Study guides, Class notes & Summaries

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

One way that leads a person to earn additional income is for the person to - Answer-Increase her knowledge or improve skills Entrepreneurs who start a new business with the hope of making a profit are - Answer-Accepting the risk of financial loss if unsuccessful Income can be earned or unearned. Which of the following is an example of unearned income? - Answer-Interest from bank accounts Which of the following terms is correctly matched - Answer-Gross income- salary before taxes What stra...

W-4 - A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes. W-2 - A statement of an individual's annual wages and taxes provided by an employer that must be included with the employee's federal, state, and city income tax returns. Unemployment insurance - payments to people who lost their jobs; previous employers make the payments. Workers compensation - A form of insurance paid by the employer providing cash benefits...

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. - ...

Consumer - A person or organization that uses a product or service Credit - The granting of a loan and the creation of debt; any form of deferred payment Debt - An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest Economy - A system by which goods and services are produced and distributed Financial Literacy - The knowledge and skillset necessary to be an inf...

Economics is the study of how individuals and societies satisfy their unlimited wants with limited resources. a. True b. False - correct answer a. True When rising interest rates make borrowing more costly, how does it affect the business cycle? a. It causes consumers to consume more and increases demand. b. It lowers demand, decreases household purchases, and promotes contraction. c. It causes conflicts overseas and reduces a nation's ability to import goods. d. It increases produ...

Financial Literacy Final Exam | with complete solution

Economics is the study of how individuals and societies satisfy their unlimited wants with limited resources. a. True b. False - correct answer a. True When rising interest rates make borrowing more costly, how does it affect the business cycle? a. It causes consumers to consume more and increases demand. b. It lowers demand, decreases household purchases, and promotes contraction. c. It causes conflicts overseas and reduces a nation's ability to import goods. d. It increases produ...

How much time will you spend in the classroom between first grade and by time you graduate high school? - 15,000 and 20,000 hours The average career will last _____________hours. - 86,000 hours True - True or False? People who love their jobs tend to be much happier than people who hate their jobs, no matter how much money they make. What is "take-home pay?" - The amount of money you take home after taxes. What four items are being withheld from your paychecks? - Federal incom...