Taxes (NGPF) Exam Pack Questions with Complete Correct Answers | Grade A+

Risk Ans: A situation involving exposure to danger, harm, or loss. Insurance Ans: A means of guaranteeing protection or safety. Risk Pooling Ans: The spreading of financial risk evenly among a large number of contributors to the program. Insurance Policy Ans: A contract in which an individu...

investing Ans: The process of setting money aside to increase wealth over time for long-term financial goals such as retirement savings Ans: money put aside for future use; growing your money is not the top objective compound interest Ans: interest earned on both the principal amount and any ...

50-20-30 Rule Ans: A popular savings rule of thumb in which 50% of your income goes towards necessities (groceries, rent, utilities), 20% goes towards savings, debt, and investments, and 30% goes towards flexible spending. ATM Ans: Automatic Teller Machine. Allows a person to manage a bank ac...

credit report Ans: a report created by credit bureaus on a person's creditworthiness credit bureau Ans: a business that gathers, stores, and sells credit information to other businesses credit score Ans: a number assigned to a person that indicates to lenders their capacity to repay a loan. 7...

Federal Student Aid Ans: The largest form of student aid in the country, federal aid programs come in the form of government grants, loans, and work-study assistance Private Loans Ans: Loans financed by private banks. The interest rate is usually higher than federal loans and you need to qual...

Income Tax Ans: Taxes paid by employees to federal and state government. Collected or withheld from one's paycheck. Social Security Ans: A program that provides monthly benefits to almost 60 million Americans, including retirees, military families, surviving families of deceased workers, and...