Managing Your Money Unit Multiple Choice Test Bank

Front 1

A key difference between commercial banks and credit unions is that.

Back 1

Commercial banks are "for-profit" and credit unions are "not-for-profit".

Front 2

Since Taylor was a young child she has kept her savings in a piggy bank.she likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer then her piggy bank .some students' comments were based on fact while others were based on myths.which aspect of security at a depository institutions is NOT TRUE.?

Back 2

Depository institutions have insurance protection. depositors can have multiple accounts insured at the same depository institution as long as each account has no more than $100,000.

Front 3

Sanjay is concerned about the safety of the money in his savings account. which type of depository institution should he choose?

Back 3

He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.

Front 4

Ariel is saving money to purchase a new computer before she leaves for college in two years. she wants to open a special account at a depository insurance to keep he saved money safe. she has asked you for advice on which type of account would be best for her.what would be the best advice for Ariel?

Back 4

Shop around for the depository institution with the highest interest rates for their savings accounts. she would be able to make regular savings deposits and earn interest while she is saving up for the computer?

Front 5

Savings tools offered by depository institutions may earn interest. which of the following statement is NOT TRUE about interest?

Back 5

When earning interest ,look for low rates.

Front 6

Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. she would like a more effective way to access her checking account funds.what would you suggest she do?

Back 6

Apply for a debit card. that way she can use the card instead of cash to purchase the things she need and the account spent is immediately deducted from her account.

Front 7

Common fees that may be charged by a depository institution include all EXCEPT.

Back 7

later fee

Front 8

David made a mistake in his checking account recordkeeping and spent $10 more then he had deposited in his account. as a result, he can expect to be charged.

Back 8

over draft fee

Front 9

which statement is true about payroll taxes

Back 9

Payroll taxes fund the social security and Medicare programs.

Front 10

As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. what is this extra 6% charge most likely to be.

Back 10

Sales tax on the shirt she purchased.

Front 11

who is Medicare designed to help.

Back 11

senior citizens

Front 12

Dane is research the topic of property taxes for a presentation he is doing in his personal finance class .he has come across the following statement he is considering adding to his presentation. which should he EXCLUDE from his presentation because it is not correct?

Back 12

property taxes are assessed at the rate for all types of property ,including homes land and building, regardless of location or whether they are used for business or personal use

Front 13

which statement is NOT TRUE about property taxes?

Back 13

The property tax rate is set by the federal governments to be equal in every state.

Front 14

Taxes that are charged on consumption items such as gasoline, hotel rooms ,and airline tickets are called________ taxes

Back 14

excise

Front 15

Austin has just received his first paycheck .he worked 22 hours at his new job and is being paid $8.00 per hour. he calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. what is the most likely reason that Austin's pay is less than he expected it to be?

Back 15

Austin neglected to deduct the amount required to pay income and payroll taxes.

Front 16

Brett is creating statement of financial position and needs to list assets .which of the following should he NOT list as an asset.

Back 16

money in the paycheck he will receive next week

Front 17

To calculate her not worth jordyn should use the following formula

Back 17

Assets- liabilities =net worth

Front 18

Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and his a net worth of $ 15,000. who is wealthier.

Back 18

Maggie , because her net worth is higher than samantha's

Front 19

Jonah is writing down his liabilities to complete his statement of his financial position .the item he should include would be ?

Back 19

the balance on his credit card

Front 20

To increase his net worth, Jackson could

Back 20

Increase his assets

Front 21

Erin and her mother are putting together an income and expense statement for Erin to use as she applies for a college scholarship. Which income source does she not need to include for this statement

Back 21

Taxes she paid based on her income last year

Front 22

Which of the following would most likely be considered a contractual expense.

Back 22

Cell phone

Front 23

Andy is developing an income and expense statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. He is unsure which of the following items should be recorded as expenses. Which should be recorded as expenses

Back 23

Taxes deducted from his paycheck , money saving saved from his paycheck for emergencies and his car insurance

Front 24

Amanda and Marcus just finished their income and expense statement for last months. They discovered that they have a net gain.what does this mean and what should they do

Back 24

Amanda and March are earning more money than they are spending. They could place additional money in saving and/or spend it on other expenses.

Front 25

If expenses were to exceed income on a spending plan, what would be a financially smart solution?

Back 25

Decrease expenses

Front 26

Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which of the following statements is NOT TRUE about spending plans.

Back 26

A spending plan includes items NOT usually included when creating a budget.

Front 27

When is your spending plan complete?

Back 27

Spending plans are always under revision so they are never complete

Front 28

Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit the category?

Back 28

Gasoline, food, and entertainment

Front 29

Michael wants to develop a plan for himself to use during his final year of high school. what will he need to do as his FIRST step .

Back 29

Track his current income and expenses if he has already created an income and expense statement then he has complete this step.