EPF FINAL EXAM REVIEW QUESTIONS AND ANSWERS
economy - CORRECT ANSWER✅✅✅A system for producing and distributing goods, and services to
fulfill people's wants
personal finance - CORRECT ANSWER✅✅✅All of the decisions and activities of an individual or
family regarding their money, including spending, saving, budgeting, etc.
liability - CORRECT ANSWER✅✅✅(n.) a debt; something disadvantageous
asset - CORRECT ANSWER✅✅✅(n.) something of value; a resource; an advantage
budgeting - CORRECT ANSWER✅✅✅a tool that explicitly shows how one will use the resources
earned to pay bills
appreciation - CORRECT ANSWER✅✅✅An increase in value
return on investment - CORRECT ANSWER✅✅✅profit made from an investment
Depreciation - CORRECT ANSWER✅✅✅A decrease or loss in value
Refinance - CORRECT ANSWER✅✅✅to take out a new mortgage at a lower interest rate
Monetary Policy - CORRECT ANSWER✅✅✅a set of actions to control a nation's overall money supply
and achieve economic growth.
Fiscal Policy - CORRECT ANSWER✅✅✅Government spending and revenue collection (taxes) that can
have a significant influence on the economy.
, Keynesian Economics - CORRECT ANSWER✅✅✅Economic theory based on the principles of John
Maynard Keynes stating that government spending should increase during business slumps and be
curbed during booms.
Mandatory Spending - CORRECT ANSWER✅✅✅Government spending on certain programs that is
required by existing laws.
Discretionary Spending - CORRECT ANSWER✅✅✅Government spending about which Congress is
free to discuss and change yearly.
Deficit Spending - CORRECT ANSWER✅✅✅Government practice of spending more than it takes in
from taxes. Multiple years of this contribute to an increase in the national debt.
Progressive Tax System - CORRECT ANSWER✅✅✅takes a larger percentage of income from high-
income groups than from low-income groups and is based on the concept of ability to pay.
Regressive Tax System - CORRECT ANSWER✅✅✅Regressive taxes are when the average tax burden
decreases as income increases.
Flat Tax System - CORRECT ANSWER✅✅✅Everyone pays the same tax amount regardless of income.
Sales Tax - CORRECT ANSWER✅✅✅a fee that is added to the price of an item.
Property Tax - CORRECT ANSWER✅✅✅Taxes on the value of land, buildings, and some large
possessions.
Excise Tax - CORRECT ANSWER✅✅✅Excise taxes target specific goods or services such as fuel,
tobacco, and alcohol.
Tariffs - CORRECT ANSWER✅✅✅an extra fee that a government charges when something is brought
into their country, and it's used to raise money or protect local businesses.
economy - CORRECT ANSWER✅✅✅A system for producing and distributing goods, and services to
fulfill people's wants
personal finance - CORRECT ANSWER✅✅✅All of the decisions and activities of an individual or
family regarding their money, including spending, saving, budgeting, etc.
liability - CORRECT ANSWER✅✅✅(n.) a debt; something disadvantageous
asset - CORRECT ANSWER✅✅✅(n.) something of value; a resource; an advantage
budgeting - CORRECT ANSWER✅✅✅a tool that explicitly shows how one will use the resources
earned to pay bills
appreciation - CORRECT ANSWER✅✅✅An increase in value
return on investment - CORRECT ANSWER✅✅✅profit made from an investment
Depreciation - CORRECT ANSWER✅✅✅A decrease or loss in value
Refinance - CORRECT ANSWER✅✅✅to take out a new mortgage at a lower interest rate
Monetary Policy - CORRECT ANSWER✅✅✅a set of actions to control a nation's overall money supply
and achieve economic growth.
Fiscal Policy - CORRECT ANSWER✅✅✅Government spending and revenue collection (taxes) that can
have a significant influence on the economy.
, Keynesian Economics - CORRECT ANSWER✅✅✅Economic theory based on the principles of John
Maynard Keynes stating that government spending should increase during business slumps and be
curbed during booms.
Mandatory Spending - CORRECT ANSWER✅✅✅Government spending on certain programs that is
required by existing laws.
Discretionary Spending - CORRECT ANSWER✅✅✅Government spending about which Congress is
free to discuss and change yearly.
Deficit Spending - CORRECT ANSWER✅✅✅Government practice of spending more than it takes in
from taxes. Multiple years of this contribute to an increase in the national debt.
Progressive Tax System - CORRECT ANSWER✅✅✅takes a larger percentage of income from high-
income groups than from low-income groups and is based on the concept of ability to pay.
Regressive Tax System - CORRECT ANSWER✅✅✅Regressive taxes are when the average tax burden
decreases as income increases.
Flat Tax System - CORRECT ANSWER✅✅✅Everyone pays the same tax amount regardless of income.
Sales Tax - CORRECT ANSWER✅✅✅a fee that is added to the price of an item.
Property Tax - CORRECT ANSWER✅✅✅Taxes on the value of land, buildings, and some large
possessions.
Excise Tax - CORRECT ANSWER✅✅✅Excise taxes target specific goods or services such as fuel,
tobacco, and alcohol.
Tariffs - CORRECT ANSWER✅✅✅an extra fee that a government charges when something is brought
into their country, and it's used to raise money or protect local businesses.
