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