Personal Finance Multiple Choice

Mike and Patty are saving monthly so they can buy a home, but they are currently renting an apartment. The apartment is part of . . . Their level of living
Financial objectives are rarely achieved without controlling . . . Spending
The preferred phase of the economic cycle is . . . Prosperity
Jim spend $300 some new clothes rather than using this money to going to his college team’s away game last weekend. The benefits of the trip are the _________ cost of buying the clothing Opportunity
Brice is going to purchase a flat screen TV. He has decided on everything except the size. The unit with the 42 inch screen costs $600 while the unit. with the 47 inch screen costs $750. What concept should he use? Marginal Cost
If you receive tax-sheltered income, it means that ? Taxes in income will be at a lower %
___________ interest can lead to gaining wealth faster and earning money off of prior interest Compound
Which of the following items would we as consumers like to see decrease? CPI
A standard workweek is . . . 40 hours
Rate times hours work is . . . Gross pay
A type of incentive pay based on quality of work done or years of service on the job is called a ? Profit sharing plan
An employment becomes ___________ after a specified period of employment, such as five years Vested
401(k) accounts for private employees and 403 (b) accounts for government employees are commonly called? Employee-sponsored retirement spending plans
If you are a salaried worker . . . Your gross pay is the same as your salary
In most cases, the amount of “take-home pay” and employee receives is . . . About 65 to 70 percent of gross pay
In a flexible-scheduling arrangement, the core time period is ? A crucial time of day when all employees must be working
Members of this type of union are skilled, semiskilled, or unskilled employees in a particular industry Industrial union
You must file your tax return by this date every years ? April 15th
Which of the following is an example of non-taxable income? Interest from savings
Your filing status in your tax return is based on ? Martial status
Which of the following is an example of flat tax? Property tax
In the US the power to impose federal taxes rests with ? Congress
The largest source of government revenue in the US is ? income tax
Which of the following is a type of audit? Field
Which of the following would be considered unearned income? Scholarships
What is your tax liability? Is the amount of total tax you owe on a year’s income
What is a tax credit? An amount subtracted directly from the tax owed
When preparing a budget, you need to focus mostly on your ? Disposable income
In a balanced budget . . . Expenses + savings = earnings + borrowing
Which of the following is a variable expense? Grocery bill
Which of the following would be considered an asset? Checking account
The IRS has the legal right to audit your tax returns and supporting records for _________ years from the date filing. 3
When one person makes an offer and another person changes it, the second person is . . . ? Making a counteroffer
Which of the following contracts must be signed to be legally binding? A contract involving the sale of a farmhouse
A person who creates and signs the promissory note and agrees to pay it on a certain date is called the ? Maker
When a check is returned to the payee’s bank due to insufficient funds, the check is said to have ? Bounced
When you open a checking account, most banks will require you to have an initial deposit of at least ? $50
Darren writes a check to the phone company for $45.60. He should record this amount in his checkbook register in the . . . ? Payment/Debit
A person or institution that manages property for the benefit of someone else under a special agreement is called a ? Trustee
A check written by a bank on its own funds is called a ? cashier’s check
You can authorize your employer to make automatic deductions from your paycheck each period with a ? Direct deposit
Savings accounts protected by the FDIC are protected from loss for up to ? $250,000
Savings and checking accounts at a credit union are usually called ? Share accounts
Which of the following is organized primarily to lend money for home mortgages? Savings and loan associations
Interest paid on the original principle plus accumulated interest is called ? Compound interest
Work-study programs allow students to earn money by working ? On campus
Subsidized student loans ? are guaranteed by the federal government
A typical down payment for a house is about ______ percent of the purchase price. 10 to 20
Which of the following would be considered a long-term need? Home ownership

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