Personal Finance Final Review

Which type of bank account typically offers the least (if any) interest?

• Checking Account

• Savings Account

• Money Market Account

• Certificate of deposit

Why is it important to reconcile your bank statements?

• To avoid spending more than what is in your account

• To detect any errors in your account

• To determine if you were charged any fees

• All of the above

Investing is best for ____.

• Short-term financial goals, like building an emergency fund

• Earning a little interest while keeping your money safe

• Long-term financial goals, like paying for retirement

• Guaranteed fast growth on your money

A stock is ____.

• A type of debt investment that acts like a loan

• A type of investment that invests in a mix of different types of investments

• A share of ownership in a company

• A type of savings account that pays interest based on current interest rates in the money market

A mutual fund is ____.

• A type of debt investment that acts like a loan

• A share of ownership in a company

• A type of investment that invests in a mix of different types of investments

• A type of savings account that pays interest based on current interest rates in the money market

For most careers, which degree will most likely result in the highest lifetime earnings?

• High school degree

• Associate's degree

• License or certificate

• Bachelor's Degree

When you start a new job, you fill out a W-4 form to ____.

• Determine how much your gross pay should be

• File your tax return

• Avoid paying income taxes on your paychecks

• To determine how much federal income tax your employer should withhold from your paychecks

What does the W-2 form tell you?

• How much you've earned and how much taxes you've paid in the last year

• When to file your tax return

• How much federal income tax your employer will withhold from your paycheck

• How often your employer will be paying you

What do you need in order to fill out your 1040?

• Your W-2

• Your employer benefits documentation

• Your credit card statement

• Your job offer

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of ____ available from your employer.

• Benefits

• Pensions

• Gifts

• Allowances