Unit 6: Money & Banking

Front

How does maintaining a savings account support fiscal responsibility?

Back

It helps the man pay his bills when there is an income shortfall.

Front

Ramy is seeking to purchase his first home. How could Ramy BEST revise his budget to enable him to meet his goal? Options: by eliminating his savings, by getting rid of his auto insurance, by reducing his entertainment budget, by avoiding medical care

Back

by reducing his entertainment budget

Front

In 2019, a woman owed $560 in taxes to the federal government. She was not expecting this, and needed to completely readjust her budget to address this expense. What can the woman do to avoid a similar situation in the future?

Back

She can withhold more of her earnings each month to prepare for a tax bill.

Front

How can failing to balance a checking account affect an individual’s financial well-being?

Back

It can result in overdraft fees that reduce the amount in an individual’s account.

Front

When do you start paying taxes? Options: when you turn 18, when you get a full-time job (part-time does not count), when you are notified by the IRS that you are required to pay federal income taxes, when you make more than the minimum income requirement

Back

when you make more than the minimum income requirement

Front

Why is it important to be extremely careful when completing your 1040 form?

Back

it determines whether you owe additional taxes or are entitled to receive a refund from the government

Front

Which of the following describe what a "dependent" is for tax purposes?
- someone under the age of 18 who you also financially support
- someone who is temporarily disabled
- someone who financially supports you
- someone who is a full-time student under the age of 30

Back

someone under the age of 18 who you also financially support

Front

If a teen files a tax return, can the parent still claim him/her as a dependent?

Back

Yes, as long as the teen meets the dependency requirements

Front

Which of the following savings accounts tends to have the highest APY? Money market accounts, Basic savings accounts, Certificates of deposit, Online savings accounts

Back

Certificates of deposit

Front

Which of the following is TRUE of the 50-30-20 Rule? Options: 50=savings, 30=needs, 20=wants; 50=needs, 30=wants, 20=savings; 50=needs, 30=savings, 20=wants; 50=savings, 30=wants, 20=needs

Back

50=needs, 30=wants, 20=savings