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2.00 Prime Time Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be?

a)

An excise tax on the shirt she purchased

b)

Sales tax on the shirt she purchased

2.

Common fees that may be charged by a depository institution include all of these except which one?

a)

ATM fees

b)

Late fees

c)

Overdraft fees

3.

Which statement is true about payroll taxes?

a)

Payroll taxes fund the Social Security and Medicare programs.

b)

Payroll taxes are paid on both earned and unearned income.

4.

If expenses were to exceed income on a spending plan, what would be a financially smart solution?

a)

Increase purchases

b)

Earn less income

c)

Decrease expenses

5.

Which statement is not true about property taxes?

a)

Property tax is often charged by states or local governments to pay for local schools.

b)

The property tax rate is set by the federal government to be equal in every state.

6.

Chase learned he can reduce his spending the most by looking at his noncontractual expenses. Which of his expenses best fit that category?

a)

Motorcycle payment, food, and cell phone bill

b)

Gasoline, food, and entertainment

7.

Which formula should Jordyn use to calculate her net worth?

a)

Assets + liabilities = net worth

b)

Assets - liabilities = net worth

8.

Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:

a)

the balance on his credit card

b)

the value of his retirement account

9.

When is your spending plan complete?

a)

Spending plans are always under revision so they are never complete.

b)

When you have allocated all your income into categories for the month

10.

Which would most likely be considered a contractual expense?

a)

Clothing

b)

Food

c)

Cell Phone

11.

David spent $10 more than he had deposited in his account. As a result, he can expect to be charged a/an:

a)

overdraft fee

b)

late fee

12.

To increase his net worth, Jackson could

a)

increase his liabilities

b)

increase his assets

13.

Who is Medicare designed to help?

a)

Single Parents

b)

Senior Citizens

c)

Low income families

14.

Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called which kind of taxes?

a)

Sales

b)

Property

c)

Excise

15.

A key difference between commercial banks and credit unions is that:

a)

commercial banks are for-profit and credit unions are not-for-profit

b)

commercial banks typically pay higher interest rates than credit unions