforces tax rules is the _______

Accepted Answer

IRS

Question 27

If you decrease what you owe your creditors, you will increase your _______

Accepted Answer

net worth

Question 28

The amount of $$ that you earn BEFORE taxes & other deductions have been subtracted is called

Accepted Answer

gross pay

Question 29

You need to know the___________ to determine the time value of money

Accepted Answer

rate of inflation

Question 30

Bank deposits of $10,000 or more must be reported to

Accepted Answer

U.S. Treasury

Question 31

The most common forms of legal tender are _________

Accepted Answer

both of the other two answers

Question 32

The________ form summarizes how much money you earned & paid in taxes for the previous year

Accepted Answer

W2

Question 33

When you have more money coming in than you have going out, you have a budget _________

Accepted Answer

surplus, deficit

Question 34

Coins come in denominations of _________ (Your answer must be COMPLETELY correct.)

Accepted Answer

.01, .05 .10, .25, .50, 1.00

Question 35

________ is the government agency that produces PAPER MONEY (i.e., bills).

Accepted Answer

U.S. Bureau of Engraving & Printing

Question 36

The amount of $$ that you earn AFTER taxes & other deductions have been subtracted is called

Accepted Answer

both net pay & take-home pay

Question 37

Who insures deposits in credit unions for up $250,000?

Accepted Answer

NCUSIF

Question 38

The ______ is the organization that greatly influenceswhen interest rates rise and fall

Accepted Answer

Federal Reserve

Question 39

A government program that provides health insurance to the elderly is called __________

Accepted Answer

Medicare

Question 40

The continual increase in the price of goods and services is called ...

Accepted Answer

inflation

Question 41

If you make your car/mortgage payments in full & on time, the bank cannot take them from you

Accepted Answer

True

Question 42

When you spend more money than you earn, you have a budget _________

Accepted Answer

deficit

Question 43

New coins and currency enter the economy through the distribution system of the FED

Accepted Answer

True

Question 44

A government program that provides income to the elderly is called __________

Accepted Answer

Social Security

Question 45

The rule that helps you estimate how long it will take to double your money is the _____

Accepted Answer

rule of 72

Question 46

Windfall income (e.g., lottery winnings/game show prizes) is considered to be interest income &

Accepted Answer

is taxable

Question 47

________ is when 2 parties exchange goods/services for other goods/services W/O using money.

Accepted Answer

Bartering

Question 48

Interest that is earned on investments is usually __________

Accepted Answer

taxable

Question 49

People who go to college can earn up to 4 times the $$ than those who do not finish high school

Accepted Answer

True

Question 50

A government program that provides health insurance to people with low income is called _______

Accepted Answer

Medicaid

Question 51

The _____________ insures deposits in commercial banks and member banks for up $250,000

Accepted Answer

FDIC

Question 52

Because coins & currency are an acceptable form of payment for goods/services, they are called

Accepted Answer

a medium of exchange

W!SE Test Prep for Money & Money Management

Questions 52

W!SE Test Prep for Money & Money Management

Questions 52