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Personal Finance-WISE Financial Literacy Review
Flashcards
40 cards
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Practice quiz
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Questions
40
Answers
1
Which charges the highest interest rate
Finance company
Credit union
Pawn shop
Bank
2
A form W-4,
assists employer in determining income tax to withhold
is filed with your income tax return
can never be changed
tells you how much wages you were paid
3
you have an auto loan with 60 months of equal monthly payments, you have
closed end credit
non-installment loan
balloon loan
an unsecured loan
4
you can withdraw $ from a Roth IRA tax free in each of the following instances except
you are 60 years old
unemployed
for college tuition
buying first house
5
A blank endorsement on a check
has no effect
restricts what you can do with check
creates a check that can be cashed by anyone
cancels the check
6
Common fees that may be charged by a depository institution include all EXCEPT
Overdraft fee
ATM fee
Late fee
Minimum balance fee
7
Easy to convert to cash
Rate of return
principal
liquid
Convertible
8
Your annual income is $60,000, you contributed $3000 to a traditional IRA, taxable income is
$3000
$57,000
0
63,000
9
Only people who own land and homes pay property tax
True
False
10
Not for profit, owned by members
Savings and Loan Association
Investment club
Credit Union
Commercial bank
11
Which is least liquid
CD
Money Market
Savings
Checking
12
Bankruptcy could remain on a credit report for
10 years
forever
3 years
until all debts are paid
13
The higher a persons debt ratio
the worse off financially the person is
the better off financially the person is
the less liquid assets the person has
the more liquid assets the person has
14
Your credit card number is stolen by someone online who uses it. Your potential liability is
unlimited
0
up to your credit limit
$50
15
A credit card finance charge is:
the cost of the items purchased
a service fee
the sales tax
the cost to use credit
16
Uncollaterized loan means
loan on life insurance policy
no co-signer
loan without assets to cover loan amount
home equity loan
17
Pam lost her debit card and didn't report it, if an unauthorized person uses it
she'll lose $50
no loss of funds
loss is limited only by amount in account
she'll lose $500
18
You lose your credit card, and don't report it and someone uses it, your liability is
0
the credit limit
$500
$50
19
A savings account earns the greatest amount of money when the interest is compounded
monthly
daily
yearly
quarterly
20
Which account is most liquid
Traditional IRA
Checking
CD
Savings
21
Which would be considered an employee benefit
monthly salary
travel opportunities
walking distance from home
paid sick leave
22
Someone who relies on a taxpayer for support is
a tax recipient
a beneficiary
a burden
a dependent
23
Account that requires you to keep a certain amount of money for a fixed period of time
IRA's
money market
Savings account
CD's
24
Payroll tax includes deductions for Social Security and Medicare program
True
False
25
Income tax is paid on only income earned through working for pay
True
False
26
Which typically pays the highest rate of interest
CD
Common stock
Savings
money market
27
When can a person view her credit report for free?
any time from all three major CRA's
once a year from the 3 major CRA's
only when applying for credit
once every 2 years
28
Travelers checks
are equivalent to credit cards
function as cash but are easily replaced if lost
are FDIC insured
are free at most banks
29
Saving deposit for retirement years , deposits not tax deductible, but withdrawals are tax free
CD
Burk IRA
Roth IRA
Traditional IRA
30
Medicare
is called the Affordable Healthcare Act
helps pay medical care expenses those with limited income
is the full employment for doctors act
helps pay medical expenses for elderly
31
If you deposit $10,000, the bank must notify
US Treasury
State Banking Commission
Federal Reserve
FDIC
32
When a person pawns a watch, the transaction is considered
a sales agreement
an unsecured loan
a collateralized loan
a custodial loan
33
Law which limits the interest rate charged by lenders are:
Retrointerest laws
Abeyance laws
Usury laws
Anti interest laws
34
The most secure method for an employer to pay employees is to use
direct deposit
printed paycheck
payroll card
in-store credit
35
Which is considered to be open-end credit
Lowes charge card
a car loan
a mortgage
installment loan
36
Net income is
pay before overtime added
pay after taxes
pay before taxes
non-taxable
37
New currency makes its way into the economy through the distribution system of the:
US Mint
Federal Reserve
Treasury dept
FDIC
38
Which is most liquid
Corporate bond
CD
Stock
Money market
39
You found incorrect information on you credit report. You can
not dispute negative information
tell creditor to remove false information
request credit bureau to correct information
void the credit report
40
Great for saving for retirement, no tax on $ deposited, only on withdrawal
traditional IRA
CD
Roth IRA
Money Market
