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Financial Literacy Final
Financial Literacy Final
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Financial Literacy Final
Flashcards
60 cards
F
Practice quiz
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Host live
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Questions
60
Answers
1
Another word for Debt?
Down Payment
Credit
Interest
Liability
2
Readily available cash.
Liability
Income
Interest
Liquidity
3
5th step in the financial decision-making process
Pick the best plan
Periodically evaluate your plan
Identify and evaluate options for accomplishing your goals
Revise your financial plan as necessary
4
First step in the financial decision making process.
Pick the best plan
Identify and evaluate options
Establish your financial goals
Periodically evaluate your plan
5
May be used to cover cash shortfalls.
Down Payment
Credit
Interest
Liability
6
Which of the following is NOT one of the three main credit bureaus?
Experian
CreditCheck
TransUnion
Equifax
7
Also known as FICA
Federal Income Taxes
Medicare and Social Security Taxes
Local Taxes
Real Estate Taxes
8
Tyra has to decide whether to work an extra shift or go to the concert? She is calculating her?
Credit
Assets
Financial Goals
Opportunity Cost
9
APR stands for?
Adjustable Percentage Rate
Annual Percentage Rate
Adjustable Policy Rider
Annual Positive Return
10
Stocks, bonds, mutual funds, and real estate are all common types of?
Liabilities
Liquid assets
Insurance
Investments
11
Third step in the financial decision-making process
Identify and evaluate options for accomplishing your goals
Periodically evaluate your plan
Pick the best plan
Evaluate your current financial position
12
The process of forecasting future expenses and incomes is called?
Budgeting
Personal Financial Planning
Equity Assessment
Liability Analysis
13
How many times a year can you receive a free copy of your credit report?
1
3
2
never, there is always a fee
14
An asset that has been pledged against loan repayment.
Collateral
Maturity Date
Down Payment
Prinicipal
15
The ______________ is the government body that enforces federal tax laws and collects the taxes
Bureau of Labor
United States Congress
Commerce Department
Internal Revenue Service (IRS)
16
Money that an individual spends is referred to as....
Cash Inflow
Cash Outflow
Investment
Liquidity
17
Net Worth is determined by subtracting an individual's liabilities from his or her?
Liquidity
Assets
Equity
Income
18
Something that an individual owes?
Interest
Liability
Asset
Income
19
Money coming in through wages earned or other sources?
Liability
Income
Asset
Equity
20
The total amount of money a worker earns in a pay period is his or her...
Net Pay
Adjusted Gross Income
Capital Gain
Gross Pay
21
Savings accounts, Scholarships, and jobs are all potential sources of?
Assets
Income
Expenses
Investments
22
Four Step in the financial decision-making process
Pick the best plan
Revise your financial plan as necessary
Periodically evaluate your plan
Identify and evaluate options for accomplishing your goals
23
Does not involve responsibility for keeping the car in perfect condition.
Advantages of Buying a Car
Advantages of Leasing a Car
24
Being able to list the car as one of your assets.
Advantage of Leasing a Car
Advantage of Buying a Car
25
Generally involves lower monthly payments.
Advantage of Buying a Car
Advantage of Leasing a Car
26
The initial loan amount?
Collateral
Maturity Date
Down Payment
Principal
27
Which of the following is LEAST likely to be part of an individual's financial forecast?
Income
Assets
Fixed Expenses
Variable Expenses
28
Final step in the financial decision-making process
Pick the best plan
Revise your financial plan as necessary
Periodically evaluate your plan
Establish your financial goals
29
A form summarizing all of your income and tax withholding information for the year
1040EZ
1040
1099-MISC
W2
30
Individuals with _______ credit scores get __________ interest rates on loans.
higher; lower
higher; higher
lower; standard
lower; lower
31
The Fair Credit Reporting Act is a federal law that...
Requires creditors to quickly correct any billing errors
Prohibits discrimination in obtaining a credit card
Only allows firms with a legal purpose to see your credit
Limits responsibility for purchases made on a stolen card
32
A charge on money borrowed?
Income
Asset
Interest
Liability
33
Which of the following is an example of a liquid asset?
Your leased car
Your Credit Card
Your checking and savings accounts
Your paycheck
34
Something that an individual owns?
Equity
Income
Asset
Interest
35
Which of the following is most important in creating a successful financial plan?
Establishing clear goals
Tolerating a high degree of risk
Reducing variable expenses
Focusing on long-term goals
36
Which of the following is NOT a type of insurance that people typically purchase?
Home Insurance
Car Insurance
Entertainment Insurance
Life Insurance
37
Insurance that covers you against any damage you do to the other people or their property.
Collateral
Principal
Secured
Liability
38
which of the following is the MOST important in calculating your credit score?
The length of your Credit History
The amounts you owe
The types of credit you use
Your Payment History
39
A charge on borrowed money.
Interest
Liability
Credit
Down Payment
40
Federal Social Security and Medicare withholding's are both...
Payroll Taxes
Capital Taxes
Sales Taxes
Real Estate Taxes
41
Financial goals that will take more than 5 years to accomplish are called?
Long-Term Goals
Short-Term Goals
Intermediate-Term Goals
Life-Long Goals
42
What are 3 advantages for using a credit card for purchases?
Wants, Eating Out, Buying Gifts
Emergencies, Convenience, On-line purchases
Clothes, Entertainment, Gas
43
Net Worth equation: Net Worth = Assets - Liabilities Azra has a $5000 car but still owes $1000
$2000
$3000
$4000
$1000
44
The purpose of a budget is to plan your spending, consider income, so that you can meet your?
Needs and Wants
Financial Goals
Immediate Needs
Long-term dreams
45
Second step in the financial decision-making process
Identify and evaluate options for accomplishing your goals
Establish your financial goals
Evaluate your current financial position
Pick the best plan
46
Which of the following is a long-term financial goal?
Buying a house
Taking a vacation
Creating an emergency fund
Buying a cell phone
47
When a loan will be completely paid off.
Principal
Cosigner
Down Payment
Maturity Date
48
A portion of the purchase price of an asset paid by the buyer with his own money
Cosigner
Down Payment
Principal
Collateral
49
Another word for ownership?
Liability
Interest
Income
Equity
50
Typically requires only a small down payment or no down payment.
Advantages of Leasing a Car
Advantages of Buying a Car
51
Your credit history is detailed in your...
Interest Rate
Credit Report
Credit Limit
Credit Score
52
Which of the following statements about accomplishing financial goals is true?
You can quickly achieve both short term and long term goals
There is usually a clear cut best way to reach your goals
Set one unrealistic goal to serve as motivation
There are multiple ways to reach your goals
53
A credit card company uses your income, debt, and credit record to calculate your...
Principal Limit
Credit Limit
Credit Rating
Installment Plan
54
Financial goals you plan on accomplishing within the next year are called?
Intermediate term Goals
Short-term Goals
Long-term Goals
Immediate Goals
55
The total amount of money a worker takes home in a pay period is his or her...
Adjusted Gross Income
Net Pay
Gross Pay
Capital Gain
56
Someone who agrees to repay the loan if the other individual quits making payments
Cosigner
Maturity Date
Collateral
Principal
57
When you ________ a car, you pay only for the use of the car for a period of time.
Take out a loan for
Insure
Make a down payment for
Lease
58
A portion of the cost of a major purchase needed to secure a loan.
Down Payment
Credit
Interest
Liability
59
An ____________ is anything that an individual spends money on.
Income
Expense
Risk
Liability
60
Installment loans typically require the borrower to make __________ payments
Annual
Daily
Weekly
Monthly
