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Income, Accounts & Credit Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. In the case of a proportional tax, individuals are taxed at a rate that _____.

Question 2 2. In reference to a due date, what does 5/10 mean?

Question 3 3. Emily missed a few payments on her credit card while she was out of work. Now she has a debt collector calling her, sometimes up to 20 times a day. Which act is the debt collector violating?

Question 4 4. Calvin notices that there is not enough money in his checking account to pay his electric bill this month, so he moves some money from his savings account to his checking account in order to pay the bill. We would call this:

Question 5 5. Which is a reason why someone would use a savings account?

Page 2

Question 6 6.

The following are visible on a payslip:

40 hours - $600

10 hours overtime - $225

Attendance bonus - $50

Production Bonus - $55

Taxes - $148.50

Based on this information, what is the net pay?

Question 7 7. Non-exempt employees who receive wages are paid _____.

Question 8 8. Calculate the effective annual rate for an interest rate of 10 percent calculated quarterly (4 times a year):

Question 9 9. What does n equal in the formula for the effective annual rate if the calculations are done on a quarterly basis (4 times a year)?

Question 10 10. Why are the advances in banking technology potentially a negative for the consumer?

Page 3

Question 11 11. Which of the following will most likely result, due to the replacement of some portion of the federal personal income tax with a national sales tax?

Question 12 12. How are the taxes calculated on a payroll?

Question 13 13. Why are savings accounts not the best choice for long-term investments?

Question 14 14. Which of the following tax rates may affect an individual's decision to work harder and earn additional income?

Question 15 15. Why do older people put their money in savings accounts?

Page 4

Question 16 16. Michael works 46 hours, of which 6 hours were overtime. His regular wage is $12/hour; overtime is paid at 1.5 that rate. If his tax tax rate is 15 percent, how much tax will Michael pay?

Question 17 17. Salaries are paid to employees who _____.

Question 18 18. Which one of the following banking transactions cannot be accomplished online?

Question 19 19. When did savings account interest rates start falling?

Question 20 20. Which of the following tax codes is most progressive?

Page 5

Question 21 21. Margie's credit card bill is due on the 30th of each month. She sent her payment on the 25th, but the company posted the payment on the 5th of the following month and charged her a late fee. This is likely a violation of the:

Question 22 22. Stock options are considered _____

Question 23 23. The stated interest rate from credit card companies is based on how many calculations per year?

Question 24 24. Which of the following is considered a savings account?

Question 25 25. What is the usual name for a card issued by a bank that allows you to use it like cash or a check?

Page 6

Question 26 26. Jenny worked 44 hours (4 hours were overtime - she is paid time and a half for that). Her regular wage is $16/hour. She was also given a bonus of $50. Given that her tax rate is 14 percent, what is Jenny's net pay?

Question 27 27. _____ is required if you want to use a debit card for purchases and to withdraw cash from an ATM.

Question 28 28. Lamar's employer is doing away with paper paychecks in favor of direct deposit. How does this benefit Lamar?

Question 29 29. All of the following are an advantage of a checking account EXCEPT:

Question 30 30. Benefits such as health insurance are _____.

Income, Accounts & Credit Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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