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