Personal Finance

The National Credit Union Administration serves a number of important functions the economy. Choose TWO of these responses

-Charter and regulate credit unions -insure deposits at federally insured credit unions

The Dodd-Frank Act (2010) was created to help make the American financial system safer for consumers and taxpayers. Choose TWO ways which this is accomplished.

-It overseas credit rating agencies -it regulates credit cards, loans, and mortgages

Which organization would MOST LIKELY investigate consumer complaints about a neighborhood store

To investigate consumer complaints

Which investment has the least amount of default risk?

US Treasury

The law diminishing returns, especially as it applies to investments, teaches that there comes a point when assuming additional risk will provide no further benefit or return. This is an important lesson that every investor should know Many otherwise astute investors end up investing their money in tisky investments in pursuit of greater returns when the numbers imply that this will most likely not be the result. there is anything to learn in life it is that the law of numbers and statistics will usually prevall For this reason, is not worth the risk to chase extra returns when the likelihood is that there will be great loss. In other words, an investor knows when it best to take the money and run What scenario shows the best time to play it safeinvesting because the law of diminishing returns against the investor ?

You are 65 and have retired from your career and are looking at a very long and happy life of traveling and good times .

Which is NOT a consumer right under the Fair Credit Reporting Act?

You have the right to block potential lenders from accessing your file

An economic aspect of the Federal Trade Commission's "do-not-call" registry is that it

allows consumers to engage in voluntary transactions with businesses .

How does the Truth in Lending Act protect consumers?

by requiring credit card issuers to disclose monthly interest rates

Sarah is concerned about identity theft. She wants to check her overall credit worthinessSarah should MOST LIKELY

check her credit history from a credit reporting agency .

What action is required by a consumer if he hopes to recover some money from a fraudulent business which refuses to respond to his complaints?

file a claim against the business

Unemployment insurance, Welfare, Medicare, Medicaid, and Social Security are key components of

fiscal policy

Sales taxes are considered regressive in nature because

people with higher incomes tend to save a larger portion of their income

Most economists believe that a sales tax increase affects which group the MOST

people with low incomes

"Capital gains" can BEST be described as

profits from the sale of some type of asset, such as stock, businesses, land or art

Of the following taxes, what is the name for the taxes that all homeowners must pay?

property tax

2003, the Social Security component of the Federal Insurance Contributions Act (FICA) was 6.2 percent of wages and salaries up to $87,000. After that amount Social Security taxes were not collected, regardless of incomeBecause Social Security tax was capped in 2003, it was

proportional up to $87,000.

A regressive tax is BEST defined as a rate of tax

that falls as income rises.

The Dodd-Frank Wall Street Reform and Consumer Protection Act was created in response to

the financial crisis of 2008

Which investment option has ratings from AAA to D representing the investment grade?

Bonds

How does the Fair Credit Reporting Act protect consumers?

By allowing borrowers to dispute inaccurate information on credit files

Choose all the responses that describe the requirements of the State Children's Health Insurance Program (SCHIP)

C)18 years of age or younger D) a U.S. citizen or legal non -citizen E) uninsured and ineligible for Medicaid

How are capital gains taxed?

Capital gains are included in taxable income, but are taxed at a lower rate

Which is NOT considered prohibited conduct under the FDCPA (Fair Debt Collection Practices Act)?

Contacting business owners in an effort to collect a debt

The Truth in Lending Act of 1968 had the biggest impact on which of these?

Credit cards

Which tax is collected on the production of specific goods, like cigarettes, within a country?

Excise taxes

Purchasing a motorcycle is likely an example of

Extensive Decision making

which government agency is responsible for enforcing national consumer protection laws

FTC

Which government agency is responsible for enforcing national consumer protection laws?

Federal Trade Commission

This chart shows 2016 income tax brackets for single and married filers. Which statement about income tax rates is TRUE?

For all filers, tax rates increase as higher income levels are reached.

How does the risk/return ratio of a government bond compare with that of other types of investments

Government bonds typically provide lower returns, at lower risk.

These programs show that the federal government has changed its philosophy over the years in that the government now provides what service to many Americans?

Healthcare

How might an individual be able to differentiate a legitimate multilevel marketing program from an illegal pyramid scheme?

If a program sells real products to the public, it is likely a legitimate multilevel marketing program .

One thing people pay for when they pay property tax is

Improvements to land

The United States has a "Progressive Taxsystem when it comes to levying a(n? ___tax

Income tax

What specific tax is used as an example of a proportional tax in this video ?

Income tax

Which executive Department would have the task of enforcing designed to protect the rights of consumers?

Justice

What governs the rights of a consumer who has purchased a defective item, such as a car or truck?

Lemon law

James needs toothpaste, but he'd like to change from his usual brand, which has dipped in quality. This would be an example of

Limited decision making

In the state of Georgia, why might the Governor and the General Assembly have to cut the budgets and spending of very important programs such as education and Medicaid?

Limited revenue and the budget must be balanced

Which investment offers the BEST combination of low risk and high return?

Long term certificate of deposit

Which of these programs was created in 1965 as a social health care program for families and individuals with low incomes?

Medicaid

Illinois has a 3% state income tax on all earned income. Georgia has a tax rate starting at 1% to 6% on all earned income. What type of tax does Georgia have?

Progressive

The federal personal income tax is an example of which kind of tax?

Progressive tax

Local governments generally receive their highest amounts of revenue from

Property taxes

Which of these taxes are typically assessed by local government only?

Property taxes

Tax rates in which the percentage of tax is the same regardless of the level of income is MOST LIKELY

Proportional tax

Which type of tax is characterized as having a "fixed rate

Proportional tax

Which of these would be the MOST appropriate way to manage risk using a avoidance strategy

Purchasing savings bonds

Which of these forms of taxation has been criticized for placing an excessive burden on people with less ability to pay?

Regressive taxes

Buying your favorite brand of ice cream is MOST likely an example of

Routine Response Behavior

A ______ tax is an example of a reqressive tax is used in the video

Sales

Sold for as little as $25 Low-risk investments Pay interest for up to 30 years Issued by the Federal Government What is being described here?

Saving Bond

Identity theft can cause major destruction to people's financial stability if not handled appropriatelySandra recently had fraudulent charges placed on her credit card that she did not authorize. Besides canceling and replacing credit cards, what is another precaution she can take after facing this identity theft threat ?

She should change online passwords associated with her accounts

To protect the security of your debit or credit cardwhat should one look for at ATM machines and card swipers

Skimmers

Julia just graduated college and is beginning her new career. Being concerned about her financial future, she wants to begin investing now. At her young age, which would be the BEST option for her to start investing in?

Stocks

Which program provides benefits for low-income families and economic benefits to communities?

Supplemental Nutrition Assistance Program (SNAP)

Students are required to pay certain taxes. Why is this the case

Taxes are used to provide services to the community

The U.S. government contains numerous agencies to enforce laws protect rights. What statement best describes the overall purpose of the Consumer Financial Protection Bureau (CFPB)?

The CFPB promotes fairness and transparency for mortgages, credit cards and other consumer financial services and products.

The Federal Trade Commission (has relatively broad powers to regulate trade practices in the US. Which example LEAST Illustrates the FTC's contribution to empowering individuals?

The FTC orders a review of a merger according to the Clayton Antitrust Act of 1914.

The U.S. government contains numerous agencies to enforce laws protect rights. What statement best describes the overall purpose of the National Credit Union Administration (NCUA)?

The NCUA monitors U.S. federal credit unions, and is responsible for allocating tax dollars to insure the deposits at all federal credit unions.

What is the government's role in taxation?

The government establishes and collects taxes for government projects.

What does it mean to investors when a bond reaches full maturity?

The investor is owed the principle and the interest earned on the investment

The U.S. government contains numerous agencies to enforce laws and protect rights. What statement BEST describes the overall purpose of the Securities and Exchange Commission (SEC)?

The protects investors from Illegal practices and fraud, by requiring full disclosure by investment companies to the public.

Which statement BEST describes a similarity between the Truth in Savings Act and the Truth in Lending Act?

They require financial institutions to provide certain information to consumers.

Choose all aspects that best describe a progressive tax system.

- A progressive tax enforces a lower percentage of taxation on lower income levels - A progressive tax enforces a greater percentage of taxation on higher income levels -A progressive tax system implies the presumption that those who have greater incomes can afford to pay more in taxes.

Consumer A and Consumer B live in the same state where a sales taxes increase of 1% on all items has been enacted. Consumer A has an income of $50,000 per year and Consumer B has an income of $250,000 per year. Choose all scenarios that correctly describe the effects of the sales tax increase on Consumer A versus Consumer B

-The sales tax increase will have a greater negative impact on Consumer A than on Consumer B. -The sales tax increases will create less negative opportunity cost considerations for Consumer B than for Consumer A. -On the purchase of a $10,000 car, the sales tax increase equals.2of the income of Consumer A, but equals just.04% of the income of Consumer B.

Where would you be MOST likely to find a sign like this one? FDIC

A bank

The Consumer Protection Division of the Attorney General's Office would MOST LIKELY be the point of contact to resolve which type of consumer conflict?

A consumer has received a telemarketing scam in the mail

Victims of investment fraud MOST LIKELY experience

A loss of money

Choose the THREE answers that are part of the categorical requirement of the WIC Program

A) women B) infants C) children

Which of these would be considered a "Level 4 investment?

Baseball Cards

A traveler made reservations for a hotel with an ocean view. When she arrived at the hotel she found it was not what was advertised. The rooms were not clean enough, the restaurant was understaffedthe workers were rude and the 'ocean view was of Ocean Boulevard, not the ocean The manager seemed not to care To whom should she take her complaints ?

Better business bureau

Which organization would MOST LIKELY investigate consumer complaints about a neighborhood store

Better business bureau