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Exam (elaborations)

Personal Finance Test Questions and Answers with Complete Solutions

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Personal Finance Test Questions and Answers with Complete Solutions What does it mean if you are deemed creditworthy? It indicates that you are considered a reliable borrower based on your credit history. How is net pay defined? It is the income left after all taxes and other deductions have b...

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  • August 3, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Personal Finance
  • Personal Finance
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BrilliantScores
Personal Finance Test Questions and
Answers with Complete Solutions
What does it mean if you are deemed creditworthy?


✔✔It indicates that you are considered a reliable borrower based on your credit history.




How is net pay defined?


✔✔It is the income left after all taxes and other deductions have been removed.




What is meant by adjusted gross income?


✔✔This is your gross income after accounting for allowable adjustments.




What action is a stop payment order?


✔✔It is a request made to a bank to prevent a specific check from being processed.




How is the annual percentage yield (APY) described?


✔✔APY is the effective annual rate of interest earned on an account, including the effects of

compounding.




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, What does a bond represent?


✔✔A bond is a debt security issued by a corporation or government, representing a loan made

by the bondholder.




What is the purpose of an audit?


✔✔An audit is a detailed examination conducted by the IRS to ensure the accuracy of your

income tax returns.




What role does a car title serve?


✔✔A car title is a legal document that proves ownership of a vehicle.




What is a cashier's check?


✔✔A cashier's check is a type of check drawn on a bank’s own funds, rather than an individual’s

account.




What does bank reconciliation involve?


✔✔It involves comparing your personal checkbook records with the bank statement to ensure

accuracy.




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