AnswersGA-GSE Personal Finance and EconomicsUnit Test

Unit Test — Unit test Answers

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21
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If a new shirt costs $34.99 and the sales tax is $2.10, the sales tax rate is

A
2 percent.
B
4 percent.
C
6 percent.
D
8 percent.
22
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In addition to federal income tax, many people also pay

A
corporate tax.
B
state income tax.
C
local medicare tax.
D
local social security tax.
23

How does an employer's presentation of retirement savings options affect employees' decisions to save?

A
by automatically enrolling employees to tap into their default bias
B
by assigning employees to different saving courses in the retirement plan
C
by offering various saving courses in the retirement plan
D
by making the plan more complex to get employees more involved
24

Which of these is an advantage of checking accounts?

A
Checking accounts prevent the customer from having overdraft fees.
B
Checking accounts allow convenient ways to deposit or withdraw funds.
C
Checking accounts are processed immediately so customer and bank records always match.
D
Checking accounts offer limited checks but offer higher rates of interest.
25

The image shows a W-2 form.

Question illustration
A
It shows how much a person paid in taxes, and how much more is due.
B
It shows how much a person earned, and how much was withheld in taxes.
C
It shows how much a person earned, and how much tax is to be refunded.
D
It shows how much a person paid in taxes, and whether they have a spouse.
26

conspicuousemotionalresearchwise

A
conspicuous
B
emotional
C
research
D
wise
27

Amala listed her assets and liabilities. Credit Card BalanceCar(Paid in full)JewelryStudent LoanSavings AccountStocks$850$2,200$125$2,500$1,200$1,500What is the total of Amala’s liabilities?

A
$850
B
$2,500
C
$3,350
D
$5,550
28

Kendrick is planning to buy a house. Which explains why he should establish a positive credit history before buying the house?

A
He will get the house for a lower price.
B
It will be easier for him to get a loan to buy the house.
C
He will be able to get a higher interest rate when buying the house.
D
He will be able to find a house he likes more quickly.
29

Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because

A
people are cautious and believe they are less likely to get sick if they have health-insurance coverage.
B
doctors and hospitals always provide better care to people who have health insurance.
C
people still feel more secure with a health insurance policy, even though out-of-pocket costs are often lower.
D
medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.
30

Why is net income lower than gross income?

A
fixed spending
B
budgets
C
withholdings
D
discretionary spending
31

At an educational institution, the cost of room and board includes

A
housing and meals.
B
health and dental care.
C
textbooks and supplies.
D
tuition and class fees.
32

Tyler is using a credit card to purchase a television. Which of the following should Tyler expect? Check all that apply.

A
to have the full amount available in his bank account right away
B
to receive a bill at a later date
C
to be able to pay for it over time
D
to write a check
E
to pay interest if he does not pay in full by a certain date
33

The chart shows a sample paycheck stub.

Question illustration
A
added to employee pay.
B
withheld from employee pay.
C
refunded in employee pay.
D
filed through employee pay.
34

These lists provide information about two jobs.

Question illustration
A
Job A has a lower salary than job B, but the benefits make job A a more attractive pay package.
B
Job B has a lower salary than job A, but the benefits make job B a more attractive pay package.
C
Job A has a higher salary than job B plus benefits that make job A a more attractive pay package.
D
Job B has a higher salary than job A plus benefits that make job B a more attractive pay package.
35

Which of these scenarios most puts Margaret at risk of identity theft?

A
Margaret manages her bank account through its website while using a restaurant’s public wifi.
B
Margaret manages her bank account by calling her bank directly and using personal information for identification.
C
Margaret manages her bank account by visiting a local branch and signing paperwork for the bank teller.
D
Margaret manages her bank account by keeping personal records to compare to the bank’s records.
36

How is a federal loan different from a private loan for an education?

A
A federal loan is available for any student who meets the government’s lending standards. A private loan is only available for students who show a need.
A
A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank’s lending standards.
A
A federal loan can only be used to pay for a student’s tuition. A private loan can be used to pay for a student’s tuition and any other expenses.
A
A federal loan can be used to pay for a student’s tuition and any other expenses. A private loan can only be used to pay for a student’s tuition.
37

In order to stay on track for long term financial goals, money for emergency spending should be taken first from your

s
savings account.
d
discretionary money.
f
fixed expense money.
n
net income.
38

Consumers usually save the most money on major purchases when they

A
agree to an installment plan.
B
save up to pay with cash.
C
take out a low-interest loan.
D
agree to rent to own.
39

Which is always a cost when buying insurance?

A
premium
B
deductible
C
co-payment
D
payout
40

After he bought a new car, Nelson purchased car insurance. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. He was required to pay the first $500 of his repair costs, and then the insurance company covered the rest.

A
premium
B
co-payment
C
deductible
D
payout

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