Unit 4: Personal Finance

Which type of bank account is best for everyday transactions?

• Checking Account

• Savings Account

• Money Market Account

• Certificate of Deposit

Which payment option takes money out of your bank immediately?

• Debit Card

• Loan

• Credit Card

• Check

Which of the following is TRUE regarding unexpected expenses?

• They should be planned for.

• They usually don't affect your ability to pay bills.

• They should not be included in your budget.

• They usually don’t affect your budget.

Which example shows an advantage of owning a car over leasing one?

• No restrictions on mileage or changes made to the car.

• Smaller monthly payments and good warranty to cover repairs.

• Expiring warranty means that you will get to handle repair payments.

• You will drive a fairly new car for a limited period of time.

Why is insurance an important financial investment?

• In cases of an accident, theft, or unpredictable events the insurance protects against financial loss.

• Insurance can offer easy management of your monthly budget payments.

• Co-insurance policies are the best way to invest in the stock market without risk.

• Insurance offers warranties on household items not provided by the manufacturer.

Which is a positive reason for using a credit card to finance purchases?

• Paying it off on time can help build your credit history.

• You will get charged high interest.

• You won't have to budget for your credit card expenses.

• You'll be able to spend a lot of money without paying it back.

What does the W-2 form tell you?

• How much you've earned and how much taxes you've paid in the last year.

• When to file your tax return.

• How often your employer will be paying you.

• How much federal income tax your employer will withhold from your paycheck.

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to

consider when _____.

• Choosing a credit card

• Paying a financial advisor

• Evaluating your credit score

• Identifying financial institutions

Which of the following is a possible tax or deduction that may show up on your

paycheck?

• All of these

• Federal income tax

• FICA

• Contributions to retirement savings

What is the best way to avoid spending more than what is in your bank account?

• Keep your own records to compare with your financial institution's records.

• Check your bank statement once a month.

• Ask your financial institution to notify you when you are close to $0 in your account.

• None of these