Math

Calculate the compound interest (annually) for $1000 at 6% interest for three years.

$1,191.02

Darleen just started teaching elementary school. She earns a gross monthly income of $2200. How much is deducted this month for Social Security? How much for Medicare?

$136.40, $31.90

The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)

Branding

Raising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision. T/F

True

Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchases. T/F

True

When a company hires you, you will fill out a _ form. The information on this form is the basis for determining how much income tax should be withheld from your paycheck.

W-4

Percentage of Americans living paycheck to paycheck: a. 70 b. 40 c. 50 d. 25

a. 70

A form of state of federal financial aid that does not need to be repaid; usually given to students who demonstrate financial need. a. grant b. scholarship c. loan d. FAFSA

a. grant

Company X's board of directors has decided to issue a portion of its earnings to its shareholders. If you own stock in Company X, you can expect to receive a(n): a. Yield b. Dividend c. Buy-out d. Investment

b. Dividend

Long-term investments, properly diversified, include the following mutual funds: a. International, bond, aggressive growth, growth b. Growth, growth and income, international, aggressive growth c. Growth, balanced, international, bond d. Growth, growth and income, bond, aggressive growth

b. Growth, growth and income, international, aggressive growth

The Internal Revenue Service (IRS) is the federal government agency responsible for: a. Writing tax laws b. Tax collection and tax law enforcement c. Keeping the unemployment rate low d. Filling out your tax forms

b. Tax collection and tax law enforcement

The purpose of insurance is to: a. Develop a savings plan b. Transfer financial risk c. Provide an investment opportunity d. All of the above

b. Transfer financial risk

Groceries are a: a. Fixed expense b. Variable expense c. Discretionary expense d. Intermittent expense

b. Variable expense

What is paycheck garnishment? a. Process by which the holder of a mortgage sells the property of a homeowner who has fallen behind on payments b. A legal procedure for dealing with debt problems of individuals and businesses c. A court-ordered attachment that allows a lender to take monies owed directly from a borrower's paycheck d. Process of taking something back for failure to make payments

c. A court-ordered attachment that allows a lender to take monies owed directly from a borrower's paycheck

Saving is about: a. Contentment and earning more money b. Making more money and discipline c. Contentment and emotion d. Pride and greed

c. Contentment and emotion

You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called: a. Comprehensive b. Collision c. Liability d. Uninsured motorist protection

c. Liability

A young investor willing to take moderate risk for above-average growth would be most interested in: a. Real estate b. Single stocks c. Mutual funds d. Bonds

c. Mutual funds

Jill works for Fast Food Inc. and earns $332 per week and is paid bi-weekly. How much is deducted from her paycheck for Social Security?

$9.63

Tanner has invested $500 for college. What rate of return must Tanner earn for his investment to double in six years?

12%

What annual interest rate will cause your money to double in four years?

18%

Investment - Joe Annual Salary - $40,000 Company Match - 1:1 up to 5% 401(k) Amount - Roth IRA Amount - Total Annual Investment -

401(k) Amount - $2,000 Roth IRA Amount - $4,000 Total Annual Investment - $6,000

Melissa will fund the 401(k) up to the match and put the remainder in her Roth IRA. Investment - Melissa Annual Salary - $55,000 Company Match - 1:2 up to 6% 401(k) Amount - Roth IRA Amount - Total Annual Investment -

401(k) Amount - $3,300 Roth IRA Amount - $4,950 Total Annual Investment - $8,250

What day are income tax filings due in the United States?

April 15

Amount you must pay before you begin receiving any benefits from your insurance company

Deductible

Original Price - $179.99 Sale - 25% Discount - Sale Price - Additional 20% Off - New Price - % Savings Off -

Discount - $44.98 Sale Price - $134.99 Additional 20% Off - $27 New Price - $107.99 % Savings Off - 40%

Order the following types of income from most taxed to least taxed. Portfolio Income, Earned Income, Passive Income

Earned Income, Portfolio Income, Passive Income

You must establish credit in order to buy a house. T/F

False

The total amount of money you get before taxes or other deductions are subtracted from your salary

Gross Pay

The process of communicating the value of a product or service to customers

Marketing

An interest-bearing account is an account that generates interest income on the available balance in the account. T/F

True

The amount one receives after taxes and deductions have been withheld (take home pay)

Net Pay

Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance

Premium

Which statement is true about liquidity? a. The less liquid the investment, the less return b. The more liquid an investment, the more return c. The more liquid an investment, the less return d. Both a and b

c. The more liquid an investment, the less return

Using the sinking fund approach, how much do you have to save each month to buy a $4,800 car one year from now? a. $300 b. $500 c. $275 d. $400

d. $400

When it comes to managing money, success is about _______% head knowledge and _______% behavior. a. 50, 50 b. 80, 20 c. 60, 40 d. 20, 80

d. 20, 80

Which of the following statements about the stock market is false? a. The terms bull market and bear market describe upward and downward market trends. b. The Dow Jones Industrial Average is one measure of the stock market. c. The stock market is a generic term that encompasses the trading of securities. d. Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.

d. Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.

Car repairs are a: a. Fixed expense b. Variable expense c. Discretionary expense d. Intermittent expense

d. Intermittent expense

Which of the following is a good investment option? a. Gold b. Verticals c. Futures d. Mutual Funds

d. Mutual Funds

Income generated by selling an investment at a higher price than you paid for it. a. Earned Income b. Secondary Income c. Passive Income d. Portfolio Income

d. Portfolio Income

Instead of borrowing money for large purchases, you should set money aside in a ________ over time and pay with cash. a. Emergency fund b. Credit card fund c. Mortgage fund d. Sinking fund

d. Sinking fund

This principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This is due to both the opportunity to earn interest on the money and because inflation will drive prices up, thereby changing the "value" of the money. a. Interest rate b. Inflation c. Opportunity cost d. Time value of money

d. Time value of money