Financial Literacy Final Review

Front

Opportunity cost refers to

Back

what you give up as a result of making a decision.

Front

Budgeting assists in planning by forecasting ________ each month to manage savings and expenditures.

Back

income and expenses

Front

Jackson budgets each month and gets unexpected income in a given month. He will likely experience a(n)

Back

cash surplus.

Front

A comprehensive financial plan includes

Back

spending, saving, and investment strategies.

Front

Which of the following statements about cash flows is accurate? Paying off your credit card balance is a cash inflow, Receiving your salary is a cash outflow, Purchasing groceries is a cash outflow, Investing in a savings account is a cash outflow

Back

Purchasing groceries is a cash outflow

Front

Which of the following actions would most likely increase a person's net worth?
Options:
- Increasing personal debts.
- Spending more on luxury items.
- Paying down your credit card debt.
- Reducing income sources.

Back

Paying down your credit card debt.

Front

Which of the following is not considered part of gross income? rental income, interest from savings accounts, employer's contribution to health insurance, bonuses received.

Back

employer's contribution to health insurance.

Front

If you have a salary of $10,000, a standard deduction of $12,950, and a FICA rate of 7.65 percent, how much did you pay in FICA this year?

Back

$765

Front

FICA taxes are used to fund which of the following programs? A) Public education and healthcare. B) Social Security and Medicare. C) Unemployment benefits and food stamps. D) Disability insurance and workers' compensation.

Back

Social Security and Medicare.

Front

Which of the following is the indicator of wealth? Annual income from employment. Net worth. Total value of investment portfolios. Market value of owned properties.

Back

Net worth.