Cluster 1
____ pay is the amount you take home after taxes and other deductions have been subtracted.
Net
True or False: For an hourly worker, gross pay is found by multiplying the number of hours worked by the hourly rate of pay.
True
The form used to report taxable income a worker received during the calendar year is called a:
Form W-2
As the number of competitors increases;
Supply increases; prices decrease
Which of the following is the BEST example of a liquid asset?
-Cash
-Furniture
-An individual retirement account (IRA)
-Stocks and bonds
Cash
The United States has a centralized banking system called:
The Federal Reserve System
The following elements describe a SMART goal:
Specific, Measurable, Attainable, Realistic, Time Bound
What type of economy is both the government and individuals make decisions about economic resources (utilizing the laws of supply and demand)
Mixed Economy
A plan to regularly put aside money for a specific purpose is called a/an
Savings Plan
Goods or services that a person may desire, but that are not essential for life, such as toys, games or candy is called:
Wants
The steady rise in the general level of prices is called:
Inflation
All the following are examples of unearned income except _______
-Interest
-Dividends
-Tips
-Government Transfer Payments
Tips
This can be used in place of money:
Trading or Batering
Activities performed by people or businesses that satisfy other people’s needs/wants are _____?
Services
The application of moral principles, standards of behavior, or set of values regarding proper conduct in the workplace as individuals and as group setting is called:
Ethics
Short-term goals may involve:
-Vacation
-College
-Retirement
-All
-None
All of these
When people slow their buying and are unable to pay high prices, the economy slips into an economic decline, called a _________.
Recession
What is money if it is available but only in a limited supply?
Scarce
Easily transferred from one person to another, to make the exchange of money for products easier is called:
Portability
The willingness and ability of consumers to buy goods and services is called:
Demand
Your aunt gives you some money for your birthday, and you decide to put it in your savings account instead of spending it. The tradeoff of not being able to spend the money now is called the ______
Opportunity Cost
Experts recommend setting aside ___________ pay in an emergency fund.
3-6 months
The purpose of the cash flow statement is :
List your cash inflows and outflows for a period of time.
If expenses were to exceed income on a budget, what would be a financially smart solution?
Decrease expenses
True or False: Budgeting is a spending and savings plan based on your expected income and expenses for a period of time.
True