WorksheetsAVID Final Review 1
Total questions: 25
Worksheet time: 19mins
If you pay more taxes then what is necessary, you will get a:
tax refund
tax penalty
tax audit
tax lein
What is it called when money is automatically removed from your paycheck to put towards your taxes?
tax refund
tax deduction
a withholding
tax credit
Which type of income taxes do Florida and Texas have?
a progressive income tax
They do not collect income taxes
flat income tax
a combination of flat and progressive tax
What type of tax system does the United States have?
a regressive system
a progressive system
a flat tax system
a consumption based tax system
to protect your credit card information, when should you provide your credit card number and CVV?
when you're asked by someone over the phone
when you're making a purchase on any website
when you're sharing it with friends for online purchases
when you're making a secure transaction
What can happen if you apply for a lot of credit cards in a short time?
it can hurt your credit score
it can improve your credit score quickly
it does not have an impact on your credit score
it can increase your available credit limit significantly
after making purchases with a credit card, you will receive a:
phone call reminding you of your purchase
statement detailing your transactions and balance
text message with your current balance
bill that is automatically deducted from your bank account
What is the next step after getting approved for a credit card and receiving it?
immediately make a large purchase to test the limit
share your card details with your friends
throw away the activation instructions without reading it
activate it before using it
If you have a low or no credit score, one option to get a credit card and build credit history is to apply for a:
rewards credit card with high limits
secured credit card
credit card with no annual fee and no interest
store-specific credit card with instant approval
compared to a credit card, a debit card allows you to:
borrow funds from a credit card issuer
build your credit history over time
spend money directly from your checking account
earn rewards points for your purchase
when you use a credit card, the credit card issuer:
immediately deducts the purchase amount from your checking account
gives you cash to make your purchases
requires you to pay for the purchase at the moment of the transaction with your own funds
makes payments on your behalf for the purchases you make
Which of the following is funded by federal taxes?
national defense
public schools
local parks
fire departments
businesses collect which type of tax and give it to the local government?
income tax
sales tax
property tax
federal excise tax
Regularly reviewing and adjusting your budget and savings goals is important because:
It prevents any changes in your spending habits.
Your financial situation is likely to change over time.
It guarantees you will never face financial challenges
It makes financial planning unnecessary.
Seeking a higher-paying job within your company or elsewhere is a way to:
Reduce your savings potential.
Decrease your job security.
Increase your earnings.
Avoid financial planning.
To maximize the growth of your long-term savings, it's beneficial to:
Keep them readily accessible in a checking account.
Deposit them in accounts that earn higher interest.
Invest in very short-term, low-yield options.
Avoid comparing interest rates between different accounts.
Which of the following is generally NOT an effective way to cut spending in the short term?
Deciding to skip your required monthly loan payment.
Reducing entertainment expenses.
Decreasing spending on dining out.
Cutting back on non-essential subscriptions.
A crucial step in creating a successful savings plan is to:
Ignore your current spending habits.
Develop a budget that tracks income and expenses.
Borrow money to cover immediate wants.
Avoid thinking about future financial needs.
Saving money can help you achieve long-term aspirations like:
Buying non-essential items immediately.
Avoiding any financial planning.
Relying solely on credit for large purchases.
Purchasing a home.
To consistently build your emergency fund, a helpful strategy is to:
Withdraw small amounts regularly for unexpected wants.
Rely on future income to cover potential emergencies.
Set up automatic transfers to a high-interest savings account.
Avoid tracking your contributions to the fund.
A good target amount to have in an emergency fund is enough to cover:
One month's worth of discretionary spending.
Three to six months' worth of essential living expenses.
All outstanding debts and loans.
The cost of a major luxury purchase.
A helpful strategy to increase your savings is to:
Separate your savings into different accounts for different goals.
Keep all your money in one checking account for easy access.
Avoid setting specific financial goals.
Spend any extra money immediately to avoid temptation.
The first step in starting to save money effectively is:
Tracking all your monthly expenses.
Opening multiple credit card accounts.
Reducing fixed expenses immediately.
Setting financial goals for the future.
To save more money each month, it is generally most effective to reduce:
fixed expenses
variable expenses
essential needs
groceries
Private Mortgage Insurance (MI) is often required when a homebuyer:
Has excellent credit history.
Makes a down payment of 20% or more of the home's price.
Chooses a fixed-rate mortgage over an adjustable-rate mortgage.
Finances more than 80% of the home's price.
