Identify how a young adult can begin to establish a good credit rating.

Have the telephone and utility bill in own name

A pay period can be defined as a:

Schedule by which employers pay their employees

A well written financial goal includes the following elements

Specific, measurable, attainable, realistic, and time bound

What does Medicare fund?

The nations health care program for the elderly and disabled

What is the relationship between risk and return?

The higher the risk, the higher the possible return.

Deductions taken from a person's paycheck include:

Federal withholding tax, state withholding tax, and FICA

Which of the following is true about saving and/or investing?

Savings are considered liquid and easily accessible

The government uses money collected from taxes to:

provide goods and services for the public

The steps to a spending plan process include:

Set Goals, organize, decide, implement, control, evaluate

A person would choose to take an interest inventory test to:

learn about possible career areas related to one's interests

Net pay can defined as the:

Actual amount of money received in the paycheck

A dependent is a person who:

Relies on the taxpayer for financial support

An example of identity theft:

An individual uses another's personal info to open an acct.

An advantage of using credit is:

Not having to carry large amounts of cash

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Financial Literacy WISE/Semester Test Review #2

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Review for the Semester/WISE Test #2

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Questions 30

Answers

1
What is an example of non-installment credit?
Borrowing from a family member
None of the above
Credit card
Student loans
2
The most secure method for an employer to pay employees is to use:
Direct deposit
Printed paycheck
Payroll card
In-store credit
3
Identify how a young adult can begin to establish a good credit rating.
Keep high balances on various credit cards
Have the telephone and utility bill in own name
Pay off loans as desired, rather than quickly
Nothing, a person begins with a good credit rating
4
A pay period can be defined as a:
Length of working time that is actually taxed
Monthly schedule of work responsibilities
Day that the pay check is delivered
Schedule by which employers pay their employees
5
A well written financial goal includes the following elements
Specific, money, action, result, and time bound
Specific, measurable, action, realistic, and time bound
Personal values, financial planning, direction, and action
Specific, measurable, attainable, realistic, and time bound
6
What is it called when an individual has more income than expense?
Net gain
Net loss
Reveue
Profit
7
What is the initial amount of out of pocket expense called when an insurance claim is made?
Liability
Deductible
Beneficiary
Premium
8
Cost of living expenses include:
Gym membership
All of the above
Food
Concert tickets
9
Which of the following is a fixed expense?
Rent
Clothing
Entertainment
Food
10
What does Medicare fund?
The nations health care program for the elderly and disabled
The nation's retirement program for the elderly
The medical plan an employee receives from his/her employer
Government agency in each state which provide public assist
11
What is the relationship between risk and return?
There is no relationship between the two.
The higher the risk, the lower the possible return.
The higher the risk, the higher the possible return.
The lower the risk, the higher the possible return.
12
Deductions taken from a person's paycheck include:
Regressive taxes, gross pay, and city withholding tax
Net pay, FICA, and employee benefits
Progressive taxes, gross pay, and medical
Federal withholding tax, state withholding tax, and FICA
13
Which of the following is true about saving and/or investing?
Savings are considered liquid and easily accessible
Savings cannot be converted into cash easily for emergencies
The money in both savings and investing is considered liquid
Investing allows people to have cash easily for emergencies
14
The government agency responsible for collecting federal taxes is the:
Internal Revenue Service
Social Security Office
United States Congress
The Justice System
15
What type of information is not found on a consumer's credit report?
Public record
Employment history
Personal medical information
Current and past addresses
16
The government uses money collected from taxes to:
establish food networks
Encourage private enterprise
finance the Internal Revenue Service
provide goods and services for the public
17
The steps to a spending plan process include:
Specify, organize, measure, attain, realize, timing
Set Goals, organize, decide, implement, control, evaluate
Financial goals, organize, decide, compare, measure
Organize, setting goals, decide, implement, attain
18
What form is used to verify an employee's eligibility to work?
Form W-4
Form I-9
Medicare form
Form W-2
19
A person would choose to take an interest inventory test to:
build a personal inventory of household goods
learn about available jobs in the area
learn about possible career areas related to one's interests
develop personal values and goals
20
If expenses were to exceed income on a spending plan, what is a financially smart solution?
Increase purchases
Decrease expenses
Use a credit card more often
Earn less income
21
Tom has liability insurance for his truck. What does this cover if an accident is his fault?
Injuries to the other driver
Injuries to himself
Towing charges for his truck
Damages to his truck
22
What form should an employer make available by January 31 for employees to complete their taxes
Form W-4 for the current year
Form W-2 for the previous year
Medicare form for the current year
Form I-9 for the previous year
23
Net pay can defined as the:
Actual amount of money received in the paycheck
Total amount of money earned before deductions are taken out
Total amount of deductions withheld from the paycheck
Length of time for which an employee's wages are calculated
24
A dependent is a person who:
Depends on their job for financial support to pay bills
Pays the taxes for all the members of the family
Relies on the taxpayer for financial support
Relies on the government for a Social Security benefit check
25
When starting a new job, what form(s) must an employee complete to receive a paycheck?
W-2 and I-9
Only a W-4
W-4 and I-9
W-2 and W-4
26
Which of the following s a flexible (variable) expense?
Loan payment
Garbage bill
Cable
Eating out
27
An example of identity theft:
An individual uses another's personal info to open an acct.
An individual uses his/her parent's charge card to buy lunch
An individual has the same name as another person
An individual tracks down a consumer who is behind on a bill
28
Which of the following is a control method for spending plans?
Envelope system
Spending plan template
All of the above
Check register system
29
An advantage of using credit is:
Not having to carry large amounts of cash
The increase of being a victim of fraud or identity theft
The increased cost of the purchase because of interest
The many forms of hidden fees on the credit card bill
30
Two taxes that are included within the Federal Insurance Contribution Act (FICA) are:
Social Security and Medicare
Federal and State income taxes
National health insurance and employment tax
Social Security and 401K

Financial Literacy WISE/Semester Test Review #2 Flashcards | StudBud