final test consumer

How should you dress for your career interview?

Business professional

How long should your resume be

One page

Which of the following bullet points would be best on a resume

C. Planned developmentally appropriate activities for 25 toddlers daily

List 4 fringe benefits job may offer to you

Anything beyond salary: vacation days, company car, retirement plan, work from home, company, gym etc

Define net pay

You pay after all deductions have been taken also known as home pay.

This is the form you fill out when you start a new job so that the IRS can take out the appropriate amount of tax

W-4 form

The state of Illinois has a flat tax of 4.95% this means that everyone pays the same rate of taxes. What type of tax is this?

Proportional tax

Dominick makes decisions to reduce his tax liability. He donates to charity, writes off business expenses and contributes to a traditional IRA this is knows as

Tax avoidance

Maria worked 45 hours last week. She paid at a rate of 16/hr. What is her gross take home pay?

$760

Throughout the year Jerome paid $3,873 in federal income taxes. After consulting the tax table he found out he should have paid $2913 in taxes what statement best describes Jerome

He will get a refound of 960.

Which 2 involuntary deductions make up your FICA tax

Medicare and social security

How much did this person make last year? How much did they pay in federal income tax?

Made $65000 and paid 5626.66

How many hours did this person work?

30

How much did this person contribute towards their retirement

30

How much in FICA contributions did this person make this pay period?

$13.08

Define interest

The price that is paid to borrow money

How much are banks and credit unions insured up to? Who insures them?

Banks:250 k insured by the FDIC

Credit unions: 250k, insured by the NCUA

What are three fees one should consider before opening up a new bank

ATM fees, account minimum fees, overdraft fees, transaction fees

What would be the best place to keep your 6 month emergency fund

High yield savings account/ savings account( still liquid in case you need to withdraw, but earning more interest than a checking account).

What account should you use for a day to day purchase

Checking account- the most liquid

Name 3 ways to e bank safely

Sign back of your card with “see ID” use Tex alerts, check your bank app often don’t give out your pin over the phone, don’t have computers store your card information.

What is the benefit of investing young?

Compound Interest. You can afford to be more risky. Money doubles in the stock market

approximately every 7.2 years. The longer you have your money invested, the more your money

can double, compound and grow. Time in the market is the most important thing!!

An IPO is issued when a company goes public for the first time.

True

Why wouldn’t you be able to purchase a share of stock in a company?

Company is privately owned

all companies pay dividends

No

What do you think the return on an S&P 500 index fund would be for a one year period

Between the returns on the best performing and worst performing stocks

What differentiates a mutual fund from an index fund

Index funds track an index, and are naturally grouped. A mutual fund is grouped together by a

mutual fund manager. Typically mutual funds are more expensive to own: requiring a minimum

buy in amount and higher fees (expense ratios)

Why is shorting a stock more risky than buying long?

When you short a stock, you profit as the stock price decreases which is limited. You lose money

as the stock price increases, which is theoretically limitless. In other words, the stock can continue

to rise and rise and rise, and you keep losing money

What is the relationship between risk and return?

High Risk = Higher potential return

Which of the following account is a self funded retirement account

Roth IRA

Which of the following is an example of revolving credit?

a. Kohls’ Credit Card

Why would one choose to pay with a credit card over a debit card?

Earn rewards, build credit, it is safer (not tied directly to your bank account)

List three ways to save money on a loan

Higher down payment, better interest rate (through having a better credit score), pay off the loan

sooner

What factor affects your credit score the most

Payment history

What is the highest your credit score can be?

300-850

What is defaulting on a loan

Failure to pay off the loan

Define collateral:

omething of value that you pledge to forfeit in case you default on a loan. Something the bank

or credit union loaning you money can take from you if you fail to pay off your debt.

Which of the following people would end up paying massive amounts of interest

Cynthia, who pays the minimum balance each month

It is recommended that no more than _ _ of your income should be spent on your housing

expenses.

30%

Keeping in mind the 50/30/20 rule, how much of your income should you aim to

save/invest?

20% or more if you can

you make $6,000 a month, which of the following statements is correct?

Around $3000 a month should be dedicated to needs

You factor in your yearly property taxes each month into your budget, although you don’t

actually pay property tax each month. This type of expense is known as a...(expense that

occurs on an irregular basis

Periodical Expense

List 2 examples of fixed expenseS

Rent, Internet, Gym Membership, (Anything that remains fairly constant from month to month)

Your goal when budgeting is to have at the end of the month:

Surplus

Which type of health insurance plan offers more choice?

PPO

You are having pain in your shoulder, you have to visit your primary care physician first to get a referral to an orthopedic doctor. Which of the following insurance plans do you have?

HMO

Which of the following healthcare plans offers tax benefits?

HSA

Hail damage to your car

Comprehensive

Your car damages as a result of the accident

Collision

Damage to the light pole

Property damage liability

Damage to warrens car

Property damage liability

Damage to warrens foot injury

Bodily injury liability

You broken thumb

Medical

Which of the following would NOT affect your life insurance premium?

Grades in school