PF 2.00 Managing Your Money (2 Of 2) Question Preview (ID: 34626)


2.00 Managing Your Money. TEACHERS: click here for quick copy question ID numbers.

Sanjay is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?
a) Either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.
b) A credit union, since his deposits would be insured by the National Credit Union Association (NCUA)
c) A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC)
d) Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.

Which statement is TRUE about Payroll Taxes?
a) Payroll taxes fund the Social Security and Medicare programs.
b) Payroll taxes fund different operations and programs of the federal government.
c) Payroll taxes are paid are paid on both earned and unearned income.
d) The amount of tax paid depends on many different factors but increases as income increases.

Who is Medicare designed to help?
a) Senior Citizens
b) Single parents
c) Low income families
d) Children of unemployed parents

He worked 22 hours and is being paid $8.00 /hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?
a) Austin neglected to deduct the amount required to pay income and payroll taxes.
b) Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
c) Austin calculated the hours he worked without deducting the hours he spent doing on‐the‐job training.
d) Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.

Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier?
a) Maggie, because her net worth is higher than Samantha’s.
b) Samantha, because her income minus her net worth is a larger amount than Maggie’s.
c) Maggie, because her income minus her net worth is a smaller amount than Samantha’s.
d) Samantha, because her annual income is higher than Maggie’s.

Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which of the following statements is NOT TRUE about spending plans?
a) A spending plan includes items NOT usually included when creating a budget.
b) Spending plans are used to record planned expenses.
c) Spending plans are used to record planned income.
d) When creating a pending plan, it is recommended that you examine your trade‐offs and opportunity costs.

When is your spending plan complete?
a) Spending plans are always under revision so they are never complete.
b) When you have all of your current income and expenses recorded.
c) When you have allocated all your income into categories for the month.
d) Spending plans are complete each December 31st as one year ends and another year begins.

Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step?
a) Track current income expenses. If he has already created an Income and Expense Statement then he has completed this step.
b) Decide how much money he can spend for each of the bills he pays each month.
c) Decide what income and spending categories would reflect his values, needs, and wants.
d) Develop a control system that will work with his life style.

Which aspect of security at a depository institution is NOT TRUE?
a) Depositors can have multiple accounts insured at the same institution as long as each account has no more than $187,254.63.
b) All money stored at a depository institution is kept safe at all times by numerous security measures.
c) Information about depositors and their accounts is kept in secure data storage.
d) Depository institutions are insured; if something happened, you would get your money back, within the insurance limit.

David made a mistake in his checking account recordkeeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charged a(n):
a) Overdraft Fee
b) Contact Fee
c) Safe Deposit Fee
d) ATM Fee

Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:
a) The balance on his credit card
b) The value of his retirement account
c) The combined total of his savings and checking accounts
d) The market value of his car

As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be?
a) Sales tax on the shirt she purchased.
b) Property tax on the shirt she purchased.
c) Income tax on the shirt she purchased.
d) An excise tax on the shirt she purchased.

To increase his net worth, Jackson could:
a) Increase his assets
b) Decrease his assets
c) Increase his market value
d) Increase his liabilities

Erin and her mother are putting together an Income and Expense Statement for Erin to use as she applies for a college scholarship. Which income source does she NOT need to include for this statement?
a) Taxes she paid based on her income last year.
b) Money she received from her grandparents for her birthday.
c) Social Security income her mother is receiving for her since her father died of cancer last year.
d) Interest earned on her savings account.

He learned in class that he could probably reduce his spending the most by looking at his non‐contractual expenses. Which of his expenses best fit that category?
a) Gasoline, food, and entertainment
b) Internet bill, entertainment, and clothing
c) motorcycle payment, food, and cell phone bill
d) Cell phone bill, gasoline, and car payment

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