True Or False
Under a Wisconsin law passed in 2019, children under the age of 18 can legally operate lemonade stands on private property without a government permit. Previously, it was illegal to do so without a permit.
Answer: True - lemonade stands are now legal!
On your paycheck, your gross pay minus your payroll deductions is called what?
A. Net pay or take-home pay B. Adjusted Gross Income C. Wages
This is one of the key concepts in Economics. yspulp nda addenm
Answer: Supply and Demand
On a credit card, what is the free period or grace period?
Answer: This is the time period during which the card holder avoids finance charges if he or she pays the full balance owed.
What kind of account is Accounts Payable
A. Asset B. Liability C. Equity D. Capital
If you have overdraft protection as a part of your checking account, you can write all the checks you want, and you don’t have to worry about exceeding your checking balance.
Answer: False
If, in the space of one year, a stock pays a 3% dividend, its value rises by 5%, and inflation is 2%, what is its total annual real return?
A. 2% B. 6% C. 8%
This is one of the key items in personal finance; everyone should get a copy of theirs at least once a year. dertic oetrpr
Answer: Credit Report
In investing, what’s the difference between a bull market and a bear market?
Answer: In bull markets, stock prices are going up. In bear markets, stock prices are going down.
Financial planners typically recommend that individuals keep an emergency fund in the bank or credit union, consisting of how many months worth of average monthly expenses?
A. 72 months (the Rule of 72) B. 12 months C. At least 3 months D. 1 month
Most credit unions and banks charge a significant penalty for withdrawing money from a CD (certificate of deposit) before it matures.
Answer: True
The federal income tax is known as a ______ tax
A. Flat B. Regressive C. Progressive
Give two examples of items that could be considered to be an individual’s personal assets.
Answer: Bank accounts, investment accounts, real estate, cash, insurance policies, vehicles, clothes, phones, household goods and furnishings, etc.
In what state is Silicon Valley located?
Answer: California
Chicago-based gangster Al Capone was known as “Public Enemy No. 1.” In 1931 he was sentenced to 11 years in prison and served time in the legendary Alcatraz Prison. Of what crime was Capone convicted?
A. Murder (the St. Valentine’s Day Massacre)
B. Income tax evasion
C. Smuggling alcoholic beverages from Canada
Checking accounts typically pay higher interest than money market accounts.
Answer: False
The minimum wage is an example of a/an:
A. Price ceiling B. Inflation-adjusted entitlement C. Price floor
What’s the term for the social science that studies the production, distribution, and consumption of goods and services?
Answer: Economics.
Jim Delligatti, a McDonald’s franchisee, invented the Big Mac in 1965, with an original menu price of 45 cents! The same sandwich now costs about $4. What economic phenomenon does this price increase illustrate?
Answer: Inflation
The “Four Cs” are factors that potential lenders analyze to determine a person’s creditworthiness. Which of the following are the “Four Cs”?
A. Capacity/Capital/Character/Collateral
B. Capability/Casualty/Cost/Consideration
C. Care/Caution/Cohesiveness/Contract
Capital gains tax is a tax you pay when you sell an investment for more than the amount that you paid for it.
Answer: True
The official measure of the market value of all finished goods and services in the U.S. economy, or any economy, within a given period of time is referred to as its:
A. Purchasing Power Parity (PPP) B. Gross Domestic Product (GDP) C. Kondratieff Wave
If you co-sign a loan, that means:
A. You are responsible for paying it back, even if you didn’t use the money
B. You can terminate the loan at any time, even without the agreement of the other co-signer
C. Your credit score will not be impacted by any defaults on the loan.
It’s a sum of money you pay a landlord to ensure that you will leave an apartment in the same condition it was when you moved in
Answer: Security deposit
What’s the term for a group of apparently independent producers who have taken steps to increase their profits by means of price fixing, limiting supply, or other practices?
A. Trade Union
B. Co-operative
C. Cartel