Financial literacy exam - Study guides, Class notes & Summaries

Which of the following does the Federal Reserve use to regulate the nation's money supply? C: Monetary policy - ANSWER The Federal Reserve uses monetary policy to regulate the nation's money supply. Monetary policy is directed at expanding or contracting the supply of money and credit in the U.S. economy. In theory, if there is too little money in circulation, consumers will spend less, interest rates will be high, and unemployment will rise. In this situation, the Fed can deliberately i...

Financial Literacy Exam With Complete Solutions

Which of the following is NOT a popular technique used in ads? a. repetition b. nostalgia c. fraud d. testimonial - Answer-c. fraud Which of the following is NOT a popular technique used in ads? a. emotion b. bandwagon c. statistics d. testimonial - Answer-d. alliteration Which of the following is NOT a component of the FICO score? a. debt history b. time in debt c. new debt d. pro rata schedule e. type of debt f. debt levels - Answer-d. pro rata schedule What are prioriti...

Financial Literacy Exam Questions And Correct Answers |Verified

Property TaxPaid usually once a year as long as I own it; not taken from paycheck. Is for car, house, land, boat, etc. Payroll TaxTax on wages and salaries to finance Social Security and Medicare costs. Sales TaxTax on a sale of goods or services, paid at that time. Income TaxMoney that wage earners pay the government to run the country. The amount of the tax depends upon how much I earn. TaxMoney paid to the government in exchange for services, like roads, bridges, and police protecti...

The next best choice you could have made, but did not make. - Opportunity Cost Some opportunity costs for the Robinsons. - Having less time to relax, less time to go out to dinner, and less money to spend. Physical, intellectual, and creative talents of people. - Human resources Gifts of nature. Includes, water, forests, natural gas, oil, and climate. - Natural resources Goods that are used to produce other goods and services. Includes, tools, factories, equipment, and office buildings. - ...

Sources of personal loans include - Answer-commercial banks, savings institutions, finance companies, and credit unions. Loan agreements with family and friends should - Answer-be in writing and signed by all parties. The personal loan process involves - Answer-submitting the application, negotiating the loan contract, and negotiating the interest rate. In the loan application process, the information the borrowers must supply to the lenders is - Answer-a personal balance sheet and a pe...

Financial Literacy Exam Questions And Correct Answers

What should you do with your bank statements? Select one or more: a. Keep them in a safe file for at least a year before shredding b. Review them to identify improvements you could make to your spending habits c. Throw them away as soon as you have examined them d. Shred them monthly e. Review them to identify and budget for fees f. Reconcile them with your records/register - Answer-a, b, e, f The best way to pay your credit card bill is to pay with: Select one: a. Cash b. Any...

What was the median household income according to the 2015 U.S. Census? - Answer-$56,000 People who work hard, live below their means, and start saving early will likely become what? - Answer-Millionaires Walter Bagehot thought that it was whose job to hold the gold so that all the smaller banks did not have to? - Answer-Bank of England (central bank) If your investments are too conservative (safe), you will earn a much smaller return on investment (ROI), and therefore adopting a more a...