Financial Math Sem 1 Pretest

Front

What do we mean when we say we live in a global economy?

Back

Our economy is integrated with those of other countries.

Front

How do you calculate the total value of stocks owned?

Back

Multiply the number of shares by the price per share for each stock and sum the values.

Front

What is the total value of 100 shares of Apple at $536 each and 40 shares of Ford at $9.85 each?

Back

$53,994.

Front

Who is responsible for paying taxes?

Back

Individuals and businesses.

Front

What are FICA taxes?

Back

Federal Insurance Contributions Act taxes, which fund Social Security and Medicare.

Front

How do you calculate FICA taxes for a given income?

Back

Multiply the income by the FICA tax rate (7.65% for employees).

Front

If Franklin made $165,000 in 2022, how much did he pay in FICA taxes?

Back

$10,278.90.

Front

What is a liquid asset?

Back

An asset that can be quickly converted into cash without significant loss of value.

Front

Give an example of a liquid asset.

Back

Savings account.

Front

What is the difference between a liquid asset and an illiquid asset?

Back

Liquid assets can be quickly converted to cash; illiquid assets cannot.