stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
W!SE Financial Literacy Review Flashcards | StudBud
Explore
/
W!SE Financial Literacy Review
Insurance is purchased for
To determine a person's weekly net pay
W!SE Financial Literacy Review
50 terms
·
StudBud Administration
·
49 plays
Imported from external platform
Flashcards
50 cards
F
Practice quiz
P
Host live
L
Questions
50
Answers
1
To determine a person's weekly net pay
divide annual gross salary by 52
subtract payroll deductions from weekly gross pay
multiple the number of hours worked by the rate of pay
add payroll taxes and benefits
2
Insurance is purchased for
protection against capital gains
protection against loss
large purchases over $1,000
a higher credit score
3
Savings and checking accounts are known for being
interest bearing
liquid
non interest bearing
non-liquid
4
A benefit of a ROTH IRA is
money can be with drawn tax free after age 59 1/2
money can be with drawn after age 59 1/2 , report it on your tax return
your employers contributes
rule of 72 applies
5
finance companies that charge high interest rates and high fees, aren't interested if you can pay are called
phishing
loan refinance
loan consolidation
predatory lending
6
Which taxes are voluntary
Federal Income Tax
State Income Tax
FICA Taxes
401(k)
7
Emergency savings accounts should be at least
6-12 months of living expenses
3 months of living expenses
15 months of living expenses
12 months of living expenses
8
You can't retire because
didn't save enough through 401k or Roth IRA's
rate of inflation increased
Social Security on pays for the first 5 years of retirement
rate of inflation decreased
9
When stock sold for a profit, you should know
capital gain is deducted to your
capital loss is reported to the IRS as income on your taxes
capital gain is reported to the IRS as income on your taxes
capital gain is added to your assets
10
SMART financial goals are
terrific
materialistic
specific
artistic
11
A credit score is NOT determined by
How much you owe creditors
How many credit cards you have
How often you pay your bills on time
How much life insurance you have
12
If you are selling an item to a stranger, what type of payment will be guaranteed?
Gift Card
Bank check
Personal Check
Credit Card
13
If you want to submit a claim for your renter's insurance, it should be for
car accident
only if your rent exceeds $750
monthly rent
someone stole something from your apartment
14
When a check is made out to cash
checks can't be cashed over 14 days
you can cash it at a check cashing place
if lost, anyone can cash it
the check can only be deposited in savings
15
A financially literate person will
only buy brand named products
never borrow money under any circumstances
know the difference between wants and needs
keep all savings in a checking account
16
If a person repays a loan earlier than required, the person
increases the loan principle
guaranteed a loan in the future
gets a higher interest rate on savings
saves on interest charges
17
Bonds are issued so the lenders can
issued without interest
lend money to investors
borrow money from investors
encourage savings
18
The reason for having a will is
lower the cost of premiums on life insurance policies
distribute the assets when the person dies
diversify the person's investment policy
prevent the person from losing personal property
19
Stocks decrease in value when
profits increase
new products are developed
company goes out of business
last product was very successful
20
FDIC banks
cover loans up to $250,000
cover savings accounts up to $250,000
cover credit card purchases up to $250,000
cover mortgages up to $250,000
21
Your ability to earn a high salary depends on
knowledge of Microsoft Suite
your education and skills
how long you work
knowledge of the code of ethics at the company
22
A very risky stock is called
stock option
guaranteed to pay dividends
speculative stock
a secured investment
23
Bankruptcy is declared if
you can't afford to pay off what you owe
you have too many assets and not enough liabilities
you can't use your credit cards
to improve your credit score
24
Every time you visit a doctor, your insurance company requires you to pay
a deductible
a premium
a finance charge
a co-pay
25
An owner of common stock
has no risk with the purchase
is an owner in the company
gets to work for the company for owning the stocks
has guaranteed interest
26
Overdraft protection
protects checking account if the account is overdrawn
protects checking account if the account is underdrawn
protects your credit card purchases
protects your loans if you can't pay
27
How do you increase net worth
increase expenses
reduce debts
borrow money to buy a house
reduce your food budget
28
Lottery winnings are
taxable
are given by the FED (Federal Reserve)
given in cash
not taxable
29
5 year Term life insurance is
equals 5 years of the persons salary
$5,000 given when the person dies
for people dying after 5 years
given if the person dies during the 5 years
30
When Co-signing a loan
you can take collateral from the person if they don't pay
none of these answers are correct
your credit is checked before you can co-sign
you are not responsible if the person doesn't pay
31
The purpose of investing is to
increase wealth over time
increase high rate of return
decrease wealth over time
balance a budget
32
When determining whether free checking is worth it, you should
determine if the fees outways the interest
determine how long the minimum needs to stay in the account
determine if it comes with free checks
determine if you need the minimum balance
33
The longer it takes to pay off a loan, the less interest you pay
True
False
34
Which part of a financial aid package has to be repaid?
loans
work study
scholarships
grant
35
Banks make money by
increasing interest rates
lending less money to businesses
making loans to businesses and people and charging interest
only lending to people with credit scores above 700
36
Diversified portfolios
tolerate risk
avoid risk
decrease risk
increase risk
37
You should check your credit report to ensure
your credit score is correct
your collateral is listed
your information is correct
your assets are listed
38
If purchasing a store gift cards, you should know
if you need insurance to cover the card if lost or stolen
If there are fees
if it expires in one year
that you can exhange the gift card for cash
39
There is some risk when investing in stocks and bonds
False
True
40
Which of the following is a fixed budget item?
gas for car
housing
clothing
food
41
If your debit card is lost or stolen,
you need to report it to the bank
doesn't need to be reported
you need to report it to the banking commission
you need to report it on your tax return
42
Taking out a loan is ok if
to cover an unexpected medical expense
to cover your mortgage
you need a new phone
you need to go on vacation
43
You can use the following insurance if you pay for it and you have an illness or injury
life
collision
comprehensive
disability
44
If you combine all your loans into one payment, it is called
equity loan
consolidated loan
collateteralized loan
mortgage loan
45
The larger your down payment on your mortgage, the
the smaller your home owners insurance
larger your monthly payment
the larger your homeowners insurance
smaller your monthly payment
46
ATM charge a fee if
you withdraw more than $100
none of these anwers are correct
You withdraw at a place that's not your bank
you withdraw more than $500
47
Budgets should be prepared and used for
credit reports
to get a raise
not spending more than you can afford
spending more than you can afford
48
Money grows faster if it is compounded
quarterly
yearly
daily
frequently
49
What reason would your car insurance increase
you live in a low crime area
your 25 years old with no accidents or tickets
you drive a white car
you live in a high crime area
50
When you buy a Certificate of deposit (CD), you should understand
you are a shareholder
you gets penalized if you take the money out before the stated date
you earn dividends
the money is available immediately
