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Edgenuity Unit 5 Taxes & Credit Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

The short tax return form designed for single and joint filers with no dependents or itemized deductions.

a)

Form 1040EZ

b)

Form 1040A

c)

Form 1040

d)

Form I-9

2.

A _________ goes directly towards a balance on a loan. It does not got towards any interest.

a)

Payment

b)

Regular Payment

c)

Principal Disbursement

d)

Principal Payment

3.

Credit backed by an asset

a)

Credit Card

b)

Secured Credit

c)

Unsecured Credit

d)

Lien

4.

What does your credit score not tell lenders about you?

a)

Payment history

b)

Amount owed

c)

Where you live

d)

Length of credit history

5.

Which of the following statements is true about Debt?

a)

Debt is the amount of money you have in your checking account.

b)

Debt is the ability to borrow money.

c)

Debt is the amount of money you have borrowed from a person or a business.

d)

Debt is the amount of money you have in a savings account.

6.

Helps provide retirement income for the elderly and pays disability benefits

a)

Medicare tax

b)

Social Security tax

c)

State income tax

d)

Federal income tax

7.

If you co-sign on a friend's car loan, what is the danger to you if your friend fails to make her car payment?

a)

You might get secured credit

b)

Your credit score might go down

c)

Your credit score might go up

d)

You might have to pay extra money in taxes

8.

Revolving credit is...

a)

a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.

b)

a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due

c)

a spinning door with money in it

d)

a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly

9.

The total amount you earn before any deductions are subtracted is called __________ pay.

a)

Gross

b)

Bonus

c)

Incentive

d)

Net

10.

Why are companies required to withhold money from your paycheck?

a)

To make sure employees are being paid fairly

b)

To help employees save for retirement

c)

To help the company pay its share of taxes

d)

To make sure employees can pay their taxes

11.

Paying off your credit card balance each month will help improve your credit score

a)

True

b)

False

12.

Taxpayers receive ___________ when their total tax payments are greater than the tax owed.

a)

Refunds

b)

Audits

c)

Deductions

d)

Credits

13.

A ________________ works kind of like a credit card, but is usually money given by the lender to the borrower, instead of a credit card that is used to pay for purchases. Interest is only charged on the amount of credit used.

a)

Credit Card

b)

Line of credit

c)

Installment credit

d)

Non-installment credit

14.

Which of the following things can help you get a lower interest rate when you receive a loan?

a)

A low credit score

b)

A history of defaulting

c)

Collateral

d)

Using all of your available credit

15.

______ is when the borrower owes a specific amount and agrees to pay it in a set number of payments of equal amounts. The payments happen on a regular schedule, often monthly.

a)

Revolving credit

b)

A line of credit

c)

Noninstallment credit

d)

Installment credit