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Financial Literacy - Final Review Flashcards | StudBud
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Financial Literacy - Final Review
Financial Literacy - Final Review
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A review of critical terms for the Financial Literacy final exam.
Flashcards
22 cards
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Practice quiz
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Questions
22
Answers
1
A monthly bank statement would show all of the following EXCEPT:
checks paid during the month
deposits made during the month
ATM withdrawals made during the month
your social security number
2
"Pay yourself first" means...
none of these is correct
write yourself a check each week for spending money
your budget should prioritize setting aside money for saving
set aside money in your budget for everything you want
3
Tax evasion is...
taking the maximum deductions against income allowed by law.
paying less than tax than you owe due to a mistake.
itemizing deductions on your personal tax return.
the willful failure to pay taxes you owe.
4
Stocks of large, well-established, profitable companies are referred to as...
income stocks
growth stocks
cyclical stocks
blue chip stocks
5
The amount lenders charge to use their money is...
an asset.
interest
an expense
profit
6
You buy lunch each day-it costs a different amount every day. Your lunch costs are a...
fixed expense.
discretionary expense.
long-term liability.
variable expense.
7
Reasons to check your credit report annually are...
to prevent identity theft
to ensure the recorded information is correct
it reduces your credit score
ensure credit will be available when you need it
8
Spreading risk by buying multiple stocks across different sectors is called...
fluctuation
investing
diversification
dollar-cost averaging
9
How well you manage your credit is measured by...
your FICO score
your income
your social security number
what kind of car you drive
10
The amount of time you are given by a lender to repay your loan (i.e. the life of the loan) is:
the amortization schedule
the payment period
the term
the principal
11
Earning interest on previously earned interest is called
amortization of principal
mortgage payment
depreciation
compund interest
12
If you lease a car you should expect to pay...
a down payment
both a security deposit and a down payment
a security deposit
a warranty surcharge fee
13
A loan to purchase real estate is a(n)...
mortgage
lease
bond
stock
14
Which of these do NOT impact your FICO score?
amount you owe lenders compared to your available credit
Length of time you've had credit
your gender
payment history
15
Costs you are obligated to pay at specific times, regardless of other events are:
fixed expenses
non-negotiable expenses
variable expenses
contractual expenses
16
Depreciation is...
Repossession of an asset
Foreclosure on real property
an increase in the value of an asset over time
a decrease in the value of an asset over time
17
A set amount that you may subtract from gross income (when calculating your income taxes) is...
taxable income.
the gross deduction.
the standard deduction.
net income.
18
The IRS is the...
Internal Revenue School
Internal Revenue Service
International Reorganization Service
International Revenue Statute
19
The IRS requires tax returns to be filed by this date each year.
April 15th
January 31st
March 31st
May 15th
20
If the IRS checks your tax return and has questions, you may undergo a(n)
itemized deduction
standard deduction
audit
appraisal
21
The amount of time before you have to make a payment on your credit card is called...
the payment waiver period
the grace period
the late fee
the loan term
22
When you take a loan, the amount that you borrow and that is outstanding at any time is...
interest.
principal.
the closing cost.
the term of the loan.
