FOMC
How many people are on the Board of Governors?
7
Who appoints the governors to the Federal Reserve?
The President
Money is used to buy the things we need to ____ and ____.
Live and Thrive (or Survive)
This bias explains why you might value your old, beat-up car at $5,000 while a buyer thinks it is only worth $3,000, simply because you already own it.
Endowment Effect
What you earn before any money has been taken out for taxes or other deductions
Gross Pay
For every hour that you work, you get a set rate. What is this called?
Hourly Pay
Employees fills this form out when they first start their job.
W-4
The Federal Reserve was created to perform 3 functions...
Supervise the Banking Industry
Stabilize the American financial systems
_______________________________
Create & Implement Monetary Policy
The goal of Conducting Monetary Policy is...
Keeping the Economy's "temperature" just right
OR
Price Stability and Maximum Employment
Function of Money: Maintains its value over time
Store of Value
This bias often leads investors to trade too frequently and take on excessive risk because they believe their personal knowledge or "gut feeling" is superior to the average market participant.
Overconfidence Bias
What percentage of your paycheck is taxed for Medicare?
1.45%
Extra pay you receive for working beyond your normal hours of work, typically set at a 40-hour work week. This is an example of what?
Overtime Pay
What are 2 of the 3 ways you can prepare your taxes?
Paper Tax Filing, Tax Preparation Websites, Hiring a Tax Professional
Which bank president votes at each FOMC meeting?
New York Fed president
The Federal Reserve is also known as...
"The Banker's Bank"
Money Characteristic: Money can be broken into smaller units.
Divisible
This bias occurs when people continue to pour money into a failing project or investment simply because they have already spent a lot on it, regardless of future prospects.
Sunk Cost Fallacy
Your gross pay was $475 and your deductions were $35. How much was your net pay?
$440
A customer adds an additional $20 to their restaurant bill because the service they received during their visit was excellent. ($80 food bill + $20 tip the server will get = $100 paid). This is an example of a _______, which is a type of compensation.
Tip
Your employer must legally get your W-2 to you by what date?
January 31
How many members vote at the FOMC meetings?
12
1) Enforce laws to make sure consumers are treated fairly
2) Act as the "Bank Police"
3) Audits/Checks in on Banks
The US dollar used to be backed by ______. Now it is considered ______ money.
Gold, Fiat
This bias explains why investors often hold onto losing stocks for too long while selling winning stocks too early, because the pain of a loss is twice as powerful as the joy of a gain.
Loss Aversion
How much of your paycheck is deducted for Social Security tax?
6.2%
Health Insurance, Paid Time Off, Retirement are examples of ______.
Benefits
All 50 states collect an income tax from residents in order to generate revenue.
True/False
False
How long is the term for each member of the Board of Governers?
14 Years
While maintaining the stability of the financial system, The Fed acts as...
You bring fake money to the Piggly Wiggly to buy your groceries. This would be an example of which money characteristic not being met?
Acceptable
In the world of investing, this bias occurs when a trader only reads articles or follows "influencers" who agree with their specific stock pick while dismissing any negative reports as "fake."
Confirmation Bias
What are three things you can find on a paystub?
Company Name, Employee Name, Pay Period, Pay Date, Rate, Hours Worked, Gross Pay, Net Pay, Deductions
Jason is offered a fixed amount of pay for an entire year and that amount is divided by the number of times he is paid each year. This is an example of a ______.
Salary
What is the primary purpose of taxes for adults and the government?
To generate revenue for the government to find public services and programs
Who has to approve the appointed Board of Governors?
Senate
The Federal Reserve was created in __________ as central bank and a way to help stabilize the economy.
1913
To be considered money it must have these 5 characteristics...
Divisible Stable/Scarce ___________
Acceptable _____________
(Name the last 2)
Portable and Durable
You have to save money to buy a car but your friends are buying tickets to see your favorite artist in concert. You feel sad that you can't go. This is an example of ____.
FOMO (Fear of Missing Out)
In order to get your ______ you have to take your gross pay and subtract your deductions.
Net Pay
Kwik Trip takes a % of their profits and gives it back to their employees at the end of each year. What is this an example of?
Profit Sharing
A W2 has your ________ income and all of your deductions broken down on it.