Final Exam Review

To determine your gross pay for a 40 hour work week, you multiply your hourly rate by the number of hours worked.

• True

• False

In order to estimate your take home pay, you need to factor in the following required deductions; FICA (social security, medicare), state and federal income tax.

• True

• False

An explanation of pay computations and deductions must be provided with each paycheck.

• True

• False

A concert ticket can be classified as a fixed expense.

• True

• False

Sally’s previous balance in her checking account was $143.25. She wrote a check for $25.00 at Quick Trip, leaving her with a balance of $168.25.

• True

• False

Short-term goals include things such as home ownership, education of children, and retirement.

• True

• False

When comparing certificates of deposits to savings accounts, one would say certificates of deposit are less liquid.

• True

• False

Diversification can help an investor extend his investment portfolio to limit risks.

• True

• False

Inflation affects investment strategy.

• True

• False

The Visa offer that Pat received in the mail offers an annual percentage rate (APR) of 12.9%, this represents the total cost of credit.

• True

• False