Personal Finance

Which of the following best describes a progressive tax system?

• A tax system where everyone pays the same percentage of their income, regardless of how much they earn.

• A tax system where individuals with lower incomes pay higher tax rates than those with higher incomes.

• A tax system where there is no tax on income.

• A tax system where the tax rate increases as a person's income increases.

Which of the following best describes a property tax?

• A tax on the income you earn from working.

• A tax on the sale of goods and services.

• A tax based on the value of persons real estate or personal property.

• A tax on the amount of money a person spends during the year.

True or False. An increase in education can lead to an increase in earnings.

• True

• False

Which of the following investments would have the lowest risk?

• Corporate stocks

• Certificate of Deposit

• Mutual Fund

• Gold and Silver

What benefits do credit unions offer?

• Higher interest rates

• Lower interest rates

What type of lender requires no credit check and has high interest rates and fees?

• Pay day lender

• Credit union

• Commercial bank

• Peer-to-Peer

What type of lender uses the borrowers vehicle as collateral?

• Credit union

• Title pawn lender

• Pay day lender

• Mortgage lender

Why would a bank have a higher interest charged than earned?

• It attracts borrowers

• It's a source of profit

True or False. In terms of investment options, risk and reward have a direct relationship.

• True

• False

True or False. In terms of investments, stocks offer a higher potential for return compared to mutual funds and CD's, but also the higher risk.

• True

• False