Personal Finance
What does a personal balance sheet report?
The financial position of a person or family on a given date
pension funds
any plan fund or skeem that involved retirement funds
budget=400 spends 415
budget deficit of 15
budget =400 spends 395
budget surplus of 5$
what offers higher rate of return to savers? Regular savings account or certificate of deposit
certificate of deposit
The savings plan that is likely to have a set rate of return is a
certificate of deposit (CD)
A personal check with guaranteed payment is a
certified check
Debit cards transactions are most commonly deducted from funds in a person's
checking account
tf High-yield savings accounts pay many times more than regular savings accounts without restrictions for the minimum balance, withdrawal limits, and fees.
false
t/f A CD account is a checking account that earns interest.
false, its a form of savings account
t/f Most people mail the full amount owed in federal income tax each April.
false, most people pay it throughout the year or have tax deducted from pay check
The principal purpose of taxes is to:
finance government activities.
liquid asset
fund that can be easily converted into funds by sale or withdraw
projected spending
how much money is expected to spend
a personal cash flow shows
income and payments
itemized deduction
individual can get money back on an itemized deduction. Mortgage interest is an example of itemized deduction
bond
loan investors give to a company
discretionary income:
money left over after paying for housing, food and other necessities
liabilities
money owed to others
The final step in the financial planning process is to
review and revise your actions.
Capital gains refers to:
sales in stocks, bonds, or real estate.
tf Real estate property taxes are the major source of revenue for local government.
t
what does a personal balance sheet report
the current financial position of a person/family
Economics
the study of wealth
Opportunity cost refers to
trade-offs when a decision is made
T/F Inflation reduces the buying power of a dollar.
true
T/F Savings and investment programs are two of the components that must be considered to achieve financial goals.
true
t/f A savings account with daily compounding will have higher earnings than an account with quarterly compounding.
true
a budget deficit
when actual spending exceeds projected spending
Insolvency is
when liabilities far exceed available assets
rate of return on a savings acc may be referred as
yield
If you desire your savings to double in 6 years, what rate of return would you need to earn?
12$
at 12% tax, if she makes 100$ she pays:
12$
Based on the following information, what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $20; Outstanding checks $154; Interest $1.25; Deposit in-transit $75.
154.00
An itemized deduction of $800 with a 33 percent tax rate would reduce a person's taxes by:
264 (800*.33)
When a taxpayer's income increases $1,000 and the taxes owed increases from $7,850 to $8,200, the marginal tax rate is what percent? a.
8,200-7850 = n n/1000 = 0.35 or a marginal tax rate of 35%
which one offers a wider range of financial services? Credit Union or Commercial bank.
Commercial bank
t/f Taxable income refers to the amount deducted from a person's pay.
F
T/F A financial plan is a list of a family's spending for the next month.
False
T/F Personal financial planning starts by creating a plan of action.
False, find your goals
municipal bond
a bond issued by state or gov
Adjusted Gross Income is calculated by:
Income - deductions
T/F the major purpose of personal financial planning is economic security
True
Rate of return on a savings account is also known as:
Yield
