Discussion Questions (BOARD QUESTIONS):
Even More Economics
Buying a Vehicle
Earnings and Taxes
- Give an example of supply and demand and how it would affect prices.
- Tariffs, quotas, and embargoes, explain each and why we need these tools.
- Explain what the Federal Reserve does, what policies they use, and how they can stimulate our economy.
- What is inflation?
- Why do we need money?
- What is inversion and why isn't it good for the country?
- Define opportunity cost and give an example.
- What is the major difference between a command economy and capitalism, and give an example of each?
Even More Economics
- Describe the difference between monetary policies and fiscal policies and who uses them.
- What is an example of a governmental discretionary expense?
- What does SEC stand for and what do they do with the stock market?
- What is the time value of money and what two major factors affect it?
- Label each for a business cycle: trough, expansion, peak, compression.
- Why is FDIC and NCUSIF important?
- What is a CD? List 2 advantages and 2 disadvantages to owning one.
- Explain the difference between a credit card, cash card, and a debit card.
- Roth IRA and a Traditional IRA…Explain the difference and why you would own one over the other.
- Explain each: return check fee, overdraft fee, insufficient funds charge, stop payment charge, ATM fee, monthly maintenance fee, minimum balance fee
- What is the difference between closed-end and open-end credit and give an example for each?
- What is the principal on a loan? What is the APR and how is it used to figure the cost of the loan?
- What is collateral and why is it a safer way for someone loaning money?
- What is a debt to credit ratio, and what is considered to be a good number?
Buying a Vehicle
- What is a down payment and how does if affect the amount borrowed, the amount of interest paid, and your monthly payment?
- What is MSRP and why don't you want to pay this amount?
- List 3 things that could happen to a person if they don't make their car payment?
- Why is important to take your car into the dealer if you receive a recall?
- What is a premium?
- What is replacement insurance?
- What is no-fault insurance?
- What does it mean when you have a $500 deductible?
- What do these numbers mean? 50/100/20
- Define each: Comprehensive Insurance and Collision Insurance
- What are the differences between HMO and PPO?
- What are two differences between a car deductible and a health care deductible?
- What is a primary care taker, an in-network doctor, an out of network doctor, and a specialist?
- What is the difference between co-pay, coinsurance, and deductible?
- Give one difference between term insurance and whole life insurance, and one similarity? Give one benefit of each.
- What does renter's insurance cover?
- What important parts are needed in home owner's insurance?
- Name 3 perils a homeowner would want to cover.
- What is the 80% rule for home insurance?
- What is a Floater or Rider Policy?
- What is a dividend and why could it be important when choosing stocks?
- Bank Accounts, CDs, Bonds, Mutual Funds, Index Fund, Stocks --> Explain each and how they would fit into your investment strategy.
- What is a bond? Explain the difference between corporate, municipal, and treasury bonds.
- What is a diverse portfolio?
- What is a Bull Market and Bear Market?
- What is the difference between earned income and unearned income?
Earnings and Taxes
- Explain each: Gross Income, Net Income, Take Home Pay, Adjusted Gross Income, Taxable Income
- What is the difference between itemize deductions and standard deductions?
- What is FICA and what two deductions does it include?
- What is the difference between a tax deduction and tax credit?
- What is the difference between a W-4 and a W-2?
- If a person is single, no dependents, and qualified for the EIC with an earned income of $10,346, what is their credit?
- Using the tax tables, if a person is single and has a taxable income of $30,232.00, how much tax should they pay?
- How much is the standard deduction for a married couple filling jointly who are not dependents?
- What is a mortgage and how does it relate to an amortization table?
- List 2 advantages and 2 disadvantages of owning and renting?
- What would a person usually have to pay up front when they first rent a place?
- What are the main differences between a living will and a regular will?
- What is a 401(K) and what are the potential benefits (list 2)?
- What is the difference between a Roth IRA and a Traditional IRA?
- What are 3 ways a person can protect themselves from identity theft?
- What is a budget? Give an example of a fixed expense and a variable expenses, and how they affect your budget?
- Define each and list one benefit and one disadvantage to having a salary, wage, or commission.
- What is a ponzi scheme?
- What is bait and switch?
- What is a pyramid scheme?
- What is a class action lawsuit?
- What is a rebate?
- What is product placement and how does it influence spending? Give two examples.
- Who is an entrepreneur? List two risks and two rewards for an entrepreneur.
- How do entrepreneurs finance their new business? (give three examples)
- What does the Consumer Financial Protection Bureau (CFPB) do to help people? (give one example)
- Give 3 examples of people who would be hurt most by high inflation.