Which statement is true?

Payroll taxes fund Social security & Medicare programs

Which statement is not true about interest earned on a depository institution Savings Tool?

When earning interest, look for low rates

A key difference between commercial banks & credit unions is:

Commercial are "for Profit" & CU are not

To calculate Net Worth, use what formula?

Assets - Liabilities = Net Worth

Which formula is correct for determining Net Gain or Net Loss?

Income - Expense = Net Gain/Loss

Maggie earns $62,000/yr w/ a NW of $20K. Sam earns $96,000 w/ a NW of $15K. Who is wealthier?

Maggie, b/c her NW is higher than Sam's

Property taxes do all EXCEPT:

Rate is set by the federal gov. to be equal in every state

studbud

Duplicate of Personal Finance Unit 2

19 termsStudBud Administration51 plays

Imported from external platform

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
The most secure way to be paid is:
Printed Check
Payroll Card
In-Store Credit
Direct Deposit
2
Common fees that may be charged by a depository institution include all EXCEPT:
ATM Fee
Overdraft Fee
Late Fee
Minimum Balance Fee
3
Which statement is true?
Payroll taxes are paid on both earned & unearned income
Amount of tax paid depends on diff. factors
Payroll taxes fund diff. operations of fed. gov.
Payroll taxes fund Social security & Medicare programs
4
What is the additional charge on a shirt purchased at a store?
Income tax on the shirt
Sales tax on the shirt
An excise tax on the shirt
Property tax on the shirt
5
Gross Income - Deductions =
Employee Benefits
Social Security
Net Income
Medicare
6
The regular schedule that employers pay their employees is called the:
Employee Benefits
Pay Period
Worker's compensation
Employer Contributions
7
Which statement is not true about interest earned on a depository institution Savings Tool?
Interest is the price paid for using someone else's money
When earning interest, look for low rates
Amount of interest earned or paid is determined by the rate
When paying interest, look for low rates
8
The ___ of continuing your education is the $ you would have earned if you have worked instead.
Debt-to-income ratio
Benefit
Total Estimated Cost
Opportunity Cost
9
Which of the following is not listed as an asset?
Market Value of car
Money in checking account
Money in future paychecks
Sports equipment
10
A key difference between commercial banks & credit unions is:
Commercial pay higher interest rate than CU
Commercial offer more services
CU located in rural areas & commercial are urban
Commercial are "for Profit" & CU are not
11
Which item should be included as a liability on a Statement of Financial Position?
Balance on a credit card
Market value of car
Combined total of savings & checking accounts
Value of retirement account
12
To calculate Net Worth, use what formula?
Assets - Liabilities = Net Worth
Assets + Liabilities = Net Worth
Assets / Liabilities = Net Worth
Assets x Liabilities = Net Worth
13
Which formula is correct for determining Net Gain or Net Loss?
Net Gain - Expense = Net Loss
Income - Expense = Net Gain/Loss
Income + Expenses = Net Gain/Loss
Expenses - Income = Net Gain/Loss
14
Who is Medicare designed to help?
Senior Citizens
Low Income Families
Single Parents
Children of unemployed parents
15
Maggie earns $62,000/yr w/ a NW of $20K. Sam earns $96,000 w/ a NW of $15K. Who is wealthier?
Maggie, b/c her income - her NW is smaller than Sam's
Sam, b/c her income is higher than Maggie's
Maggie, b/c her NW is higher than Sam's
Sam, b/c her income - her NW is larger than Maggie's
16
To increase net worth, you should?
Increase liabilities
Increase assets
Increase market value
Decrease assets
17
Property taxes do all EXCEPT:
Most often paid only once or twice a year
Charge by states or local government to pay for schools
Fee paid to license a car
Rate is set by the federal gov. to be equal in every state
18
David made a mistake in his account and spent $10 more than he had. He will be charged an:
Safe Deposit Fee
Overdraft Fee
Contact Fee
ATM Fee
19
Taxes charged on consumption items such as gas, hotels & airline tickets are called?
Property
Excise
Federal Use
Sales

Duplicate of Personal Finance Unit 2 Flashcards | StudBud