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FACS Midterm Review 2/2

Total questions: 21

Worksheet time: 12mins

Name
Class
Date
1.

Which of these is the best way for a college student to build good credit as quickly as possible?

a)

pay credit card bill on time

b)

get multiple credit cards and use them often

c)

always make payments the day after the grace period

d)

only use credit card for a major purchase like a car

e)

avoid getting or using credit cards

2.

Amount of income left AFTER taxes and deductions have been taken out.

a)

gross pay

b)

net pay

c)

taxable income

d)

gross net

e)

not pay

3.

What is the purpose of the W-4 form?

a)

To send the IRS when you file your yearly tax return form

b)

To determine how much your gross pay and benefits should be

c)

To inform your employer of how much federal income tax to withhold from your paychecks.

d)

To avoid paying income taxes on your paychecks.

e)

to protect metal from rust and corrosion

4.

Which of these forms does your employer send you at the end of the year to tell you how much you've made and how much you've paid in taxes during the past year?

a)

1040

b)

W-2

c)

W-4

d)

R2D2

e)

5W30

5.

Which of these terms means "A sum of money taken out of your paycheck (for the purpose of taxes, employee medical insurance contribution, etc.)"?

a)

deduction

b)

dependent

c)

gross pay

d)

duck dynasty

e)

aqueduct

6.

Which of these would financial experts recommend for reaching a short-term financial goal?

a)

investing in the stock market

b)

saving

c)

gambling

d)

buying gold coins

7.

What does the term “unemployment rate” mean?

a)

% of people who have lost a job in the past 5 years

b)

% of people who have lost a job in their lifetime

c)

% of people who currently don’t have jobs but are looking for work

d)

% of people who currently don’t have jobs

e)

% of people who currently have a job but are looking for a new one

8.

Which of these is a type of investment that is a) run by professional money managers and b) involves a diverse collection of stocks, bonds, etc.

a)

allocation

b)

diversification

c)

dividend

d)

mutual fund

e)

mutually assured destruction

9.

If a stock price drops and then a ton of people start buying it, what will happen to the price of the stock?

a)

it will start going up

b)

it will stay the same

c)

it will continue to drop

d)

there is no way to know

e)

Elon Musk will buy it

10.

Which of these terms means "A type of savings vehicle/bank account in which you earn interest on the principal"?

a)

savings account

b)

bank statement

c)

checking account

d)

expense account

e)

accountants

11.

Which of these refers to "the bank's accounting of your transactions; The monthly record of your account transactions sent to you by your bank"?

a)

checking account

b)

bank statement

c)

personal check register

d)

conditional statement

e)

political statement

12.

Which of these terms means, "a fee paid by a borrower to the lender for the use of the borrowed money"?

a)

interest

b)

bank statement

c)

ATM fee

d)

maintenance fee

e)

interesting fee

13.

which of these terms means "a sum of money placed or kept in a bank account; the act of placing a sum of money into a bank account"?

a)

overdraft

b)

deposit

c)

reconciliation

d)

withdrawal

e)

debit

14.

which of these terms means "a sum of money withdrawn from an account (taken out of an account)"?

a)

overdraft

b)

deposit

c)

reconciliation

d)

withdrawal

e)

credit

15.

Which of these occurs when money is withdrawn from a bank account and the available balance goes below zero?

a)

overdraft

b)

rough draft

c)

reconciliation

d)

withdrawal

e)

back draft

16.

Which of these terms means "an accounting procedure that compares two sets of records to check that the figures are correct and in agreement"?

a)

reconciliation

b)

overdraft

c)

residual

d)

reconnaissance

e)

money market

17.

Which of these means, "the smallest amount of money that you have to pay each month to keep your account in good standing"?

a)

minimum payment

b)

minimum balance

c)

minimum wage

d)

minimum base pay

e)

minimum credit score

18.

Which of these means,  "the deposit of funds electronically into a bank account rather than through a physical, paper check"?

a)

minimum payment

b)

direct deposit

c)

autopay

d)

deposit slip

e)

tech deposit

19.

Which of these means, "the person or institution receiving a payment of money"?

a)

payor

b)

payee

c)

pastor

d)

partee

e)

lucky

20.

Which of these means, "an entry recording a sum of money received/deposited into the account"?

a)

credit

b)

debit

c)

accreditation

d)

payor

e)

debit card

21.

Your bank charges a $50 overdraft fee. After your account goes below zero, on the same day, you purchase a $2 soda from a vending machine, a $3 bag of chips from inside the gas station, and $10 of gas (paid at the pump). How much will you pay in overdraft fees?

a)

$50

b)

$100

c)

$150

d)

$65

e)

none