WorksheetsUnit 5 Pre-Test
Total questions: 57
Worksheet time: 28mins
What form of investment income is the result of a company distributing some/all of its profits to shareholders?
Capital Gain
Dividend
Interest
Premium
What are the types of taxes a person might pay?
Check all that apply.
Sales tax
Natural tax
Income tax
Property tax
Birth tax
Which of these is a progressive tax?
airport tax
income tax
property tax
sales tax
What types of taxes contribute to Federal tax revenue? ( hint: choose 4 correct answers :)
Corporate Income Tax
Income Tax
Estate Tax
Excise Tax
Proportional taxes are taxes that stay the same regardless of a person's or business's income. For example, some sales taxes are considered proportional because a tax rate of 8% in a certain state would apply to all customers in that state and take the same fraction of their ________.
Local Governments earn the majority of their money from...
Property tax
Sales Tax
Corporate Tax
Fees
the Federal Government earns most of its money from...
Corporate Tax
Social Security and Retirement
Individual Income Tax
What type of tax do you pay when you own a home?
Income Tax
Property Tax
Sales Tax
What is a tax?
Money that the government pays to citizens to attract people to move to an area.
Money collected from a government to pay for public needs, like schools and roads.
Fees that government officials must pay when they are elected to an office.
An extra charge for only certain items, like sugar and tea, to encourage people not to buy those items.
The US Federal Income Tax Form is referred to as form
401(k)
1040
403(b)
1099
A taxable gain that occurs when you sell an asset for more than what you paid for it.
adjusted gross income
capital gains
gross income
gross pay
Total amount of a person's income from (almost) any source
adjusted gross income
capital gains
gross income
gross pay
The total amount of money earned
adjusted gross income
capital gains
gross income
gross pay
The amount of money an employee takes home after taxes
itemized deductions
Medicare
net pay
personal income taxes
Rather than being employees of their broker, most license holders work as _____________.
independent contractors
agent compensation
1099-NEC
commission split
An independent contractor will have earnings reported to the IRS on a form called a _________.
independent contractors
agent compensation
1099-NEC
commission split
401k plans are retirement plans that are named after section 401k in the Internal Review Code
True
False
Basic needs that a household must pay for such as housing, groceries, healthcare, utilities, etc.
Spending
Saving
Expenses
Budget
Total Expenses
Is a spending lan for managing your money that includes income and expenses.
All expenses deducted from income before net pay can result
Expenses tat remain the same month after month such as mortgages, rent, car payments & insurances
Expenses that equal all the fixed expenses and variable expenses
Fixed expenses
Is a spending plan for managing your money
Income from all possible sources
Expenses that equal all the fixed & variable expenses.
Expenses that remain the ssame month after month EX: mortgages, rent, car payments insurances
Variable expenses
Necessary things or items that are paid monthly
Expenses that increase/decrease monthly/yearly EX: Utilities, food, entertainment, internet, TV provider
Is a spending plan for managing your money that includes income and expenses.
Expenses that remain the same over a period of time.
Occurs when money is withdrawn from a bank account and the available balance goes below zero. Transaction is completed, usually with a fee.
Penalty
Overdraft
Insufficient Funds
CD
Retail banking means
Wholesale banking
Banking for individuals
Banking for corporates
Retail Outlets
A for-profit institution that offers a full range of financial services
debit card
commercial bank
money market account
credit union
The process in which interest is earned on both the principal and any previously earned interest
endorsement
debit card
compounding
rate of return
A nonprofit financial institution that is owned by its members and organized for their benefit
commercial bank
credit union
annual percentage yield
endorsement
Which is true?
To find net worth, you add all of your assets, add all of your liabilities, then subtract your assets from your liabilities.
To find net worth, you add all of your assets, add all of your liabilities, then subtract your liabilities from your assets.
the cost of credit on a yearly basis, expressed as a percentage, total cost of credit to the consumer.
APR(Annual percentage rate)
interest rate
origination fee
maintenance fee
a number assigned to a person that indicates to lenders their capacity to repay a loan. Indicates a person's credit risk.
real score
credit score
social security number
PIN #
The highest interest rates usually occur when borrowing money from a
bank
credit union
title pawn
payday lender
A company that lends customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck is called?
mutual funds
prepaid card
payday lender
retirement accounts
______________ is a digital currency, which is an alternative form of payment created using encryption algorithms.
prepaid card
cryptocurrency
bonds
stocks
An interest rate that adjusts over time in response to changes in the market is called a?
long term savings
variable interest rate
fixed interest rate
retirement account
Which is a type of lender that uses your vehicle title as collateral to secure your loan?
overdraft fee
stocks
title pawn lender
payday lender
______ ______ is applied only to the original amount of money borrowed or deposited.
real return
compound interest
simple interest
nominal return
A _____ _______ ____ is an interest rate that doesn't go up or down with the prime rate.
simple interest rate
variable interest rate
fixed interest rate
real return
A ________ _________ is one with a high degree of risk where the focus of the purchaser is on price fluctuations.
certificate of deposit
retirement account
speculative investment
long term savings
The _______ ______ is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.
speculative investment
real return
nominal return
simple interest
Which of these are functions of money?
medium of exchange that allows the trade of goods and services
holds value over time
standard of value that allows comparison of the value of goods related to one another
used as the only means of trade between nations
something that keeps its value if it is stored rather than used
store of value
representative money
fiat money
unit of account
Denise took out a payday loan for $300 in August. By February of the next year, she was able to pay back the loan, but she had spent a total of $750 doing so. What’s the most likely story of how this happened?
The minimum monthly payment for payday loans is usually only $10 or $15, so a lot of interested accumulated
Upfront, Denise knew there would be $450 of fees attached to the loan, but she took out the loan anyway
Payday loans must be paid in full within two weeks, and if not, the only option is to renew the loan for a high penalty fee, which she did approximately 12 times
Denise not only paid the $300 she owed, but she prepaid an extra $450 in case she needs another loan in upcoming months
A legal process to get out of debt when you can no longer make all your required payment.
Liquidation
Bankruptcy
Mean's Test
Credit Counseling
They are called revolving credit accounts because
it was a revolutionary concept when first created.
these accounts circle around your credit.
they can be an ongoing cycle of borrowing and repaying.
______ ___ is tax on the total value of money and property of a person who has died.
proportional tax
income tax
estate tax
regressive tax
_________ is a policy that provides financial protection for your property, life, or health, paying you in case of death, loss, or damage.
insurance
deductibles
premiums
credit
The amount you pay for covered health care services before your insurance plan starts to pay is known as the?
insurance
deductible
credit
premium
The amount of money an individual or business pays for an insurance policy is known as the?
estate tax
premium
deductible
credit
_________ is a policy that provides financial protection for your property, life, or health, paying you in case of death, loss, or damage.
insurance
deductibles
premiums
credit
A ______ ______ is a statement that has information about your credit activity and current credit situation.
deductibles
installment credit
credit report
premiums
A nationwide system of local organizations, supported by business, whose function is to receive and investigate customer complaints of dishonest or unsatisfactory business practices.
Federal Trade Commission
Better Business Bureau
Federal Bureau of Investigation
United States Chamber of Commerce
Stealing and using the name and financial reputation of another person in order to get money or other benefits.
Identity theft
Personal theft
Property theft
Auto theft
Using promises of gains in cryptocurrency, binary options trades, superannuation schemes or managed funds are a group of scams known as
Computer Scams
Diamond Mining
Dirty Money
Investment Scams
