FBLA Personal Finance Study Guide

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In the case of a savings account what is the principal?
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The amount of money you deposit
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The Federal Reserve System is
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The central banking system of the United States
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The rise in the level of prices for goods and services is
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Inflation
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The ways in which groups of people change over time
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Demographic trends
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When considering a job offer what factors should you consider?
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Work environment, Factors affecting salary, Employee Benefits
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Networking is a way of
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Making and using contacts to get job information
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A safe-deposit box is for keeping important documents and they can be rented at
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a bank
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Liabilities are split between
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Current and Long term
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Your net worth is calculated as
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Assets – Liabilities
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Take-home pay is
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gross pay less taxes and other deductions
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The money left over after you have paid for the essentials- food,clothing,shelter,transportation, and medication
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Discretionary income
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Which of the following are smart buying strategies?
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Comparing brands, comparing labels, comparing prices
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Small Claims court deals with legal disputes with limits set by
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States
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Direct deposit is most commonly associated with
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Pay checks
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The Federal Deposit Insurance Company insures bank deposits up to
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$250,000
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A Money Market Account is a savings account that
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has an interest rate that varies monthly
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Compounding is the process in which interest is earned
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on the principal and previously earned interest
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A stop payment order is
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a request that an institution not cash a particular check
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When doing a bank reconciliation, outstanding checks should be?
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subtracted from the bank statement balance
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Two advantages of credit
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use of product while paying for it and easier returns/exchanges
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An example of open ended credit is
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Mastercard
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Most credit card companies offer a grace period which is
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a time period where you incur no finance charges
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The finance charge on a loan or credit card is calculated using the
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APR
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Which of the following is not one of the C’s of credit?
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Credit Rating
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Which of the following is not a Consumer Credit Protection Law?
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Equal Credit Billing and Reporting Act
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Which of the following is not an advantage of renting rather than buying?
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Better financing
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Regulation that limit how property in a given area can be used are known as
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Zoning laws
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A conventional mortgage is also known as
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fixed payment mortgage
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Real estate agents are paid a commission based on the sale price of a home. This fee is usually
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5%-7%
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Generally, if you choose a safe investment, your rate of return will be
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Low
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Distribution of money or stick to a corporations stockholders is known as
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Dividends
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Tax-deferred income is income that will be
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taxed as a later date
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Which of the following is not a popular statistical average used to evaluate stocks?
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The New York Times Index
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Investors, who purchase common stock, can make money from
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Dividends and dollar appreciation of stock value
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Which of the following do not influence the price of stocks?
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Tax rates
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An initial public offering in the stock market is
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The first time a company sells common stock
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Why do corporations sell corporate bonds?
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To raise money when it is difficult to sell stock
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Treasury bills, also known as T-bills, are sold in units of
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$1,000
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Treasury notes have a maturity of
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One and ten years
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A municipal bond is not issued by which of the following
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Federal fovernment
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Each year an employer must send to each employee a
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W-2
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Your federal income tax return is due to the IRS
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April 15
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What is a tax audit?
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An examination of your tax return by the Internal Revenue Service
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What is insurance?
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Protection against financial loss
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In insurance the deductible is
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The set amount the policyholder must pay per loss
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Uninsured motorist’s protection is insurance
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that covers you if you are involved in an accident with an uninsured motorist
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Comprehensive Physical Damage in your automobile insurance
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that covers you if your vehicle in damaged in a non-accident situation
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A defined-benefit employer pension plan
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specifics the benefits you will receive at retirement
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Which of the following is not a personal retirement account?
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401-K
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A living will
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is a document in which you state whether you want to be kept alive by artificial means
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When one business has complete control of the market, this economic condition is known as
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Monopoly
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Publicly trades stocks of corporations are called
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Common stocks
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Mary bought insurance that will pay her husband in the event of her death. This type of insurance is called
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Life Insurance
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Credit cannot be denied to you because
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You are unemployed
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Signing the back of a check for purposes of cashing it is called
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endorsing
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Lenders who are not licensed and that charge high interest rates are called
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Loan sharks
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If you feel you have been cheated by a business what local agency should you contact
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Better Business Bureau
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The laws in each state that set the limits for interest rates are called
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Usury Laws
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A deduction from your pay check that is labeled FICA is for
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social security taxes
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If you owe taxes on your annual tax return you can pay
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the IRS
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Life insurance that covers you for only a specific period of time is called
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Term life insurance
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The record of deposits and with withdrawals for a checking account is kept in a
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Register
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Receiving a paycheck every two weeks mean you are being paid
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bi-weekly
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The form used to put money in a checking account is called a
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deposit slip
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Most workers today expect their pay to be based on
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Achievement on the job
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When unemployment is low
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Fewer people are looking for work

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