Module 8

1. Which of the following taxes are deducted from an employee’s gross pay?

•  A. State income taxes

•  B. Federal income taxes

•  C. Social Security & Medicare taxes

• D. All answers fit

Allison is taking classes at her local community college to learn how to use computer database software. What is MOST often the result of additional education and training?

• Higher cost of living

• Fewer job opportunities

• Higher income

• Fewer developed skills

Which of the following is an example of a fixed expense?

• Mortgage or rent

• Gas

• Food

• Utilities like power

Which of the following best explains why Julie went over her budget this month?

• She saved too much money

• She spent too much on utilities.

• She spent too much on clothing and entertainment.

• She did not spend enough on food.

How are the investments in Column A different from the investments in Column B?

• The investments in Column A are more risky than the investments 

  in Column B.

• The investments in Column A are less risky than the investments in 

  column B

• The investments in Column A do not earn interest.

• The investments in Column A are not insured by the government.

6. Which investment tool offers low interest rates but allows you to begin saving with a low minimum deposit?

• Certificate of deposit

• Money market account

• Basic savings account

• Mutual Fund

The Federal Deposit Insurance Corporation (FDIC) protects consumers by

• Investigating fraud

•  Monitoring the stock market

• Insuring commercial bank deposits

• Settling complaints against businesses

Which federal agency monitors the stock market and the stock brokers who buy and sell stock?

• Federal Deposit Insurance Corporation

• Federal Trade Commission

• The Securities and Exchange Commission

• The North Carolina Attorney General

What is one advantage of paying for purchases with a credit card instead of a debit card or other cash payment?

• No opportunity to overspend or go into debt.

• The ability to pay for purchases over time

•  Increased security

• Protection against identity theft

Which of the following is a measure that tells lenders like banks how likely you are to repay a loan?

• Credit Score

• Net Pay

• Interest Rate

• PIN number