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Financial Literacy Flashcards | StudBud
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Financial Literacy
Financial Literacy
46 terms
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Financial Management, Borrowing, Earning Power, Taxes and Investment
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1
An investment option provided to you by the government.
U.S. Savings Bond
Certificates of Deposit (CDs)
DRIP Stock
Direct Stock
2
Easy access to direct stock and DRIP investment plans.
Chase Bank
Computershare
Vanguard Investments
Morgan Stanley
3
This is your income after taking either the standard deduction or itemized deductions.
Adjusted Gross Income (AGI)
Gross Income
Taxable Income
Net Income
4
Which of the following is not a part of the DECIDE acronym for financial decision making?
evaluate the results
identify the cheapest option
define your financial goal
establish some criteria
5
Withdrawals from this account after retirement age can be made without paying taxes on them.
401 (k)
403 (b)
Roth IRA
Traditional IRA
6
Your income before adjustments, deductions and taxes.
Taxable Income
Adjusted Gross Income (AGI)
Gross Income
Net Income
7
A cash kick-back given to shareholders by a company in order to share the company's profits.
Interest
Capital Gain
Dividend
Annual Percentage Yield (APY)
8
Sales tax collected at a retail store is an example of this kind of tax.
Regressive Tax
Flat Tax
Capital Gains Tax
Progressive Tax
9
Who is allowed to review your credit report without your permission?
your doctor
your parents after you are 18 years old
your employer
an automobile dealer with whom you are setting up a car loan
10
Your tax dollars are used for all of the following except...
Infrastructure
Education
Emergency Services
Mortgage Payments
11
A loan with monthly payments structured to pay the loan off in full by the end of its duration.
Amortized Loan
Short-Term Loan
Hard Loans
Line of Credit
12
Which one of the following accounts is not tax-deferred?
ROTH IRA
403 (b)
Traditional IRA
401 (k)
13
A good guideline for the maximum amount you should owe each month in loan payments.
10% of your monthly net income
10% of your monthly gross income
20% of your monthly net income
20% of your monthly gross income
14
Guaranteed to double in value from their issue price after a period of 20 years.
U.S. Savings Bonds
Mutual Fund Purchases
Shares of Stock
Certificates of Deposit (CDs)
15
An investment with fixed earnings and a fixed maturity date.
Direct Stock
Certificate of Deposit (CD)
Mutual Fund
DRIP Stock
16
Which of the following is part of a typical spending plan?
Income
Expenses
All of These
Goals
17
As a general rule, how often should a spending plan be re-evaluated and adjusted?
Monthly
Never
Once or Twice Per Year
Weekly
18
Who should report identity fraud?
the company that accepted a stolen credit card
the victim of the fraud
the police
credit reporting agencies
19
Maximum annual contributions to an IRA (Traditional or ROTH) for the year 2019.
$19,000
$8,000
$6,000
$12,000
20
How often can you request a free credit report from each of the credit reporting agencies?
never
monthly
twice per year
once per year
21
Payments made to a bank in return for them letting you borrow money.
Capital Gains
Earnings
Taxes
Interest
22
Which expenses should be left out of a spending plan?
Variable Expenses
Fixed Expenses
None of These
Periodic Expenses
23
Combination of stocks a broker will invest in for you to help you diversify within one account.
Mutual Fund
Direct Stock
DRIP Stock
U.S. Savings Bond
24
A stock purchasing plan that lets you buy stock without going through a broker.
Money Market Account
DRIP Stock
Mutual Fund
Direct Stock
25
Which of the following is not part of the SMART goal acronym?
Realistic
Attainable
Measurable
Specific
26
Which account typically gives you the highest interest rate, or APY (annual percentage yield)?
checking account
savings account
debit account
money market account (MMA)
27
Which of the following agencies provides free credit reports for consumers
TransUnion
All of These
Equifax
Experian
28
This is an employer-sponsored retirement account for a not-for-profit organization.
Traditional IRA
401 (k)
Roth IRA
403 (b)
29
This is your income after making adjustments for things such as retirement plan contributions.
Taxable Income
Net Income
Adjusted Gross Income
Gross Income
30
An investment plan that lets you defer taxes on dividends by reinvesting them in the company.
Direct Stock
DRIP Stock
Money Market Account
Mutual Fund
31
Your take-home pay. What you actually earn after all taxes have been paid.
Adjusted Gross Income (AGI)
Taxable Income
Net Income
Gross Income
32
FICA tax rate for 2019.
2.75%
20%
7.65%
10%
33
Typically, the largest percentage of your tax dollars go here.
FICA
Federal Government
State Government
Unemployment and Disability Insurance
34
Money rewarded to you by the bank in return for letting them lend your money out.
Dividends
Capital Gains
Interest
Certificate of Deposit (CD)
35
Tax brackets are a way of levying this kind of tax.
regressive tax
flat tax
progressive tax
proportional tax
36
Which of the following can impact your credit score?
checking your credit score
getting bonus pay from your employer
paying cash for a used car
making a late car loan payment
37
A good guideline for the maximum total debt you should carry.
10% of your gross income
20% of your net income
10% of your net income
20% of your gross income
38
Which of the following is not a type of credit?
Credit Card
Car Registration
Phone Service
Car Loan
39
I can contribute to both an IRA and an employer-sponsored retirement account.
It depends...
Pick this if you have no idea...
True
False
40
Earnings you receive due to your shares of stock growing in value as the company itself grows.
Capital Gains
Annual Percentage Yield (APY)
Interest
Dividends
41
Money taken out of your paycheck by your employer as an approximation of the taxes you'll owe.
Deductions
Contributions
Interest
Withholding
42
Maximum annual employee contributions to an employer-sponsored retirement account as of 2019.
$19,000
$8,000
$6,000
$12,000
43
Buffers the effect of taking losses in the stock market from "buying high" or "selling low".
Low APY
High-Risk Stocks
Dollar-Cost-Averaging
20-Year CD
44
This type of account will often give you zero earnings.
Savings Account
Checking Account
Direct Stock Account
Money Market Account (MMA)
45
Which of the following is not something you should be prepared to provide when getting a loan?
your rental or mortgage payments
your social security number
your medical history
your annual or monthly income
46
Social Security and Medicare payments fall into this tax category.
FICA
Local Taxes
Federal Taxes
State Taxes
