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Personal Finance Exam Review Flashcards | StudBud
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Personal Finance Exam Review
Personal Finance Exam Review
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1
What is Opportunity Cost?
What happened in the past
What you recieved
What you are going to get
What you gave up
2
The total value of goods and services that a country produces is....
GDP
profit
concumers
services
3
The amount of income remaining after deductions
Gross Income
Income Tax
Net Income
Balance
4
When considering your financial situation, you should consider
Medium-term goals
Short-term goals
All of the above
Long-term goals
5
What are ethics?
The location of a market for max profit
The skin color of your employees
The amount of wealth a certain business owns
The rules/principals that define right/wrong actions
6
How old do you have to be to start estate planning?
25
20
18
21
7
the Internal Revenue Service (
IRS
) is a federal agency responsible for collecting taxes and enforcing tax laws.
True
False
8
Globalization is...?
Leaders of an extreme religious group
When a country imports more goods than it exports.
Countries that do not want to trade.
The exchange of goods, services, capital, people, information
9
Cost Benefit Analysis
The study of how people choose to use their limited resource
the study of the workings of the economy as a whole
motivates a person to take a particular course of action
comparing the costs with the benefits of that action
10
Tax- exempt income is?
None of the above
not subject to tax
will be taxed at a later date
only investable
11
A Municipal Bond is defined as
A high interest loan
A savings bond from the local or state government
A Savings bond from the Federal Government
A low interest loan
12
What is FDIC?
Federal Deposit Insurance Corporation
Foreign Domestic Insurance Corporation
All of the Above
Federal Deposit Incorporated Chain
13
What is annual expenses?
Expenses which occur monthly
Expenses which occur once a year, such as real state taxes
Expenses which only occur every other year
Expenses which occur weekly
14
When you request a "stop check payment" the bank is most likely to
charge you interest
charge a fee
return the check to you
disregard your request
15
Tax- deferred income is?
not subject to tax
None of the above
has had all its fur removed
will be taxed at a later date
16
Which financial institution protects individuals by insuring bank deposits?
LPM
FIS
SBA
FDIC
17
estate planning is ...
an annuity
an example of a living will
working during retirement
creating a detailed plan for managing personal assets
18
How do you calculate net income?
total revenue - total expenses
total Assets- total liabilities
total expenses - total revenue
19
Goods and services bought from other countries.
Tariff
Exports
Imports
Taxes
20
What are mutual funds?
Opposite from a stock
Close-ended fund
An agreement on a fund
An investment that takes money from multiple investors
21
How often are paycheck stubs provided?
Yearly
Every Pay Period
Quarterly
Every Other Pay Period
22
Total Revenue minus Total Expenses equals ...?
Net Income
Total Income
Fixed Cost
23
Discretionary expenses are things you can chose to live without
False
True
24
you should never keep track of your debts and personal finance
False
True
25
Define Liquidity.
Funds raised by companies through the sale of shares.
The access to funds to cover a shot-term cash need.
A charge on borrowed money.
Money.
26
Paying yourself first
putting part of your income in a cookie jar in your house for emergencies
putting part of your income in your wallet for discretionary spending
putting part of your income in your savings account
using part of your income to buy valuable items
27
What is the difference between goods and services?
Goods are tangible and services are intangible
Goods and services are the same things with different names
Goods are foods and services are drinks
Goods are intangibale and services are tangible
28
What does the term phishing mean?
Sending memes to your friends
A way to catch fish
Spamming someone
A way to steal someones information
29
Sam cashes his paycheck at a check cashing store. You advise him to go to his bank. Why?
They generally require a co-signer
They typically charge high fees
The size of the check he can cash might be limited
They might require a waiting period before giving cash
30
Beneficiary
someone entitled to money or property
someone entitled to money or property by a will
someone owning a piece of property or land in their name
both c and d
31
What is the benefit of automated bill payment from your bank account
never miss a payment
discount on payment
32
What is earned income?
Income from any work
Income from employment
Income from any source
Income from self-employment
33
What was the purpose of the Revenue Act of 1862?
To tax the building of railroads
To tax on the selling of property
To limit the production of cotton
Create an income tax in order to fund the Union effort
34
What is technology?
the application you can get at the office
the application of pure science
the application of science to help people
The application of technolgy
35
If the customer deposits $1000 into her checking account, the bank's
Assets and liabilities both rise by 1000
assets rise by $1000 and liabilities fall by $1000
Assets and liabilities both fall by $1000
assets fall by $1000 and liabilities rise by $1000
36
What is budgeting?
Financial management
Tracking income and expenditure
All of the above
A financial plan
37
A priority is
a board game
a level of importance
one of the worst goals you ever made
A grocery list
38
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the
State Banking Commission
Federal Reserve board
Federal Deposit Insurance Corporation. (FDIC).
US Treasury Department.
39
What is Net Income?
$45,000
$20,000
$35,000
$90,000
40
Financial trouble can be avoided by
Keeping debt under control
All of the above
Living within your means
Taking responsibility for our life
41
The Social Security Administration (SSA) is a program that
All of these
provides retirement benefits to workers and their survivors
provides disability benefits
require most recipients to contribute while they are working
42
What is the overtime pay rate?
Triple Pay
Bonus Pay
Time and a Half
Double Pay
43
Adjusted gross income =
Net Pay- Adjustments
Gross Income- Adjustments
Gross Income- Deductions
Net Pay- Deductions
44
What are fixed expenses?
Expenses only paid annually
Expenses only paid weekly
Expenses that vary from month to month
Expenses that do not vary from month to month
45
The Federal Reserve is the nation’s _____ bank.
first
only
oldest
central
46
What is marginal analysis?
The difference between total revenue and total cost
Cost and benefits of adding one unit of an input or good
The point at which a business is able to sell all its output
A tool used in finance to calculate interest rates
47
What is the idea of insurance?
To make you pay money
To lower risk
To make the others pay
None of the Above
48
All the things that can be used to make goods or services are...
producer
resources
market
demand
49
What is gross pay?
Pretty Nasty...
The earnings you get after deductions are made
The earnings you get before deductions are made
The average of all your earnings of that year
50
Unearned income is the result of
your investments
your home
your job
your children
51
Which financial product may pay a dividend?
Money market account
Savings account
Certificate of deposit
Common stock
52
Setting goals are important because they
All of these
help us manage our time and resources.
can serve as motivators.
increase our happiness.
53
FICA
responsible for collecting taxes
largest stock exchange
tax funds social security + medicare
regulates stock market
54
Philanthropy is ....?
Giving money to charity
When you receive money from fundraising
A study of feet
A type of dinosaur 🦕
55
What is Income Tax
A tax on wages, salaries, and self employment earnings
A tax on wages, food, living expenses
A tax on wages, property, and purchases
56
Treasury bonds are a form of corporate bonds.
True
False
57
The most important feature of a municipal bond is:
interest is not taxable
risk-free nature of this investment.
range of denominations and maturities.
58
A bank Certificate of Deposit allows you to
withdraw money from the plan at any time without a penalty
to earn lower interest rates than a regular savings account
can be purchased for 1/2 of the face value
to earn higher interest rates than a regular savings account
59
Whats another way of saying a trade off?
Benefit of trade
Opportunity cost
No-givesy-backsy
Just take my money
60
Consumers are buyers or users of goods and services.
False
True
61
Financial literacy is ...
having an accountant
Knowing key information and facts about money and ma=oney management
Being able to budget
Knowing all your account balances
62
What are entitlement programs?
programs providing job opportunities
policies that help those who don't need it
Gov. programs providing benefits to qualified individuals
title programs that benefit qualified individuals
63
This is something that you should do with every pay stub...
Check it for errors
Show you Mom and Dad
Throw it out
Cash it
64
When your estimated expenses are less than your actual expenses, the result is an unfavorable variance.
true
false
65
Buying and selling goods and services produces a strong
economy
ecosystem
entrepreneur
environment
66
A prolonged rise in goods and services is
Inflation
GDP
Incubator
Interest
67
Corporate, Federal Government, Municipal are examples of
mutual funds
brokerage firms
savings accounts
bonds
68
Is Personal Finance class a Graduation requirement?
True
False
69
Preferred stock is
None of the above
have fixed dividends & take priority over common stock
not sold on stock exchanges
never pays dividends
70
The collection of pay stubs,banking information, gifts and donations during the year
Public Storage
Check Book Register
Financial Record Keeping
71
Long-term Goals
when you have all of your hard assets in a trust
acheived when you manage your investments in a porfolio
using and investment group to manage you discretionary income
achieved over an extended period of time
72
Net Worth is ....?
Measure of financial wealth.
Obligation owed to others.
How worthy you are.
Measurement of how you spend.
73
a cash flow statement
shows you where you are going financially
shows your income and expenses
shows you were you are financially
helps you live within your means
74
SMART GOALS ARE...
Silly, musical, abstract, real, typical
Specific, measurable, attainable, relevant, time bound.
Specific, measurable, allowable, relative, timed
Sincere, managable, attainable, realistic, tested
75
Short-term Goals
occur only when you are payed every week
Seasonal work, such as working at FedX for the holidays
achieved over a period of time occurring in the year
contract length when working on a big project
76
What is Minimum wage?
nothing
the lowest wage of payment permitted by the government
blah blah blah
assistance to needy individuals and families
77
A recession occurs when?
Decrease of prices, and unemployment goes down
Prices of goods and services increase
period in which businesses recover from depression
Demand decreases-businesses slow production-unemployment up
78
Your bank balance does not match the BANK's record! What is the first thing that you should do
Adjust your balance to match the bank's balance
Notify the bank in writingto adjust the statement.
Determine that all checks a ready written have cleared
It's OK. Just keep writing checks
79
What is Identity Theft?
What happens to the people in invasion of the body snatcher
When someone clones you and tries to take over your life.
When someone steals and uses your personal information.
When someone else has the same name as you.
80
What are demographics?
statistics used to describe a group of people
using Twitter to describe a group of people
using Facebook to describe a group of people
using opinions to describe a group of people
81
A plastic card that is electronically connected to the cardholders bank account is
Electronic card
Credit card
Debit card
Plastic Card
82
Economic resources used to produce goods and services
Factors of Production
Resources
Economic System
Economics
83
The party responsible for reporting identity fraud is ______________ .
police
credit reporting agency
the victim
credit card company
84
Deposit occurs when you take money out of the bank
True
False
85
Which of the following things cannot be found on your pay stubs?
Gross Pay
FICA taxes
Yearly Salary
Employer Name
