The government uses money collected from taxes to:

provide goods and services for the public

What is the relationship between risk and return?

The higher the risk, the higher the possible return.

Which of the following is true about saving and/or investing?

Savings are considered liquid and easily accessible

A pay period can be defined as a:

Schedule by which employers pay their employees

A person would choose to take an interest inventory test to:

learn about possible career areas related to one's interests

A dependent is a person who:

Relies on the taxpayer for financial support

An example of identity theft:

An individual uses another's personal info to open an account

Net pay can defined as the:

Actual amount of money received in the paycheck

Deductions taken from a person's paycheck include:

Federal withholding tax, state withholding tax, and FICA

A well written financial goal includes the following elements

Specific, measurable, attainable, realistic, and time bound

An advantage of using credit is:

Not having to carry large amounts of cash

What does Medicare fund?

The nations health care program for the elderly and disabled

Identify how a young adult can begin to establish a good credit rating.

Have a credit card they pay off each month, Have the telephone and utility bill in own name

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Duplicate of Financial Literacy WISE/Semester Test Review #2

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Review for the Semester/WISE Test #2

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Questions 28

Answers

1
The government uses money collected from taxes to:
establish food networks
finance the Internal Revenue Service
Encourage private enterprise
provide goods and services for the public
2
What is the relationship between risk and return?
There is no relationship between the two.
The higher the risk, the lower the possible return.
The lower the risk, the higher the possible return.
The higher the risk, the higher the possible return.
3
What is an example of non-installment, or open-ended credit?
Credit card
Mortgage
Student loans
Personal Loans
4
Tom has liability insurance for his truck. What does this cover if an accident is his fault?
Towing charges for his truck
Injuries to himself
Damages to his truck
Injuries to the other driver
5
Which of the following is true about saving and/or investing?
Investing allows people to have cash easily for emergencies
Savings cannot be converted into cash easily for emergencies
The money in both savings and investing is considered liquid
Savings are considered liquid and easily accessible
6
What is it called when an individual has more income than expense?
Deficit
Profit
Surplus
Revenue
7
Life insurance with no cash value, purchased as needed for a limited time.
Whole
Term
8
The government agency responsible for collecting federal taxes is the:
Internal Revenue Service
Social Security Office
The Justice System
United States Congress
9
Which of the following s a flexible (variable) expense?
Cable
Garbage bill
Loan payment
Eating out
10
If expenses were to exceed income on a budget, what is a financially smart solution?
Decrease expenses
Earn less income
Use a credit card more often
Increase purchases
11
A pay period can be defined as a:
Monthly schedule of work responsibilities
Day that the pay check is delivered
Schedule by which employers pay their employees
Length of working time that is actually taxed
12
A person would choose to take an interest inventory test to:
learn about available jobs in the area
learn about possible career areas related to one's interests
develop personal values and goals
build a personal inventory of household goods
13
A dependent is a person who:
Relies on the government for a Social Security benefit check
Depends on their job for financial support to pay bills
Pays the taxes for all the members of the family
Relies on the taxpayer for financial support
14
An example of identity theft:
An individual uses his/her parent's charge card to buy lunch
An individual uses another's personal info to open an account
An individual has the same name as another person
An individual tracks down a consumer who is behind on a bill
15
What is the initial amount of out of pocket expense called when an insurance claim is made?
Beneficiary
Deductible
Premium
Liability
16
The most secure method for an employer to pay employees is to use:
Printed paycheck
Payroll card
Direct deposit
In-store credit
17
Net pay can defined as the:
Actual amount of money received in the paycheck
Total amount of deductions withheld from the paycheck
Total amount of money earned before deductions are taken out
Length of time for which an employee's wages are calculated
18
Which of the following is a fixed expense?
Rent
Clothing
Entertainment
Food
19
What type of information is not found on a consumer's credit report?
Current and past addresses
Employment history
Public record
Personal medical information
20
What form is used to verify an employee's eligibility to work?
Form I-9
Medicare form
Form W-4
Form W-2
21
What form should an employer make available by January 31 for employees to complete their taxes
Form W-2 for the previous year
Medicare form for the current year
Form I-9 for the previous year
Form W-4 for the current year
22
Deductions taken from a person's paycheck include:
Progressive taxes, gross pay, and medical
Federal withholding tax, state withholding tax, and FICA
Net pay, FICA, and employee benefits
Regressive taxes, gross pay, and city withholding tax
23
A well written financial goal includes the following elements
Personal values, financial planning, direction, and action
Specific, measurable, attainable, realistic, and time bound
Specific, money, action, result, and time bound
Specific, measurable, action, realistic, and time bound
24
Two taxes that are included within the Federal Insurance Contribution Act (FICA) are:
Social Security and 401K
Social Security and Medicare
Federal and State income taxes
National health insurance and employment tax
25
An advantage of using credit is:
The increased cost of the purchase because of interest
The increase of being a victim of fraud or identity theft
Not having to carry large amounts of cash
The many forms of hidden fees on the credit card bill
26
What does Medicare fund?
The nation's retirement program for the elderly
The nations health care program for the elderly and disabled
The medical plan an employee receives from his/her employer
Government agency in each state which provide public assist
27
Identify how a young adult can begin to establish a good credit rating.
Have a credit card they pay off each month
Have the telephone and utility bill in own name
Maintain high balances on various credit cards
Nothing, a person begins with a good credit rating
28
When starting a new job, what form(s) must an employee complete to receive a paycheck?
Only a W-4
W-2 and I-9
W-4 and I-9
W-2 and W-4

Duplicate of Financial Literacy WISE/Semester Test Review #2 Flashcards | StudBud