What is one characteristic of a common stockholder?
- They are owners of the company
- They elect the board of directors
- They can receive dividends
100
If you bounce a check when you make a purchase at a grocery store, what is one thing that could happen?
Charged a fee by store, charged fee by bank, credit score goes down
100
A measure of your credit worthiness is called what?
Your credit rating also called credit score
100
What is the easiest tax form to fill out?
1040EZ
100
What is a budget?
A spending and savings plan based on your expected income and expenses
200
Applying the Rule of 72, you are earning a rate of 6% on your money. How many years will it take to
double your money?
12 years
200
The process of matching your checkbook balance with the bank statement balance is known as what?
Reconciling
200
What is something you should do to prevent yourself from being the victim of identity theft?
Answers may vary
-Never give credit card numbers over the phone.
-Don’t carry your social security card with you.
-Sign your credit cards immediately in permanent ink.
-Get annual credit reports.
200
This form, provided by your employer, indicates how much you earned and the taxes you paid for the year.
Form W-2
200
What is a variable expense? Give an example.
Expenses that fluctuate from month to month
300
If you were to buy 150 shares of Nike at 25.00 a share, how much would it cost you?
$3750.00
300
What are the advantages of using a debit card to make a purchase instead of a credit card? In what ways are debit cards different from credit cards?
The debit card only allows you to spend money that you have because money comes directly out of your checking account upon purchase.
300
What does APR stand for and what does it mean?
Annual Percentage Rate, the cost of credit expressed as a yearly percentage.
300
Which of the following is NOT a payroll tax?
a. Federal income tax
b. FICA tax
c. Medicare tax
d. Sales tax
Sales Tax
300
What is a fixed expense?
An expense that costs the same month to month
400
What are two ways of earning a return on an investment in a stock?
Capital Gains and Dividends
400
What are some of the dangers of failing to reconcile your checkbook?
Might bounce a check
400
Define the 20/10 rule
Total borrowing should not exceed 20 percent of your yearly take home pay, and you should not take on monthly payments that total more than 10 percent of your monthly take home pay.
400
A form that taxpayers use to determine if they paid too much or too little in federal taxes for the year is called what?
1040EZ
400
What percent of your income should you save per month?
10%
500
What is the relationship between risk and rate of return?
The higher the risk, the higher potential for a return
500
The interest and fees a borrower must pay for a loan make up the what?
Finance Charge
500
The grace period for your credit card allows you to
Avoid paying interest by paying your balance in full by the due date
500
Why must you fill out your tax return forms every year?
To determine your tax obligation
500
Assuming that it is recommended that you save at least 10 percent of what you earn, a person who makes $980 each month and has expenses of $280 should save how much?