Personal Finance 3.06 Quiz- Financial Planning

What is a financial reserve? (Select the best answer.)

An amount of money that's been set aside for emergencies

Which of the following is a short-term financial goal? (Select the best answer.)

Buying a birthday gift for a friend

Which of the following is an unexpected expense?

Car repairs

Which of the following is a variable expense? (Select the best answer.)

Groceries

Which of the following is a benefit of an MP3 player? (Select the best answer.)

How it allows the purchaser to listen to music anywhere

What are Social Security taxes used for?

Income for retired and disabled people

What does a wholesaler do?

Purchases products in bulk and then sells them to other retailers

Which of the following is a financial goal?

Renting an apartment

How might taxes have an impact on your financial plan?

Taxes control how much of your income you keep.

What is rent?

The amount you pay to live in a space such as an apartment

What is a tax bracket?

The rate at which income is taxed

Which of the following is true about wants? (Select the best answer.)

They are discretionary expenses.

Which of the following is an example of earned income?

Wages

What does a person's will list?

What should happen to their finances after they die

What type of information is required on a 1040EZ form?

Your gross and net income for the previous year