Economics Unit 7

What does the formula I = P x R x T calculate?

Annual percentage rate

Cost of loans

Compounded interest

Simple interest

- 9 years

You are earning 8% on your investment. How many years will it take for you to double your money?

- 12 years

- 7 years

- 8 years

- 9 years

Medicare

Which of the following is a government run insurance program that provides healthcare assistance to the elderly and disabled?

- Medicaid

- Social Security

- Income tax

- Medicare

401(k)

Which type of retirement account offered by employers to their employees allows them to set aside tax-deferred income? Sometimes employers will even match the employee contribution up to a certain amount.

- Mutual fund

- Roth IRA

- Savings

- 401(k)

True

Earnings on principal is called interest.

Select one:

True

False

- double

The Rule of 72 is a technique for estimating the number of years required to _____ your money at a given rate of return.

- double

- triple

- halve

- quadruple

- Don't pay any of your bills on time.

What is one way to ruin your credit score?

- Pay all your bills on time.

- Open a few different credit card accounts and use them as little as you can.

- Pay as little interest as you can.

- Don't pay any of your bills on time.

True

Your credit score is a reflection of your ability to pay debts based on past experience.

Select one:

True

False

- Credit Union

From which of the following will you probably get the lowest rate of interest for a consumer loan?

- Pawnbroker

- Credit Union

- Commercial bank

- Finance company

False

Credit unions charge higher rates of interest on loans than banks.

Select one:

True

False

- A three-digit numerical rating that reflects how likely you are to repay your debt.

What is a credit score?

- A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts.

- A three-digit numerical rating that reflects how likely you are to repay your debt.

- A three-digit score that tells lenders how much money you make each year.

- A five-digit numerical rating that reflects how likely you are to repay your debt.

True

An excellent credit rating means you pay your bills early and pay more than the minimum.

Select one:

True

False

- A credit union is a non-profit institution owned by its members and provides financial services to its members.

Which of the following statements is true about credit unions?

- A credit union is a financial institution that focuses on taking deposits and using them to fund mortgages.

- A credit union is a financial institution for students only.

- A credit union offers a broad range of deposit accounts and gives loans to individuals and businesses.

- A credit union is a non-profit institution owned by its members and provides financial services to its members.

- Savings Deposits

Which of the following is NOT a required deduction from your paycheck?

- Savings Deposits

- Social Security

- Federal Income Tax

- State Income Tax

False

If an employee works 30 hours with an hourly wage rate of $12, the employee's net or "take-home" pay would be $360.00.​

Select one:

True

False

$800

Sam's take-home pay is $743. His deductions are $25 for Social Security, $5 for Medicare, and $27 for income tax. What is his gross pay?

$686

$800

$743

$57

False

Credit unions are owned by the board of directors of the banks that established them.

Select one:

True

False

True

A good way to get started with credit is to open a savings or checking account.

Select one:

True

False

52

How many weeks are in a year?

365

12

52

4

Achieve long-term goals

Money invested is usually used to do which of the following?

- Purchase expensive items

- Pay off loans

- Pay for emergencies

- Achieve long-term goals