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