Personal Finance

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What does a personal balance sheet report?

The financial position of a person or family on a given date

pension funds

any plan fund or skeem that involved retirement funds

budget=400 spends 415

budget deficit of 15

budget =400 spends 395

budget surplus of 5$

what offers higher rate of return to savers? Regular savings account or certificate of deposit

certificate of deposit

The savings plan that is likely to have a set rate of return is a

certificate of deposit (CD)

A personal check with guaranteed payment is a

certified check

Debit cards transactions are most commonly deducted from funds in a person's

checking account

tf High-yield savings accounts pay many times more than regular savings accounts without restrictions for the minimum balance, withdrawal limits, and fees.

false

t/f A CD account is a checking account that earns interest.

false, its a form of savings account

t/f Most people mail the full amount owed in federal income tax each April.

false, most people pay it throughout the year or have tax deducted from pay check

The principal purpose of taxes is to:

finance government activities.

liquid asset

fund that can be easily converted into funds by sale or withdraw

projected spending

how much money is expected to spend

a personal cash flow shows

income and payments

itemized deduction

individual can get money back on an itemized deduction. Mortgage interest is an example of itemized deduction

bond

loan investors give to a company

discretionary income:

money left over after paying for housing, food and other necessities

liabilities

money owed to others

The final step in the financial planning process is to

review and revise your actions.

Capital gains refers to:

sales in stocks, bonds, or real estate.

tf Real estate property taxes are the major source of revenue for local government.

t

what does a personal balance sheet report

the current financial position of a person/family

Economics

the study of wealth

Opportunity cost refers to

trade-offs when a decision is made

T/F Inflation reduces the buying power of a dollar.

true

T/F Savings and investment programs are two of the components that must be considered to achieve financial goals.

true

t/f A savings account with daily compounding will have higher earnings than an account with quarterly compounding.

true

a budget deficit

when actual spending exceeds projected spending

Insolvency is

when liabilities far exceed available assets

rate of return on a savings acc may be referred as

yield

If you desire your savings to double in 6 years, what rate of return would you need to earn?

12$

at 12% tax, if she makes 100$ she pays:

12$

Based on the following information, what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $20; Outstanding checks $154; Interest $1.25; Deposit in-transit $75.

154.00

An itemized deduction of $800 with a 33 percent tax rate would reduce a person's taxes by:

264 (800*.33)

When a taxpayer's income increases $1,000 and the taxes owed increases from $7,850 to $8,200, the marginal tax rate is what percent? a.

8,200-7850 = n n/1000 = 0.35 or a marginal tax rate of 35%

which one offers a wider range of financial services? Credit Union or Commercial bank.

Commercial bank

t/f Taxable income refers to the amount deducted from a person's pay.

F

T/F A financial plan is a list of a family's spending for the next month.

False

T/F Personal financial planning starts by creating a plan of action.

False, find your goals

municipal bond

a bond issued by state or gov

Adjusted Gross Income is calculated by:

Income - deductions

T/F the major purpose of personal financial planning is economic security

True

Rate of return on a savings account is also known as:

Yield


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