FACS Midterm Review 2/2

Which of these is the best way for a college student to build good credit as quickly as possible?

• pay credit card bill on time

• get multiple credit cards and use them often

• always make payments the day after the grace period

• only use credit card for a major purchase like a car

• avoid getting or using credit cards

Amount of income left AFTER taxes and deductions have been taken out.

• gross pay

• net pay

• taxable income

• gross net

• not pay

What is the purpose of the W-4 form?

• To send the IRS when you file your yearly tax return form

• To determine how much your gross pay and benefits should be

• To inform your employer of how much federal income tax to withhold from your paychecks.

• To avoid paying income taxes on your paychecks.

• to protect metal from rust and corrosion

Which of these forms does your employer send you at the end of the year to tell you how much you've made and how much you've paid in taxes during the past year?

• 1040

• W-2

• W-4

• R2D2

• 5W30

Which of these terms means "A sum of money taken out of your paycheck (for the purpose of taxes, employee medical insurance contribution, etc.)"?

• deduction

• dependent

• gross pay

• duck dynasty

• aqueduct

Which of these would financial experts recommend for reaching a short-term financial goal?

• investing in the stock market

• saving

• gambling

• buying gold coins

What does the term “unemployment rate” mean?

• % of people who have lost a job in the past 5 years

• % of people who have lost a job in their lifetime

• % of people who currently don’t have jobs but are looking for work

• % of people who currently don’t have jobs

• % of people who currently have a job but are looking for a new one

Which of these is a type of investment that is a) run by professional money managers and b) involves a diverse collection of stocks, bonds, etc.

• allocation

• diversification

• dividend

• mutual fund

• mutually assured destruction

If a stock price drops and then a ton of people start buying it, what will happen to the price of the stock?

• it will start going up

• it will stay the same

• it will continue to drop

• there is no way to know

• Elon Musk will buy it

Which of these terms means "A type of savings vehicle/bank account in which you earn interest on the principal"?

• savings account

• bank statement

• checking account

• expense account

• accountants