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Personal Finance Basics 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!

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Question 1 1. Which of the following is an example of a progressive tax?

Question 2 2. Why does a progressive tax system create a level of anxiety for many people in the United States?

Question 3 3. How might a high income individual work to minimize what they feel is an unfair burden of the progressive tax system?

Question 4 4. In contrast to regressive tax policy, a progressive tax rate produces what effect for lower income individuals?

Question 5 5. Although some favor a flat taxation system, how does the United States currently benefit from a progressive tax rate?

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Question 6 6. What are some examples of essential expenses?

Question 7 7. How can a personal budget benefit an individual?

Question 8 8. Why are non-essential items budgeted last in a personal budget?

Question 9 9. Why is knowing how much money you have the first step to creating an effective personal budget?

Question 10 10. Why is it critical to put at least a little money from each paycheck into your savings?

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Question 11 11. Jeff receives a paycheck of $2,100 twice per month. His monthly expenses include: $1,500 on rent, $400 on a car payment, $120 for his cellphone, $450 for utilities, $250 for groceries, and $200 for entertainment. After calculating Jeff's cash flow, how much does he have left over for the month?

Question 12 12. What would a lender look for when considering an individual's application for a home mortgage loan?

Question 13 13. _____ refers to the difference between the market value of an asset and the amount you owe on that asset.

Question 14 14. Odette has $50,000 in cash, two U.S. Treasury Bonds with a combined face value of $500, a home worth $100,000, and asset-related liabilities in the amount of $75,000. What is her current net worth?

Question 15 15. Which of the following assets offers the MOST liquidity?

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Question 16 16. Which statement about capital gains is true?

Question 17 17. What is market value?

Question 18 18. Aaron has worked all of his life and is ready to retire. Why is Aaron currently guaranteed some form of retirement benefit?

Question 19 19. Tina sells a candy bar of $1.08 which includes 8% sales tax. She buys the candy for $0.75 and needs to make a $0.30 profit. Is her current price point enough and why?

Question 20 20. Which statement is true about sales tax?

Personal Finance Basics 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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