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Duplicate of Part 1 Financial Literacy Prep for Wise Test Flashcards | StudBud
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Duplicate of Part 1 Financial Literacy Prep for Wise Test
Duplicate of Part 1 Financial Literacy Prep for Wise Test
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Financial Literacy Review from Everfi
Flashcards
40 cards
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Practice quiz
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Host live
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Questions
40
Answers
1
Which of the following is an advantage of federal student loans?
federal student loans do not accumulate interest
federal student loans have a fixed rate
federal student loans must be paid back while in school
2
The main trade-off that all investors must consider is:
income vs cost
risk vs return
diversity vs uniformity
stocks vs bonds
3
What is the unauthorized use of a credit card?
using a stolen credit card at a store
using a credit card at a gas pump
using a credit card at the store
4
Pay that is fixed amount regardless of hours worked
Salary
Bonus
Tip
5
Someone gets your tax documents. If this person is not caught, you will likely be a victim of _
identity theft
murder
tax fraud
6
What is the best form of payment for a part-time employee at Best Buy?
Tip
Wages
Salary
Commission
7
PAYMENTS OR PROPERTY GIVEN TO PEOPLE OR INSTITUTIONS, WHICH DO NOT HAVE TO BE PAID BACK
BONDS
STOCK
GRANTS
8
Municipal bonds are exempt from federal taxes and state taxes
False
True
9
A business owned by a group of stockholders
Group of friends
Corporation
Sole proprietor
Partnership
10
What is a credit union?
Where ppl with bad credit acquire loans
Non-profit institution that is owned by its members
It's the same as a bank
11
The Federal Reserve System:
Is who you pay your taxes to
was created by Congress to provide a safer monetary sytem
is the central bank of the US
12
What is a mortgage?
a type of loan used to buy property
A type of rent used to pay for housing
a measure of the value of a home
a measure of your credit rating
13
Which of the following are costs associated with owning car?
Wear & tear fees
Insurance
Fuel
Repairs
14
What is a tax exemption?
Something ppl have to pay higher taxes than other citizens
Something claimed by an indv to reduce taxes
What you claim when you have a child
15
What is the best form of payment for a waitress at Applebee's?
salary
tip
wages
16
When buying stock in a company, you are:
loaning money to a company
investing in an index fund
buying a portion of the company
diversifying your portfolio
17
Which asset is more liquid?
money in a savings account
a house
money in a certificate of deposit
18
What is the safest way to dispose of old bank account statements?
Shred them in a paper shredder
Keep them bundled together in a folder
Throw them out in trash
Put them in the trash unopened
19
Which institutions give loans?
all
pawn shop
payday lender
credit union
20
An installment loan is:
a loan in which you make monthly payments
a loan from your mom that you will pay next month
a loan paid off in one lump sum
21
A business with co-owners, in which both parties are legally joined together
Sole proprietor
Entrepreneur
Cooperation
Partnership
22
What are pensions and 401ks?
Taxes you pay
Insurance you buy
Ways to save for retirement
23
It's best to start saving for retirement when you're about 15 years away from retirement
True
False
24
A Credit card is which of the following types of credit?
Closed End
Revolving
Flat
Open End
25
What is deflation?
The rate at which the general level of prices goes down
when the general level of prices goes up
When there is a reduction in the supply of money or credit
26
What form do you receive at the end of the year that shows the amount of money you have made?
W-4
None of the above
W-2
I-9
27
A list of steps needed to reach a career goal
Steps to success
Things needed to do
Plan of action
28
What is liquidity in business?
water
how quickly you can convert an asset to cash
money invested in a house
29
Which of the following are NOT deducted on a typical paystub:
Sales tax
Medicare tax
State Income Tax
Social security tax
30
Which of the following will charge the highest interest rate?
credit unions
pawn shops and payday lenders
Banks
31
What is a recession?
A period of time in which the economy goes up
A period of time in which the economy goes down
A period of prosperity
32
The best way to investigate fraudulent transactions on your credit card is to:
Review your recent credit card statement
Keep track of your monthly budget
Keep a copy of your bank statements in a safer place
Review all old bank statements
33
Municipal bonds are exempt from federal taxes and state taxes
True
False
34
It's important to reconcile your checking account to make sure of mistakes
False
True
35
Pay that is figured under hourly rate
Bonus
Wage
commission
36
The form you complete to determine how much tax to withhold from your paycheck is the_______.
W-4
W-2
1040 EZ
1099
37
Using the FAFSA form,you can apply for:
the federal work study program
federal student loans
both a and b
private loans
38
Jan pays $70 each month for her auto insurance policy.This regular payment is called a:
co-pay
premium
claim
deductible
39
When you purchase an item in a store, you may be charged__________.
property tax
income tax
capital gains tax
sales tax
40
Someone who organizes, manages, and assumes the risk of owning a business
Entrepreneur
Sole proprietorship
Partner
