Final Questions

Question 1

What are the sections in a resume? What info goes in each section

Answer 1

Your info, objective, education, experience

Question 2

What is identity theft? How can this occur?

Answer 2

When somebody uses someone else’s identity to get cash or buy products using credit or to access victims financial accounts. This happens if they get hold of you credit card, social security number or drivers license

Question 3

What is the difference between common and preferred stock?

Answer 3

Common stock you vote with no set dividend, and preferred stock you don’t vote but have a set dividend

Question 4

What can paper money coins be classified as?

Answer 4

Currency

Question 5

Who is the FDIC and how much do they insure money for?

Answer 5

Federal Deposit Insurance Corporation and they insure up to$250,000

Question 6

What is credit rating?

Answer 6

Measure of credit worthiness, often computed as a numbered score

Question 7

What is a dividend? (or dividend income?)

Answer 7

Portion of companies profits paid to the owners

Question 8

What is risk?

Answer 8

Chance that investment will decrease in value

Question 9

What is the difference between risk and return?

Answer 9

Risk is the chance to loose money and return you gain money

Question 10

How do you maintain a good credit rating?

Answer 10

Pay your taxes on time, read what you sign, and avoid credit mistakes

Question 11

What is the difference between secured and unsecured loans?

Answer 11

With a secured loan there is collateral if you do not pay with unsecured there is nothing backing your loan

Question 12

What does a stockbroker do?

Answer 12

A person who handles the transfer of stocks and bonds between buyer and seller

Question 13

What is a deposit slip? What information do you fill out on it?

Answer 13

A form for a deposit you make to the bank, you must fill out the current date, amount deposited, cash back and amount of check and then you sign it.

Question 14

What is disability insurance? Who can sign up for it?

Answer 14

Insurance for someones who’s injured on the job and anyone can sign up for it

Question 15

What is the difference between a debit and a credit card?

Answer 15

With a credit card you are borrowing money from the bank and are insured in case someone steals your card but with a debit card, you are using your own money and have no insurance

Question 16

What is interest?

Answer 16

Money payed regularly

Question 17

What are two types of interest? How are they calculated?

Answer 17

Simple Interest: Once a year

Compound Interest: (Payed on principle) Can be compounded daily, monthly, quarterly and yearly

Question 18

What happens when you write a check for more thank you have in your checking account? What is this called?

Answer 18

If you write a check for man than you have you get penalized and must pay a find and the check bounces and doesnt work

Question 19

What is gross and net pay?

Answer 19

Gross Pay- Pay before Taxes

Net pay- Pay after taxes

Question 20

What are three types of check endorsements? How do you fill out each form?

Answer 20

Blank: Sign your name
Restrictive: Can only be deposited
Special Endorsement: Sign over to someone

Question 21

What is rate of return on an investment?

Answer 21

Initial Investment

Question 22

What is a W2 form for? Who fills it out?

Answer 22

Statement of income and withholdings for the year, says how much you earned and payed to taxes, filled out by employer

Question 23

What is a W4 from? When do you fill it out?

Answer 23

Says how much tax needs to be taken out of income, filled out when starting new job

Question 24

What are the benefits to using public transportation?

Answer 24

Less expensive, convenient, can be faster

Question 25

What is a budget and what does it allow you to do?

Answer 25

How much money is coming in and out, how much we spent and how much needs to be saved