5 Written questions
5 Matching questions
- Grace Period
- Individual Retirement Account (IRA)
- a Money earned from investments and employment.
- b An investment with specific tax advantages. A traditional IRA defers taxes on earnings until withdrawal and, under certain circumstances, allows the deduction of some contributions from current taxable income. A Roth IRA requires after-tax contributions only, but allows tax-free withdrawals under certain rules.
- c A time during which a borrower can pay the full balance of credit due and not incur finance charges or pay an insurance premium without penalty.
- d The dollar amount or percentage of a loss that is not insured, as specified in an insurance policy.
- e A set of moral principles or beliefs that govern an individual's actions.
5 Multiple choice questions
- A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest, according to a specific schedule.
- The act of voluntarily contributing to others' welfare.
- Gross pay minus deductions for taxes.
- An agreement to provide goods, services, or money in exchange for future payments with interest by a specific date or according to a specific schedule. The use of someone else's money for a fee. (See Open-end credit, Closed-end credit, and Easy-access credit.)
- The value of possible alternatives that a person gives up when making one choice instead of another; also known as a trade-off.
5 True/False questions
Salary → Compensation for work, expressed as an annual sum and paid in prorated portions regularly— usually weekly, bi-weekly, or monthly. (See Wage.)
Liability Insurance → Replaces a portion of income lost when a person cannot work because of illness or injury.
Time Value of Money → The potential of an investment to increase in value through periodically compounded earnings.
Tax Credit → An amount that a taxpayer who meets certain criteria can subtract from tax owed. Examples include a credit for earned income below a certain limit and for qualified post-secondary school expenses. (See Tax deduction and Tax exemption.)
Risk → An amount paid for a service beyond what's required, usually to express satisfaction; also known as a gratuity.