General Financial Literacy Comprehensive Review

Question 1

A retirement plan where contributions are made with after tax money, aren't tax deductible & distributions are tax free.

Accepted Answer

Roth IRA

Question 2

Being paid or paying electronically via ACH (Automated Clearing House)

Accepted Answer

Direct Deposit or Direct Debit

Question 3

Signing with another person on a loan which you agree to make payment if the other person defaults.

Accepted Answer

Co-signers

Question 4

Interest paid or to be paid both on the principal and on accumulated interest.

Accepted Answer

Compound Interest

Question 5

A retirement plan established by employers for employees. Earnings accrue on a tax-deferred basis.

Accepted Answer

401K

Question 6

A loan that is repaid over time with a set number of scheduled payments.

Accepted Answer

Installment Loan

Question 7

An arrangement by which an organization provides a guarantee of coverage for specified loss, damage, illness, or death.

Accepted Answer

Insurance

Question 8

A long-lasting negative record on your credit report; these affect qualifying for loans/rates and last for 7-10 years

Accepted Answer

Derogatory Remarks (like a bankruptcy)

Question 9

Cost of Living

Accepted Answer

The financial ability to buy products or services

Question 10

Member-owned financial cooperative; created and operated by members & profits are shared by owners.

Accepted Answer

Credit Union

Question 11

An account in which an individual may set aside earned income in a tax-deferred savings plan for retirement.

Accepted Answer

IRA

Question 12

Outlines the earnings of an employee, the deductions made to wages, and the benefits paid by the employer.

Accepted Answer

Pay stub

Question 13

A form an employee completes so that the employer can withhold the correct federal income tax from your pay

Accepted Answer

W-4

Question 14

Employers must file this form with IRS and mail to each employee showing income tax & FICA taxes withheld.

Accepted Answer

W-2

Question 15

A brief written account of personal, educational and professional qualifications and experience.

Accepted Answer

Resume

Question 16

Idea that present money is worth more than the same amount in the future due to its potential earning capacity.

Accepted Answer

Time Value of Money (TVM)

Question 17

The federal individual income tax form.

Accepted Answer

1040

Question 18

Benefits:

Accepted Answer

Include various types of non-wage compensation provided to employees

Question 19

APR is

Accepted Answer

A calculation that considers certain fees in addition to interest

Question 20

Beneficiary

Accepted Answer

Person is expected to benefit from something, usually involving insurance.

Question 21

Used by an employee to show documentation to his/her employer to show their identity and authorization to work.

Accepted Answer

I-9

Question 22

Looking at different brands of a product or prices charged by different sellers before deciding what to buy.

Accepted Answer

Comparison Shopping

Question 23

Using online technologies such as PayPal, Apple Pay, Venmo to transfer money from one person to another person/business

Accepted Answer

Consumer to Consumer (C2C) or Consumer to Business (C2B) Payments

Question 24

Opportunity Cost

Accepted Answer

Costs associated with missed opportunities based on choices made.

Question 25

Entrepreneurship:

Accepted Answer

Develops, organizes and manages a business venture.

Question 26

The charge for borrowing money.

Accepted Answer

Interest

Question 27

Late Fee is

Accepted Answer

A fee paid for making a required minimum payment after the due date

Question 28

Tax-advantaged savings designed to encourage individuals to begin to save for the future costs of higher education.

Accepted Answer

529 Plan

Question 29

The largest total amount the insurance company will pay for covered losses.

Accepted Answer

Limits of Coverage

Question 30

Delayed Gratification is

Accepted Answer

Put off something pleasurable now in order to wait for something greater.

Question 31

Fees paid at the closing of a real estate transaction

Accepted Answer

Closing Costs

Question 32

Principal is:

Accepted Answer

The amount of money borrowed

Question 33

Purchasing Power

Accepted Answer

The financial ability to buy products or services

Question 34

Government agency that provides insurance guaranteeing the depositor's accounts in member banks up to $250K

Accepted Answer

FDIC

Question 35

Required payments governments that are used to provide public goods and services for the benefit of the community

Accepted Answer

Taxes

Question 36

Students applying for any federal financial aid must file this form as soon as possible. Determines student eligibility

Accepted Answer

FAFSA

Question 37

Federal agency that regulates and supervises federal credit unions. Guarantees the safety of each depositor up to $250K

Accepted Answer

NCUA

General Financial Literacy Comprehensive Review

Questions 37

General Financial Literacy Comprehensive Review

Questions 37