Personal Finance Review - Part 1

Front

What is the primary purpose of income tax?

Back

To fund public services and government operations

Front

What is a progressive tax system?

Back

A tax system where tax rates increase as income increases.

Front

Which of the following is a common factor affecting income levels? Preferred cuisine, Geographic location, Hobby choices, Favorite color

Back

Geographic location

Front

What is the main purpose of a budget?

Back

To plan for future financial goals

Front

Which of the following is a characteristic of a credit score? It is calculated based on your favorite color, It determines the amount of taxes you pay, It affects your ability to obtain loans, It is only used by insurance companies

Back

It affects your ability to obtain loans

Front

What is the purpose of a Checking Account for Brynn?

Back

To make cash withdrawals, deposits, purchases, and pay everyday expenses and bills.

Front

What is a capital gains tax?

Back

A tax on the profit from the sale of an asset.

Front

What is a regressive tax system?

Back

A tax system where tax rates decrease as income increases.

Front

What is a potential disadvantage of a regressive tax system?

Back

It can disproportionately affect lower-income individuals

Front

What is the primary purpose of life insurance?

Back

To provide financial support to beneficiaries after the policyholder's death