Financial Literacy Exam Review

Supply is:

• The amount of something consumers want

• The amount of a product that consumers requested a company to make

• The amount of something available to consumers

• The amount of materials and producers it takes to make a product.

What will probably happen to the price of a product that has little to low demand?

• The price will change based on inflation

• The price will stay the same

• The price will go up

• The price will go down

Which of the following is a characteristic of a strong thriving economy?

• Fluctuating prices

• Massive job cuts

• A low unemployment rate

• A high rate of poverty

A sales tax is commonly charged by which of the following government organizations?

• The Department of Homeland Security

• The Internal Revenue Service

• The federal government

• The state government

Ronnie has decided to have 21% of his federal income tax withheld as state income tax. If $152.50 was withheld as federal income tax on his last paycheck, how much will be withheld from his paycheck as state income tax?

• 115.39

• 32.03

• 7.26

• 13.20

Mary wrote her handyman a check for $224. She later checked her back account online, and discovered that her account was overdrawn by $50. How much money did Mary have in her account before she wrote the check?

• $174

• $274

• $224

• $74

When you move money from one bank account to another, it's called a:

• Transaction

• Merger

• Withdrawal

• Transfer

The amount of money that you have in your bank account is called your:

• Check register

• Account total

• Balance

• ATM transaction

A direct deposit is:

• A deposit you make between multiple bank accounts

• A deposit an employer makes into an employee's bank account

• An interest payment from the bank

• A deposit you make at an ATM

Which of the following is NOT a liability

• A mortgage payment

• A student loan

• A credit card balance

• A bonus paycheck