PBMF Ch. 16 Test

An amount of money an insurance co. pays to a person who has previously deposited money with the company is

• a pension

• IRA

• annuity

• all of the above

an example of an excise tax is a

• gas tax

• income tax

• gift tax

• sales tax

An annuity or annuities is

• financial agreement for retirement income

• an investment plan with an Insurance company for retirement income

• paid in lump sum or in a series of payments to the Insurance Co. by the worker in order to plan for retirement income later.

• all of the above

a financial plan is a

• report that summarizes your current financial condition

• helps set a direction for your future financial activities

• reduces your financial uncertainties

• all of the above

A charge imposed by a government to fund public services is a

• fine

• state fee

• tax

• none of the above

Occurs when a person spends less than what they've budgeted for in a budget category for a month.

• budget surplus

• budget deficit

• budget shortage

• none of the above

Expenses that occur on a regular basis and do not change are called

• fixed expenses

• bills

• variable expenses

• none of the above

An example of a variable expense is

• groceries

• rent

• car payment

• mortgage payment

Net Worth is defined as

• assets plus liabilities

• the difference between your personal assets and your liabilities

• the total amount of all of your investments

• what you have left over in your paycheck after deductions

An allowance is

• what your parents give you each week

• the amount of money you plan to use for a certain budget category like "entertainment"

• what you spend in a budget category

• none of the above