Personal Finance Midterm Study Guide

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What is the gig economy

A flexible market that allows you to work short-term, independent jobs

A stock is

A share of ownership in a country

Which of the following statements about stocks is TRUE

A stock is a share of ownership in a company

A mutual fund is

A type of investment that invests in a mix of different types of investments

Which of the following is NOT a common feature of a financial institution

Access to invest products or Invest trading or Access to invest advice

For most careers, which degree will most likely result in the highest lifetime earnings

Bachelors degree

Which of the following financial institutions typically have the highest fees

Check cashing and payday loan companies

What should you do before you approach an ATM

Check for any suspicious people lurking nearby

Which of the following statements about check cashing companies is FALSE

Checking account

Which type of bank account is best for everyday transactions

Checking account

Which type of bank account typically offers the least(if any)interest?

Checking account

How would you reconcile your bank account to avoid spending more than you have

Compare your own records of your spending with your financial institutions records

There is no relationship between the level of education recoeved and lifetime earnings

False

When considering a job offer, you should only consider how much you're being paid before you accept the offer

False

Your financial institution can't help you is there is a mistake in your bank account statement

False

The is a flexible market that allows you to work short-term, independent jobs

Gig economy

W-2 form is a form that tells you

How much taxes you've paid in the last year based on how much you've earned

What does the W-2 form tell you

How much you've earned and how much taxes you've paid in the last year

Which of the following statements is TRUE

If there is a mistake on your bank account, you should contact your financial institution immediately

What should you use an ATM

Inspects the ATM and its surrounding to make sure it is safe to use

What should you do before you withdraw money from the ATM

Inspects the ATM to make sure it wasn't tampered with

Which of the following statements about investing is FALSE

Investing is a guaranteed way to grow your money

Which of the following statements about investing is TRUE

Investing is riskier thank putting money in a savings accounts

How can you avoid spending more than what is in your bank account

Keep your own records to compare with your financial institution records

Investing is best for...

Long term financial goals, like paying for retirement

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called

Net pay

Which savings account will earn you the most money

One that compounds interest daily

Which savings account will earn you the least money

One that earns simple interest monthly

Which of the following is NOT a possible tax or deduction that could come out of your paycheck

Overtime pay

Which of the following is a possible tax or deductoon that could show up on your paycheck

Sales tax

Which of the following statements about savings accounts is FALSE

Savings accounts allow an unlimited amount of withdrawals each month

Which of the following statements about savings account is FALSE

Savings accounts don't usually pay interest on the money you deposit

Which of the following statements about savings accounts is FALSE

Savings accounts don't usually require a minimum balance

What do taxes pay for

Schools, government departments, roads, and emergency services

A. Is a share of ownership in a company

Stock

Which of the following statements is true about taxes

Taxes pay for schools and government departments, taxes pay for roads and emergency services, taxes are often used at the federal,state,and local levels

The W-4 tax is used to

Tell your employer how much federal income tax to withhold from your paychecks to send to the IRS

What is net pay

The amount of money you're paid after all taxes and dedications are taken out of your paycheck

How does the government pay for roads, schools, and emergency services

They are funded through taxes

Which if the following statements about check cashing companies is TRUE

They charge high fees

Why is it important to reconcile your bank statements

To avoid spending more than what is in your account, to detect any errors in your account? To determine if you were charged any fees

When you start a new job, you fill W-4 form to

To determine how much federal income tax your employer should withhold from your paychecks

What is the purpose of the W-4 form

To inform your employer of how much federal income tax to withhold from your paychecks

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily

True

General, the more education you receive, the higher your lifetime earnings will be

True

Your employer sends you a from that tells you how much you've made and how much you've paid in taxes on the last year

W-2

If there is an issue with your bank account statement or account balance, who should you contact to resolve the issue?

You bank

What do you need in order to fill out your 1040

Your W-2

What do you need in order to fill out your 1040

Your W-2, your routing and bank account number, a record of any other supplemental income

What do you NOT need in order to follow out your 1030

Your employer benefits documents

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

Your financial institution

Net pay is NOT

Your gross pay plus any bonuses


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