PF LIteracy: Module 3 Test

Approximately how much does the budget shown in the bar graph above allocate to Agriculture for FY 2019?

$50 billion

Which are the most common types of employer-sponsored retirement savings plans?

401(k), 403(b), and 457 plans

What is a credit score?

A "snapshot" of a person's creditworthiness at one point in time

Personal loans must be used to make what types of purchases?

A personal loan can be used for any type of purchase.

On a paystub, what is FICA?

A type of tax to support Medicare and Social Security

Taxes provide revenue for which of the following governments?

All of these(state, local, federal)

If you are taking out a student loan, and you plan to graduate with a well-paying degree in a good job market, you have a high probability of which of the following?

Being able to repay the debt with the job that it will afford

Categorize each of these as important or not important to consider when purchasing or leasing a new car. NOT Important to Consider

Buying the very first car you look at Correct answer: Choosing a car based only on the color Correct answer: Skimming the paperwork Correct answer: Buying the most expensive on the lot

Harms Credit Score

Closing credit accounts Not using credit cards Transferring a balance from one card to another

A payday loan or cash advance loan can be very expensive. Before you get one of these loans, what should you do?

Consider other ways to borrow.

Which is true regarding return policies of car dealerships?

Each may be different, and you should get the policy in writing and read it carefully.

The _____________ promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies.

Fair Credit Reporting Act

Categorize each of these as important or not important to consider when purchasing or leasing a new car. Important to Consider

Finalizing all paperwork before taking the vehicle Correct answer: Your budget Correct answer: The validity of the business from which you are buying or leasing Correct answer: Comparing prices

TSP

For people employed by the federal government

IRA

For people who want to put their money into a tax-deferred account at a bank or through their employer

401(k)

For people who work for public or private for-profit companies

457

For people who work for state or local governments, schools, and universities

403(b)

For people who work for tax exempt or non-profit organizations

Which of the following is NOT a good way to research an organization?

Go to the organization's location after dark and peer into the windows

We are stewards of our money, but who owns it all?

God

_________ wages are the amount you are paid for your work before any taxes or benefits are taken out of your paycheck. You will not receive this amount in your bank account.

Gross

If possible, you should choose to pay for a car in which way?

In cash so you avoid interest and going into debt

A person's gross pay is subject to which of the following (i.e., which of the following will be taken out of gross pay before it is deposited)?

Income taxes and other taxes

_______income is earnings generated by investments, such as savings accounts, retirement plans, and certificates of deposit.

Interest

Credit cards usually have specific terms that you agree to when accepting the credit card service. This could include all of these EXCEPT:

Interest rates are determined by your local government.

What is the credit utilization ratio?

It is a ratio of the amount of debt you owe to the amount of debt for which you have been approved.

Which is true of 401K retirement plans in regards to a person's paycheck?

It is not subject to income tax until later.

When should you receive your W-2 form from your employer?

January 31st

There may be requirements/responsibilities of the tenants to do routine repairs when renting, such as what?

Lawn maintenance and cleaning

Taxes are collected by which of the following agencies?

Local, state, and federal governments

When a _____disaster occurs, much of the work done is by volunteers. However, FEMA (the Federal Emergency Management Agency) has full-time and reserve workers that are paid staff that help to coordinate volunteer services.

Natural

Do creditors always report activity on your account and all new accounts to the three credit reporting bureaus?

No, some of your credit history may be missing from one or all three.

Helps Credit Score

Only a few applications for new cards Have credit backed by assets or equity Pay bills on time

Contact your state or local consumer protection office to learn the rights you have concerning what?

Purchasing a used car

Which of the following is NOT a step that credit raters go through to assign a credit score?

Reviewing your personal social media pages

Which of the following is possible when you enter into debt?

Stress can be added to your finances, your relationships, and the overall peace of your household.

Which organizations use 403(b) plans?

Tax-exempt or non-profit organizations, such as public schools, colleges, hospitals, libraries, philanthropic organizations, and churches

________wages are the wages that are considered pay for work and not benefits otherwise provided, so the taxable income is equal to or less than a person's gross pay, depending on any exempt benefits that are not taxed.

Taxable

____help pay for items that we need in our society, such as education, roads, defense, and social programs.

Taxes

Which of the following does the Bible say about spending time with others?

That we need each other and are better together

Which part of the pie is arguably the most important to study because it can be the hardest for people?

The "Owe" section

What grants Congress the power to establish and collect taxes?

The Constitution

You can check prices of similar models of automobiles you are considering buying using which of the following?

The NADA Official Used Car Guide (www.nadaguides.com) or the Kelley Blue Book (www.kbb.com)

Each time someone requests your score, the credit rater compares your credit history to whom?

The credit history of consumers with similar profiles

What does the Electronic Fund Transfer Act regulate?

The rules and practices that deal with electronic transfers of money from one account to another

Being with others is part of God's design. Which of the following is true about His intention of spending time with one another?

There are many ways, including church, in our community to spend time together.

What does a bank do when they lend someone money to purchase a home?

They look at the individual's credit score.

Why is it a good idea to read the "About" page on an organization's website?

To learn as much as you can about the organization

In his video, what does Mr. Ron Blue point out as the most important thing to remember about credit cards?

To plan to pay off the balance each and every month

Which of the following is NOT found on a W-2?

Total salary bonus

What are the two types of IRAs (Individual Retirement Accounts)?

Traditional and Roth

What are examples of goods and services that are purchased by the government?

Transportation and defense

It is illegal for debt collectors to do which of the following?

Use abusive or deceptive practices to collect debt you owe

Which form tells employers how much income tax to withhold from their employees' pay?

W-4

Who should choose your auto insurance policy?

You

First Thessalonians 5:18 says to "give thanks in ______ circumstances."

all

When should we be grateful for paying taxes?

always

As part of maintaining the safety of the community, most law enforcement departments include employees who deal with ________ control, which includes invasive wild animals and stray pets.

animal

The costs for public education are mainly for what?

ayroll expenses related to public school employees

There are some instances when accruing debt is necessary, and it can actually be______if done wisely and with caution.

beneficial

Proverbs 22:7 says the____is a slave to the____.

borrower, lender

Proverbs 22:7 tells us, "The rich rules over the poor, and the______is the slave of the_______.

borrower, lender

A department store-sponsored card offers special incentives to shop with the store, but it also carries higher interest rates. These cards _______________________.

cannot be used anywhere you want since they are sponsored by a specific store

A_____community is not only biblical but is also a great way to meet fellow believers and form meaningful connections.

church

A tax_____is a dollar-to-dollar reduction in your actual tax bill.

credit

If you have borrowed money, you owe a____to a lender.

debt

________ mortgages the future, and it does not allow for God to fully work in our lives.

debt

Getting into debt can ________ God an opportunity to provide for our needs.

deny

When you rent a home, usually the landlord will ask for a_____of some kind to hold until you move out to protect him or her in the event that repairs need to be made after your time as a renter.

deposit

Tenants who lease or rent a property are protected against_______by the Fair Housing Act.

discrimination

It is important to learn about an organization's_____information, such as if they are spending their money the right way or have a rainy-day fund.

financial

God owns it all, and He has told us to pay to the __________ what is theirs.

government

The better your credit rating, the_____the established limit will be on your credit cards.

higher

You should purchase renter's______to cover your valuables if you are renting a home.

insurance

Government______payments are paid by the government for interest on borrowed money.

interest

If you are willing to forgo using credit cards to make purchases and instead pay with cash and save the money, you can save hundreds or thousands in_______fees.

interest

If you pay off your credit card balance during the allowed grace period each month, you should not be charged any ____________.

interest

A tax deduction is a dollar amount that the IRS allows you to subtract from your adjusted gross income, or AGI, making your taxable income _________________.

lower

Credit backed by assets or equity (mortgages and auto loans) are___ _______than credit cards or store cards, which are seen as "spending" credit.

more favorable

When renting, there may be extra fees for parking spaces, storage, garbage collection, and______.

pets

Most people participate in tax-deferred savings and investments accounts for ______________________.

retirement and travel

A car title loan is a loan for a small amount of money and for a_____time.

short

A_____deduction is a large, fixed dollar amount determined by the federal government for that tax year.

standard

Each _____ has its own tenant rights, laws, and protections when it comes to rental housing.

state

As an employee, the information on your W-2 is extremely important when preparing your tax return. Your W-2 reports the amount of federal, state and other____withheld from your paycheck.

taxes

What does the government use to pay for things such as purchases and interest payments?

taxes

How many credit scores do you have at any one time? (Hint: You have one for each major credit reporting bureau.)

three

Psalm 37:21 states, "The________borrows but does not pay back ..."

wicked