Test FBLA

In the case of a savings account what is the principal?

The amount of money you deposit

The Federal Reserve System is

The central banking system of the United States

The rise in the level of prices for goods and services is

Inflation

The ways in which groups of people change over time

Demographic trends

When considering a job offer what factors should you consider?

Work environment, Factors affecting salary, Employee Benefits

Networking is a way of

Making and using contacts to get job information

A safe-deposit box is for keeping important documents and they can be rented at

a bank

Liabilities are split between

Current and Long term

Your net worth is calculated as

Assets - Liabilities

Take-home pay is

gross pay less taxes and other deductions

The money left over after you have paid for the essentials- food,clothing,shelter,transportation, and medication

Discretionary income

Which of the following are smart buying strategies?

Comparing brands, comparing labels, comparing prices

Small Claims court deals with legal disputes with limits set by

States

Direct deposit is most commonly associated with

Pay checks

The Federal Deposit Insurance Company insures bank deposits up to

$250,000

A Money Market Account is a savings account that

has an interest rate that varies monthly

Compounding is the process in which interest is earned

on the principal and previously earned interest

A stop payment order is

a request that an institution not cash a particular check

When doing a bank reconciliation, outstanding checks should be?

subtracted from the bank statement balance

Two advantages of credit

use of product while paying for it and easier returns/exchanges

An example of open ended credit is

Mastercard

Most credit card companies offer a grace period which is

a time period where you incur no finance charges

The finance charge on a loan or credit card is calculated using the

APR

Which of the following is not one of the C's of credit?

Credit Rating

Which of the following is not a Consumer Credit Protection Law?

Equal Credit Billing and Reporting Act

Which of the following is not an advantage of renting rather than buying?

Better financing

Regulation that limit how property in a given area can be used are known as

Zoning laws

A conventional mortgage is also known as

fixed payment mortgage

Real estate agents are paid a commission based on the sale price of a home. This fee is usually

5%-7%

Generally, if you choose a safe investment, your rate of return will be

Low

Distribution of money or stick to a corporations stockholders is known as

Dividends

Tax-deferred income is income that will be

taxed as a later date

Which of the following is not a popular statistical average used to evaluate stocks?

The New York Times Index

Investors, who purchase common stock, can make money from

Dividends and dollar appreciation of stock value

Which of the following do not influence the price of stocks?

Tax rates

An initial public offering in the stock market is

The first time a company sells common stock

Why do corporations sell corporate bonds?

To raise money when it is difficult to sell stock

Treasury bills, also known as T-bills, are sold in units of

$1,000

Treasury notes have a maturity of

One and ten years

A municipal bond is not issued by which of the following

Federal fovernment

Each year an employer must send to each employee a

W-2

Your federal income tax return is due to the IRS

April 15

What is a tax audit?

An examination of your tax return by the Internal Revenue Service

What is insurance?

Protection against financial loss

In insurance the deductible is

The set amount the policyholder must pay per loss

Uninsured motorist's protection is insurance

that covers you if you are involved in an accident with an uninsured motorist

Comprehensive Physical Damage in your automobile insurance

that covers you if your vehicle in damaged in a non-accident situation

A defined-benefit employer pension plan

specifics the benefits you will receive at retirement

Which of the following is not a personal retirement account?

401-K

A living will

is a document in which you state whether you want to be kept alive by artificial means

When one business has complete control of the market, this economic condition is known as

Monopoly

Publicly trades stocks of corporations are called

Common stocks

Mary bought insurance that will pay her husband in the event of her death. This type of insurance is called

Life Insurance

Credit cannot be denied to you because

You are unemployed

Signing the back of a check for purposes of cashing it is called

endorsing

Lenders who are not licensed and that charge high interest rates are called

Loan sharks

If you feel you have been cheated by a business what local agency should you contact

Better Business Bureau

The laws in each state that set the limits for interest rates are called

Usury Laws

A deduction from your pay check that is labeled FICA is for

social security taxes

If you owe taxes on your annual tax return you can pay

the IRS

Life insurance that covers you for only a specific period of time is called

Term life insurance

The record of deposits and with withdrawals for a checking account is kept in a

Register

Receiving a paycheck every two weeks mean you are being paid

bi-weekly

The form used to put money in a checking account is called a

deposit slip

Most workers today expect their pay to be based on

Achievement on the job

When unemployment is low

Fewer people are looking for work