Personal Financial Literacy 1st 6 weeks review

Which of the following categories on a bank statement shows checks you have written?

debits

If you have your wages automatically deposited into your checking account, –

your net income will appear as a credit on your statement.

If you exceed a category one month in your budget, you must–

take the money out of another category that month.

Which of the following is the lowest priority in creating a personal budget?

money for entertainment

Which of the following taxes are employers required to deduct from your earnings?

federal taxes

Which of the following is an advantage of renting a home over owning one?

Homeowners are responsible for repairs.

Approximately what percentage of Americans own their own homes?

about 64%

Which of the following is an example of a non-liquid investment?

a pension

Home ownership is cheaper than renting in the –

long term

Which of the following is a correct statement about buying a car?

Loan terms for cars can be as long as 72 months.

Which of the following is an accurate description of a liquid asset?

easily converted into cash

Under what circumstances could a home owner lose money on a home?

bought in a small town just before the town’s top employer closes

Advantages of Credit Unions

1. Superior Service

2. Higher Interest Paid on Deposits

3. Lower Fees

1. Service Fees

2. ATM fees

3. Overdraft Fees

The above list of fees applies to which type of bank account?

checking

People invest money to earn–

interest

Which of the following best describes the miracle of compounding interest?

Tiny amounts can grow to large sums given enough time.

What percent of Americans believe they will be able to retire by age 65?

29

Which of the following types of retirement accounts are more common in public sector employment?

pensions

Retirement income is described as "fixed" income, which means–

it doesn’t really go up

Which expense poses the greatest risk for retirees?

medical expenses