Personal Finance Practice Test - FBLA

The fixed yearly amount of money earned by an employee is known as...

salary

Money subtracted from an employee's gross earnings is called...

a deduction

The Wage and Tax Statement showing the wages an individual earned for the year and the amount of income tax that is withheld is a...

W-2 form

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

checkbook register

To build a good credit history, a person needs to...

pay bills on time

When applying for a credit card, the credit card company will consider which fact most important in establishing her credit rating...

capacity to repay

If you only sign your name to the back of a check, this type of endorsement is called...

blank

A form used to place money into a checking or savings account is called...

deposit slip

An outstanding check is a check that...

has not been endorsed

Most financial experts agree that families should set aside at least, ______ percentage of their disposable income each pay period.

10

A personal property inventory is most commonly used for...

proof of loss from a fire, theft, or property damage

The Truth in Lending Act limits your liability when a credit card is lost or stolen to the first ________, unless the card is reported lost or stolen before it is used.

$50.00

The act known for its provisions requiring full disclosure of all charges in a credit transaction is called the...

Truth-in-Lending Act

The formula I = P x R x T is for computing...

simple interest

Which of the following is a savings plan whereby an individual sets aside a certain amount of money for retirement?

IRA account

Finance companies charge higher rates of interest on loans because...

they take more risk

Which type of credit option still remains after bankruptcy?

Student loans

Credit may not be denied because...

You receive public assistance

If your credit card bill is wrong, you should...

Write a letter within 60 days to explain

An example of a flexible expense is...

clothing costs

As you move toward adulthood, your financial responsibility...

increases

Your financial plans may require change if you...

all of the above - (Get married, change jobs, experience inflation/a recession)

The best time to start saving for your retirement is...

as soon as possible

Writing checks for more money than you have will result in your account being...

overdrawn

Credit allows you to buy something now...

And receive a credit limit

Some auto insurance companies give discounts to people who...

Take driver education classes

Payments citizens make to the government to pay for government services are called...

taxes

If your employer withheld more money from your paychecks than you owe on your tax return,...

You will receive a tax refund

Which credit rating is earned by a customer who pays bills on the due date or within the 10-day grace period?

Good

One expense that is considered a utility is your...

Electricity

Unlicensed lenders who charge illegally high interest rates are...

Loan sharks

Having a category for ____________ in your budget will help you put away money for an emergency or a special purchase.

Savings