HPF Final Review Questions

With an inflation rate of 6%, prices would double in about how many years?

• 10

• 12

• 8

• 6

The purpose of a cover letter is to determine if a company has jobs available.

• True

• False

Your worried that you will not be able to get cash quickly from your investment. In this case, you are worried about:

• inflation

• interest rate

• rate of return

• liquidity

Which is NOT a common employee benefit?

• vacation leave

• sick leave

• identity theft protection

• health insurance

This is a state and local tax that assesses taxes on the value of automobiles, boats, furniture, and farm equipment.

• excise tax

• estate tax

• personal property tax

• sales tax

The two taxes that make up FICA are:

• income and sales

• property and income

• social security and property

• social security and medicare

Jane's paycheck says her gross pay is $1000. She has withholding and deductions of $350. What is her net pay?

• $650

• $1350

• $700

• $350

You cannot use a 1040ez if you have over ___________ in investment income for the year.

• $2500

• $1500

• $3000

• $5500

You claim allowances/exemptions on the ________.

• W2

• I9

• W3

• W4

Claiming more allowances/exemptions will ______________ your paycheck.

• reduce

• increase