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TCU FINANCE LITERACY FINAL (LOCKE) QUESTIONS & ANSWERS

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TCU FINANCE LITERACY FINAL (LOCKE) QUESTIONS & ANSWERS

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what does tax deferred mean?


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Tax that is paid later
Ex: retirement.




What are the 2 Forms of Retirement Accounts


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, 1. 401K - corporate retirement account
2. IRAs - individually managed
-Neither can be touched by a creditor




What is your debt to income ratio


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The key metric to determine the amount you can safely borrow.




How much of a percentage of people live pay check to paycheck


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45%




what are five large companies ? (be familiar with five at least)


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Apple, Google, Alphabet, Microsoft, Amazon, Facebook, Johnson and
Johnson, JPMORGAN CHASE




What is a statutory deduction?


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, Payments to the government that have top aide by the law
(Federal income tax, state income tax, social security, and medicare)




T/F It's not necessary to write a thank you note after an interview


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FALSE-always write a handwritten thank you




5 Numbers to Know (Broken down after)


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-80
-40
-20
-2/1
-15




Do debit or credit cards have more protection?


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Credit




What are the four components of a mortgage

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1) principle
2) interest
3) taxes
4) insurance




what is a deductible?


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the amount you owe for health care services your health insurance or plan
covers before your health insurance or plan begins to pay




What is a back end ratio


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Your monthly payment for your total debt




When a house is in foreclosure, who owns it


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The bank

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