Money that is paid for a stock doing well.

The primary purpose of taxes is to

Provide services that improve the quality of life, Provide goods and services that we cannot afford ourselves

W2 forms are used by:

individuals to use when filing taxes.

Which statement is true about debit and credit cards?

Debit cards withdraw money directly from a bank account; credit cards don't

often place a burden on the poor

Everyone pays the same percentage of taxes

A checking account is best used for...

Storing money to spend, Placing money you earn

Compared to a savings account, a checking accounts are best for:

Depositing money to use for daily purchases.

money paid when making purchases

Certificates of Deposit:

Are good/safe short-term investments if you have extra savings

taxes the rich more than the poor

What is a Large Cap Stock?

Long term investment designed to make money over time

A progressive tax means...

People who make more pay a higher percentage of taxes

Stock ticker symbols are...

Letter codes that represent a company on stock exchanges

Which of these is a consequence of poor credit score?

Unable to secure a loan, Unable to get car finance, Unable to get a mortgage, Unable to get a contract phone

Definition: What is investing?

To buy an asset that will increase in value later.

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Motu's Personal Finance Unit 4 Test Review

40 termsStudBud Administration82 plays

This is for a unit on personal finance in an economics class.

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Questions 40

Answers

1
FICA includes taxes to pay for
medicare and worker's compensation
Social Security and unemployment
Social Security and Medicare
unemployment and medicare
2
What is a dividend?
Interest on a loan
Money that is paid for a stock doing well.
Profit from a special interest group
An incentive
3
This is a positive feeling you get for doing an action or purchase.
Incentive
emotional response
Group share
Opportunity Cost
4
what is a result of poor credit management?
loss of property
loss of jobs
all of the above
loss of money
5
The primary purpose of taxes is to
Allow people to have free goods/services
Provide services that improve the quality of life
Take money from one group to give to another
Provide goods and services that we cannot afford ourselves
6
A flat tax is a ________ tax
Proportional
Sin
Progressive
Regressive
7
An interest rate is applied to all of the following accounts except...
Car loans
Credit cards
0% APR loans
Mortgage Loans
8
How many W2 tax forms will you get if you worked three jobs in 2024?
4
2
3
1
9
W2 forms are used by:
individuals to use when filing taxes.
credit card companies when charging interest.
IRS to know how much to give you for a tax refund
employers to know how much taxes to deduct from your check.
10
Income Tax
Tax you pay on money you make.
Money you spend.
Tax on the cost of items and services.
Tax on your paycheck.
11
Which statement is true about debit and credit cards?
More businesses accept credit cards than debit cards
Credit cards withdraw money directly from a bank account; debit cards don't
You get a monthly statement for a credit card, but not for a debit card
Debit cards withdraw money directly from a bank account; credit cards don't
12
What does not count in credit scores?
Age, gender, income
rent or own a shelter
jobless or job (full)
All of the above
13
Having a diversified portfolio is the best way to be sure you make profit.
True
False
14
Credit cards usually carry very high _____________.
monthly statements
interest rates
credit scores
backpacks
15
Sales tax is _________________ to the price of the items being purchased.
added
subtracted
16
Regressive taxes
main type - income taxes
place an equal burden on all taxpayers
main type - property taxes
often place a burden on the poor
17
A flat tax means...
Everyone pays the same dollar amount of taxes
The poor pay a lower percentage of taxes
The rich pay a higher percentage of taxes
Everyone pays the same percentage of taxes
18
What does APR stand for?
Annual Percentage of your retirement
Annual Percentage Rate
Annual Percentage refund
Attire Products refund
19
Which stock is a safer bet to invest in?
Growth stock
Large Cap
dividends
Income stock
20
All of the following are incentives except for...
Feeling happy
Jail Time
feeling generous
Peer Pressure
21
The deadline for mailing out W2 forms to employees is:
January 30
January 15
January 31
22
A checking account is best used for...
Storing money to spend
Investing money
Saving money
Placing money you earn
23
Compared to a savings account, a checking accounts are best for:
Depositing money to use for daily purchases.
Investing money
Saving money for retirement.
Minors and young adults.
24
This is a market where you can buy and share parts of a company among many investors.
Stock Market
Public Ownership
Shareable funds
Stackable funds
25
Sales tax is...
when something is on sale
when you buy property
money paid from a persons paycheck
money paid when making purchases
26
Credit cards are considered "revolving credit".
true
false
27
Certificates of Deposit:
Are good/safe short-term investments if you have extra savings
Usually only require a $5 investment
Can only be done if you have a credit card
Are a good idea if you have no money
28
This account will allow you to take money out a fixed number of times a year.
Certificate of Deposit
Savings account
Stock Market
Money Market
29
How is your credit score calculated?
Paying on time
Amount of money you owe
New credit applications
All of the following
30
By paying the minimum amount on a credit card balance, what are you ensuring?
You will pay a lot of interest in the long run
all of following
building up your credit score
The loan will take long time to pay off
31
All of the following are counted in a credit score EXCEPT...
New Credit applications
On time payments
Age
Length of credit history
32
How can you make money on stocks?
Interest
A sale for profit
Holding the stock at least 3 years
Dividends
33
When is the last day you can send in federal income tax forms?
May 1
The first Tuesday in November
March 15
April 15
34
A progressive tax
taxes the poor more than the rich
taxes seniors more than freshmen
taxes the rich more than the elderly
taxes the rich more than the poor
35
The primary form you need when filing your tax returns:
5150
1040
OU812
1099 OMG
36
What is a Large Cap Stock?
Short term investment designed to pay off as business grows
Long term investment designed to make money over time
Long term pay out designed to pay off as business grows
Found in a Certificate of Deposit
37
A progressive tax means...
People who make less money pay a higher percentage of taxes
Everyone pays the same dollar amount on taxes
People who make more pay a higher percentage of taxes
Everyone pays the same percentage on taxes
38
Stock ticker symbols are...
A kind of clock
Similar to a fungus Emmanuel plans to destroy the world with.
Not important to know
Letter codes that represent a company on stock exchanges
39
Which of these is a consequence of poor credit score?
Unable to secure a loan
Unable to get car finance
Unable to get a mortgage
Unable to get a contract phone
40
Definition: What is investing?
To purchase an asset that will depreciate as time goes on.
To buy an asset that will increase in value later.
To participate in an illegal drug operation.
To purchase an asset to keep.

Motu's Personal Finance Unit 4 Test Review Flashcards | StudBud