envelope budget method

All of these are part of the envelope method

Payday loans are convenient but...

expensive, charge a high interest rate

burden increases as income rises, Used by the Ontario government to promote fairness

Protected by deposit insurance, Money given to banks for safekeeping

Sales taxes are regressive, Burden low income earners more than higher income, $5 tax per carton of cigarettes

if the benefit is greater than the cost, do it!

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Financial Literacy Quiz 1

18 termsStudBud Administration7 plays

Rational decision-making and budgets

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Questions 18

Answers

1
Proportional tax
Calculated using a schedule
constant rate applied to all
attempts to equalize the burden for all taxpayers
all of these
2
envelope budget method
A practical way of budgeting
Put cash for bills in envelopes
All of these are part of the envelope method
Monthly expenses are listed
3
Payday loans are convenient but...
dangerous
expensive
charge a high interest rate
not easy to find
4
The first step in making a rational decision is to identify the problem
False
True
5
A budget can help make decisions
True
False
6
Financial intermediary
a bank
Casinos
Bank of Mom
Insurance
7
Progressive taxes
Not used because they are unfair
burden increases as income rises
Used by the Ontario government to promote fairness
burden decreases as income rises
8
You need to be good at math to budget
False
True
9
Tax
Vex
Unfair to all
Money paid to government
A regressive act
10
What are criteria?
Things that need to be done
All of these are criteria
Guides to know what is required
Rules for making a decision
11
Bank deposits are
Protected by deposit insurance
Never at risk
Money given to banks for safekeeping
Money that is locked away for a long time
12
Regressive tax
Sales taxes are regressive
An average tax rate applied to all
Burden low income earners more than higher income
$5 tax per carton of cigarettes
13
Property taxes
Pay for municipal services
Influenced by the market value of property
all of these
Based on the assessed value of property
14
Bank loans are made using
imaginary money
depositor's savings
income before taxes
government money
15
Loans are easy to obtain
False
True
16
Credit is free money
False
True
17
rational decision
if the benefit is greater than the cost, do it!
a sane choice
uses math to uncover truth
if it costs too much, don't do it!
18
depositors are owners of this financial institution
Payday loan companies
Credit Union
Pawn brokers or lenders
Charter Bank

Financial Literacy Quiz 1 Flashcards | StudBud