Personal Finance Fall 24 Final Exam (Essential Standards)

Front

What does a progressive tax system entail?

Back

A higher income results in a higher percentage of income paid in taxes.

Front

Which of the following is an example of a progressive tax? Federal income tax in the United States, Sales tax, State income tax in some states, Payroll tax

Back

Federal income tax in the United States

Front

What is a regressive tax?

Back

A tax where the rate decreases as the income increases.

Front

Which of the following is an example of a regressive tax? Estate tax, Sales tax, Income tax, Corporate tax

Back

Sales tax

Front

What is collateral?

Back

The assets that are pledged to secure a loan.

Front

Which of the following is an example of an unsecured loan? Mortgage, Vehicle loan, Home-equity line of credit (HELOC), Payday loan

Back

Payday loan

Front

Which of the following is an example of closed-end credit? Vehicle loan, Credit card, Home-equity line of credit (HELOC), Payday loan

Back

Vehicle loan

Front

What is an open-end credit?

Back

A line of credit that can be used repeatedly, within an established borrowing limit.

Front

Which loan option has the lowest APR? Options: Bank or credit union loan, Payday loan, Car title loan, Credit card

Back

Bank or credit union loan

Front

What can destroy your hard work and financial planning? Fire, accident, ill health, or untimely death

Back

Fire, accident, ill health, or untimely death