Strayer University Income and Expenditures Questions
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1. Elena is a housewife turned entrepreneur and runs a small business selling Mexican crafts. She decides to get a rewards credit card in order to buy the raw material for her products.
Which of the following would indicate that Elena should opt for a regular credit card instead of a rewards card?
A) She plans to pay only the minimum payment each month and carry a high monthly balance.
B) She plans to pay only the minimum payment each month and carry a high monthly balance.
C) She plans to pay off the credit card balance in full each month.
D) She wants to earn airline and hotel travel points to use for business traveL
2) William’s grandparents wrote him a check of $5,000 for his college education. On the back of the check, they write William’s bank account number, his bank’s name, and write “For deposit only.”
How does this type of endorsement help William?
A) It helps ensure that the amount can only be deposited in William’s bank account.
B) It helps William transfer the amount back to his grandparents using the same check.
C) It helps William transfer the amount back to his grandparents using the same check.
D)It helps ensure that anyone in possession of the check can cash it.
3) Kaylee lives with her 8-year-old daughter.
What condition should Kaylee fulfill to file her taxes under the Head of Household filing status?
A) She must be the only earning spouse.
B) She must be the only earning spouse.
C) She must be the only earning spouse.
D) She must be the only earning spouse.
4) Which of the following is an example of secured debt?
A)Paying for a movie ticket using a credit card
B)Paying for a movie ticket using a credit card
C) Paying a utility bill using direct debit from a bank account
D) Paying a utility bill using direct debit from a bank account
5) In which of the following scenarios would a check be the most productive method of payment?
A) Carla is new to the country and doesn’t have a bank account.
B) Beena wants to save money and avoid buying on impulse.
C) Oliver often needs to make purchases on credit.
D) In his business, Michael often needs to quickly send money to other people’s accounts.
6) In which of the following cases does the person receive income as a lender?
A) As a shareholder in a business, Eli receives a share in the profits every year.
B) Chris, a salesperson, receives a commission on every car he sells.
C) Rowena receives income from interest earned from a credit union account.
D) Anita receives alimony and child support payments from her ex-husband.
7) In what kind of business structure is each owner responsible for the mistakes and business decisions of the other owners?
A) A limited liability company
B) A corporation
C) A sole proprietorship
D) A sole proprietorship
8)Excess federal income tax withholdings occur when __________.
A) the taxpayer avails tax credits for dependent children
B) the federal income tax due is more than the actual amount paid
C) the federal income tax paid is more than the actual tax due
D) the taxpayer avails health insurance tax credits
9) Which of the following can have an unfavorable impact on Ian’s credit report?
A) Having two different credit cards
B) Purchasing a vehicle by opting for an auto loan and pledging it as collateral
C)Losing his previous property to foreclosure
D) Opting for student loans, toward which he makes regular payments
10) Kama bought 20 shares, each costing $750. She decides to resell her shares for $17,250. She pays 16% commission.
Calculate Kama’s income after selling her shares.
A)Kama loses $510.
B)Kama loses $510.
C)Kama loses $510.
D) Kama gains $510.
11) Lily earns $80,000 a year and saves $8,000. The formula for savings ratio is as follows:
Savings Ratio = Savings ÷ Income
How much more should Lily save to be productive and reach her targeted savings ratio of 12%?
A) $2,000
B) $1,200
C) $2,400
D) $1,600
12) Who among the following people receives a bonus as part of their income?
A) Anni, who earns a percentage of the selling price of every house she sells
B) Paul, who receives an extra $5,000 each year if he performs well on the job
C) Agnetha, who earns a fixed monthly income of $5,000 at her job
D) Simon, who earns double his hourly rate when he works on Sundays
13) Luis, a small business owner, takes out a house loan of $130,000 at an annual interest rate of 7%. He pays a fixed monthly installment of $2,700 toward his loan repayment. Should Luis default on the loan, the creditor has placed a lien on his house as collateral.
Which of the following statements is true about Luis’ situation?
A) The creditor can sell Luis’ house to recover any outstanding payments if Luis fails to repay the loan.
B) Luis is required to repay the principal amount but is free from paying any additional finance charges.
C) Luis can expect to pay more than 7% interest on his loan, especially near the end of his loan term.
D) The creditor can sell Luis’ business should he default on the payments defined by the loan agreement.
14) Logan earns a total of $73,000 annually. He is a single filer and has a taxable income of $50,000. The tax brackets and tax rates are as follows:
$0$9,525: 10%
$9,525$38,700: 12%
$38,700$82,500: 22%
Calculate Logan’s effective tax rate.
A) 9.51%
B) 22%
C) 13.87%
D) 15%
Tags: Credit card balance minimum payment bank account
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