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Personal Finance Chapter 3 and 4 Partial
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True or False: You should share your Social Security number with friends.
False
This term refers to the illegal use of someone's personal information
Identity Theft
The full amount of your pay is called
Gross Pay
This payment is the monthly fee for insurance coverage.
Premium
This payment is the part a person pays before the insurance company pays.
Deductible
This type of insurance helps pay for doctor and hospital visits.
Medical/Health Insurance
This type of insurance pays for care for a person who can no longer live on their own.
Long-term Care Insurance
This type of insurance pays a monthly income to a person who is injured and can no longer work for a period of time.
Disability Insurance
This type of insurance helps pay for damages to a car and/or person in a car accident.
Car/Auto Insurance
This type of insurance helps pays for damages to a home.
Home insurance
This term refers to the increase of prices for goods and services, usually caused by the rapid growth of the money supply.
Inflation
This type of investment involves a loan to a government or company which will pay interest as a return to the investor.
Bonds
This type of investment involves a pool of money collected from a group of investors to purchase many types of stocks
Mutual Funds
This type of investment represents small pieces of ownership in a company.
Stocks
This type of insurance gives a payment to family members when the policyholder dies.
Life insurance
What is an agreement in which a policyholder transfers the risk for potential financial losses to another party in exchange for a fee
Insurance
What is the type of deduction from your paycheck that pays for medical costs for citizens over 65?
Medicare
True or False: You should find a job that you hate and are not good at, even if it pays really well.
False
What is the type of tax paid to the federal government to pay for a basic monthly income to senior citizens?
Social Security Tax
True or False: The US has a progressive income tax system.
True
True or False: Having a college degree will guarantee you a high paying job
False
True or False: Withholdings are income taxes taken from your paycheck?
True
What is another term for pay usually calculated by the hour?
Wages
True of False: You will get your medicare and social security taxes back in your tax return.
False
What is the acronym for medicare and social security deductions from your paycheck?
FICA
True or False: Benefits are non-wage compensation, such as insurance and retirement plans.
True
What is also called "net pay"
Take-home pay