Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?
A. When the interest on the loan is greater than the interest you get on your savings
B. When some clothes you like go on saleC. When you really need a two-week vacationD. When you need to buy a car to get a much
better paying job
Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?
A. When the interest on the loan is greater than the interest you get on your savings
B. When some clothes you like go on saleC. When you really need a two-week vacation
D. When you need to buy a car to get a much better paying job
Marie has just applied for a credit card. She is an 18 year old high school graduate with few valuable possessions and no credit history. If Maria is granted a credit card, which of the following is the most likely way that the credit card company will reduce ITS risk?A. It will start Marie out with a small line of credit to see
how she handles the account
B. It will charge Marie twice the finance charge rate it charges older cardholders
C. It will require Marie to have both parents co-sign for the card
D. It will make Marie’s parents pledge their home to repay Maria’s card debt
Marie has just applied for a credit card. She is an 18 year old high school graduate with few valuable possessions and no credit history. If Maria is granted a credit card, which of the following is the most likely way that the credit card company will reduce ITS risk?
A. It will start Marie out with a small line of credit to see how she handles the account
B. It will charge Marie twice the finance charge rate it charges older cardholders
C. It will require Marie to have both parents co-sign for the card
D. It will make Marie’s parents pledge their home to repay Maria’s card debt
Ron and Molly are the same age. At age 25 Rob began saving $2,000 a year while Molly saved nothing. At age 50, Molly realized that she needed money for retirement and started saving $4,000 per year while Rob kept saving $2,000. Now they are both 75. Who has the most money in his or her retirement account?
A. Molly, because she saved more each year
B. Ron, because he has put away more money
C. Ron, because his money has grown for a longer time at compound interest
D. They would each have the same amount because they put away exactly the same
Ron and Molly are the same age. At age 25 Rob began saving $2,000 a year while Molly saved nothing. At age 50, Molly realized that she needed money for retirement and started saving $4,000 per year while Rob kept saving $2,000. Now they are both 75. Who has the most money in his or her retirement account?
A. Molly, because she saved more each year
B. Ron, because he has put away more money
C. Ron, because his money has grown for a longer time at compound interest
D. They would each have the same amount because they put away exactly the same
If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?
A. You cannot earn interest until you pass your 18th birthday
B. Income tax may be charged on the interest if your income is high enough
C. Sales tax may be charged on the interest that you earn
D. Earnings from savings account interest may not be taxed
If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?
A. You cannot earn interest until you pass your 18th birthday
B. Income tax may be charged on the interest if your income is high enough
C. Sales tax may be charged on the interest that you earn
D. Earnings from savings account interest may not be taxed
Hector and Maria just had a baby. They received money as baby gifts and want to put it away for the baby’s education. Which of the following tends to have the highest growth over periods of time as long as 18 years?
A. A U.S. savings bond
B. stocks
C. A savings account
D. A checking account
Hector and Maria just had a baby. They received money as baby gifts and want to put it away for the baby’s education. Which of the following tends to have the highest growth over periods of time as long as 18 years?
A. A U.S. savings bond
B. stocks
C. A savings account
D. A checking account
Which of the following instruments is NOT typically associated with spending?
A. Credit card
B. cash
C. Certificate of deposit
D. Debit card
Which of the following instruments is NOT typically associated with spending?
A. Credit card
B. cash
C. Certificate of deposit
D. Debit card
Which of the following statements best describes your right to check your credit history for accuracy?
A. Your credit record can be checked at any time for free
B. If you are turned down for credit based on a credit history, the record can be checked for free
C. All credit records are the property of the U.S. government and access is only available to the FBI and Lenders
D. You cannot see your credit record
Which of the following statements best describes your right to check your credit history for accuracy?
A. Your credit record can be checked at any time for free
B. If you are turned down for credit based on a credit history, the record can be checked for
free
C. All credit records are the property of the U.S. government and access is only available to the FBI and Lenders
D. You cannot see your credit record
Many people put aside money to take care of unexpected expenses. If Susan and Joe have money put aside for emergencies, in which of the following forms would it be of LEAST benefit of them if they needed it right away?
A. Savings account
B. Invested in a down payment on the house
C. stocks
D. Checking account
Many people put aside money to take care of unexpected expenses. If Susan and Joe have money put aside for emergencies, in which of the following forms would it be of LEAST benefit of them if they needed it right away?
A. Savings account
B. Invested in a down payment on the house
C. stocks
D. Checking account
If you went to college and earned a 4 year degree, how much more money could you expect to earn then if you only had a high school diploma?
A. No more, I would make about the same either way
B. About 10 times as muchC. A lot more, about 70% moreD. A little more, about 20% more
If you went to college and earned a 4 year degree, how much more money could you expect to earn then if you only had a high school diploma?
A. No more, I would make about the same either way
B. About 10 times as muchC. A lot more, about 70% more
D. A little more, about 20% more
If your credit card is stolen and the thief runs up a total of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?
A. none
B. $50
C. $1,000
D. $500
If your credit card is stolen and the thief runs up a total of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?
A. none
B. $50
C. $1,000
D. $500
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years?
A. Older, working couples saving for retirement
B. Older people living on fixed retirement income
C. Young couples with no children who both work
D. Young working couples with children
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years?
A. Older, working couples saving for retirement
B. Older people living on fixed retirement income
C. Young couples with no children who both work
D. Young working couples with children
Your take home pay from your job is less than the total amount you earn. Which of the following best describes what is taken out of your total pay?
A. Federal income tax, property tax, and Medicare and social security contributions
B. Medicare and social security contributions
C. Federal income tax, and Medicare and social security contributions
D. Federal income tax, sales tax, and social security contributions
Your take home pay from your job is less than the total amount you earn. Which of the following best describes what is taken out of your total pay?
A. Federal income tax, property tax, and Medicare and social security contributions
B. Medicare and social security contributions
C. Federal income tax, and Medicare and social security contributions
D. Federal income tax, sales tax, and social security contributions
Which is a disadvantage of credit cards?
A. Card is big and heavy
B. High interest
C. It’s safer than cash
D. All of the above
Which is a disadvantage of credit cards?
A. Card is big and heavy
B. High interest
C. It’s safer than cash
D. All of the above
What is collateral?
A. A movie with Tom Cruise
B. A special type of credit card payment
C. Property that a creditor will take away if you do not make payments
D. A high interest rate
What is collateral?
A. A movie with Tom Cruise
B. A special type of credit card payment
C. Property that a creditor will take away if you do not make
payments
D. A high interest rate
Who is considered to be the Father of Linear Programming?
B. George Foreman
C. Curious George
The average debt in the American household is:
A. $2,000
B. $4,000
C. $7,600
D. $8,500
Who is a broker?
A. A person who lends money
B. A loan shark
C. A person who buys/sells stocks for others
D. A pawn shop owner
Who is a broker?
A. A person who lends money
B. A loan shark
C. A person who buys/sells stocks for others
D. A pawn shop owner
If I use my credit card and don’t pay my bill, I am:
A. Breaking the legal contract
B. stealing
C. Hurting my credit rating
D. All of the above
If I use my credit card and don’t pay my bill, I am:
A. Breaking the legal contract
B. stealing
C. Hurting my credit rating
D. All of the above
What is a bull market?
A. Market is going up
B. Market is going down
C. Market is going left
D. Market is staying the same
What is a bull market?
A. Market is going up
B. Market is going down
C. Market is going left
D. Market is staying the same
A young company with little or no history is known as:
A. Growth stock
B. Blue chip stock
C. Speculative stock
D. Cyclical stock
A young company with little or no history is known as:
A. Growth stock
B. Blue chip stock
C. Speculative stock
D. Cyclical stock
The basic reasons why people buy stock, include:
A. Earn dividends
B. Possible appreciation in the price
C. Both a and b
D. None of the above
The basic reasons why people buy stock, include:
A. Earn dividends
B. Possible appreciation in the price
C. Both a and b
D. None of the above
The stock exchanges in which stocks are traded, include:
A. NASDAQ
B. AMEX
C. NYSE
D. All of the above
The stock exchanges in which stocks are traded, include:
A. NASDAQ
B. AMEX
C. NYSE
D. All of the above
The total interest earned on $200 for two years at 3% (compounded annually) would be:
A. $6.00
B. $12.00
C. $6.18
D. $12.18
The total interest earned on $200 for two years at 3% (compounded annually) would be:
A. $6.00
B. $12.00
C. $6.18
D. $12.18
A company announces a 2-to-1 stock split. The split doubles the:
A. Number and value of the shares
B. Number of shares but does not affect the total value
C. Value of shares but does not affect their number
D. Number of stockholders
A company announces a 2-to-1 stock split. The split doubles the:
A. Number and value of the shares
B. Number of shares but does not affect the total value
C. Value of shares but does not affect their number
D. Number of stockholders
How long would it take you to double your money in account that paid 5% interest?
A. Need more information to figure out
B. 14.4 years
C. 6.9 years
D. 21.3 years
How long would it take you to double your money in account that paid 5% interest?
A. Need more information to figure out
B. 14.4 years
C. 6.9 years
D. 21.3 years
A growth stock:
A. Pays dividends
B. Has inconsistent or no earnings
C. Reinvests earnings into the company
D. Is well-established in the industry
A growth stock:
A. Pays dividends
B. Has inconsistent or no earnings
C. Reinvests earnings into the company
D. Is well-established in the industry
A check that cannot be covered by the funds in your account is known as a(n):
A. Canceled check
B. overdraft
C. Stop payment
D. float
A check that cannot be covered by the funds in your account is known as a(n):
A. Canceled check
B. overdraft
C. Stop payment
D. float
• How much you owe
• Based on your taxable income, you can find your tax liability up on the Tax Tables
• Incurred expenses that you can either deduct from your income or take to credit from your tax liability
• Tuition
• Childcare
• IRA contributions
W - 4
Paycheck
Paycheck
Paycheck
W - 2 1099
Interest & Dividends
TAX RETURN
Due April 15
LIFE OF A PAYCHECK
Deductions and Credits throughout
the year
1040A or 1040
The tax form used by most teenagers is the 1040:
A. EZ Form
B. Shorty Form
C. Cinchy Form
D. Dopey Form
The tax form used by most teenagers is the 1040:
A. EZ Form
B. Shorty Form
C. Cinchy Form
D. Dopey Form
If you rely on your parents for support, then you are considered a:
A. liability
B. boarder
C. dependent
D. delinquent
If you rely on your parents for support, then you are considered a:
A. liability
B. boarder
C. dependent
D. delinquent
If you didn’t pay tax last year, and you don’t expect to this year, you should claim ________ on yourW-4:
A. 0
B. 1
C. exempt
D. ignorant
If you didn’t pay tax last year, and you don’t expect to this year, you should claim ________ on yourW-4:
A. 0
B. 1
C. exempt
D. ignorant
The tax form used by most teenagers is the 1040:
A. EZ Form
B. Shorty Form
C. Cinchy Form
D. Dopey Form
The tax form used by most teenagers is the 1040:
A. EZ Form
B. Shorty Form
C. Cinchy Form
D. Dopey Form
If you rely on your parents for support, then you are considered a:
A. liability
B. boarder
C. dependent
D. delinquent
Which of the following abbreviations indicates a type of payroll tax?
A. FILA
B. FEMA
C. FICA
D. FIFA
Which of the following abbreviations indicates a type of payroll tax?
A. FILA
B. FEMA
C. FICA
D. FIFA
Your employer reports your total wages and tax withheld for the year on a _____ form:
A. W-4
B. W-2
C. Schedule A
D. 1099
Your employer reports your total wages and tax withheld for the year on a _____ form:
A. W-4
B. W-2
C. Schedule A
D. 1099
The amount of money left on your paycheck after all taxes are deducted is called:
A. gross income
B. net income
C. soft income
D. unearned income
The amount of money left on your paycheck after all taxes are deducted is called:
A. gross income
B. net income
C. soft income
D. unearned income
Which of the following circumstances would prevent you from using a 1040EZ form?
A. You received dividends of $10
B. You received savings account interest of $350
C. You received tips of $400 that were reported on your W-2
D. You had wages of $40,000
Which of the following circumstances would prevent you from using a 1040EZ form?
A. You received dividends of $10
B. You received savings account interest of $350
C. You received tips of $400 that were reported on your W-2
D. You had wages of $40,000
Which of the following is an unlawful purpose of a credit report? (a) mailing list
information, (b) credit application, (c) employment application, (d) insurance
Return to Board
Return to Board
As a credit card holder, which payment method is better: previous
balance or adjusted balance?
Return to Board
What is the monthly finance charge on a credit card with 18% APR and a $300 balance? (Simple Interest)
Return to Board
Rank these in order from best to worst finance charges: credit union,
pawn broker, bank, finance company
Which is NOT one of the 5 C’s of credit? (a) character, (b) capacity,
(c) cooperation, (d) collateral
Return to Board
What is the average credit card debt of a college student? An average
American household?
Return to Board