FACS Midterm Review 2/2

Front

Which of these is the best way for a college student to build good credit as quickly as possible? Options: pay credit card bill on time, get multiple credit cards and use them often, always make payments the day after the grace period, only use credit card for a major purchase like a car, avoid getting or using credit cards

Back

pay credit card bill on time

Front

Amount of income left AFTER taxes and deductions have been taken out.

Back

net pay

Front

What is the purpose of the W-4 form?

Back

To inform your employer of how much federal income tax to withhold from your paychecks.

Front

Which of these forms does your employer send you at the end of the year to tell you how much you've made and how much you've paid in taxes during the past year? Options: 1040, W-2, W-4, R2D2, 5W30

Back

W-2

Front

Which of these terms means "A sum of money taken out of your paycheck (for the purpose of taxes, employee medical insurance contribution, etc.)"?

Back

deduction

Front

Which of these would financial experts recommend for reaching a short-term financial goal? Options: investing in the stock market, saving, gambling, buying gold coins

Back

saving

Front

What does the term “unemployment rate” mean?

Back

% of people who currently don’t have jobs but are looking for work

Front

Which of these is a type of investment that is a) run by professional money managers and b) involves a diverse collection of stocks, bonds, etc.?
Options: allocation, diversification, dividend, mutual fund, mutually assured destruction

Back

mutual fund

Front

If a stock price drops and then a ton of people start buying it, what will happen to the price of the stock?

Back

it will start going up

Front

Which of these terms means "A type of savings vehicle/bank account in which you earn interest on the principal"?

Back

savings account