Personal Finance Study Guide

What is making a plan for the future about how to manage your finances?

• Economics

• Financial planning

• Investments

Which of the following is a way to tell if an economy is strong or weak?

• Inflation

• Unemployment rate

• All of the above

What type of economic system does the United States have?

• Planned/command economy

• Traditional economy

• Mixed economy

What is the full amount of wages or salary that an employer agrees to pay an employee?

• Net pay

• Gross pay

• Pay stub

What is the amount of money that actually gets paid to the employee after payroll withholding?

• Gross pay

• Net pay

• Withholding pay

What are taxes paid to the federal government on an individual’s or company’s income that are used for things like national defense, law enforcement, the national debt, social programs, community development, the costs of running the county, and more?

• Federal taxes

• State taxes

• Local taxes

Which of the following are forms of currency in the United States?

• Cash

• Paper bills and coins

• All of the above

When you open a bank account, what are the three main types of transactions you can make?

• Deposit, transfer, invest

• Deposit, withdrawal, transfer

• Withdrawal, invest, stock

What is an amount of money that’s set aside in savings for financial emergencies, such as losing your job or having unexpected medical expenses?

• Investments

• Checking account

• Financial reserve

What is interest gained only on the principal amount of an account?

• Simple interest

• Compound interest

• Building interest