Personal Finance - Final Exam Review

Which is a tax-free savings account that can only be used for educational expenses?

• Merit Based Scholarship

• Federal Grants

• Need Based Grant

• A 529 Plan

Dimitri’s counselor told him that post-secondary education can be expensive but can pay off in the long run, what does that mean? CHOOSE ALL THAT APPLY

• The salary you will earn with a degree will pay back the cost of college over your career
• You can get grants and scholarships to pay for post secondary education while you are there.
• There are less expensive options for obtaining a post secondary education.

Which of the following is true about the Free Application for Federal Student Aid (FAFSA)?

• The earliest you can submit your FAFSA is October 1st of each year
• The form is available online or on paper.
• States may have different deadlines for applying for state aid
• All of these

Which savings account will earn you the most money?

• One that compounds interest daily.
• One that compounds interest monthly.
• One that earns simple interest daily.
• One that earns simple interest monthly.

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

• The CFPB
• No, one you can't resolve the issue
• The local police stations
• Your financial institution

Which type of bank account is best for everyday transactions?

• Savings Account
• Checking Account
• Money Market
• Certificate of deposit

Which of the following is NOT a common feature of a financial institution?

• Access to ATM
• Paper checks
• Access to investment products
• Direct deposit

Which of the following is a possible tax or deduction that they may show up on your paycheck? CHOOSE ALL THAT APPLY

• Federal Income Taxes
• Contributions to retirement savings
• FICA

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.

• Benefits
• Pensions
• Deductions
• allowances

How does the government pay for roads, schools, and emergency services?

• They are funded through non-profits
• They are funded through taxes.
• They are funded through charitable donations.