FBLA Personal Finance Study Guide

In the case of a savings account what is the principal? The amount of money you deposit
The Federal Reserve System is The central banking system of the United States
The rise in the level of prices for goods and services is Inflation
The ways in which groups of people change over time Demographic trends
When considering a job offer what factors should you consider? Work environment, Factors affecting salary, Employee Benefits
Networking is a way of Making and using contacts to get job information
A safe-deposit box is for keeping important documents and they can be rented at a bank
Liabilities are split between Current and Long term
Your net worth is calculated as Assets – Liabilities
Take-home pay is gross pay less taxes and other deductions
The money left over after you have paid for the essentials- food,clothing,shelter,transportation, and medication Discretionary income
Which of the following are smart buying strategies? Comparing brands, comparing labels, comparing prices
Small Claims court deals with legal disputes with limits set by States
Direct deposit is most commonly associated with Pay checks
The Federal Deposit Insurance Company insures bank deposits up to $250,000
A Money Market Account is a savings account that has an interest rate that varies monthly
Compounding is the process in which interest is earned on the principal and previously earned interest
A stop payment order is a request that an institution not cash a particular check
When doing a bank reconciliation, outstanding checks should be? subtracted from the bank statement balance
Two advantages of credit use of product while paying for it and easier returns/exchanges
An example of open ended credit is Mastercard
Most credit card companies offer a grace period which is a time period where you incur no finance charges
The finance charge on a loan or credit card is calculated using the APR
Which of the following is not one of the C’s of credit? Credit Rating
Which of the following is not a Consumer Credit Protection Law? Equal Credit Billing and Reporting Act
Which of the following is not an advantage of renting rather than buying? Better financing
Regulation that limit how property in a given area can be used are known as Zoning laws
A conventional mortgage is also known as fixed payment mortgage
Real estate agents are paid a commission based on the sale price of a home. This fee is usually 5%-7%
Generally, if you choose a safe investment, your rate of return will be Low
Distribution of money or stick to a corporations stockholders is known as Dividends
Tax-deferred income is income that will be taxed as a later date
Which of the following is not a popular statistical average used to evaluate stocks? The New York Times Index
Investors, who purchase common stock, can make money from Dividends and dollar appreciation of stock value
Which of the following do not influence the price of stocks? Tax rates
An initial public offering in the stock market is The first time a company sells common stock
Why do corporations sell corporate bonds? To raise money when it is difficult to sell stock
Treasury bills, also known as T-bills, are sold in units of $1,000
Treasury notes have a maturity of One and ten years
A municipal bond is not issued by which of the following Federal fovernment
Each year an employer must send to each employee a W-2
Your federal income tax return is due to the IRS April 15
What is a tax audit? An examination of your tax return by the Internal Revenue Service
What is insurance? Protection against financial loss
In insurance the deductible is The set amount the policyholder must pay per loss
Uninsured motorist’s protection is insurance that covers you if you are involved in an accident with an uninsured motorist
Comprehensive Physical Damage in your automobile insurance that covers you if your vehicle in damaged in a non-accident situation
A defined-benefit employer pension plan specifics the benefits you will receive at retirement
Which of the following is not a personal retirement account? 401-K
A living will is a document in which you state whether you want to be kept alive by artificial means
When one business has complete control of the market, this economic condition is known as Monopoly
Publicly trades stocks of corporations are called Common stocks
Mary bought insurance that will pay her husband in the event of her death. This type of insurance is called Life Insurance
Credit cannot be denied to you because You are unemployed
Signing the back of a check for purposes of cashing it is called endorsing
Lenders who are not licensed and that charge high interest rates are called Loan sharks
If you feel you have been cheated by a business what local agency should you contact Better Business Bureau
The laws in each state that set the limits for interest rates are called Usury Laws
A deduction from your pay check that is labeled FICA is for social security taxes
If you owe taxes on your annual tax return you can pay the IRS
Life insurance that covers you for only a specific period of time is called Term life insurance
The record of deposits and with withdrawals for a checking account is kept in a Register
Receiving a paycheck every two weeks mean you are being paid bi-weekly
The form used to put money in a checking account is called a deposit slip
Most workers today expect their pay to be based on Achievement on the job
When unemployment is low Fewer people are looking for work

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