PFL & Econ Test #2

What does FDIC stand for?

• Federal Deposit Insurance Corporation

• Financial Development and Investment Council

• Federal Debt Insurance Committee

• Financial Deposit Interest Company

Which of the following is a type of savings account?

• Certificate of Deposit (CD)

• Checking Account

• Credit Card Account

• Mortgage Account

What is the main purpose of an emergency fund?

• To pay for vacations

• To cover unexpected expenses

• To invest in stocks

• To buy luxury items

Which of the following is a deduction that commonly comes out of your paycheck?

• Federal income tax

• Grocery expenses

• Utility bills

• Car payments

A sole proprietorship is:

• A business owned by one person

• A business owned by two or more people

• A government agency

• A type of savings account

Which form must students complete to apply for federal student loans?

• FAFSA

• W-2

• 1040EZ

• I-9

What does "liquidity" refer to in financial terms?

• How quickly an asset can be converted to cash

• The interest rate on a loan

• The amount of risk in an investment

• The total amount of taxes paid

Which of the following is NOT a type of business structure?

• Partnership

• Sole Proprietorship

• Corporation

• Mortgage

Gross income is best defined as:

• Income after taxes and deductions

• Total income before any deductions

• Only income from investments

• Only income from a second job

Which of the following is a feature of a credit union?

• Member-owned

• Owned by the government

• For-profit institution

• Only offers loans