Personal Finance Final

Front

What is a blank endorsement?

Back

A check signed without any added restrictions.

Front

What is a special endorsement used for?

Back

To make a check payable to another person

Front

What is the proper way to void a check? Options: Write "VOID" in small letters at the bottom of the check. Write "VOID" in large capital letters across the front of the check. Tear the check in half. Write "CANCEL" on the back of the check.

Back

Write "VOID" in large capital letters across the front of the check.

Front

What is gross income?

Back

The total amount of money earned before taxes and deductions

Front

Which of the following is included in gross income?
Options:
Only salary,
Salary, wages, tips, commissions, interest, dividends, and rental income,
Only wages and tips,
Only interest and dividends

Back

Salary, wages, tips, commissions, interest, dividends, and rental income

Front

What is considered a "need" according to the text?

Back

Food

Front

Which of the following is an example of a "want"? Shelter, Water, Healthcare, A vacation

Back

A vacation

Front

What is the main difference between wants and needs?

Back

Needs are essential, wants are desires.

Front

What is the Rule of 72 used for?

Back

Estimating the number of years to double an investment

Front

How do you use the Rule of 72 to estimate the doubling time of an investment?

Back

Divide 72 by the expected annual interest rate.