Personal Finance Knowledge Check

Front

The amount of federal income tax withheld depends on both your level of earnings and the number of withholding allowances claimed.

Back

TRUE

Front

According to the "Rule of 72", my money will double in how many years: Investment earning 4%?

Back

18

Front

Which one describes the balance sheet equation:

Back

Assets = Liabilities + Net Worth (Equity)

Front

Every individual or married couple is required to file a federal income tax return regardless of the amount of income earned.

Back

FALSE

Front

Tax credits and deductions reduce your taxable income by comparable amounts.

Back

FALSE

Front

At most banks and other depository institutions, you will be hit with a hefty service charge if your checking account balance falls even just $1 below the stipulated minimum amount for just one day out of the month.

Back

TRUE

Front

U.S. Series EE and I savings bonds are not a very good way to save.

Back

FALSE

Front

How much would a home buyer have to pay at the time of closing for a $250,000 home considering closing costs (50% of the down payment), down payment (20%), and a loan fee of 2 points?

Back

79,000

Front

You should buy a car instead of leasing if you plan to drive it more than 150,000 miles over its life.

Back

TRUE

Front

Excluding mortgage payments, most families will have little or no credit problems so long as they limit their monthly credit payments to 25 to 30 percent their monthly take-home pay.

Back

FALSE