PFL Semester Test

Gambling, like any other financial choice you make, has costs and benefits for the individual, as well as for society. Which might NOT be considered a benefit to gambling?

• It can provide revenue for state governments and public projects.

• It can be a fun form of entertainment for adults.

• It can bring tourists who spend money at associated businesses in a community.

Which of the following would have the least impact on one’s income?

• A job or career choice

• Education and training

• needs and wants

• skills and entrepreneurship

Having short-term, medium-term, and long-term goals can help you reach different

milestones on the path to achieving the life you want to have, as well as financial security.

Which of the following would be considered a long-term goal for which a person might save

their income over time?

• Taking a vacation

• purchasing a home

• going to the movies

• graduation from high school

Creating a workable and effective budget begins by identifying fixed and variable income, as

well as fixed and variable expenses. Which of the following would be considered a fixed

expenditure?

• rent or house payment

• gasoline and automobile repairs

• clothing and shoes

• entertainment and donations

Whether choosing a job or career, an important step is reviewing our skills, abilities,

experiences, and interests because they will help determine how successful we will be. Those

skills, abilities, experiences, and interests are called _____.

• Cost

• Human Capital

• enterpries

• vocations

It is the civic responsibility and social obligation for every citizen and resident to pay _____

which provide for public needs and services, such as roads, schools, sanitation, law

enforcement, and national defense.

• property taxes

• state and federal income taxes

• local sales taxes

• All of the above

If the IRS determines that you willfully committed fraud on your tax return, which of the

following is NOT a possible consequence?

• found guilty of a felony and imprisoned

• forced to pay a penalty

• loss of voting rights

• charged interest on unpaid taxes

The _____ is charged with the responsibility of maintaining and enforcing the federal tax

system. To ensure people obey the law, this agency has the right to audit a person’s annual

tax return.

• Department of Revenue

• Internal Revenue Service

• Tax Auditing Agency

• Social Security Administration

The ____ is an example of a progressive tax; as a person’s income increases, their tax

rate increases.

• Driver's License fee

• sales tax

• property tax

• federal income tax

Many banks and credit unions offer _____, sometimes free or for a fee. This service

provides an automatic loan from the financial institution to cover checks or transfers

when there are insufficient funds in an account.

• Online Insurance

• savings accounts

• safety deposit boxes

• overdraft protection