CFM Review for Midterm Exam

What is the purpose of a claim in insurance?

• To increase insurance costs
• To decrease insurance coverage
• To request reimbursement for a covered loss
• To cancel the insurance policy

Which of the following statements about taxes is true?

• Only the federal government has the right to tax a person’s income
• Any Taxes collected by the government are returned to the person when she files her income tax return.
• Taxes are the major source of revenue for the government.
• Taxes can only be taken out of a person’s income when she has a full-time job.

Identity theft is only something certain people should be concerned about.

• True
• False

Your credit score is based off of several things including how much money you have in the bank.

• True
• False

Maeve works 59 hours in a week. She receives a wage of $22 an hour and gets standard overtime pay. What was her gross pay that week?

• $1298

• $418

• $1716

• $1507

The type of payment when a percentage of sales achieved is paid to an employee is called a

• Salary
• Wage
• Rate per Unit
• Commission

Which of the following is an optional deduction from your paycheck in NY?

• FICA Tax
• State Income Tax
• Federal Income Tax
• None of these

Which of the following is an important thing to do when creating a budget?

• A) make lists of things you want to buy now and in the future
• B) put your goals in order of importance
• C) estimate your income and expenses
• D) all of the above

Which of the following is an example of an expense?

• A) wages from your job
• B) interest on a savings account
• C) rent
• D) net earnings

The amount of money that households have available for spending and saving after you have paid all your bills and put money in a retirement fund is called

• Financial planing
• budgeting
• Disposable income
• prioritizing