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Financial Literacy - 12.12.19 Flashcards | StudBud
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Financial Literacy - 12.12.19
Financial Literacy - 12.12.19
39 terms
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Financial Management, Borrowing, Earning Power, Taxes and Investment
Flashcards
39 cards
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Questions
39
Answers
1
Which of the following can impact your credit score?
checking your credit score
making a late car loan payment
getting bonus pay from your employer
paying cash for a used car
2
Money rewarded to you by the bank in return for letting them lend your money out.
Interest
Capital Gains
Certificate of Deposit (CD)
Dividends
3
Maximum annual contributions to an IRA (Traditional or ROTH) for the year 2019.
$8,000
$6,000
$19,000
$12,000
4
A loan with monthly payments structured to pay the loan off in full by the end of its duration.
Amortized Loan
Short-Term Loan
Hard Loans
Line of Credit
5
Your income before adjustments, deductions and taxes.
Gross Income
Adjusted Gross Income (AGI)
Net Income
Taxable Income
6
A good guideline for the maximum total debt you should carry.
10% of your gross income
20% of your gross income
20% of your net income
10% of your net income
7
As a general rule, how often should a spending plan be re-evaluated and adjusted?
Never
Monthly
Weekly
Once or Twice Per Year
8
Sales tax collected at a retail store is an example of this kind of tax.
Regressive Tax
Progressive Tax
Flat Tax
Capital Gains Tax
9
Which of the following is not a part of the DECIDE acronym for financial decision making?
establish some criteria
evaluate the results
identify the cheapest option
define your financial goal
10
Payments made to a bank in return for them letting you borrow money.
Capital Gains
Earnings
Taxes
Interest
11
Tax brackets are a way of levying this kind of tax.
flat tax
regressive tax
progressive tax
proportional tax
12
Social Security and Medicare payments fall into this tax category.
Federal Taxes
FICA
State Taxes
Local Taxes
13
Which of the following agencies provides free credit reports for consumers
TransUnion
Equifax
All of These
Experian
14
Which one of the following accounts is not tax-deferred?
ROTH IRA
401 (k)
Traditional IRA
403 (b)
15
Which of the following is part of a typical spending plan?
Income
Goals
All of These
Expenses
16
Which account typically gives you the highest interest rate, or APY (annual percentage yield)?
checking account
savings account
money market account (MMA)
debit account
17
Your tax dollars are used for all of the following except...
Infrastructure
Emergency Services
Education
Mortgage Payments
18
Who is allowed to review your credit report without your permission?
your employer
your parents after you are 18 years old
an automobile dealer with whom you are setting up a car loan
your doctor
19
A good guideline for the maximum amount you should owe each month in loan payments.
10% of your monthly net income
20% of your monthly gross income
20% of your monthly net income
10% of your monthly gross income
20
This is your income after taking either the standard deduction or itemized deductions.
Taxable Income
Adjusted Gross Income (AGI)
Net Income
Gross Income
21
Maximum annual employee contributions to an employer-sponsored retirement account as of 2019.
$19,000
$8,000
$6,000
$12,000
22
Withdrawals from this account after retirement age can be made without paying taxes on them.
Roth IRA
403 (b)
401 (k)
Traditional IRA
23
I can contribute to both an IRA and an employer-sponsored retirement account.
It depends...
Pick this if you have no idea...
False
True
24
This is an employer-sponsored retirement account for a not-for-profit organization.
Roth IRA
403 (b)
Traditional IRA
401 (k)
25
An investment with fixed earnings and a fixed maturity date.
Certificate of Deposit (CD)
Mutual Fund
DRIP Stock
Direct Stock
26
How often can you request a free credit report from each of the credit reporting agencies?
never
once per year
twice per year
monthly
27
Your take-home pay. What you actually earn after all taxes have been paid.
Net Income
Gross Income
Adjusted Gross Income (AGI)
Taxable Income
28
FICA tax rate for 2019.
10%
2.75%
20%
7.65%
29
Combination of stocks a broker will invest in for you to help you diversify within one account.
Direct Stock
Mutual Fund
DRIP Stock
U.S. Savings Bond
30
This type of account will often give you zero earnings.
Money Market Account (MMA)
Direct Stock Account
Checking Account
Savings Account
31
Guaranteed to double in value from their issue price after a period of 20 years.
Shares of Stock
Mutual Fund Purchases
Certificates of Deposit (CDs)
U.S. Savings Bonds
32
Which expenses should be left out of a spending plan?
None of These
Fixed Expenses
Variable Expenses
Periodic Expenses
33
Who should report identity fraud?
the police
the victim of the fraud
the company that accepted a stolen credit card
credit reporting agencies
34
This is your income after making adjustments for things such as retirement plan contributions.
Gross Income
Net Income
Taxable Income
Adjusted Gross Income
35
Which of the following is not something you should be prepared to provide when getting a loan?
your rental or mortgage payments
your annual or monthly income
your social security number
your medical history
36
An investment option provided to you by the government.
U.S. Savings Bond
Certificates of Deposit (CDs)
DRIP Stock
Direct Stock
37
Which of the following is not part of the SMART goal acronym?
Specific
Measurable
Attainable
Realistic
38
Which of the following is not a type of credit?
Car Registration
Car Loan
Phone Service
Credit Card
39
Typically, the largest percentage of your tax dollars go here.
Unemployment and Disability Insurance
State Government
Federal Government
FICA
