final exam

Which is an example of a good password?

"Sn@pchatR00les"

You earn $22,000. The tax table says you owe $3,456 in taxes. During the year, your tax withholdings were $5,333. What is your refund?

$1,877

You have three separate accounts with your bank that you can manipulate with online banking. Account "A" is a checking account with a $5,245.50 balance, Account "B" is a personal savings account with a $12,850.25 balance, and account "C" is a joint college savings account with your 12-year-old son. You move $2,500 from account "B" to account "A" to cover an unexpected bill. You also move 1.5% of the remaining balance in account "B" to account "C". What is left in account "B" after these transfers?

$10,195

You deposited a check for $1,200 into your checking account that had a balance of $625 and it "bounced". You had written checks for $450, $225, $215, and $187. Your bank will pay the largest check that you wrote first. Your account is overdrawn, and the remaining checks written to pay monthly bills did not clear. Your bank charged you a $35 overdraft fee and each of the remaining creditors receiving bounced checks charged you a $25 late payment fee. What did the $1,200 check that "bounced" on you cost you?

$110

You have filed your taxes more than 60 days late which means you are subject to a penalty of $135 or 100% of your unpaid tax, whichever is smaller. Your taxes were $355, and you paid 48%. Which late penalty is cheaper, $135 or 100% of unpaid balance.

$135

A bank statement has a beginning balance of $5,491.56, total debits of $1,130.00, and an ending balance of $5,329.53. What is the difference between the beginning balance and the ending balance?

$162.03

Last year you forgot to pay a total of three department store monthly statements. Two of the three charged you a $35 fee for this and one store charged you $25. You also forgot to pay your monthly credit card bill twice and the credit card company penalized you $30 per oversight and raised the interest rate on your credit card balance of $400 to 18% from 8% for the remaining 4 months of the year. This year you switched to online banking with automatic payment. What did online banking with autopay save you?

$168

Your bank gives you 50 points for monthly online bill pay, 50 points for monthly mobile deposits, 100 points per car payment, and 1.5 points per dollar credit card spent. You had monthly credit card charges of $1,400 last month. You earn $75 per 10,000 points. How much in dollars did you earn from points last month.

$17.25

Your bank offers free access to online banking, but they charge you $.02 for each online e-check you send. They charge you $.10 for each paper check you write. You have chosen to write all future checks online. Over the year you have sent an average of 18 checks per month. What have you saved in a year with online checking?

$17.28

You set up monthly recurring payments of $110.03, $45.66, and $22.87. How much will your recurring payments total over one year?

$2,142.72

You earned $62,715 this year and your Income tax calculator says you owe $8,818 in taxes. But you neglected to deduct $1,000 for your dependent Grandfather and the $5,000 you put in an IRA. This reduces your income by $6,000 to $56,715. Your new effective tax rate is 10.70%. What is the difference in your old $62,715 based tax debt and the updated tax debt with another dependent and the IRA contribution?

$2,749.50

Tax rates are 10% on the first $10,000 you earn and 20% on amounts over that. You earn $15,000. What is your tax?

$2000

Internet access to use online banking costs you $39.99 per month. A book of checks costs you $17.95 per 100. Your bank charges you a $.05 per check writing fee for over 5 checks per month. You write an average of 25 checks per month and each one needs a 50 cent stamp. What is your cost difference per month to use online banking vs check writing?

$22.00

You have two accounts with balances $450 and $35. You want to bring up the balance in the second account but do not want the balance of the first to drop below $215. How much can you transfer from the first to the second account?

$235

By opting out of paper bank statements, your bank promises savings of $2 per month. How much will you save in a year?

$24 per year

You have made bank deposits of $1,227.09, $29.78, $437.18, $277.36, $33.98, $15.21 and $117.00. What was your mean deposit for the month?

$305.37

Your checkbook shows a balance of $413. Your bank statement says you have $373. Assuming you are missing just one transaction, what is the amount of the transaction you are missing?

$40

You are paying all eight of your monthly recurring bills free online now that you used to pay by "snail-mail". Stamps cost 47 cents each. What will you save on stamps in a year?

$45.12

You move 18% of your online checking account balance of $2,525 to your savings account. How much of your checking account did you transfer?

$454.54

You will owe 15.3% of your salary for your total FICA contribution. You are an employee, so you pay one half of this total contribution. Your employer pays the other half for you. If your salary is $82,000/year what is going to be deducted from your monthly paycheck as your FICA contribution?

$523

Your automatic payment option pays bills of $23.17, $55.67, $2,345.15, $575.25 and $1.15. How much was the mean payment?

$600.08

You pay no federal taxes up to $9,525, 12% for income from $9,526 up to $38,700, 22% for income from $38,701 up to $82,500. If your income is $57,890, how much taxes do you need to pay?

$7,723

The Federal income tax credit for dependent children doubled from $1,000 to $2,000 from 2017 to 2018. If the credit continued doubling each year, what would it be in 2020?

$8000

You have 3 online accounts in three different banks valued at: bank "A" = $250.67, 12% interest, bank "B" $765.13, 7% interest, and bank "C" $28,500.36, 9% interest. What is the average interest gained from the three accounts in one year?

$882.89

You earned $34,000 and your total tax due was $6,200. What was your average tax rate?

%18

You have decided to relax your work schedule over the next 5 years. Your current income is $92,000 putting you in the 24% Federal Income tax bracket. The tax bracket is 12% for income from $9,526 up to $38,700, 22% for income from $38,701 up to $82,500, and 24% for income from $82,501 to $157,000. If you decrease your annual income by 8% per year over the next 5 years, what Federal tax bracket will you be in after 5 years?

%22 tax bracket

Your checking account has grown from $2,675.25 to $3,750.25. What is your growth rate in percent?

%40

You need to write a check for $167.50 from your checking account, which has a balance of $1,725.25. What percent of your balance will remain?

90.3%

An online account transfer is:

A transfer of money from one account to another conducted online

One hint that you might be dealing with a phishing site is:

All of the above

It covers you in the case of a vehicle accident, a break-in, or theft. It also covers your passengers and anyone you hit with your car—even if that person is walking or on a bike.

Auto Insurance

This type of business sells financial services such as loans, checking accounts, credit cards, certificates of deposit, and safe deposit boxes for storing valuables. A bank is owned by its investors, and a paid board of directors runs it.

Bank

Which formula best expresses your monthly ending balance?

Beginning Balance - Withdrawals + Deposits = Ending Balance

The check can be either deposited or cashed with no restrictions. Complete this type of endorsement at the time you will receive the cash or make the deposit, because once the check is endorsed, anyone can cash it.

Blank endorsement

A check that cannot be processed because the account holder has non-sufficient funds (NSF)?

Bounced Check

Any day, Monday through Friday, minus legal holidays (federal and/or state).

Business day

What is an account at a bank against which checks can be drawn by the account depositor?

Checking account

A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase (usually tied to a checking account)?

Debit card

You share in the financial burden by paying a relatively small fraction of the loss before an insurance company pays a dime.

Deductible

What you fill out when you deposit money into your checking account

Deposit slip

What is the term for when your paycheck is electronically deposited into your account?

Direct deposit

To sign (a check or bill of exchange) on the back to make it payable to someone other than the stated payee or to accept responsibility for paying it.

Endorse

A major payroll tax is called:

FICA, for Federal Insurance Contributions Act

Cash value insurance is NOT the same as whole life insurance.

False

One advantage of doing online banking from a Wi-Fi hot spot is increased security.

False

True or False: If you don't use online banking, it isn't necessary to review the debits and credits on your monthly bank statement for accuracy.

False

Whole life insurance, a.k.a. cash value insurance "...is one of the worst ________________ products on the market today."

Financial

A good password:

Includes a combination of letters and numbers that are memorable and meaningful to you

The penalty for not paying taxes owed:

Includes penalty fees and interest calculated starting April 15 of the year the taxes are owed

Occurs when an account cannot provide adequate funds to satisfy the demand of a payment?

Insufficient Funds or Non Sufficient Funds (NSF)

Reimburses you for unexpected losses or damages caused by a specific set of hazards to a specific thing.

Insurance

The federal government:

Is the national government of the U.S. that takes in taxes and funds such programs as maintaining interstate highways and the military

Overdraft fees can be avoided by:

Knowing your account balance and what upcoming bills will be paid

Identity theft is important to be aware of because:

Once your identity is stolen, it can be fraudulently sold, and others can continue to use your good credit to obtain credit cards and loans

This allows the individual to continue withdrawing money even if the account has no funds in it or not enough to cover the withdrawal?

Overdraft fee

What is a number allocated to an individual and used to validate electronic transactions?

PIN ( personal identification number)

Which of the following is NOT considered personal information?

Place of employment

The fee to pay for insurance.

Premium

Make (one account) consistent with another, especially by allowing for transactions begun but not yet completed.

Reconcile

Writing "For Deposit Only" and your bank account number with your signature.

Restrictive endorsement

The only people who recommend cash value insurance are people who __________________ it.

Sell

Taxes go to pay for:

Social Security 21%, National Defense 21%, and net interest 9%

When paying bills online, a payee is:

Someone to whom you send a payment

If you want to reduce the amount you pay in taxes each year:

Start contributing to an individual retirement account

Income tax is:

Tax paid to the state, federal, and local governments based on income earned over the past year.

_______________ insurance on average, runs about 1/20th the cost of whole life / cash value insurance.

Term

A paycheck has withholding tax taken out:

That is paid to state and federal taxing authorities

If you fail to file a tax return:

The IRS will penalize you in the form of a dollar amount

You are offered a choice between paying a flat tax (one rate on all income) of 20% on $44,000 of income and paying a graduated tax of the following schedule on the same income. Schedule: 10% on the first $25,000; 30% on your income over $25,000. Which is better for you?

The graduated tax

Charitable donations you make may reduce the amount of taxes you have to pay

True

As President, Barack Obama appointed Timothy Geithner to the following position:

United states the secretary of treasury

There are 2 general types of life insurance; cash _______________ insurance, and term insurance

Value

To file your taxes, you need:

W2 and 1099INT reports, and charitable deduction receipts

Your check register shows a balance of $565. Your last bank statement shows an ending balance of $715. All transactions match except for two outstanding checks for $100 and $50. Does your register balance with the statement?

yes