Finance Flashcards

Personal Finance

A key difference between commercial banks and credit unions is that? Commercial banks are ‘for‐profit’ and credit unions are ‘not‐for‐profit’
Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students comments were based on fact while others were based on myths. Which aspect of security at a depository institution Not True Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than $100,000.
San jay is concerned about the safety of the money in his savings account. Which type of depository institution should he choose? He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.
He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements. Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is
Savings tools offered by depository institutions may earn interest. Which of the following statements is NOT TRUE about interest? When earning interest, look for low rates
Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account.
Common fees that may be charged by a depository institution include all EXCEPT: Late fee
. David made a mistake in his checking account record-keeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charge? Overdraft Fee
Which statement is TRUE about Payroll Taxes? Payroll taxes fund the Social Security and Medicare programs
As Maria was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely? Sales tax on the shirt she purchased
Who is Medicare designed to help? Senior Citizens
Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he EXCLUDE from his presentation because it is not correct? Property Taxes are assessed
Which statement is NOT TRUE about property taxes? The property tax rate is set by the federal government to be equal in every state.
Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called _____________ taxes. Excise
Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be? Austin neglected to deduct the amount required to pay income and payroll taxes.
Brett is creating a Statement of Financial Position and needs to list his assets. Which of the followingshould he NOT list as an asset? Money in the paycheck he will receive next week
To calculate her net worth Jordan should use the following formula? Assets – liabilities = net worth
Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a networth of $15,000. Who is wealthier? Maggie, because her net worth is higher than Samantha’
Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he shouldinclude would be? The balance on his credit card
To increase his net worth, Jackson could? Increase his assets
Erin and her mother are putting together an Income and Expense Statement for Erin to use as she applies for a college scholarship. Which income source does she NOT need to include for this statement? Interest earned
Which of the following would most likely be considered a contractual expense? Cell Phone
Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. Which should be recorded as expenses? Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his carinsurance
If expenses were to exceed income on a spending plan, what would be a financially smart solution? Decrease Expenses
Diana and Aaron have decided to develop a spending plan to help them gain control over their finances.Which of the following statements is NOT TRUE about spending plans? A spending plan includes items NOT usually included when creating a budget.
When is your spending plan complete? Spending plans are always under revision so they are never complete
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non‐contractual expenses. Which of his expenses best fit that category? Gasoline, food, and entertainment
Michael wants to develop a spending plan for himself to use during his final year of high school. What willhe need to do as his FIRST step? Track his current income and expenses. If he has already created an Income and ExpenseStatement then he has completed this step.

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