Fbla specific 1

Which of the following is NOT a reliable source of financial information?

Financial blogs

When supply rises, price _____.

Decreases

What are ways to protect personal information online?

Enabling Two-Factor Authentication

The principle, _____, states that money today is worth more than money in the future.

time value of money

Adam is seeking financial advice to escape his immense amount of debt. Who should he ask for help?

Financial advisorWhich financial goals require long-term financial planning?

Which financial goals require long-term financial planning?

Post-secondary education

Inflation is defined as the ____ of goods and services

Increase

Which of the following is NOT a function of money?

Transfer of currencies

Joel buys a box of honey nut cereal; however, it turns out to be plain cereal. Which federal protection law allows Joel to refund the cereal for misleading advertising in the U.S.?

Federal Trade Commission (FTC)

How can setting up an emergency fund help during unexpected situations?

Provides financial stability

Money moves in a(n) ____ model, representing the monetary transfer from consumers to producers and back to consumers in a loop.

circular flow

Why are human workers so important to the economy?

They drive the economy by creating products and services

Aaron is starting college next year and has not financially planned his tuition. What could he have done to better save for college?

Open a 529 plan at a young age

Which of the following methods is a way to prevent identity theft?

Install up-to-date software updates and anti-virus

In the end, why is Carl able to reach his goal before Kevin?

Carl had stronger financial planning skills, albeit a lesser income

Why might paying the minimum balance each month on your credit card debt be negatively impacting you?

Accumulates more interest in the long-term

Madeline is looking to sell her 2009 Ford Mustang and notices the offers she is getting are well below the price she initially paid for the car. This is an example of ___.

depreciation

The Great Depression of the 1930s was a prime example of ___ in the United States of America.

deflation

The act that expresses financial stability through the regulation of financial institutions to prevent financial crises from occurring is the ___.

Dodd–Frank Act

An important first step to take when getting started with financial planning is ___.

gathering financial documents and resources

Your friend wants to research mortgage loans in the U.S. for a house. Which source would be the most accurate?

U.S. Consumer Financial Protection Bureau (CFPB) interest rates

How does inflation affect money's function as a store of value?

Undermines purchasing power overtime

Why are households important for economic growth?

They act as the source of labor for the fabrication of goods and services

Why is it important to consult multiple sources of information before settling on a financial choice?

Eliminate biases while verifying accurate data

Why should you analyze the consequences before embarking on a financial decision?

Allows you to assess and mitigate risks, while aligning it with your financial goals

Mandy receives her pay stub from her employer and realizes that she is receiving less than her salary. This is because of ___.

deductions

Marcus is an electrician who earns $100,000 per year. Alex, a teacher earning $50,000 per year, is confused why Marcus earns double his salary. This is because ___.

the skills to become an electrician are in high-demand

James is considering two jobs: Job A and Job B. Job A provides $65,000 with no bonus or benefits. Job B provides $50,000 with health insurance and employer matching for retirement. Why might James consider Job B?

Job B provides benefits that James would have had to pay himself, even with a lower compensation

Jake is a 20-year-old university student looking to make some extra money. Which of the following is NOT a reasonable method of earning income for Jake?

Trading options and forex

What do you need to prepare an Employee's Withholding Allowance Certificate in the U.S.?

Number of dependents

Which of the following is an example of a non-taxable amount that you do not have to disclose as taxable income in the U.S.?

Inherited gifts

Marie lives with her husband Jack who is unemployed, her daughter Eve, and her brother Jeff, who suffers from intellectual disabilities. Who in this scenario would NOT be classified as a dependent?

Jack

Which of the following tax forms reports interest income in the U.S.?

Form 1099-INT

Which of the following is NOT a form of taxable income in the U.S.?

Inheritance income tax

What is a 1099-R tax form used for?

Tax form to report pensions and annuities

What is a 1040-SR tax form used for?

Reporting tax liabilities for employees aged 65 or older

Jennifer is preparing to submit her Form W-4. What is she forgetting?

Net Income

Which of the following information must be reported under a Form 1099-MISC?

Rent income

How many hours do you need to work each week to be considered full-time employment according to the Fair Labour Standards Act (FLSA) in the U.S.?

More than 40 hours

Mark and Carl are two grocery workers sharing the duties of one full-time job, each working part-time. What are they doing?

Job sharing

Which of the following is another way of saying remote work?

Telecommuting

Sarah is entering the workforce but has many family responsibilities. What would be an effective arrangement for this issue?

Working flextime

Michael is a window washer. He is paid $5 for every window in each house he washes. What is this employment type called?

Piece work

Which of the following is NOT a primary source of income?

Gifts

Which of the following is a high value skill that might impact your salary?

Coding for cybersecurity

Jawal wants to save for a house. This is a ___-term goal

long

Marcus and his wife have many goals. Which of these is a short-term goal?

Vacation

Marcus is a beginner investor and has a low-risk tolerance. Which of the following securities should Marcus invest in?

Mutual funds

Which of the following is a physical system for keeping financial records?

A cabinet with dividers

Maria needs to start organizing her financial documents. How should she continue storing her documents?

Digitally

What is NOT a question you should be asking yourself when preparing a budget?

How much taxes am I paying?

Why should you NOT pay with a credit card?

Potential interest accumulation

When should you pay with an installment loan?

When you do not have enough to pay the full amount on the spot, but can pay in sections

Which of the following is NOT a benefit with owning a mortgage?

Long-term debt and interest accumulation

Online deposits are useful if ___.

you want to transfer money to someone far away

What information is the MOST important to know when calculating taxes?

Gross income

What is NOT a long-term impact of increasing monthly Roth 401(k) contributions?

Decreased future value of retirement funds

Why should you create a budget?

To better track and manage your finances

What is included in a W-2 form?

Wages

What are long-term disadvantages of paying with an installment loan?

Risk of default

What is an alternative to saving money in a bank account?

Investing it into the stock market

Which of the following is an example of non-taxable income in the U.S.?

Child support income

Lily has just suffered from a breach of data, and her credit card and identity have been compromised. What should she do now?

Create a fraud report on her card

Which salary and benefit(s) provides the most disposable income?

40,000 salary with retirement matching and health insurance

What is the basic income allocation ratio (Needs/Wants/Savings)?

50/30/20