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Galante--American Government Review Financial Lit Flashcards | StudBud
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Galante--American Government Review Financial Lit
Galante--American Government Review Financial Lit
40 terms
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Flashcards
40 cards
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Questions
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Answers
1
Lemon Laws exist to resolve consumer complaints about?
appliances
automobiles
food products
housing
2
"The economy continues to slow" which segment of the business cycle does this represent?
recovery
depression
recession
inflation
3
A Key advantage of getting credit is that it can help people?
sell assets
buy a good/service today and pay for it later
reduce risk when investing in stocks
increase their net worth
4
In a laissez-faire economy, government
delegates control of the economy to big business
exerts control over all aspects of the economy
allows the economy to function free of control
exerts moderate control over the economy
5
A typical characteristic of entrepreneurs is that they
will take risks
enjoy having a boss
save rather than invest
only work part-time
6
Which type of insurance protects a person from loss from lawsuites?
term life
collision
liability
casualty
7
Bank deposits are protected by?
FICA
FCC
FDIC
FTC
8
Most young people who file taxes return us this form?
1040EZ
W-2
W-4
1040
9
Gov. uses fiscal policy to stimulate the economy by
raising the interest rate
creating new gov. programs and federaljobs
increase fed income tax
decrease spending on gov programs
10
Which Fed action would lead to an expansion of the money supply?
creating new denomination of currency
selling government bonds
Decreasing reserve requirements
increasing interest rates
11
Which set best represents the four factors of production?
company founder, forest, truck driver, mail delivery person
truck driver, forest, machinary, mail delivery person
factory, forest, company founder, machinery
factory, truck driver,forest, company founder
12
Which type of financial aide has to be paid back?
Work-Study
IT Scholarship
Federal Perkins Loan
PELL Grant
13
disposable income is the money that is?
budgeted for variable expenses
deducted from your paycheck
saved and invested each month
spent or saved after decuations
14
Which economic resource includes tangible items produced by human effort in future production?
land
capital
labor
entrepreneurship
15
Pay yourself first means?
credits pay for what you do not have in income
all bills get paid before savings
money is set aside for savings before spending
fixed expenses are paid before flexible expneses
16
Which strategy will improve people financial situation over a lifetime
save as soon as you have an income
making quick financial decisions
getting work experience early
use credit to buy what you can not pay for
17
Credit card interest rates on unpaid balances are generally?
25-30%
1-5%
18-22%
5-10%
18
The term caveat emptor means?
buyer beware
to the winner goes the spoils
the pocketbook is empty
the consumer is always right
19
People generally have annuities or 401K plans to pay for
mortgages
vacations
college education
retirement
20
which of the following would be considered the best collateral for a loan?
car
clothing
pictures
jewelry
21
A legal contract between a renter and an owner is?
mortgage
security deposit
title
lease
22
which type of insurance protects a person from loss from lawsuits
term life
collision
casualty
liability
23
about how many years would it take $1000 to become $2,000 if it had an interest rate of 7.2?
20.0
7.2
10.0
14.4
24
GDP is represented by the?
amount of reserve that banks are required to hold
change in the average price of consumer goods and services
total value of goods and services produced within a nation
rate of interest charged on reserves lent to banks
25
April 15th has great signifiance because?
the day all economic stimulus checks are released
end of the government fiscal year
deadline to fiile federal and state taxes
day all updated SSN is released
26
If Maria has a balance of $500 and she writes a check for $50 what is her new balance?
$550
$600
$500
$450
27
Using a debit card to purchse a good is most similiar to using a?
credit card
loan
check
money market account
28
When a person accepts a job, he/she will submit a form that the employer will keep on file.
1040
W-2
W-4
1099
29
Bonds are good investments during economic periods of?
stagflation
recession
inflation
transition
30
The IRS decides to verify what a person has reported they conduct a?
balance sheet
inventory
probe
audit
31
Using a debit card to purchase goods is similar to
credit card
money market
check
loan
32
Banks are insured up to?
$150,000
$200,000
$250,000
$100,000
33
Experian, Equifax, and Trans Union are examples of?
wireless cash transfer services
consumer complaint bureaus
credit card manufacturers
credit reporting agencies
34
the average cost of everyday items are?
HDI
GNP
CPI
GDP
35
What are the 3 most important criteria to consider when investing
leverage,margins, credit
size, insurance, taxes
collateral, access, divendends
risk, rate of return, liquidity
36
Which of these economic systems would most likely be found in a democratic society?
command
market
fiscal
traditional
37
All individuals in society face the problem of limited resources and unlimited wants.
Profit Motive
Scarcity
Private Ownders
capital
38
During a recession, how could the fed. gov. usefiscal policy to promote econ. recovery?
Reduce federal spending
Raise federal income taxes
Balance the federal budget
Increase federal spending
39
The Better Business Bureau?
is a state business regulatory agency
is a volunteer agency for business whistle blowers
keeps lists of consumer compalints about business
provides money saving tips to consumers
40
the best indicator of the cost of a loan is the?
number of payments
monthly payment
amount of down payment
annual percentage rate