Unit 6 Review

Front

What is the penalty if you withdraw money from your retirement account early?

Back

the money you withdraw will be taxed as income at whatever your current tax rate is

Front

Who contributes to IRA’s?

Back

employees/individuals only

Front

One way to earn more interest from a bank is to buy a certificate of deposit (CD)

Back

buy a certificate of deposit (CD)

Front

When should you start planning for retirement?

Back

The sooner, the better; NOW would be best

Front

Which of these financial options involves the most risk?
savings account,
stocks,
mutual funds,
bonds

Back

stocks

Front

Who owns commercial banks? Options: the government, depositors, stockholders, the bank employees

Back

stockholders

Front

What is a guarantee of repayment required by lenders?

Back

collateral

Front

How many credit cards should the average person have?

Back

0-2

Front

The federal income tax is ________ and generally impacts higher incomes because it taxes them at a higher rate.

Back

progressive

Front

__________ is a formal legal declaration that you are unable to pay your debts.

Back

bankruptcy