personal finance ch. 3 test Flashcards
(16 cards)
consequence of overdrawing your checking account?
Bounced check fee from the store
Stress from money mismanagement
Overdraft fee from your bank
Your monthly budget should include
Variable expenses
Discretionary expenses
Fixed expenses
Doing a budget does not
make overspending more likely
Which of the following statements is false?
A budget is meant to summarize the saving and spending that has taken place over the past year.
Eating out is a
Discretionary expense
Car repairs are a:
Intermittent expense
Which of the following is not a record-keeping feature you could expect from your bank?
Customer service reconciles your account for you
Which of the following account records would have the most current balance?
Your own check register
Writing and following a zero-based budget will help you avoid overspending and impulse purchases.
True
Your own record of all your transactions
check register
Emily works full-time at Handy DandyHardware. Who pays the FICA (SocialSecurity) contributions on Emily’s wages?
Emily and her employer
An employee works for 40 hours per week at $10 per hour. The deductions per week are $50 in federal income taxes, $20 instate income taxes, and $30 in SocialSecurity taxes. What is the net pay for the week?
$300
Using a debit card to purchase a good is most similar to using a:
check.
Which of the following is a way to access the money in your checking account?
Using your debit card to pay for groceries at the checkout
Which of the following transactions will REDUCE your checking account balance immediately?
Using your debit card to pay for groceries at the supermarket
Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
His gross pay is $3,000 and net pay is $2,500.
