1 What is something you must avoid when writing a check a overdrawing the account b using an abbreviation for the payee c using a non erasable pen d writing in the memo blank 2 Which tax do you pay on your salary, wages, and tips a payroll tax b income tax c sales and excise tax d estate, inheritance, and gift tax 3 The financial institution that requires you to be a member is a a commercial bank b mutual savings bank c credit union d savings and loan association 4 What is a hospital and medical insurance Social Security program for people age 65 and older a Medicare b disability c Medicaid d retirement 5 The main purpose of taxation is to a provide savings for individuals b pay a portion of a worker's wages c raise revenue d pay for workers who are unemployed 6 What refers to a form you fill out when opening a checking account that contains your personal data a check register b signature card c deposit ticket d statement of account 7 How many work credits are required to be eligible for full Social Security benefits a 26 b 40 c 62 d 67 8 All of the following are important in determining the best interest rates for different savings plans EXCEPT a minimum deposit b annual percentage yield c frequency of interest compounding d interest pay periods 9 Assume that $840 was withheld from your paycheck last year for FICA taxes How much does your employer have to send to the federal government a $0 b $420 c $840 d $1680 10 The FDIC insures a stocks b deposits in banks c homeowners d the elderly 11 The lower left hand portion of a check has a space that can be used a to indicate the purpose of the check b to keep track of your account balance c for your signature d for the date of the check 12 The program that helps people who are injured or who develop a disease as a result of their job is a unemployment benefits b Social Security c workers' compensation d FICA 13 Social Security provides payments for all of the following EXCEPT a retirement payments b survivors payments c disability payments d unemployment payments 14 A Roth IRA differs from a traditional IRA because a contributions are tax deductible with a Roth IRA b you do not need to pay income tax when you withdraw funds from a Roth IRA c you must pay income tax when you withdraw funds from a Roth IRA d you do not need to pay income tax when you withdraw funds from a traditional IRA 15 A plastic card used to immediately transfer funds for a purchase from a bank account to a seller is known as a(n) a credit card b ATM card c debit card d sales card 16 FICA taxes are taken from a worker's paycheck to pay for a unemployment benefits b Social Security c workers' compensation d federal income tax 17 Finance charges represent a the interest you are charged every month b the percentage cost of credit on a yearly basis c all of the costs involved in using credit d credit card charges 18 The amount of money a family should save for emergencies is equal to at least total income a two weeks' b one month's c two months' d six months' 19 In 2011, individuals could contribute up to in a traditional or Roth IRA a $2,500 b $3,000 c $5,000 d $7,500 20 The tax system in the United States is considered a a flat tax b graduated tax c percentage tax d pay as you go tax 21 A variable expenditure a is an expense that varies depending on the time of year and spending habits b is usually the same amount each month c includes items like mortgages and insurance d is also known as a regular expenditure 22 Excise taxes are placed on a income b estates and inheritances c large items like cars d specific items like gasoline, tires, tobacco, and alcohol 23 Liquidity refers to a how much retirement savings you have b the amount of bills that you owe other people c an asset that can easily be converted into cash d how long you have to leave your money in a savings account 24 The person or company to whom you write a check is the a payee b debtor c endorsee d creditor 25 A money market fund is a a loan to a company or government agency b a type of mutual fund that invests in short term, high liquidity investments c a share of ownership in a company d an investment company that pools money of investors 26 When calculating your income taxes, the amount of tax owed is based on your a gross income b adjusted gross income c taxable income d net income 27 Two reasons to set aside cash for savings are a emergencies and to achieve financial goals b emergencies and investments c investments and to achieve financial goals d none of the above 28 One of the most common mistakes in maintaining a checking account is a writing a check for the wrong amount b writing a postdated check c bouncing a check d not recording checks in the register 29 The most common form of consumer sales credit is a installment credit b open charge accounts c a revolving charge d loan credit 30 Which type of financial institution is known as a full service bank a commercial banks b credit unions c mutual savings banks d savings and loan associations Determine whether the statement is true or false Social Security was always designed to meet all of a retired person's financial needs You should always endorse a check exactly as it is made out, even if your name is written incorrectly The check register is where you keep a record of checks written, deposits made, and other transactions It is certain that Social Security will be available when you retire Postdating a check assures that the check will not be cashed until after the date on the check Most young workers should use Form 1040A to calculate their taxes A negotiable order of withdrawal (NOW) is a type of checking account Aliens (citizens of other countries) who live and earn income in the United States are exempt from paying any income tax Balancing a checkbook is the same as reconciling your checking account All Social Security programs are intended for people who work A direct tax is included in the cost of goods and services you buy The annual percentage rate (APR) is the total dollar amount you pay for using credit In most states, workers' compensation is financed by insurance that employers must purchase A budget helps you get the most benefit from your earnings An endorsement is needed to cash or deposit a check Investing and saving are the same thing There is only one type of savings account a regular or passbook account When budgeting, you should only worry about short range goals Online banking is only for making payments from your account to other people The basis of budgeting is allocating income to expenditures

Question

1  What is something you must avoid when writing a check  a  overdrawing the account b  using an abbreviation for the payee c  using a non erasable pen d  writing in the  memo  blank 2  Which tax do you pay on your salary, wages, and tips  a  payroll tax b  income tax c  sales and excise tax d  estate, inheritance, and gift tax 3  The financial institution that requires you to be a member is a a  commercial bank  b  mutual savings bank  c  credit union  d  savings and loan association  4  What is a hospital and medical insurance Social Security program for people age 65 and older  a  Medicare b  disability c  Medicaid d  retirement 5  The main purpose of taxation is to a  provide savings for individuals  b  pay a portion of a worker's wages  c  raise revenue  d  pay for workers who are unemployed  6  What refers to a form you fill out when opening a checking account that contains your personal data  a  check register b  signature card c  deposit ticket d  statement of account 7  How many work credits are required to be eligible for full Social Security benefits  a  26 b  40 c  62 d  67 8  All of the following are important in determining the best interest rates for different savings plans EXCEPT a  minimum deposit  b  annual percentage yield  c  frequency of interest compounding  d  interest pay periods  9  Assume that $840 was withheld from your paycheck last year for FICA taxes  How much does your employer have to send to the federal government  a  $0 b  $420 c  $840 d  $1680 10  The FDIC insures a  stocks  b  deposits in banks  c  homeowners  d  the elderly  11  The lower left hand portion of a check has a space that can be used a  to indicate the purpose of the check  b  to keep track of your account balance  c  for your signature  d  for the date of the check  12  The program that helps people who are injured or who develop a disease as a result of their job is a  unemployment benefits  b  Social Security  c  workers' compensation  d  FICA  13  Social Security provides payments for all of the following EXCEPT a  retirement payments  b  survivors payments  c  disability payments  d  unemployment payments  14  A Roth IRA differs from a traditional IRA because a  contributions are tax deductible with a Roth IRA  b  you do not need to pay income tax when you withdraw funds from a Roth IRA  c  you must pay income tax when you withdraw funds from a Roth IRA  d  you do not need to pay income tax when you withdraw funds from a traditional IRA  15  A plastic card used to immediately transfer funds for a purchase from a bank account to a seller is known as a(n) a  credit card  b  ATM card  c  debit card  d  sales card  16  FICA taxes are taken from a worker's paycheck to pay for a  unemployment benefits  b  Social Security  c  workers' compensation  d  federal income tax  17  Finance charges represent a  the interest you are charged every month  b  the percentage cost of credit on a yearly basis  c  all of the costs involved in using credit  d  credit card charges  18  The amount of money a family should save for emergencies is equal to at least            total income  a  two weeks' b  one month's c  two months' d  six months' 19  In 2011, individuals could contribute up to            in a traditional or Roth IRA  a  $2,500 b  $3,000 c  $5,000 d  $7,500 20  The tax system in the United States is considered a a  flat tax  b  graduated tax  c  percentage tax  d  pay as you go tax  21  A variable expenditure a  is an expense that varies depending on the time of year and spending habits  b  is usually the same amount each month  c  includes items like mortgages and insurance  d  is also known as a regular expenditure  22  Excise taxes are placed on a  income  b  estates and inheritances  c  large items like cars  d  specific items like gasoline, tires, tobacco, and alcohol  23  Liquidity refers to a  how much retirement savings you have  b  the amount of bills that you owe other people  c  an asset that can easily be converted into cash  d  how long you have to leave your money in a savings account  24  The person or company to whom you write a check is the a  payee  b  debtor  c  endorsee  d  creditor  25  A money market fund is a  a loan to a company or government agency  b  a type of mutual fund that invests in short term, high liquidity investments  c  a share of ownership in a company  d  an investment company that pools money of investors  26  When calculating your income taxes, the amount of tax owed is based on your a  gross income  b  adjusted gross income  c  taxable income  d  net income  27  Two reasons to set aside cash for savings are a  emergencies and to achieve financial goals  b  emergencies and investments  c  investments and to achieve financial goals  d  none of the above  28  One of the most common mistakes in maintaining a checking account is a  writing a check for the wrong amount  b  writing a postdated check  c  bouncing a check  d  not recording checks in the register  29  The most common form of consumer sales credit is a  installment credit  b  open charge accounts  c  a revolving charge  d  loan credit  30  Which type of financial institution is known as a full service bank  a  commercial banks b  credit unions c  mutual savings banks d  savings and loan associations Determine whether the statement is true or false  Social Security was always designed to meet all of a retired person's financial needs  You should always endorse a check exactly as it is made out, even if your name is written incorrectly  The check register is where you keep a record of checks written, deposits made, and other transactions  It is certain that Social Security will be available when you retire  Postdating a check assures that the check will not be cashed until after the date on the check  Most young workers should use Form 1040A to calculate their taxes  A negotiable order of withdrawal (NOW) is a type of checking account  Aliens (citizens of other countries) who live and earn income in the United States are exempt from paying any income tax  Balancing a checkbook is the same as reconciling your checking account  All Social Security programs are intended for people who work  A direct tax is included in the cost of goods and services you buy  The annual percentage rate (APR) is the total dollar amount you pay for using credit  In most states, workers' compensation is financed by insurance that employers must purchase  A budget helps you get the most benefit from your earnings  An endorsement is needed to cash or deposit a check  Investing and saving are the same thing  There is only one type of savings account  a regular or passbook account  When budgeting, you should only worry about short range goals  Online banking is only for making payments from your account to other people  The basis of budgeting is allocating income to expenditures

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1. What is something you must avoid when writing a check? a. overdrawing the account b. using an abbreviation for the payee c. using a

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