AnswersSNHS NV-Civics and EconomicsUnderstanding College Savings

Understanding College Savings — Unit test Answers

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A
gross
B
discretionary
C
net
3

Why were savings and loans (S&Ls) originally established?

A
to help people invest in small businesses
B
to help people save money
C
to help people buy homes
D
to help people invest in the stock market
4

Phung works as a pharmacist in Tampa, Florida. Her income is $116,200 a year.Which statements about Phung’s income and tax situation are correct? Check all that apply.

A
Phung will pay 28% of her total income in state taxes.
B
The first $9,075 she makes each year will be taxed at 10%.
C
Portions of Phung’s income will be taxed at 10%, 15%, 25%, and 28%.
D
Phung will pay 28% of her total income in federal taxes.
E
After $36,000, Phung’s taxable income will experience the greatest tax bracket increase.
5

Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. Which of these practical questions should she ask herself to assess the risk? Select three options.

A
Will the warranty cover the cost of any physical damage?
B
Should I buy a different model?
C
Would it be better for me to buy a desktop computer?
D
Is the cost of replacement less than the cost of the warranty?
E
Is the laptop worth the extra expense of the warranty?
6

Credit unions differ from retail banks because they are

A
owned by their members.
B
owned by their employees.
C
owned and managed by private corporations.
D
owned by shareholders who purchased stock.
7

What is the definition of gross income?

A
amount of income saved per year
B
amount earned before deductions
C
amount of tax deducted from income
D
amount received after deductions
8

Which statement best describes lifetime income?

A
the total salary for all the years worked
B
the total salary and retirement benefits for all the years worked
C
the total salary and value of insurance benefits for all the years worked
D
the total cost of college classes and vocational training divided by the total years worked
9

Read the scenario.Yuri has $100 to spend at the store. He spots a pair of designer jeans with a $98 price tag on them but knows that he can buy three pairs of $30 jeans for about the same price. He still decides to buy the $98 pair.

A
emotional spending
B
confused sense of needs and wants
C
greedy spending
D
conspicuous consumption
10

Which factors positively affect lifetime income? Check all that apply.

A
post-secondary education
B
employee benefits
C
salary
D
vocational training throughout career
E
high cost of living
F
early retirement
11

The best reason to record income at the top of a budget is

A
to easily add expenses to it.
B
to know how much money is available.
C
to avoid spending too much money.
D
to see that is is more important than expenses.
12

What term is used to describe an individual's money and personal property?

A
budget
B
income
C
assets
D
finances
13

Look at the table below showing an example of a checkbook ledger.

Question illustration
A
Adrienne forgot to include the $2.00 ATM transaction fee.
B
Adrienne did not use $320.00 as her starting balance.
C
Adrienne deducted $23.50 from her balance instead of $32.50.
D
Adrienne did not enter her ATM withdrawal correctly.

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