EPF UNIT 4 TEST

Which of these do you need to set a budget?

• A record of all your expenses

• The ability to give money to charity

• Large amounts of income

• Credit Cards

Which of these is a benefit of following a budget?

• You can compare prices more effectively

• It helps you pay less in taxes

• It allows you to save money

• You can earn more money

Which of these could lead to higher income?

• buying a house

• Choosing to bike to work instead of drive

• living in a small apartment

• Going to college

If you use a credit card, what is an effect of your use of the card?

• You invested in a company

• You put money in the bank

• You owe a debt

• You generate income

If you want to generate the most amount of money in your account, you want a bank that pays interest how often?

• Yearly

• Daily

• Monthly

• Weekly

When looking at retirement, whats the most important thing to plan for?

• Credit Cards

• Taxes

• Work Skills

• Savings

What type of financial account is: Used primarily to make purchases, Earns no interest, typically no limit to the amount of monthly withdrawals

• Savings

• Checking

• Money market account

• Certificate of Deposit

Why is a credit report important?

• It prevents you from going broke

• It gives you a record of your expenses

• If affects how much money you can borrow and how much it will cost to borrow it.

• It gives advise on how to earn more money

If you have a high credit score and a long history of paying your debts on time; what does that say about you financially?

• You may have to pay higher interest rates.

• You have issues organizing bills

• You're more likely to go bankrupt

• You make responsible financial decisions

What is Gross pay

• Earnings before deductions are withheld (Before tax pay)

• The amount of salary remaining after deductions (after tax pay)