personal finanace final exam
The general rule of thumb is that you can afford a house that's ____ times your yearly household salary.
2.5
Which are the most common types of employer-sponsored retirement savings plans?
401(k), 403(b), and 457 plans
What age must a person be to receive Medicare benefits provided by the Medicare tax?
65
Chapter ______ is known as straight bankruptcy because it involves liquidating (or selling) all assets that are not exempt.
7
Experts estimate that you will need at least what percent of your income to maintain your standard of living when you stop working?
70-90%
Which of the following jobs pay more than entry-level jobs because they require more education?
All of these
Which of the following are the two types of bankruptcy?
Chapter 13 and Chapter 7
Choose the three tax revenue categories that are allocated less than 5% of the budget. Please do not guess, as incorrect answers are penalized for this question type.
Customs and duties Unemployment taxes Excise taxes
Which of the following are payments made by a company to the owners of a company's stock or bond?
Dividends
When did Social Security go into effect?
In 1935, with the signing of the Social Security Act
Of each Social Security tax dollar you pay, how much does the SSA pay to manage the program?
Less than one penny
Which president was responsible for starting the Social Security Board, the precursor to the Social Security Administration?
Roosevelt
Which is true about property taxes?
They can be figured into your montly escrow payment.
How many credit scores do you have at any one time? (Hint: You have one for each major credit reporting bureau.)
Three
____________________________ are tax-deferred retirement savings and investment plans that offer federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.
Thrift savings plans
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
A ___ tax form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes.
W-2
When you make money by earning interest and investing, what must happen?
You have to pay any taxes on the financial rewards you gain.
Which is true concerning the cost of consolidation loans?
You may have to pay "points," with one point equal to one percent of the amount you borrow.
james 1:16-17 says, "Do not be deceived, my beloved brothers. Every good gift and every perfect gift is from _______
above
Companies issue ________ because they need to borrow large amounts of money.
bonds
On August 15, 1994, President ________ returned SSA to its original status as an independent agency effective March 31, 1995.
clinton
________ can make a huge difference in the amount of money you have at the time of your retirement.
compounding
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
______ pay is the amount of money you actually get to take home, otherwise known as "take-home pay."
net
________ pay is the amount of monetary compensation that an employee receives after all statutory deductions (government-mandated/controlled) and other personal deductions are withheld and distributed to the designated recipients.
net
The process of _________ includes lenders taking your provided information about your income, past income tax returns, debt-to-income ratio, and other financial indicators to determine how much you may be able to borrow for the purchase of a house.
pre approval
________ 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
Real return is the return on stocks over a given period of time after subtracting ________ and adjusting for ___________.
taxes; inflation
