Money Matters Final Review
derek is paid $550 per week, but only brings home $375 due to deductions. which of the following is derek's net earnings?
$375
U.S capital is features on the reverse of which of the following U.S bills?
$50 bill
when was the nation's "free banking era"?
1836-1865
the Gold Standard Act was passed in which of the following years?
1900
the law of supply is "as the price of any good falls, the quantity demanded will increase."
FALSE
travel and recreational oppurtunites is a financial opportunity for the launching economic stage of families
FALSE
what is the difference in a flexible spending account (FSA) and a Health Savings Account (HSA)?
HSA's belong to the employee while the FSA's belong to the employer
which of the following is the amount charged as a percentage of the initial loan borrowed from a lender?
Interest rate
use the word bank to complete the following
W-F is a mandatory document to be completed upon HIRE of an employee. this document informs employers how much they need to DEDUCT out of a paycheck for FEDERAL income tax., hire, deduct, federal.
what is a pension plan?
a form of retirement plan in which employers contribute money to a plan which provides employees a monthly income during retirements
a country possessing unique resources or capabilities to allow the lowest cost of production for a product is known as which of of the following?
absolute advantage
which of the following is one of the four economic stages of families?
aging
which of the following correctly defines withholding?
amount of wages which are not included in an employee's paycheck
which of the following is NOT true of Roth IRA?
applies a 10 percent tax penalty on any withdrawals made before the age of 59.5
sources of capital include which of the following?
banks & credit unions, suppliers, previous owners of the business (all of the above)
which institution assist individuals in buying and selling securities among investors?
brokerage firms
taking a loan starts with which of the following?
comparing institution loan rates
which of the following is an indicator of how consumers are feeling about the economy?
consumer confidence index
the ______ considers the weighted averaged of a group of consumer goods and services
consumer price index
which of the following is also known as the "cost-of-living index"?
consumer price index
Which is NOT a Criterion banks use for evaluating loan applicants?
control
businesses can handle risks through which of the following?
controlling risks, transferring risks, avoiding risks, (all of the above)
which of the following is the most complicated form of business?
corporation
which of the following allows customers to borrow money from a financial institution up to a certain limit?
credit card
which of the following is NOT an example of an economic risk?
customer dishonesty
Budgets assist in reorganizing finances to reduce _________ or increase __________.
debt; savings
_______ refers to a decrease in price level
deflation
the electronic transfer of wages into an employee's account refers to which of the following?
direct deposit
which of the following allows customers to have their paycheck electronically deposited directly into their account?
direct deposit
______is a decrease in the rate of inflation
disinflation
the electronic movement of money from one account to another is known as which of the following?
electronic funds transfer
how often are paycheck stubs provided?
every pay period
Anyone can open a 401(k) savings plan.
false
hyperinflation means it is easier for people to make purchases because they are able to carry around a larger amount of money
false
raising your credit standing is an advantage of equality capital
false
short term goals cover a time period of one to two years
false
_______ explains how a person changes financial position, earnings, consumption and savings throughout the life cycle.
family life cycle
which of the following is a type of currency a government has declared to be legal tender, but is not backed by a physical commodity?
fiat money
which of the following is an example of a natural risk?
fire
advantages of entrepreneurship include which of the following?
getting to set your own work schedule
which of the following is a measure of an economy's output or production?
gross domestic product
what allows individuals to borrow against their home's value to finance their expenses?
home equity loan
which of the following is meant to motivate an employee to exceed organizational expectations?
incentives
budgeting financing requires calculating ________ and _______
income; expenses
which of the following describes a stable or thriving economy?
individuals are increasing their spending
which of the following accurately describes stocks?
investments providing ownership of public companies
which of the following is NOT a regional location of the federal reserve bank?
los angeles
which of the following is NOT an effect of inflation?
lowers employment rates among unskilled workers
which of the following is an example of a new banking technology?
mobile banking applications
A ______ account has a higher rate of return, but a ______ account has a lower required minimum balance.
money market; savings
which of the following types of notes were produced in 1836?
national banking notes
president thomas jefferson is on the obverse of which of the following U.S coins?
nickle
which of the following system is NOT a way one can participate in the consumer economic system?
not paying taxes
which of the following is a loan of credit issued to customers to cover checks or debits exceeding the amount in their account?
overdraft protection
which of the following measures the selling prices received by domestic producers?
producer price index
Ron opened the first Mcdonald's in his small hometown after reading about the success of the others in his states. This is an example of which way to enter into business?
purchased a franchise
which of the following is the rate of rising prices in a country?
rate of inflation
which of the following is NOT one of the constants the aggregate supply curve assumes
rate of production
which of the following is the definition of multi factor authentication
requiring more than one method of credential authentication to verify a user's identity for a transaction
if income exceeds expenses, which of the following is recommended?
research investment and savings options
which of the following is NOT considered a mandated tax?
sales tax
which of the following institutions may be owned by shareholders or members?
savings and loan associations
the factors of a start-up cost estimate include which of the following?
size of business, type and amount of inventory needed, operating expenses which must be paid before any revenue is received
______occurs in the economy when unemployment and inflation are both high
stagflation
match term
standard--for customers who want a reliable basic account online-- customers with no need for in person banking business-- business owners premium-- customers with large sums of money student-- for qualifying high school and college students senior-- for qualifying elderly individuals joint--for two or more account holders
money can be saved and used in the future without rapidly losing its purchasing power. this describes which of the following basic functions of money?
store of value
government bonds are issued by which of the following financial institutions?
the treasury department
what is overtime pay rate?
time-and-a-half
which of the following types of treasuries have the longest maturities of all government bonds?
treasury bonds
cost-push inflation leads to leftward shift of the aggregate supply curve
true
current events can impact personal financial decisions, particularly through the stock market
true
demand can change due to a change in the number of people in a market, change in taste or preferences, expectations of the future, change in income, or change in the price of a substitute or complementary product.
true
gross national income includes all of the income earned by a country's residents and businesses including those abroad.
true
take home pay minus total living expenses equals money available for savings and investment.
true
the aggregate demand curve assumes all things are constant, including other countries' price levels and exchange rates
true
the consumer product safety commision is empowered to conduct research on safety and collect data regarding injuries
true
most counties try to maintain an inflation rate of _____ per year
two to three percent
which of the following is an economic issue which seems to have a direct impact on crime?
unemployment
common stock differs from preferred stock in which of the following ways?
voting rights
which of the following defines opportunity cost?
what you are giving up or sacrificing by turning down one opportunity in order to take advantage if another opportunity
