Personal Finance Midterm Study Guide
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
