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Financial Literacy Exam Review Flashcards | StudBud
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Financial Literacy Exam Review
Financial Literacy Exam Review
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#consumer ed #financial literacy
Flashcards
51 cards
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1
W2 forms are used by:
credit card companies when charging interest.
IRS to know how much to give you for a tax refund
employers to know how much taxes to deduct from your check.
individuals to use when filing taxes.
2
How are social security taxes paid?
employers withhold it from your paycheck
paid upon retirement
every month at irs.gov
yearly bill
3
the chance that your investment could lose value
interest
inflation
return
risk
4
What are annual fees on credit cards?
taxes on credit card purchases
annual percentage rate
charge to have & use the card
interest rate
5
Which payment type typically charges the highest interest?
Student Loans
Debit Cards
Cash Advances
Credit Cards
6
What does investing in an I-savings bond provide you protection from?
value going down
Interest
Inflation
losing your money
7
What is the record of past borrowing & repayments?
credit limit
credit history
credit opportunity
credit score
8
the income you earn on an investment
risk
stock
return
bond
9
What are excise taxes?
taxes on specific goods & services, included in the price
taxes on property
taxes on income
taxes on food
10
Which of the following is a flexible expense?
insurance
eating out in a restaurant
car loan
rent
11
What are estate taxes?
taxes on inherited property
tax credits for children
education taxes
taxes on labor
12
The time period when you can pay your credit card bill and avoid paying interest.
payment period
interest period
free period
grace period
13
What part of car insurance covers the damage done to another's vehicle?
property damage liability coverage
comprehensive coverage
medical coverage
renter's insurance
14
Your social security number is a 9 digit number that keeps track of what you:
earn.
owe to the library.
buy.
pay in taxes.
15
What is a full warranty?
guarantee that product will work
guarantee that product will love you
promise that product will never break
promise to replace product at no charge in given time frame
16
A family's living expenses will ______when they have more children.
stay the same
decrease
increase
drop
17
An example of a FIXED EXPENSE is:
Gas Bill
Water Bill
Credit Card Bill
Internet
18
Why are ATMs useful?
provides security
can make deposits
can withdraw cash
all of the above
19
Which form will you receive at the end of the year to do your taxes?
WD-40
W-2
10-4
W-4
20
What is interest?
A charge for lending money to the bank
The amount owed for borrowing money
Money paid to you from a bank for opening an account
The amount for adding savings into your bank account
21
How can you pay a bill electronically on the same date each month?
automatic withdrawal
ATM
Endorsement
Cashier's Check
22
Which of the following is
NOT
one of the 3 Cs of Credit?
character
charge
capacity
capital
23
The Federal Trade Commission can issue a(n) _____ to stop a company from deceptive advertising.
arbitration
stop order
cease and desist order
affidavit
24
If your monthly bill is fixed, what does that mean?
Your bills will decrease over time.
Your bills will change in amount each month.
Your bills will be fixed and you won't have to pay them.
Your bills will stay the same each month.
25
What is property pledged to back a loan?
collateral
charge account
equity
credit
26
How much will you pay if you have a deductible of $500 and the accident cost $1200?
$500
$1700
$0
$700
27
Which of the following would
NOT
be included in a lease?
if utilities are included
noisiness of neighbors
rent due date
pets that are allowed
28
What is a security deposit?
savings account
First month's rent
down payment on a car
money paid by a renter to cover the cost of damages
29
Having your paycheck electronically transferred to your bank account is called:
interest.
direct deposit.
a deposit slip.
fraud.
30
An item priced below cost to attract a consumer is called _____ ______.
blatant fraud
pyramid scheme
trading up
loss leader
31
What is a check?
credit card
an order to a bank to pay a specific amount of money
debit card
direct deposit
32
How are car loans typically paid?
every time you drive it
after you trade it in
monthly installments
one lump sum at the end of 5 years
33
Which of the following factors do
NOT
determine your credit score?
current debt
payment history
length of credit history
age
34
Damien has an older car, but knows he must carry insurance. What type does he have?
Liability
Un/underinsured motorist
Comprehensive
Collision
35
What is your credit limit?
maximum amount you are allowed to charge
maximum amount to spend in a day
limit to insurance on cards
limit to number of credit cards
36
What would be the worst option to use credit?
vacation
college
car
house
37
What is a benefit of having a higher credit score?
pay lower finance charges
higher interest on loans
more available cash
less dates
38
Which drivers will pay the highest auto insurance rates?
Retired Driver's Ed. Teachers
Young, inexperienced drivers
College Graduates
Older adults
39
If you make $ from 2 different jobs,the money earned before taxes is known as ___ on tax return
employee's income
taxable income
income
adjusted gross income
40
If you get a letter with a list of names & are told to send $1 to the person at the top, it's a
trading up.
piggybank swindle.
bait and switch.
pyramid scheme.
41
Why should you look for FDIC when opening an account at a bank or credit union?
You know they will have an ATM.
You know you will earn a high interest rate.
You know your money will be insured.
You know they will not charge fees if you have an overdraft.
42
If you buy a defective car, under the Consumer Bill of Rights you have the right to
redress.
a healthy environment.
information.
consumer education.
43
When one company forces the only other company out of business they are creating a
monopoly.
deception.
warranty.
competitor.
44
What is a tax-deferred retirement savings plan?
stock
401(k)
mutual fund
secured loan
45
What number would you divide your gross income by in order to calculate your weekly income?
26
12
365
52
46
Gross pay is:
what I REALLY make at my job (before taxes).
what I will have left to pay my expenses for the month.
Yuck! They take out so many deductions!
good because they already took my taxes.
47
You open an interest-earning savings account. Which frequency earns you the most interest?
Compound 4 times a year (quarterly)
Compound daily
Compound monthly
Compound yearly
48
What is an implied warranty?
unwritten guarantee that a product will fulfill its purpose
promise that you will like the product
unwritten promise that a product is nutritious
guarantee that the product was affordable
49
What is a 1099-INT form?
statement of withholdings for the year
statement of yearly earnings
statement of interest paid on savings
statement of taxes paid
50
What can you use to make a purchase by electronically accessing your checking account?
Debit card
Credit Card
Phone Card
Gift Card
51
You are in a car accident, and they have no insurance. You are glad you have what type of insurance?
Collision
Liability
None of the above
Renter's insurance
