CIA 3 Review

Who contributes to IRA’s?

• employees and employers

• employees/individuals only

• employers and the government

• employers only

• What's an IRA?

One way to earn more interest from a bank is to

• take out a loan  

• buy a certificate of deposit (CD)

• buy stock in the bank

• start a savings account

When should you start planning for retirement?

• As soon as you turn 25

• The sooner, the better; NOW would be best

• in your 30s

• in your 40s

Which of these financial options involves the most risk?

• savings account

• stocks

• mutual funds

• bonds

Which of these financial options involves the lowest risk & is the better investment for people nearing retirement age?

• bonds

• stocks

• mutual funds

• gambling in Vegas

What is a guarantee of repayment required by lenders?

• deductible 

• down payment

• warrantee

• collateral

How many credit cards should the average person have?

• as many as they want

• 0-2

• 10

• 5-8

The federal income tax is ________ and generally impacts higher incomes because it taxes them at a higher rate.

• bilateral

• proportional

• progressive

• regressive

All of the following are ways to build and improve your credit EXCEPT

• Establish & maintain a long positive credit history

• Applying for and using credit as often as possible

• Pay bills on time

• Keeping your debt to credit ratio low

What is the term for the yearly cost of credit?

• Annual Percentage Rate

• ATM

• Premium

• Downpayment