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Personal Finance Unit Sp 21' Flashcards | StudBud
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Personal Finance Unit Sp 21'
When making a purchasing decision you should
Taxes pay for...
Personal Finance Unit Sp 21'
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Questions
30
Answers
1
Taxes pay for...
schools, police, road maintenance, and infrastructure
Banks
Credit Card balances
corporations, private businesses, recreation parks
2
When making a purchasing decision you should
Compare prices of similar items
Read reviews of the product
Wait until the product is on sale, if possible
All of the above
3
A W-2 tax form tells you
How much state income taxes have been deducted
How much you have earned in the last tax year
All of the above
How much federal income tax has been deducted
4
Other than necessities, what should you first consider when creating a budget?
Recreational Expenses
Recurring Expenses
Investments
Saving Accounts
5
In order to avoid over drafting your account, you should...
Ask your financial institution to notify you when your balance is low
Keep your own records to compare with your financial institution's records
Check your bank statement at the end of the beginning of the month
All of the above
6
Unexpected expenses...
None of the above
Can not be planned for
Only happen to those who are unprepared and unorgainzed
Don't affect your ability to pay bills
7
Insurance offers
protection from warranties
low insurance policies
protection from theft or damage after an unpredictable event
easy monthly payment options for premiums
8
Long term financial goals are best obtained by...
Saving money for a rainy day
Earning interest on a checking account
Investing in long term, low risk financial options
Playing the lottery
9
When creating a budget, you should consider
Potential tax increases
How much you will make in the next year
Which of your investments are going to pay off the greatest amount
Current and future goals
10
Having a good credit score...
gets you into the college of your choice
makes it easier to get an apartment
limits the options you have when considering a loan
prevents you from getting the lowest interest rate
11
Which of the following is NOT true of health insurance?
You pay all the costs for healthcare and medical emergencies
Provides protection from medical bankruptcy
Lowers your healthcare costs
If you don't have health issues you do not need insurance
12
Which of the following provides the most additional security like fraud protection?
Gift Card
Debit Card
Check Card
Credit Card
13
If you find a mistake with one of your accounts, you should...
contact your financial institution.
contact the IRS.
contact your parents.
contact the local authorities.
14
Everyday transactions are best managed using which type of account?
Savings Account
Money Market Account
Credit Account
Checking Account
15
Budgeting is beneficial in all of the following ways except
tracking how much your investments have gained or lost
keeping track of the money you receive
tracking your spending habits
keeping track of the money you receive
16
Which of the following is should NOT be purchased with a loan from a financial institution?
Paying for school tuition
Airline and hotel costs for spring break
Buying a home
Buying a vehicle
17
A deductible...
Is what you pay before taxes
Is the amount you owe after an accident
Is what you are responsible for paying before insurance
Is what the insurance company covers in the case of an unpredictable event
18
Which of the following is most likely to result in higher lifetime earnings?
Bachelor's Degree
High School Degree
A General Education Degree (GED)
A doctorate
19
An advantage of leasing a car vs. buying to own would be...
Unlimited ability to customize and make changes to the vehicle
Higher monthly payments
All of the above
Repairs are included in warranty
20
When purchasing an item, you should...
buy only sale items
buy the cheapest item available
compare the prices of similar items
None of the above
21
Owning stock is...
better than owning mutual funds
owning long term safe financial investments
owning a percentage of a company
low risk
22
The amount of money you're paid after all taxes and deductions are taken out of your check is also known as
Taxable Income
Net Pay
Overall income
Gross Pay
23
Insurance is important to have because
allows people to behave recklessly without fear of consequence
it protects individuals from financial loss after an unpredictable event
it won't protect individuals from property loss in the event of a disaster
All of the above
24
Which of the following are benefits to using credit cards for purchases?
Immediate financial returns
Low late fees
Establishing a good credit history
Higher interest rates
25
Which payment option takes money immediately from your account?
School loans
Credit Card
Writing a check
Debit Card
26
All of the following could be a possible tax or deduction on your paycheck except for
Stock market interest rates
FICA
Retirement Savings
Federal Income Tax
27
When considering a credit card, which of the following is not important to consider?
Annual Percentage Rates (APR)
Penalties and fees
Tax deductible contributions
Credit Limits
28
Wearing a seat belt, not texting and driving, following posted speed limits are examples of
Insurance policies
Deductibles
Warranties
Risk management strategies
29
Paying the minimum balance on a credit card will result in
Paying less in interest
Paying more in interest
Establishing good credit history
Delinquent payments
30
Which of the following is best used for tracking spending habits?
Using a banking app or program
Using a Spreadsheet
All of the above
Putting receipts into an envelope and monitoring your expenses
