Finance Quiz

What is the Rule of 72 used for?

• Calculating interest rates

• Determining how long an investment will take to double

• Calculating loan terms

• Determining the value of money

What are the three components of any loan?

• Principal, interest rate, loan term

• Principal, interest rate, collateral

• Interest rate, loan term, collateral

• Principal, loan term, net worth

What is an example of a secured loan?

• Student loan

• Credit card

• Home mortgage loan

• Payday loan

What is predatory lending?

• Lending with low interest rates

• Lending with fair terms

• Lending with unfair, deceptive, or fraudulent practices

• Lending with government backing

What is a payday loan?

• A long-term, low-cost loan

• A short-term, high-cost loan

• A loan with no interest

• A loan with a fixed interest rate

What is the typical interest rate range for payday loans?

• 1-5%

• 10-20%

• 50-100%

• 300-400%

What does a tax deduction do?

• Increases the amount of tax you owe

• Lowers your taxable income

• Increases your taxable income

• Has no effect on your taxes

What are payroll taxes?

• Taxes on luxury goods

• Taxes on property

• Social security and Medicare taxes

• Taxes on imports

Who must file a tax return as a dependent under the age of 65 and single?

• Those with earned income over $14,600

• Those with unearned income over $1,300

• Those with gross income over $1,300 or earned income plus $450

• All of the above

What is the purpose of a tax credit?

• To increase the amount of tax you owe

• To provide a dollar-for-dollar reduction of the tax you owe

• To increase your taxable income

• To have no effect on your taxes