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Fin Lit 2 Final Flashcards | StudBud
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Fin Lit 2 Final
Fin Lit 2 Final
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Financial Literacy Final Exam Review
Flashcards
23 cards
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Practice quiz
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Questions
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Answers
1
Retirement income paid by a company is called:
Social Security
Rents and Profits
Pension
401k
2
Which of the following is true about health insurance coverage?
as long as you live at home you are covered by parents'
you're covered by parents' until marriage
if your parents become unemployed, you lose insurance
young people don't need it
3
Lindsay is saving for college next year, which of the following is the safest place for her $?
a bank savings account
corporate bonds
stocks
locked in her closet at home
4
Which of the following best describes the primary sources of income for most people age 20-35?
profits from business
salaries, wages, tips
dividends and interest
rents
5
Doug must borrow $12,000 to complete education. Which would NOT reduce the loan rate?
if his parents cosigned the loan
additional mortgage on house
loan insured by the Federal Gov't
going to a state college instead of private
6
Which of the following is NOT typically associated with spending?
Debit card
Certificate of deposit
Cash
Credit card
7
If you have a savings account, will it be taxed?
you can't earn interest until you turn 18
they may not be taxed
sales tax will
income tax may be charged if it is high enough
8
Kelly & Pete want to save money for their baby. Which will have the highest growth (18 years)?
A savings account
U.S. Gov't saving bond
stocks
a checking account
9
Which of the following is NOT true about most ATM cards?
you can obtain info about your bank balance
you must have a bank account to have an ATM card
you can get cash anywhere with no fee
you can get cash 24 hours-a-day
10
Inflation would cause the most difficulty for which of the following?
older, working couple saving for retirement
young couple, no children, both work
older people living on fixed retirement income
young couple with children, both work
11
Mike & Dave work together. Dave spends free time having fun. Mike takes work related classes.
Dave will more more (bc he is more social)
Mike will make more money (bc he's more valuable)
Mike & Dave will continue to make the same
Dave will make more bc Mike is likely to be laid off
12
If your credit card is stolen & is charged $1,000, what is the most you'd have to pay?
$50
nothing
$1,000
$500
13
If you caused an accident, which type of auto insurance would cover damage to your own car?
Term
Comprehensive
Liability
Collision
14
Which of the following will most likely result in paying the GREATEST finance charges per year?
pay bill in full shortly after receiving it
pay at least minimum, more when you have it
generally pay in full, occasionally only the minimum
only pay minimum
15
Which best describes your right to check your credit history for accuracy?
you cannot see your credit record
can only check it if you've been denied based on history
never!
can check once a year for free
16
Karen applied for her first credit card, what is likely to happen?
it will start with a small line of credit
it will make her parents pledge to repay her debt
it will require both parents to cosign
it will charge twice the finance charge rate
17
In college Maria made $20,000 per year. Now Maria makes $40,000. What will she pay in Federal?
be lower than when she was in college
double, at least
stay the same
go up a little
18
Which of the following would be least useful if emergency money is needed?
Checking Account
Invested in a down payment on the house
Stocks
Savings Account
19
A factory is in a state with high business taxes. What is likely to happen?
employees will get raises to offset high taxes
more businesses will move to this high-tax state
the high taxes won't have any impact on this job
the company will move to a lower-tax state, threatening jobs
20
Of the following, who would need the greatest amount of life insurance?
elderly, retired couple
young, single, no children
young, single, 2 children
young, married man, no children
21
When is it beneficial to borrow money to buy something today and pay for it later?
When clothes you like go on sale
when interest on loan is greater than interest on savings
when you really need a vacation
when you need to buy a car to get a much better paying job
22
What is taken out of each paycheck?
social security, medicare
federal income tax, sales tax, social security
fed income tax, property tax, medicare, social security
Federal income tax, social security, medicare
23
Which of the following is true about sales tax?
You don't have to pay it if income is very low
the national sales tax rate is 6%
it makes things more expensive to buy
the federal gov't will deduct it from your paycheck
