Economics and Personal Finance Exam

Front

Refers to the income you take home after all of your taxes and deductions have been taken out of your paycheck.

Back

Net Income

Front

True or False: In the United States, all persons are entitled to paid time off from their employer.

Back

False

Front

Of the following Jobs, which one is most likely to have employer provided health care as a benefit? A farm hand, A person working the drive thru at a fast food restaurant, A person working at the cash register at a clothing store, A government employee

Back

A government employee

Front

Which of the following would most likely be considered a need? A large house to live in, Public education, Traveling overseas each year, Eating out at restaurants every night

Back

Public education

Front

Which of the statements below is an example of a good and reasonable financial goal that you think is actionable (do-able)?
Missy wants to buy a new car. She is not sure how much to spend on one and so she simply goes to the dealership and lets them pick out a car for her.
Ashley wants to buy a new house. She compares the prices for local homes and thinks she has found one within her budget. She does not actually see what she would need to save each month, but simply thinks because she makes $90,000 each year, she will be fine.
David wants to take a vacation to visit Europe in a year. He looks up the actual cost to travel, eat, stay in hotels, visit attractions, etc. He sees how much he needs to save up each month and ensure he can afford it.
Susuan wants to visit a Taylor Swift concert. She knows that tickets for it will be expensive and so she decides to just put the cost onto her credit card and worry about it later.

Back

David wants to take a vacation to visit Europe in a year. He looks up the actual cost to travel, eat, stay in hotels, visit attractions, etc. He sees how much he needs to save up each month and ensure he can afford it.

Front

Which budgeting method requires that a person saves 20% of their income each month?

Back

50-30-20

Front

Which budgeting method requires that a person account for all of their expenses each month so that they have $0 left over once they have deducted all of their expenses from their income?

Back

Zero-Based

Front

Which type of bank account is meant to be used on a daily basis to pay for your daily purchases?

Back

Checking account

Front

With which type of bank accounts, banks pay higher interest rates based on how much money a customer keeps in their account? Options: Savings, Debit, Checking, Money market

Back

Savings

Front

What low-cost financial institutions are open only to workers of the group who sponsor them?

Back

Credit unions