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CRM Unit 8 Test (Math in the Real World)

Total questions: 40

Worksheet time: 3hrs 20mins

Name
Class
Date
1.

Bi-monthly refers to how many paychecks a month?

a)

1

b)

2

c)

3

d)

4

2.

Name an example of a statutory deduction.

a)

Federal Income Tax

b)

State Income Tax

c)

Social Security

d)

All of the above

3.

Complete the sentence:

When you have more allowances...

a)

you will have more withholding.

b)

you will have less withholding.

c)

you will have the same amount withholding.

d)

you will have nothing withheld.

4.

What does an employee fill out to determine the amount that is withheld from his/her paycheck?

a)

W-4

b)

2099

c)

1050

d)

1050-ES

5.

True or False.

A charity deduction is usually tax deductible.

a)

True

b)

False

6.

What is the contribution on a paycheck that goes to the operation of the state called?

a)

SS tax

b)

State savings plan

c)

State withholding

d)

State Income Tax

7.

What type of deductions are insurance, retirement, charity, health care, and child care?

a)

Statutory Deductions

b)

Voluntary Deductions

c)

Social Security Deductions

d)

Medicare Deductions

8.

What does Line 6 on a W-4 ask for?

a)

Additional amount withheld from each paycheck

b)

Number of children

c)

Gross Income

d)

Taxable Income

9.

True or False.

A gross income is less than a net income.

a)

True

b)

False

10.

Fill in the blank.

When interest rates go up, it becomes _____________ to borrow money or take out a loan.

a)

more expenseive

b)

less expensive

c)

the same in terms of expense

d)

impossible

11.

In the video "Buying vs. Leasing a Car", it made more sense financially to _______ the car.

a)

Lease

b)

Buy

12.

What are common limits when you choose to lease a car?

a)

color of car

b)

interior options

c)

mileage

d)

sunroof options

13.

Will you get more money by privately selling a car or trading it in at a dealership?

a)

Privately selling

b)

Trading it in

14.

The Federal Reserve has two main goals. Select both below.

a)

Keep prices stable

b)

Balance trade

c)

Supply schools with resources needed

d)

Demonstrate patriotic behavior

e)

Encourage job creation

15.

What is the Fed trying to do by encouraging interest rates to rise and fall at certain times?

a)

Stabilize prices

b)

Create jobs

c)

Keep the economy secure

d)

All of the above

16.

Select the two men who were the founders of FICO.

a)

Bill Fair

b)

Earl Isaac

c)

Bill Isaac

d)

Earl Fair

17.

An excellent credit score falls between which two numbers?

a)

300-850

b)

780-850

c)

650 or greater

d)

500-799

18.

Who collects the data and calculates the FICO algorithm?

a)

Accountants

b)

Bank presidents

c)

Lawyers of major firms

d)

Credit Bureaus

19.

What would you divide by to go from an APR to a daily periodic rate?

a)

12

b)

52

c)

100

d)

365

20.

True or False.

An effective APR is usually less than a normal APR.

a)

True

b)

False

21.

Fill in the blank and be sure to spell correctly.

(2 words separated with one space, be sure to spell correctly)

A ______________ ______________ is a period of time over which the credit card company will give you a statement.

(a)  

22.

What was the balance on the credit card on October 6th in the video "How Credit Card Interest is Calculated?" (write just the number with or without a decimal, no dollar signs)

(a)  

23.

Name one of the main credit bureaus. (be sure to spell it correctly)

(a)  

24.

How many years does a Chapter 7 bankruptcy stay on your credit report?

a)

5 years

b)

10 years

c)

15 years

d)

Forever

25.

A person who borrows money is referred to as a ___________.

a)

Debtor

b)

Creditor

c)

Retailer

d)

Shark

26.

True or False.

Student loans can be forgiven in a Chapter 7 bankruptcy.

a)

True

b)

False

27.

Chapter 13 is called a _____________ bankruptcy.

a)

straight

b)

reorganization

c)

crooked

d)

forgiven

28.

True or False.

Payday loans are rarely a good idea.

a)

True

b)

False

29.

What will you be charged if you carry a balance on your credit card?

a)

Interest

b)

Processing fees

c)

Origination fees

d)

None of the above

30.

True or False.

If you take out a payday loan, you will most likely need to have a recent pay stub so the lender can see your payday.

a)

True

b)

False

31.

How many years does a person have to pay back creditors when Chapter 13 bankruptcy is declared?

a)

3-5

b)

5-7

c)

7-9

d)

9-11

32.

What is interest at unreasonably high rates referred to as?

a)

uniform

b)

useless

c)

usury

d)

universal

33.

What does APR stand for?

a)

Annual Percentage Rate

b)

Annual Product Review

c)

Alarmingly Positive Reset

d)

Always Pick Respect

34.

In the video "When Leasing Might Come out Better Than Buying", what was the new price Sal used when trading in his car?

a)

$10,000

b)

$10,500

c)

$11,000

d)

$11,500

35.

In the video "Into to the W-4", the calculations were done based on a person making $____________ annually.

a)

$40,000

b)

$50,000

c)

$60,000

d)

$70,000

36.

What was formed in 1956 using the idea of mathematics and statistics to determine how credit worthy a person was?

(three words, one space between each word, be sure to spell correctly)

(a)  

37.

What was the most interesting part of this unit? Write 2-3 sentences.

4 lines
38.

What goes into your FICO score?

a)

Total Debt

b)

Payment History

c)

Length of Credit History

d)

Types of Credit

e)

All of the Above

39.

Name the term for when a credit card is checked to see if it is valid for the set charge.

a)

Authorization

b)

Aberration

c)

Appertaining

d)

Acceleration

40.

In the Video "Impact of W-4 Allowances on a Paycheck", how much of a deduction did each allowance result in?

a)

$950

b)

$1950

c)

$2950

d)

$3950