1.03 Quiz: Managing Your Money

Your new balance should be written where in your check register after each transaction?

In the far right column

Why is it a bad idea to default on student loans even if you have trouble making the payments?

It can ruin your credit score.

Which of the following is a long term financial goal?

Planning for retirement

Which of the following is not a short term financial goal?

Planning for retirement

What is usually the highest expense in a month?

Rent

Which of the following expenses is a routine expense?

Rent

Which type of policy should you purchase when moving into off-campus housing at college?

Renter's insurance

How much is the standard FICA deduction from most paychecks?

7.65%

What do the initials ATM represent when used in the far left column of a check register?

A cash withdrawal from an automatic teller machine

Which of the following are standard payroll deductions?

All of the choices are correct.

Why do many people think it is better to not receive a refund from the IRS at the end of the year?

Because you are giving them money tax free instead of putting that money into an interest bearing account

Which of the following is the best example of a good debt that increases your financial security?

Building equity in your home

How can short term financial decisions lead to negative long term consequences?

By making it difficult to establish and maintain credit

What type of income includes all taxes and deductions before they are taken out?

Gross income

What tradeoff would you expect to make for choosing to be a teacher?

More personal satisfaction for less income

Why does selecting a type of employment involve tradeoffs?

No job offers everything a person wants or needs.

You are 35 years old and married with no kids. You want to make sure your husband or wife will receive money if you unexpectedly pass away. You want to pay the least amount possible for life insurance. Which type of policy would you typically buy?

Term life insurance

How do depreciating assets hurt your financial health?

They decrease your net worth.

What is the purpose of the 1040 series of tax forms?

To file individual tax returns

What is the purpose of a W-2 form?

To identify a person's earnings and the amount of taxes withheld