What do most taxes collected in the United States pay for?
public goods and services
100
A financial institution is a business that channels funds from ___________ to ____________.
Savers to Investors
100
Buying on credit means you purchase something today, but ______________________________.
Will pay for it later/in the future
100
Why do people get insurance?
To protect against financial loss
100
The best example in the United States of a regressive tax is the ______________.
Sales Tax
200
This type of tax takes a higher percentage of a person's income the more money they make
Progressive Tax
200
What are three services provided by a bank and credit union?
-Checking
-Savings
-Loans
200
What is one way to get credit?
-Get a credit card
-Take out a loan
200
Jill broke her leg. What type of insurance does she need to help pay for her medical bills?
Health Insurance
200
The best example in the United States of a progressive tax is the _______________.
(personal) income tax
300
This type of tax takes a higher percentage of income from the poor than from the rich.
Regressive Tax
300
How is a credit union different from a bank?
You must be a member of the credit union to use it
300
What is one way to maintain good credit?
-Pay all bills on time
-Don't borrow too much money
-Check your credit score regularly
300
During a recent storm, Paul had a tree fall on the roof of his house. Unfortunately, he did not get any money to help fix it because he was lacking what type of insurance?
Property
(Homeowner is okay...but on EOCT it will be Property)
300
This is the amount of money you are charged for borrowing money; also the amount of money you earn when you put your money in a savings account or a CD
interest
400
This type of tax takes the same percentage of income from everyone - regardless of how much they make.
Proportional Tax
400
When investing your money, typically the higher the _________ the higher the possible __________.
Risk; Return
400
This type of interest is one in which you only pay on the original amount of the loan.
Simple Interest
400
George was in a car accident that left him unable to work for six months. Luckily, he had this type of insurance that paid him while he was unable to work.
Disability insurance
400
If Susan's bank pays 2% interest on savings accounts, what type of interest rate will she likely pay if she were to take out a loan?
More than 2%
500
John made $25,000 and paid 10% in taxes
Susan made $50,000 and paid 20% in taxes
Phillip made $100,000and paid 30% in taxes
This is an example of what type of tax?
A progressive tax
500
Rank these investment options from least risky to most risky.
-Bonds
-Stock
-CDs
-Mutual Funds
-Savings Account
Savings Account
Bonds / CDs
Mutual Fund
Stock
500
This type of interest requires you to pay interest on the original amount of the loan, plus pay interest on any other fees or accrued interest (usually used on credit cards)
Compound Interest
500
The money you pay for insurance is your __________; the money you pay before the insurance will pay is called a ______________.
Premium; Deductible
500
Which type of investment vessel has a moderate amount of risk, but a moderate rate of return?
This is what many retirement accounts are!