Exam 1 Personal Finance

The progression from entry level positions to higher levels of pay, skill, responsibility, or authority is referred to as a(n) career ladder
You should avoid listing specific abilities, such as using Microsoft Excel, in your résumé. (p. 53-59) False
It is especially important to use “key phrases” when preparing your résumé because (p. 53-59) computer software is typically used to scan résumés in order to select better qualified candidates
______ are the principles, standards, or qualities considered worthwhile (p. 40-44) Values
In preparation for a job interview, you should (p. 60-67) compile some personal stories and anticipate interview questions and prepare responses
Which of the following reduce the additional income that might come from having a second income? (p. 49-52) All of these (additional spending on food)(additional spending on transportation)(the impact of your marginal tax rate)
Which of the following is an employer not legally required to provide to employees? (p. 49-52) a retirement plan
University-, community-, and employer-sponsored opportunities for job seekers to meet with many potential employers over one or more days is called a (p. 53-59) career fair
Forms of remuneration provided by employers to employees that result in the employee not having to pay out-of-pocket for certain expenses are called (p. 49-52) employee benefits
A summary record of your education, training, experience and other qualifications is your (p. 53-59) résumé
Specific long- and short-term objectives to be attained through financial planning and management efforts are one’s (p. 74-78) financial goals
When working on your monthly budget, which of the following is a useful tool to help balance out the variations in income and expenditures from month to month? (p. 91-96) revolving savings fund
The essential first step in budgeting occurs with (p. 91-96) setting goals
The amount remaining after all budget classification deficits are subtracted from those with surpluses is: (p. 100-105) net surplus
Which financial statement shows your net worth? (p. 79-85) Balance Sheet
Secured lock boxes at banks that can be rented by customers for safe storage of documents and other items are called (p. 87-91) safe-deposit boxes
Documents that evidence financial transactions, such as bills, receipts, credit card receipts and statements, bank records, tax returns, and other documents are called (p. 87-91) financial records
The amount of take-home pay remaining after all deductions are withheld for taxes, insurance, union dues, and other items is referred to as your __________ income. (p. 91-96) disposable
Your debts – the amounts you owe to others – are called: (p. 79-85) Liabilities
Which of the following would be a fixed expense? (P. 79-85) Rent
Which of the following financial statements provides a complete snapshot of one’s financial condition as of a particular point in time? (p. 79-85) balance sheet
The tax rate applied to a taxpayer’s last dollar of income is called the _. (Section 4.1) marginal tax rate
You pay federal taxes only on your _. (Introduction) taxable income
____ taxes are characterized by higher tax rates on higher levels of income. (Section 4.1) Progressive
Practically everything you receive in return for your work or services and any profit from the sale of assets is considered income, whether the compensation is paid in cash, property, or services. Listing these earnings will reveal your: (Section 4.2). Total income
You and your spouse have $9,000 in allowable itemized deductions in a year when the standard deduction is $12,600 for married taxpayers. How much in deductions are you allowed to take? (Section 4.2) $12,600
Which of the following is excluded from gross income? (Section 4.2) Gifts and inheritances
Salary reduction programs that set aside a portion of an employee’s pre-tax income for child-care expenses and unreimbursed medical and dental expenses are called _. (Section 4.3) flexible spending accounts
Which of the following directly reduces your tax liability rather than your income subject to federal income taxes? (Section 4.2) tax credit
How far back can the IRS go if you have understated your income? (Section 4.2) 6 years
The penalty for tax evasion can include (Section 4.3) All of the above ( jail sentences)( penalties)(interest charges)
In monetary assert management, safety means the speed and ease with which an asset can be converted to cash. (Section 5.1) False
Which of the following is a federal government agency that administers funds to insure accounts at commercial banks and certain other depository institutions? (Section 5.1) FDIC
Which of the following sets NOW accounts apart from other checking accounts? (Section 5.2) They pay interest
The interest rate of most concern to a savings account depositor is the (Section 5.2) annual percentage yield (APY).
An interest-bearing savings instrument that requires people to deposit money for a fixed amount of time is called a(n) (Section 5.2) certificate of deposit.
If you wanted to set up a checking or savings account with another person that granted each of you the right to make withdrawals without consulting the other, you would choose a(n) (Section 5.3) joint tenancy account with right of survivorship.
What is the maximum you can lose if you notify your bank of a lost debit card within two days? (Section 5.4) $50
Ways to protect your privacy and reducing the risk of fraud include: (Section 5.4) All of these (Regularly change your passwords)( Watch for small charges, like a $1 charge, that you can’t identify)( Always hit the “log off” button before closing your browser window)(Avoid banking via public computers or networks)
The primary reason for giving children an allowance is to (Section 5.5) teach them how to handle money.
For couples, the specific money management tasks such as bill paying, overseeing spending, and handling banking can be divided in any way that works for the couple, but making ______ ______ should be a joint endeavor. (Section 5.5) financial decisions

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