Money Management

a 28- year old earns$54,000 from his job as an illustrator he is also earned another $23,000 doing work for private clients.

Because of all the changes in his life, he should pay a tax professional to complete his taxes and figure out the most beneficial filing status and tax form for him to use

New coins and currency make their way into the general economy, consumers and businesses, through the distribution system of the:

Federal Reserve System

The Fed is short for

Federal Reserve System

Which of the following statements about taxes and financial planning is true?

It is possible for a person to reduce their tax liability by adjusting their financial plan

Which of the following statements about adjust gross income is true?

It is the amount used to determine what a person actually has to pay in taxes

Juanita and jessica work at the same company. Each is married and earns $75,000 per year. Juanita is paying more in taxes than Jessica. WHat two factors can help to explain why this is true?

Juanita does not have any children and does not itemize deductions

A person looks over his pay stub and sees that in addition to paying state and federal personal income taxes,he is playing other personal taxes such as social security and medicare he is only age 20, so he is sure that his employer made a mistake since social security and medicare are for old people, and the money should be returned to him. Is he right?

No the money he is contributing to social security and medicare is paying for the benefits for today's older people

A person wins $25,000 on a game show and a trip to Costa RIca worth $5,700. Does he have any tax obligation from these winnings?

Yes. All of these winnings become part of his gross income

When money is not used and goods and services are exchanged for other goods and services, this system is called:

barter

Money for saving, investing, or spending cannot be from:

capital losses from the sale of stock

Nora needed to make a long-distance call from a pay phone and did not have the cash. She was able to make the call by using her:

cash card

the federal reserve system uses monetary policy to

create ongoing economic growth, encourage full employment, and promote price stability

the federal reserve system tries to keep inflation under control by

decreasing the supply of money that banks have available to make loans

The purpose of the IRS is to:

enforce tax laws and carry out the federal tax system

What is a valid statement about a dependent?

for each dependent a person has, she is able to take a deduction from the amount of taxes she owes when filing her tax return

Identify the background color of a U.S. $5.00 bill.

green

The common name for US currency is

green backs

If the Federal Reserve Systewm is concerned about inflation increasing, what action can it take?

it can increase the discount rate, which is the interest rate it charges member banks to borrow money

Which of the following does the Federal Reserve use to regulate the nation's money supply?

monetary policy

If a person is self-employed and earns $70,000 annually, the person

must pay estimated income taxes every quarter

another name for take-home pay is

net pay

from the following, select the tax that is matched with its correct explanation

payroll tax: money deducted from a person's salary that is sent to the government by the employer

the federal reserve system cannot

prevent the economy from entering a recession

The primary sources of income for most people between the ages 20 and 35 who are not living on a pension or social security are:

salaries, wages, and tips

which of the following statements about taxes is true

taxes are the major source of revenue

Which of the following statements is true about the supply of money in the United States?

the United States Treasury prints more money when the Federal Reserve System directs it to take this action

A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive is that

the government imposes an excise tax on them

Why is it said that an increase in the money supply by the Federal Reserve System has a greater impact on the economy than just the dollar amount of the increase?

the money that banks receive is loaned out to consumers who then spend the money or deposit it in bank accounts and it is loaned out again

A person completes their federal 1040EZ form and sees that they paid quarterly estimated taxes of $12,000, but the calculations show that they should have only paid $9,500 in taxes. What willhappen is they send the IRS this completed form with the necessary supporting documents?

they will receive federal tax refund of $2,500

Jami lost her debit card. She did not report it missing for 3 months. If an unauthorized person used her debit card, her maximum liability is:

unlimited liability

Which statement is FALSE about most ATM cards?

you can always get cash anywhere in the world with no fee