Personal Finance - Unit 2 (Part 1) Question Preview (ID: 41153)
Part 1.
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To increase his net worth, Jackson could:
a) increase his liabilities.
b) decrease his assets.
c) increase his market value.
d) increase his assets.
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) Decide what income and spending categories would reflect his values, needs, and wants.
b) Decide how much money he can spend for each of the bills he pays each month.
c) Track his current income and expenses—if he has already created an Income and Expense Statement then he has completed this.
d) Develop a control system that will work with his life style.
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) Interest earned on her savings account
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) Taxes she paid based on her income last year
Who is Medicare designed to help?
a) Low-income families
b) Single parents
c) Senior citizens
d) Children of unemployed parents
Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some student comments were based on fact while others were based on myths. Which aspect of security is not true?
a) Depository institutions have insurance protection for up to $250,000 per depositor per account type.
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) Depositors can have multiple accounts as long as each account has no more than a $100,000 balance.
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 income minus her net worth is a smaller amount than Samantha’s.
b) Samantha, because her income minus her net worth is a larger amount than Maggie’s.
c) Maggie, because her net worth is higher than Samantha’s.
d) Samantha, because her annual income is higher than Maggie’s.
When is your spending plan complete?
a) When you have allocated all your income into categories for the month
b) When you have all of your current income and expenses recorded
c) Spending plans are always under revision so they are never complete.
d) Spending plans are complete each December 31st as one year ends and another year begins.
Common fees that may be charged by a depository institution include all of these except which one?
a) Overdraft fees
b) Late fees
c) ATM fees
d) Minimum Balance fees
Savings tools offered by depository institutions may earn interest. Which of the following statements is not true about interest?
a) Interest is the price paid for using someone else’s money.
b) When earning interest, look for low rates.
c) When paying interest, look for low rates.
d) The amount of interest earned or paid is determined by the interest rate.
Which statement is true about payroll taxes?
a) Payroll taxes are paid on both earned and unearned income.
b) Payroll taxes fund different operations and programs of the federal government.
c) Payroll taxes fund the Social Security and Medicare programs.
d) The amount of tax paid depends on many different factors but increases as income increases.
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his noncontractual expenses. Which of his expenses be
a) Cell phone bill, gasoline, and car payment
b) Internet bill, entertainment, and clothing
c) Motorcycle payment, food, and cell phone bill
d) Gasoline, food, and entertainment
Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do?
a) Apply for mobile banking.
b) Apply for a debit card.
c) Apply for a credit card.
d) Request a cashier’s check from her depository institution.
Which formula should Jordyn use to calculate her net worth?
a) Assets – liabilities = net worth
b) Assets × liabilities = net worth
c) Assets + liabilities = net worth
d) Assets / liabilities = net worth
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) An excise tax on the shirt she purchased
b) Property tax on the shirt she purchased
c) Income tax on the shirt she purchased
d) Sales tax on the shirt she purchased
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To play games using the questions from above, visit ReviewGameZone.com and enter game ID number: 41153 in the upper right hand corner or click here.
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