CCR/DC smart start midterm exam

d. The interest rate you can earn on your investments decrease with age, so the longer you wait, the less you'll be able to grow it.

Failing to invest your money is a financial pitfall, because... * a. A W-2 lists all of the money you earned in cash over the last year. b. The W-2 includes information about the interest you earned from your investments. c. The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form. d. You need a separate W-2 form from EACH of your employers in order to file your taxes.

wealth

The total value of money and other assets, minus outstanding debts *

Chapter 13

The type of bankruptcy in which the debtor is put on a repayment plan of 3-5 years, during which they repay creditors and then all remaining debts are discharged. *

b. risk

This term means the degree of UNCERTAINTY an investor has on HOW LIKELY THEY WILL MAKE MONEY. Also known as the CHANCE the investment will DECREASE or INCREASE in value. * a. return b. risk c. dividend d. security

Variable expense

A cost that appears irregularly, or one that often changes in the overall amount (such as a power bill, water bill, etc.) *

Salary

A fixed amount of money paid to an employee for each pay period. *

Debtor

A person or institution who borrows and owes money is called *

creditor

A person or institution who lends money and must be repaid. *

Budget

A plan of your expected income and how you will use it to meet your expected expenses over a period of time *

auto title loan

A small high interest loan, offered through a business in which the debtor's car is used as collateral and can be taken if loan payments are not made. *

payday loan

A small loan offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck. *

B. Request to be paid in cash so you can save a certain percentage of your money in a shoebox in your room every month.

All of the following are good strategies to develop savings habits EXCEPT... * A. Start with a small goal and gradually get more ambitious. B. Request to be paid in cash so you can save a certain percentage of your money in a shoebox in your room every month. C. Take a percentage of your paycheck and deposit it directly into a savings account. D. Avoid spending money that you don't have and running up credit card debt.

c. Amber finds it difficult to get additional loans or credit cards, because companies think she's too risky.

Amber has not paid her credit card bill in 7 months. Which of the following is a possible consequence? * a. Amber cancels her card with the bank to erase her credit card debt. b. Amber gets her tax return, pays off the bill in full, and regains her old credit score. c. Amber finds it difficult to get additional loans or credit cards, because companies think she's too risky. d. The credit card company files bankruptcy against Amber so they can get their money back.

a. Call the credit card company immediately and tell them he'd like to dispute the charges.

As Andre reviews his credit card statement, he sees a charge at a gas station, a Walmart, and a McDonalds in Topeka, Kansas, for a total of $55. He lives in Atlanta and hasn't left the state in three years. What should he do? * a. Call the credit card company immediately and tell them he'd like to dispute the charges. b. Call the gas station, the Walmart, and the McDonalds in question and ask them to reverse the charges. c. Don't pay that portion of his bill when it's due, and explain what happened in a note to his credit card company to mail in with his payment. d. Wait to see if any more charges occur, and, if not, just pay the $55. It's not worth all the time and effort to get the charges reversed.

b. You may RECEIVE DIVIDENDS from the company, IF the company pays them, and you have OWNERSHIP of a portion of a company.

As a shareholder in a public company, what are the benefits available to you? * a. You can select members of the management team [e.g., the Chief Executive Officer (CEO)] and vote for members of the Board of Directors. b. You may receive dividends from the company, if the company pays them, and you have ownership of a portion of a company. c. You must receive dividends from the company (all companies must pay them) and you can select members of the management team [e.g., the Chief Executive Officer (CEO)]. d. You have ownership of a portion of the company and receive coupon payments from the issuer.

d. Within the first few days of starting your new job

At what point in the hiring process might you be expected to complete forms for taxes, health insurance, and other company benefits? * a. Once they've made you an offer, but before you formally accept the job. b. After you interview, so they can use the info to decide whether to hire you. c. After you submit your resume but before you interview. d. Within the first few days of starting your new job

b. One of the ways to get his money is to give the IRS your bank account number and let them direct deposit the money. c. He can let the IRS keep his money as a credit towards what he may owe next year. e. The IRS can send him a paper check

Chad filed his taxes and discovers that he paid too much money to the IRS last year. They now owe him $550. Which of the following items are TRUE? * a. This is called a withholding and he can get it paid back to him in one of many ways. b. One of the ways to get his money is to give the IRS your bank account number and let them direct deposit the money. c. He can let the IRS keep his money as a credit towards what he may owe next year. d. This is why its important to never overpay - the IRS keeps the money. e. The IRS can send him a paper check

a. All Children under the age of 19 c. Anyone permanently disabled e. Full-time students under the age of 24

Choose all of the following which describe what a "dependent" is for tax purposes? * a. All Children under the age of 19 b. Children over the age of 19 who do not have any form of job. c. Anyone permanently disabled d. All students regardless of age. e. Full-time students under the age of 24

Fixed Expense

Cost that can be expected at regular intervals and that remains the same amount. (monthly rent payment) *

d. They've provided a link in order to re-verify her account information with them. When she clicks it, it asks for her account # and ATM PIN number.

Danielle is trying to figure out if an email she received from her bank is legitimate. Which of the following would be a red flag? * a. They are offering a 0% intro APR on a credit card with a $1500 limit. b. They are advertising their lowest rates of the season on personal loans. c. They are offering her a $50 bonus if she calls or stops by to open a savings account there, too. d. They've provided a link in order to re-verify her account information with them. When she clicks it, it asks for her account # and ATM PIN number.

b. Complete a W-4

Elaine is an employee. Which of the following steps is she responsible for? * a. Request a W-2 annually b. Complete a W-4 c. Determine how much tax to withhold based on W-4 information d. Send withholding amounts to the federal government

50/30/20 Budget

Financial plan that allocates a specific amount to needs, wants, and savings and debt repayment *

Zero-Based Budget

Financial plan where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there's no "leftover" money with no purpose *

Cash Envelope Budget

Financial plan where money for all variable spending is taken out in cash and placed in labeled envelopes by budget category and then spending occurs only from the envelopes. *

b. By the end of his contract, George will likely pay 150-200% more for the laptop than if he bought it outright.

George can't afford a new computer to take to college, so he's considering financing one through the local Rent-to-Own Center, advertising, "BRAND NEW HIGH-END LAPTOP FOR ONLY $40/WEEK." Which statement below is TRUE? * a. George will most likely have to pass a credit check in order to qualify for this deal. b. By the end of his contract, George will likely pay 150-200% more for the laptop than if he bought it outright. c. Rent-to-Own Centers are usually much cheaper than purchasing via credit card. d. If George makes 30 weekly payments, on-time, the c. Rent-to-Own Center will pay off the rest of his bill for him.

b. Hang up and call her credit card company using the 1-800 number on the back of her card to inquire about the issue or report the attempted phone fraud.

Helen receives a phone call, in which an automated voice states that her credit card has been used fraudulently, and that she must enter her 16 digit credit card number, using the keypad of her phone, to clear up the error. What should Helen do next? * a. Push 0 or say "operator" to speak with a representative from the credit card company instead. b. Hang up and call her credit card company using the 1-800 number on the back of her card to inquire about the issue or report the attempted phone fraud. c. Comply immediately, as the longer a fraudulent charge stays on her credit card statement, the harder it will be to remove. d. Enter the 16 digit card number, but don't enter her PIN or the 3-digit code from the back of the card; without those, the 16 digits are pretty useless.

d. They receive DIVIDENDS from the company they bought the stock in and/or they sell the stock at a higher price than what they bought it for.

How can someone make money from investing in a stock? * a. They sell the stock for the same price they bought it for. b. The stock loses value but the overall market experiences a positive return. c. They sell the stock for a lower price than what they bought it for. d. They receive dividends from the company they bought the stock in and/or they sell the stock at a higher price than what they bought it for.

b. Money put in the lottery could be invested and receive compound interest.

How could the lottery be a financial pitfall? I mean , you COULD win a bunch of money. * a. It is not a financial pitfall. This is a trick question. b. Money put in the lottery could be invested and receive compound interest. c. People could steal your information from the lottery ticket set up accounts in your name. d. The lottery is nothing but a scam - no one ever wins anything.

c. INVESTING allows you to accumulate wealth for RETIREMENT while SAVING is best for SHORT-TERM purchases or emergencies.

How does investing in the stock market differ from putting money in a savings account at a bank? a. Investing is best for short-term situations like emergency funds; saving is best for the long-term. b. Investing typically earns between 1-2% while saving generally earns between 5-7%. c. Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies. d. Investing is always a less risky option than saving.

a. A BOND is a LOAN you give to an organization while a STOCK is partial OWNERSHIP in the company.

How is a bond different from a stock? * a. A bond is a loan you give to an organization while a stock is partial ownership in the company. b. Bonds are best for earning high returns while stocks are best for providing a stable source of income. c. A bond is usually issued by smaller, startup companies while stocks are with well established organizations. d. Bonds are typically riskier than stocks but have the potential to earn higher returns

c. 401(k) Plan

I am a retirement plan sponsored by your employer (the company you work for). You have a limited set of investment choices that I will give to you. One facet of the program may be a match in which your company matches your contribution to the plan. Typically, the contributions that you make to the plan will lower your taxable income so there are tax benefits to me also. What am I? * a. Individual Retirement Account (IRA) b. Mutual Fund c. 401(k) Plan d. Roth Individual Retirement Account (Roth IRA)

c. A balanced budget that you track and update regularly.

If you could choose just ONE financial tool to help you avoid damaging financial decisions, which of the following do you think would be MOST effective? * a. A high risk, high return investment strategy for your retirement. b. A strong, secure password for a social media account. c. A balanced budget that you track and update regularly. d. A savings account at a bank or credit union that you trust

1099

If you do contract work for a company where you are not an employee, you may receive which tax form in the mail? *

A. Review your statements, online account, or credit report to locate suspicious activity. Call the company to report problems as soon as you see them.

If you think you've been the victim of fraud or a scam, which of the following is the BEST first step? * a. Review your statements, online account, or credit report to locate suspicious activity. Call the company to report problems as soon as you see them. b. Wait a few weeks to see if the problem fixes itself; it could just be a glitch you're seeing. c. Close your bank and/or credit card accounts. d. Call the police immediately.

a. LESS

Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today? * a. Less b. More c. Exactly the same

Chapter 7

This type of bankruptcy in which most of the debtor's possessions are sold to repay the creditors and then any remaining debts are discharged. *

c. Jessica will have to file a state tax return for both Louisiana and Mississippi.

Jessica worked as a teacher in Louisiana until June of last year. She then moved to Mississippi for her new job as an Assistant Principal and started working in August of last year. Which is TRUE for Jessica? * a. Jessica will have to file her Louisiana tax return THIS year. NEXT year, she will have to file a Mississippi state tax return. b. Jessica will have to file a state tax return for Louisiana only. c. Jessica will have to file a state tax return for both Louisiana and Mississippi. d. Jessica will have to file a state tax return for Mississippi only.

d. CONTACT her BANK IMMEDIATELY as it APPEARS that her account may have been HACKED.

Jocelyn gets a text alert from the bank that her account has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend? * a. Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry. b. Wait a week, as it is fairly common for the bank to catch mistakes like this. c. Wait until her monthly statement arrives so she can check to see if those withdrawals are still there. d. Contact her bank immediately as it appears that her account may have been hacked.

No, he does not have to file taxes, and he shouldn't since it was UNEARNED income and NO TAXES WERE TAKEN OUT to start with.

Joe is 16 years old, a junior in high school, and lives with his parents. He had an unearned income of $750. Is Joe required to file taxes? Should he? *

No, he is not required to file because he DIDN'T MAKE ENOUGH, and he shouldn't because he claimed "Exempt" so there isn't anything to get back. .

Jose is 18 years old, is a high school senior, and lives with his parents. He earned $8,050 from his part time job over the summer. He claimed EXEMPT on his W-4 on his first day of work. Is Jose legally required to file a tax return? Should he file? *

b. Contribute the FULL $150/mo to the 401(k) because her company will MATCH that FULL amount, "doubling" her investment every month.

Katrina works for Penny's Pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000 per year. In her budget, she only has $150 per month available to save for retirement. What should she do? * a. Contribute $75/mo to her 401(k) and $75/mo to an IRA, so that she's diversified. b. Contribute the full $150/mo to the 401(k) because her company will match that full amount, "doubling" her investment every month. c. Opt out of the 401(k) plan since she doesn't have much to contribute; use the money elsewhere in her budget. d. Save the $150/mo in a bank account until she has enough to max out her 401(k), and then invest.

Nothing will happen, but Marquis will miss out on his potential refund.

Marquis earns $2,000 as a cashier at a fast food restaurant during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. Based on how he completed his W-4, his employer withheld $200 in federal income taxes from his paychecks. What will happen if Marquis doesn't file taxes in April? *

b. Income

Money that is earned from work, investments, business, etc. * a. Wealth b. Income c. Deductions d. Surplus

b. Pick individual stocks to see if she can beat the market

Nancy is a beginner level investor and is eager to get started. All of the following are things she should do EXCEPT... * a. Invest in a low cost index fund b. Pick individual stocks to see if she can beat the market c. Invest in a diversified portfolio d. Estimate how much she will need for retirement to determine how much she needs to invest each month

c. She creates one really strong password that no one knows and uses it for all of her financial accounts.

Nancy wants to take steps to better protect her personal information. Which of the following is a BAD idea? * a. She deletes any emails asking for her social security number, bank account information, or passwords. b. She shreds important documents in her shredder on a regular basis. c. She creates one really strong password that no one knows and uses it for all of her financial accounts. d. She types store or company websites into her browser herself, rather than clicking to them from emails, which may link to fraudulent sites

Wants

Nonessential purchases a person wants to feel happy, make life convenient, fit in with friends, etc. *

b. Max, whose total income from three separate part-time jobs was $9,500

Out of the following group, who does NOT have to file a tax return? * a. Janet, who earned $28,000 but was paid entirely in cash b. Max, whose total income from three separate part-time jobs was $9,500 c. Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips d. Isaiah, who owns his own business and generated income of $17,000

Expenses

Products, services, or bills you are responsible for paying. *

Needs

Purchases a person must have to live or to succeed or bills that must be paid to remain in good standing. *

d. Ignore this offer altogether. Samuel shouldn't have to pay money to collect a prize, and taxes go to the government, not individual organizations.

Samuel receives a letter in the mail saying he was entered into a drawing, he's won $10,000, and he just needs to send in the $150 he owes in taxes on the winnings in order to claim his prize. What should Samuel do next? * a. Go to the organization's website and send his payment electronically, so he gets his prize more quickly. b. Send a check for $25 with a note saying he cannot afford the full taxes now but that he'll send more later. c. Send the $150 in cash using the envelope provided, so that in case it's a scam, they don't get his bank account information. d. Ignore this offer altogether. Samuel shouldn't have to pay money to collect a prize, and taxes go to the government, not individual organizations.

a. Investors have DIFFERENT TOLERANCE for RISK and MAY make BAD DECISIONS with a 100% stock portfolio (SELLING out when stock prices have had a SIGNIFICANT DROP.)

Since stocks have better long-term returns than bonds, why don't all investors just invest all of their money in stocks? * a. Investors have different tolerances for risk and may make bad decisions with a 100% stock portfolio, such as selling out when stock prices have had a significant drop. b. Bonds typically do best when stocks do best so they make returns even better when they are combined. c. Most investors do have a 100% of their money in stocks since bonds are so unpopular. d. c.

False, it just lessens the risk of amount lost

TRUE/FALSE Investing in a diversified portfolio of stocks guarantees that you won't lose money with your investments. *

d. rate of return

The RATIO of MONEY GAINED OR LOST on an investment relative to the amount of money invested is called...... * a. security b. diversification c. stock d. rate of return

credit card fraud

The crime of intentionally using someone else's credit account to steal money or goods *

identity theft

The crime of using someone else's personal data and using it for financial gain or to defraud or deceive *

a. Government Bonds

This savings vehicle comes when the investor lends money to the government that gains interest at least 2 times a year. * a. Government Bonds b. Commodities c. Mutual Funds d. Certificates of Deposit

no

Tim is 20 years old and going to college. He still lives in his parent's house, but he has a job and pays them some money towards "rent". He made $10,000 last year. Is he legally required to file taxes? *

Pay Yourself First

To automatically save a specified amount from your paycheck before budgeting it into any other category *

Gross Pay

Total earnings before any deductions are taken *

Net Pay

Total earnings in a pay period after deductions are taken. *

b. Tell the IRS to take out more taxes next year to pay back the $427.

Upon completing your 1040, you realize that you owe the IRS $427. Each of the following is a possible way to pay the taxes you owe EXCEPT... * a. Write a check and mail it to the IRS. b. Tell the IRS to take out more taxes next year to pay back the $427. c. Set up an auto-transfer from your bank account if you e-file. d. Use your debit or credit card online or by phone

USING CREDIT CARDS to cover the majority of your expenses WITHOUT the ABILITY to PAY it ALL OFF every month.

What does it mean to live on "borrowed money"? *

It is HOW MUCH is being TAKEN OUT of your paycheck in taxes.

What does the term "withholding" mean in reference to your paycheck? *

b. Do I want to pay taxes NOW (Roth IRA) or LATER (Traditional IRA)?

What is one question an investor should ask before investing in a Roth IRA or a Traditional IRA? * a. Do I want to make a guaranteed return of 6% or 8%? b. Do I want to pay taxes now (Roth IRA) or later (Traditional IRA)? c. What type of investments do I want to make? d. Do I want to pay taxes now (Traditional IRA) or later (Roth IRA)?

a. How much income did you earn this year? d. Are you claimed as a dependent on anyone else's tax return?

When determining whether you NEED to file a federal tax return, which of the following items matters? * a. How much income did you earn this year? b. What state did you live in this year? c. What type of income did you earn this year? d. Are you claimed as a dependent on anyone else's tax return?

When you make more than the MINIMUM income requirement (Currently at $12,550)

When do you HAVE to start filing taxes? *

c. It is much MORE RISKY to invest in INDIVIDUAL stocks (like Nike or Netflix) compared to investing in an INDEX fund made up of a COLLECTION of stocks.

When it comes to buying stock in a company like Nike or Netflix... * a. You should listen to experts on TV stations such as CNBC since they are generally right when it comes to picking good investments. b. It is generally easy for most investors to predict the direction of future stock prices. c. It is much more risky to invest in individual stocks (like Nike or Netflix) compared to investing in an index fund made up of a collection of stocks. d. You should sell the stock a soon as possible so that you can make a profit.

c. You lose your job but still have bills to pay.

When would be a good time to spend money from your Emergency Fund? * a. Your friends are going on an expensive trip an you would like to go with them. b. Your favorite artist releases a new album and you just have to buy it. c. You lose your job but still have bills to pay. d. Your friends want to go out to eat.

Refund

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a _______? *

Deficit

When your expenses exceed your income *

Surplus

When your income exceeds your expenses and you have money leftover *

d. A STATEMENT shows you all of the DEPOSITS AND WITHDRAWALS from your account, and an AGREEMENT shows you the TERMS OF ACCOUNT, such as fee structure and minimum requirements.

Which best describes the difference between a checking statement and a checking agreement? * a. A statement can be downloaded from your online banking account, while an agreement must be obtained in person at a bank branch. b. A statement must be obtained in person at a bank branch, while an agreement can be downloaded from your online banking account. c. A statement shows you the terms of the account, such as fee structure and minimum requirements, and an agreement shows you all of the deposits and withdrawals from your account. d. A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fee structure and minimum requirements.

I-9

Which form am I? I am received when you start a job. You use me to prove that you are eligible to work in the US, and you must provide forms of identification when submitting me. *

d. Corporate Bond

Which investment vehicle represents an ownership interest in a company? * a. Stock b. Savings account c. U.S. Treasury Bond d. Corporate Bond

b. Defense, social security, and Medicare/Medicaid

Which of the following are the three largest categories of federal government spending? * a. Social security, infrastructure, and education b. Defense, social security, and Medicare/Medicaid c. Education, defense, and social security d. Infrastructure, defense, and Medicare/Medicaid

a. Karina owns a $50,000 car and has $5000 remaining on her car loan.

Which of the following individuals is the wealthiest? * a. Karina owns a $50,000 car and has $5000 remaining on her car loan. b. Maria owns a $15,000 car and owes $45,000 in student loan debt. c. Keith owns a $500,000 home and has a $460,000 mortgage. d. Elyse owns a $25,000 car that is entirely paid off but has $10,000 in credit card debt.

B. Save a certain percentage of each paycheck and deposit it directly in a savings account.

Which of the following is an effective strategy for personal saving? * a. Wait until the end of the month and save whatever is left in your checking account. b. Save a certain percentage of each paycheck and deposit it directly in a savings account. c. Take out a payday loan so you can save before you receive your paycheck. d. Cover all of your wants and needs and save whatever is left over

d. Savings account at an FDIC insured bank.

Which of the following is the LEAST risky investment option? * a. Index Fund b. US Treasury Bond c. Stock issued by one company d. Savings account at an FDIC insured bank

a. You can cancel a cosign agreement for those loans you take out with an immediate family member within 1-2 business days. ?

Which of the following statements about cosigning a loan is FALSE? * a. You can cancel a cosign agreement for those loans you take out with an immediate family member within 1-2 business days. b. Missed payments will affect both the primary borrower's credit report, and yours. c. Cosigning a loan may affect your ability to get loans in the future for yourself. d. You are responsible for making payments towards the loan if the primary borrower is not able to.

a. Both types of loans are easy to qualify for but very difficult to pay off, because the fees and interest rates are extremely high.

Which of the following statements about payday or auto-title loans is TRUE? * a. Both types of loans are easy to qualify for but very difficult to pay off, because the fees and interest rates are extremely high. b. According to federal law, both types of loans are illegal, but it doesn't stop local businesses from providing them. c. Payday lenders are attractive to low-income borrowers because they offer small loans at low costs. d. Auto-title loans are much safer for the consumer than payday loans, because they use your car as a security deposit.

d. You need a separate W-2 form from EACH of your employers in order to file your taxes.

Which of the following statements about the W-2 form is TRUE? * a. A W-2 lists all of the money you earned in cash over the last year. b. The W-2 includes information about the interest you earned from your investments. c. The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form. d. You need a separate W-2 form from EACH of your employers in order to file your taxes.

b. An emergency fund should be used for those times that you want something really bad and its just not in the budget that month - which creates a purchasing emergency.

Which of the following statements are FALSE? * a.Billions of dollars is spent on marketing to persuade consumers to spend money instead of saving it. b. An emergency fund should be used for those times that you want something really bad and its just not in the budget that month - which creates a purchasing emergency. c. Without a method to save (like a savings account), it's much easier to spend and harder to keep track of finances. d. Experts advise that you should start saving as soon as you can, and you should aim for 20% of your check spread across 3 savings types

d. Using your debit card to pay for groceries at the supermarket

Which of the following transactions will REDUCE your checking account balance immediately? * a. Using your credit card to pay for your school books b. Depositing a check at a local bank branch c. Writing your monthly rent check which you will mail tomorrow d. Using your debit card to pay for groceries at the supermarket

d. Always put all of your money into one stock and hold on to it through good and bad.

Which of the following would NOT be a basic rule of investing? * a. Investing is a long term activity. Be realistic and understand you will not become a millionaire overnight b. One should save prior to investing. It is best to have an emergency fund before you invest. c. Diversify. Having a variety of stocks, CD's, index funds, bonds, and commodities can help you to be a greater investor. d. Always put all of your money into one stock and hold on to it through good and bad

a. Investors EXPECT to earn a HIGH RETURN when they INVEST in a HIGH RISK asset like stock in a small company.

Which of the statements below BEST describes the relationship between risk and return when considering an investment? a. Investors expect to earn a higher return when they invest in a high risk asset like stock in a small company. b. Investors do not expect to earn a return on a high risk investment but rather expect to lose their money. c. Investors expect to earn a higher return when they invest in a low risk asset, like a bond. d. Investors expect to earn a lower return when they invest in a risky asset.

d. You must file your tax return by April 15th of the following year or request an extension by that date

Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company? (In other words, you only work at one place) * a. If your employer take out federal income taxes through payroll withholdings, you do not need to file a tax return. b. You need to file your tax return by the end of the calendar year (typically December 31st). c. You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money. d. You must file your tax return by April 15th of the following year or request an extension by that date

a. Young people have TIME ON THEIR SIDE, so INVESTMENTS MADE IN their 20s have DECADES to COMPOUND and GROW in value.

Which of these is the MOST compelling reason for young adults to invest? * a. Young people have time on their side, so investments made in their 20s have decades to compound and grow in value. b. Young people have fewer responsibilities, and therefore, more time to research to find the perfect stock to invest in. c. When you're young, you have more disposable income available for investments. d. Young people are naturally better risk takers than older adults, so it's a great advantage in the stock market.

b. Using online banking, you can REQUEST TRANSFERS, BILL PAY, AUTOMATIC SAVINGS, and other features WITHOUT VISITING the BANK branch.

Which of these is the most convenient feature of using online and mobile banking? * a. By signing up for online banking, you will activate the FDIC insurance on your account. b. Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch. c. Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees. d. You can shop online only if you've set up online banking.

d. In both situations, the lender would prefer to collect your interest and fees rather than just taking ownership of your item

Which statement about auto-title loans and pawnshops is accurate? * a. Auto-title loans and pawn shops both offer far better rates than banks do on loans. b. Auto-title loans and pawnshops both offer full face value for the car or item the borrower is providing. c. Auto-title loans are subject to regulation, whereas pawnshops are not. d. In both situations, the lender would prefer to collect your interest and fees rather than just taking ownership of your item

d. Needing your full paycheck to meet your minimum monthly living expenses, so that there's no extra money if a problem arises.

Which statement best describes what is meant by "living paycheck to paycheck?" * a. Using the money from your paychecks to meet some of your monthly expenses, while allowing investment income to cover the rest of your bills. b. A successful budgeting strategy where you allocate every penny of your paycheck to a perfectly constructed budget, so you never go over. c. Adding one paycheck to the next paycheck, so that your savings account balance is always increasing. d. Needing your full paycheck to meet your minimum monthly living expenses, so that there's no extra money if a problem arises.

W-2

Which tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year. *

1040

Which tax form am I? I am used to report your earnings during the previous calendar year to the IRS. You will send me in or file me no later than April 15 each year. *

b. Having less money may make you focus only on the present situation and prevent you from making decisions that lead to a healthier financial future.

Why can it be MORE difficult to think rationally and make wise decisions when you have LESS money? * a. You have a false sense of financial security when, in reality, you don't have enough to make ends meet. b. Having less money may make you focus only on the present situation and prevent you from making decisions that lead to a healthier financial future. c. Having less money makes you extremely emotionally reactive, so you are more likely to make decisions that are financially sound. d. When you have less money, you get a laser focus and can handle stress and pressure very well.

Compound interest allows you to EARN INTEREST not only ON the amount you have SAVED, but ALSO on the interest you've ALREADY EARNED.

Why is compound interest more advantageous than simple interest? * a. Compound interest has lower fees than simple interest. b. Compound interest means you have a fund manager who is compounding your returns without charging a fee. c. Compound interest is harder to calculate, so those who use it earn higher profits for their efforts. d. Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned.

c. Diversifying your portfolio helps REDUCE RISK.

Why is diversification a recommended investment strategy? * a. If you tell your fund manager to use diversification, they'll charge you lower fees. b. Investing in a diversified portfolio guarantees that you won't lose money with your investments. c. Diversifying your portfolio helps reduce risk. d. If you diversify your portfolio, you are guaranteed to make a high return.

a. You should tailor your investment portfolio so that it assumes an AMOUNT of RISK you are COMFORTABLE WITH.

Why is it important for you to understand YOUR risk tolerance before you start investing? * a. You should tailor your investment portfolio so that it assumes an amount of risk you are comfortable with. b. If you have a high risk tolerance, you may be eligible for lower fees since you won't care if your portfolio drastically loses value. c. It helps you decide if you want to participate in your employer's match program for your 401(k). d. It's recommended that people with a low risk tolerance shouldn't invest at all.

a. It is deducted directly from your CHECKING account.

You are at the checkout counter at the local supermarket, use your debit card to pay for your groceries, and select "credit" when the cashier asks "Debit or credit?" Where does the money for this purchase come from? * a. It is deducted directly from your checking account. b. It is deducted from your credit card account. c. Your credit card company provides you with a cash advance to cover the cost. d. Your credit card company covers the cost.

b. Saving for retirement

You are developing a savings plan and using short-, medium- and long-term goals to motivate you. Which is the most long-term goal? * a. Saving to buy a car b. Saving for retirement c. Saving to go on vacation d. Saving for a down payment on a home

deficit of $175. (-175)

You are putting together your first post-graduation budget. Your take-home or net pay will be $2,500 per month. You estimate your monthly costs to be rent of $800, car payment of $350, car insurance of $150, car maintenance of $50, entertainment of $500, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $100 and other expense of $300. How would you describe your budget after analyzing all of your income and expenses? *

W-4

You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal income taxes? *

Gain of $350

You bought 10 shares of stock in Streaming Video Co. for $45 a share. Two months later you sold the 10 shares of stock for $80 per share. What was your profit or loss on the stock? (Assume there was no fee involved) *

$273

You find three receipts from your activities today: (1) ATM withdrawal of $60 plus $3 out-of-network ATM fee, (2) Debit card used for grocery bill of $34 plus cash back of $20, and (3) ATM deposit of $90 from birthday checks. What is your current balance if you started the day with $300 in your account? *

2,4, & 5

You just graduated from college and have been fortunate to have received two job offers in your chosen field of accounting. To answer the following question, which of the factors below would matter in making a decision about which firm to join? 1. Only the salary that each firm is offering (nothing else matters) 2. A combination of salary and the benefits package that each firm is offering 3. The company's tax rate (every company has a different tax issue) 4. The city that each firm is located in 5. The career opportunities that each firm offers beyond the entry-level position Based on the text above, which of these factors would matter in making a decision about which firm to join? *

d. You would RECEIVE ALL the MONEY you have deposited at Eastside Savings since FDIC INSURANCE COVERS ACCOUNTS up to $250,000.

You open a new bank account at Eastside Savings. You see FDIC stickers around the bank, and the teller specifically mentions that Eastside Savings is "FDIC insured". A few months later, you hear on the radio that Eastside Savings is struggling to stay in business. Your savings balance is $500. What would happen to that money if Eastside Savings failed? * a. You would receive $250,000 since FDIC insurance provides each account at the bank with $250,000 regardless of how much they have deposited. b. You would lose all of your money. c. You could lose $250 since FDIC insurance only covers 50% of the money you have deposited. d. You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.

Yes, the law states that you should report all wages, including cash tips.

You receive a job waiting tables at a local restaurant. You get a regular paycheck, but sometimes receive cash tips at the table that you place in your pocket. SHOULD you report the cash tips that you receive as income to the IRS? *

c. What is your SCHEDULE of FEES for this account?

You visit a local bank that is FDIC-insured to open a checking account. Assume that you can only ask the bank representative one question before you open your account. What should it be? * a. What is the interest rate on the account? b. Do I get cash back on all of my debit card purchases? c. What is your schedule of fees for this account? d. What happens if my debit card is stolen?

a. "I'm under the age of 18 and don't make a lot of money, so I am not a likely target for identity theft."

Zach is worried about identity theft and comes to you to clarify a few pieces of information. Which of Zach's statements is FALSE? a. "I'm under the age of 18 and don't make a lot of money, so I am not a likely target for identity theft." b. "If someone steals my identity and makes fraudulent charges, it may take some time and effort to restore my credit report back to normal." c. "Checking my credit report every year will help me catch any errors and/or false accounts opened in my name." d. "Someone doesn't have to look like me to steal my identity; they just need a few pieces of important, personal information."

d. Declare bankruptcy, which will eliminate all your debts and allow you to start over with a clean slate.

if loans and credit card debt are taking up most of your monthly income, which of the following is the LEAST effective first step in getting your debt under control? * a. Pay extra money each month to the debt with the highest interest rate, so you'll decrease the total amount you'll spend on the debt. b. Start a side hustle and allocate the money you make towards extra payments for your debt. c. Take a hard look at your budget, and try to cut nonessential items so you have more cash to pay down your debt. d. Declare bankruptcy, which will eliminate all your debts and allow you to start over with a clean slate.

pay and taxes #15 16 17 18 19

pay and taxes #15 16 17 18 19