Econ Final- Katie your gf

Form used to report various types of income other than wages, salaries, and tips

1099

Based on the rule of 72, money earning 8% would take this number of years to double

12

Negative financial information can stay on your credit report for

7 years

A credit report is:

A loan and bill payment history

Who is most likely to face the highest finance charges?

A person who pays bills late and infrequently

Dividend is

A stock's portion of the company's profits

The worst mistake when it comes to buying insurance is:

All of the above

Which of the following changes is most likely to cause an increase in employment?

An increase in consumer spending

Tax returns must be filed by

April 15

Most companies calculate the finance charge on credit card accounts as a percentage of the

Average daily balance

Who benefits when a person rents an apartment?

Both the person renting the apartment and the landlord.

Which of the following instruments is NOT typically associated with spending?

Certificate of deposit

Something of value (often a house or car) pledged by a borrower as security for a loan is called

Collateral

The Fair Debt Collection Practices Act applies to which of the following

Collection agencies

What is the interest that is computed on the amount saved plus the interest previously earned?

Compound Interest

This auto insurance coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident.

Comprehensive

Liability coverage pays for

Damage or injury for which you are responsible

The amount the insured pays on a claim before the insurer pays the policy remainder

Deductible

Pensions that specify a fixed amount are a

Defined contribution plan

Who insures your funds at a bank or savings institution?

FDIC

Your take-home pay from your job is less than the total amount you earn. Which of the following best describes what is taken out of your total pay?

Federal income tax, social security, and Medicare contributions

A court order directing that money (usually wages) of a third party be seized to satisfy a debt owed.

Garnishment

When industries or countries specialize in producing goods and services, this results in I

Greater economic interdependence

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

Income tax may be charged on the interest if your income is high enough

IRA stands for

Individual Retirement Account

Which of the following would be most likely to accelerate innovation in the computer industry?

Investing in more research and development in the computer

Why would one country place an embargo another?

Lack of natural resources

The legal document that defines the conditions of the rental agreement between the tenant and the landlord is called a

Lease

Banks create money by

Lending out part of their deposits

A right to claim property belonging to another person until a debt is paid is called a

Lien

A budget plan helps individuals and families balance expenses and income. To develop a budget you need to know what information?

Monthly fixed expenses, regular flexible expenses, occasional expenses and income

When governments supply products and services, these products and services usually benefit

More than one person at a time whether they have paid for it or not.

What tool does the Fed rely on the most in conducting policy?

Open market operations

The lowest interest rate is usually earned on a

Passbook savings account

In the United States, who determines what goods and services should be produced?

Producers, consumers, and government

MasterCard and Visa used on vacation represents

Revolving credit

Paying yourself first" refers to:

Saving money on a regular basis

The Federal Reserve System can best be described as

The central banking system for the United States

If you lose your credit card or fear it has been stolen, the first call you should make is to

The credit card issuer

What is the most important thing to know about a used car before you make the purchase?

The history of the car

Which of the following limits an economy's potential output?

The quantity and quality of labor, capital, and natural resources.

Monetary policy is:

The use of money and credit to influence the economy

You obtain a car loan. This transaction is subject to the

Truth-in-Lending Act

Which of the following is considered a major economic indicator on the health of the economy?

Unemployment rates

Employees' yearly statement of earnings and taxes withheld is called a

W-2

Employee's Withholding Allowance Certificate is

W-4

Consumers who file bankruptcy must

Wait one year before debts are eliminated.

What is your liability if you have lost your credit card?

You are liable for the first $50 of charges if your card is used.

A credit score is:

a three-digit number summarizing the state of your credit

An example of an electronic funds transfer is

all of the above

A complete ban on the import or export of products to a particular country is known as

an embargo

A person's regular income is referred to as

capacity

Profit from sale of a stock is called

capital gain

The largest component of GDP is

consumer spending

Market structure

deals with how much competition exist in each market

More allowances claimed on a W4

deceases tax amount withheld from paycheck

Which of the following best describes the "bait and switch" method of advertising?

dvertise low-priced items that are not in stock to attract customers

In case you lose your job tomorrow, about how much should you have in your emergency fund?

enough to live comfortably for two to three months

Gasoline tax is a (n)

excise tax

Term life insurance

expires after a specified period of time

A type of insurance that people purchase to cover specific items that aren't normally covered under their policy is called a

floater

College loan is

installment credit

Money paid for the use of money.

interest

What happens when you contribute to a 401(k)?

invested according to employer's choice

Virginia requires

liability insurance

A monthly budget is an effective tool that will help you

manage your spending and save for the future in order to accumulate wealth.

An example of a public good is

national defense

A monopoly occurs when

one firm sells a good that has no close substitutes and a barrier blocks entry for other firms

A debit card allows you to

pay for purchases directly from your checking or savings accoun

Under a subsidized Stafford Loan, the federal government will

pay the interest on this loan while I am enrolled in college

Retirement income paid by a company is called:

pension

n which market structure do firms exist in very large numbers, each firm produces an identical product, and there is freedom of entry and exit?

perfect competition

The largest source of tax revenue for the federal government is

personal income tax

The fee paid by the policyholder is called a

premium

Minimum wage is an example of

price floor

If a government limits the number of Japanese ball bearings that may enter its country to protect its domestic industry, it is using

quota

The process of determining any differences between a checkbook and a bank statement is called

reconciling the bank statement

International agreements such as NAFTA

reduce barriers to trade.

Today the MOST important function of the Federal Reserve System is

regulating the nation's money supply

A loan that has collateral backing up the amount borrowed is called a(n)

secured loan

Fiscal policy deals with

spending and taxes

A business cycle refers to

the ups and downs of real GDP

What is the most important task of all economies?

to make the best use of scarce resources

Comparative advantage is related to

trade

A credit score helps a lender determine

whether you're a good financial risk