a. false u.s. money is not backed by gold u.s. money has value based on the confidence in and...
TRANSCRIPT
A.False
U.S. money is NOT backed by gold
U.S. money has value based on the confidence in and strength of the U.S. Government
A. A check that cannot bounce
Correct! A cashiers check is prepaid to the bank
B. Withdrawn from your checking account
Wrong Cashier checks and money orders are prepaid
A. High interest rates
Correct Payday loans charge exceptionally high interest rates
B. They are fine
Wrong Payday loans charge exceptionally high interest rates
A. Diversifying your investment portfolio
Wrong “Don’t put all your eggs in one basket.” is the reference to keeping spreading your money out in different securities
B. Advice to develop the habit of saving and building savings into the budget
Correct step #1 when you get a paid is to invest in some savings or investment
A. Determining how much credit you are eligible for
Wrong! That’s the three C’s of Credit
CharacterCapacityCollateral/Capital
B. Putting together your budget
Correct One must be realistic, responsible and show restraint in balancing their budget
A. Surplus/Extra money left over after all expenses are paid
Correct Discretionary income is surplus money in your budget
B. Amount by which spending exceeds income
Wrong A Deficit is when your spend more than your income
A. Monetary Policy
Correct The FED regulates the money supply and interest rates
B. Fiscal Policy
Wrong Fiscal Policy relates to how Congress and the President spend government money and what taxes
A. The yearly cost of a loan
Correct APR is how much you pay on any loan per year
B. The rate of return on an investment for one year
Wrong APY (Annual Percentage Yield) is how much you earn on an investment over one year
A. FDICCorrect Federal
Deposit Insurance Corp. protects your $
in banks
C. SEC Wrong Securities
and Exchange Commission regulates the stock market
B. Federal ReserveWrong The FED
regulates banks, monetary policy
D. IRSWrong Internal
Revenue Service collects taxes
ABA Routing Number
Checking AccountNumber
Check Number Endorsement/Signature
A. Type of bank that is for profit and is owned by many individuals
Wrong Commercial Banks are for profit and are owned by many individuals through stocks
B. Type of bank that is non-profit and owned by its members
Correct Credit Unions provide banking services to its members and is not for profit
Gross Pay
Mandatory Deductions
NET PAY
Optional Deductions
A. Federal Reserve Bank
Wrong Fed does monetary policy
C. Comptroller of the Currency ( OCC )
Correct the OCC regulates Credit Cards
B. IRS
Wrong Internal Revenue Service collects taxes
D. FDIC
Wrong FDIC insures your bank deposits
A. FICA
Wrong Federal Insurance Contributions Act is your Social Security tax
B. Excise tax
Correct excise taxes, also known as “sin” taxes, are placed on consumer goods.
A. A loan repaid with a fixed number of equal sized payments
Correct examples are car loan and mortgage
B. a consumer credit line that can be used up to a certain limit or paid down at any time
Wrong This is open end credit. Example: credit cards
A. Annualcreditreport.com
Correct Site created by the big three credit reporting agency to comply with the Fair and Accurate Credit Transactions Act, part of the Fair Credit Reporting Act (FCRA)
B. Freecreditreport.com
Wrong! They have a catchy song, but not a free service. This is not attached to federal law in which you are allowed to see your credit report once a year. Been sued repeatedly for fraud.
A. Credit Cards can charge you whatever the market will bear
Wrong but, there IS now a limit to interest rate hikes
B. Being late on ANY bill can trigger an increase in your credit card interest rate
Correct **New rule however, NO LONGER Permitted.
A. The higher your APR
Wrong if your credit score is low, you pay more for loans
B. The lower your APR
Correct The better your credit score the less you pay for loans
A. Contacting the Consumer Credit Counseling Services (CCCS)
Correct There is always a way out, the CCCS is a govt. agency that can help you create a plan
B. Declaring bankruptcy
Wrong This is a worst case scenario after exercising all other avenues
A. The amount you pay when a claim is filed
Correct the deductible is the amount you pick up when filing a claim. The more you are willing to pay the less your insurance will cost
B. The regular payment made to have insurance coverage
Wrong This is called the premium.
A. Is less expensive
Wrong Term Life insurance is cheaper
C. Is for a set amount of time
Wrong that is Term
B. Has cash value
Correct!
D. Has no cash value
Wrong Term Insurance has no cash value( its like renting)
A. Coverage to the policyholder if they are unable to work
Correct If unable to work you are covered
B. Coverage for people who you injure
Wrong This is Liability insurance
A. Governs the process of reorganization of a debtor
Wrong This is Chapter 11 and 13 bankruptcy. The govt. puts you on a plan to pay down your debts.
B. Governs the process of liquidation of a debtor’s assets
Correct Everything you own will be turned into cash to pay your creditors.
A. You lose the money you have accumulated
Wrong the accumulated money does not get wiped
B. You must roll it over into your new jobs 401K
Correct Just move the old 401K or IRA into the new one
A. Never
Wrong you pretty much have to pay a tax for everything at some point
C. Not until 65 Correct
B. Always
Wrong
A. Gender
Wrong Nope, Females pay less, they get in less accidents
B. Driving record
Wrong If you have had accidents/tickets you will pay more
C. Where you live
Wrong you pay more if you live in the city
D. Race/Ethnicity
Correct You cannot be discriminated against for anything based on race/ethnicity
A. US Treasury Bills ( T-Bills)
Wrong These are issued by the federal govt.
B. Corporate Bonds
Wrong These are issued by companies
C. Series EE US Savings Bond
Wrong Issued by Federal Govt.
D. Municipal Bonds
Correct If Mayor Daley needs some money he will issue these types of bonds
A. Blue Chips Maybe:} Blue
chips are stocks that consistently do well over time
B. Speculative Stocks
Maybe:} to speculate is to guess, these carry the most risk
C. Growth Stocks
Maybe:{ Stocks expected to experience large growth
D. Income Stocks
MOST CORRECT! ALL Income Stocks have a dividend ( you get a check in the mail!! Or you can roll it over into buying more stock
A. S+P 500
Wrong Measures top 500 companies
B. NASDAQ Composite
Correct
C. Russell 2000
Wrong this measures top 2000 companies
D. Dow Jones
Wrong measures top 30 companies