Economics And Personal Finance
Final Exam Questions with Correct
Answers
What EPF term best describes the ability to stay focused and meet deadlines? -
Answer- Time Management
At the end of the month you subtract your actual expenses from your actual income. If
the result is less than zero, what do you have? - Answer- Debt
What kind of taxes are the same for all of us, no matter where we live in the U.S.? -
Answer- Income Tax
When you withdraw money, the amount is... - Answer- Subtracted from your account
balance
A ______ is an organization that provides goods or services. - Answer- business
Budget - Answer- An estimate of costs, revenues, and resources over a specified
period, reflecting a reading of future financial conditions and goals.
Checks - Answer- Demand draft drawn on a bank against its maker's funds, to pay the
stated amount of money to the bearer or named party, demand on a stated date or
after.
Deduction - Answer- Fixed amount or percentage permitted by taxation authorities that
a tax payer can subtract from his or her adjusted gross income to arrive at the taxable
income.
Economic Wants - Answer- The human motives that induce the business and economic
activities which produce the desired goods and services, or the means to acquire them.
Personal Finance - Answer- Use of the principles and techniques of corporate finance in
an individual's money affairs, especially the methods of allocation of financial resources.
It involves making prudent financial decisions, budgeting, saving, investing, insurance,
tax planning, retirement planning, and estate planning.
Financial Goals - Answer- The monetary objectives of an individual or organization that
are often determined by their future requirements for funds.
, Annual Fee - Answer- Any fee that is charged on an annual (yearly) basis. One of the
most common occurrences of an annual fee is the fee that is charged by some credit
card companies to their credit card holders, simply for having the credit card.
Annual Percentage Rate - Answer- Standardized method of quoting the effective
interest rate (actual cost of credit) on consumer loans, specially where interest is
computed on monthly or other non-annual basis. It includes all fees (except penalties),
and takes into account the continual reduction of principal amount through amortization.
Bankruptcy - Answer- Legal procedure for liquidating a business (or property owned by
an individual) which cannot fully pay its debts out of its current assets.
Credit - Answer- An agreement based largely on trust under which goods, services, or
money is exchanged against a promise to pay later.
Credit Limit - Answer- Maximum amount of money a borrower can charge on, or
withdraw from, a particular credit account.
Creditor - Answer- A party to whom money is owed.
Credit Report - Answer- Document supplied by a bank or a credit reporting agency that
summarizes an entity's credit history and present financial position.
Credit Score - Answer- A ________ is the number listed on a consumer credit report
that represents a statistical summary of the information.
Tax - Answer- Compulsory monetary contribution to the state's revenue, assessed and
imposed by a government on the activities, enjoyment, expenditure, income,
occupation, privilege, property, etc., of individuals and organizations.
Debtor - Answer- A person who owes money.
Grace Period - Answer- Extra time allowed for meeting with a requirement, satisfaction
of an obligation, or implementation of an agreement.
Late Fee - Answer- A monetary charge assessed on an account holder who has not
made a payment on the account by the expected due date.
Tax Base - Answer- Measure upon which the assessment or determination of tax
liability is based. For example, taxable income is the tax base for income tax and
assessed value is the tax base for property taxes.
Revenue - Answer- The income generated from sale of goods or services, or any other
use of capital or assets, associated with the main operations of an organization before
any costs or expenses are deducted.
Final Exam Questions with Correct
Answers
What EPF term best describes the ability to stay focused and meet deadlines? -
Answer- Time Management
At the end of the month you subtract your actual expenses from your actual income. If
the result is less than zero, what do you have? - Answer- Debt
What kind of taxes are the same for all of us, no matter where we live in the U.S.? -
Answer- Income Tax
When you withdraw money, the amount is... - Answer- Subtracted from your account
balance
A ______ is an organization that provides goods or services. - Answer- business
Budget - Answer- An estimate of costs, revenues, and resources over a specified
period, reflecting a reading of future financial conditions and goals.
Checks - Answer- Demand draft drawn on a bank against its maker's funds, to pay the
stated amount of money to the bearer or named party, demand on a stated date or
after.
Deduction - Answer- Fixed amount or percentage permitted by taxation authorities that
a tax payer can subtract from his or her adjusted gross income to arrive at the taxable
income.
Economic Wants - Answer- The human motives that induce the business and economic
activities which produce the desired goods and services, or the means to acquire them.
Personal Finance - Answer- Use of the principles and techniques of corporate finance in
an individual's money affairs, especially the methods of allocation of financial resources.
It involves making prudent financial decisions, budgeting, saving, investing, insurance,
tax planning, retirement planning, and estate planning.
Financial Goals - Answer- The monetary objectives of an individual or organization that
are often determined by their future requirements for funds.
, Annual Fee - Answer- Any fee that is charged on an annual (yearly) basis. One of the
most common occurrences of an annual fee is the fee that is charged by some credit
card companies to their credit card holders, simply for having the credit card.
Annual Percentage Rate - Answer- Standardized method of quoting the effective
interest rate (actual cost of credit) on consumer loans, specially where interest is
computed on monthly or other non-annual basis. It includes all fees (except penalties),
and takes into account the continual reduction of principal amount through amortization.
Bankruptcy - Answer- Legal procedure for liquidating a business (or property owned by
an individual) which cannot fully pay its debts out of its current assets.
Credit - Answer- An agreement based largely on trust under which goods, services, or
money is exchanged against a promise to pay later.
Credit Limit - Answer- Maximum amount of money a borrower can charge on, or
withdraw from, a particular credit account.
Creditor - Answer- A party to whom money is owed.
Credit Report - Answer- Document supplied by a bank or a credit reporting agency that
summarizes an entity's credit history and present financial position.
Credit Score - Answer- A ________ is the number listed on a consumer credit report
that represents a statistical summary of the information.
Tax - Answer- Compulsory monetary contribution to the state's revenue, assessed and
imposed by a government on the activities, enjoyment, expenditure, income,
occupation, privilege, property, etc., of individuals and organizations.
Debtor - Answer- A person who owes money.
Grace Period - Answer- Extra time allowed for meeting with a requirement, satisfaction
of an obligation, or implementation of an agreement.
Late Fee - Answer- A monetary charge assessed on an account holder who has not
made a payment on the account by the expected due date.
Tax Base - Answer- Measure upon which the assessment or determination of tax
liability is based. For example, taxable income is the tax base for income tax and
assessed value is the tax base for property taxes.
Revenue - Answer- The income generated from sale of goods or services, or any other
use of capital or assets, associated with the main operations of an organization before
any costs or expenses are deducted.
