In this version of our financial literacy test, we focus on all things holiday spending – taxes, trends and paying off the aftermath on a credit card. Test your knowledge and learn something new, or pat yourself on the back for answering these correctly.
1. The Consumer Price Index, which measures the average change in price for consumer goods and services, is the most widely used measure of inflation. According to the US Bureau of Labor Statistics, what was the percentage change in the Consumer Price Index for all consumer items year over year (October 2018 to October 2019)?
2. According to the US Bureau of Labor Statistics, which of these major categories actually had a downward percentage change in Consumer Price Index year over year (October 2018 to October 2019)?
a. Energy commodities (fuel oil and gasoline)
b. Food at home (fruits, dairy, etc.)
c. Medical care services (hospital and physicians’ services)
d. Transportation services (airline fare, motor vehicle maintenance, etc.)
3. This November, the IRS made updates to the contribution limits employees can make to their 401(k) plans. What is the new limit for 2020?
4. The IRS also made updates to the income phase-out range (i.e., the level of income at which your allowable contribution is reduced) for taxpayers making contributions to a Roth IRA. What are the new income range limits for singles/head of households?
a. $126,000 to $145,000
b. $125,000 to $143,000
c. $124,000 to $139,000
5. True/False: For 2020, the 401(k) catch-up contribution limit for employees aged 50 and over increased from $6,000 to $6,500.
6. Speaking of retirement plans, the deadline to establish a Keogh Plan (HR-10) is December 31. Which of these best describes a Keogh Plan (HR-10)?
a. An employer sponsored retirement plan funded by the employer
b. A tax deferred retirement pension plan for self-employed individuals
c. A federally run insurance program for retirees
7. True/False: The United States’ GDP increased from third quarter 2018 to third quarter 2019.
8. True/False: New York State had the highest GDP for the first half of 2019.
9. In November, the Federal Reserve approved the merger of which two banks?
a. PNC Bank and First National Bank
b. BB&T Corporation and SunTrust Bank
c. BMO Harris Bank and People’s United Bank
10. Which fast-fashion retailer filed for bankruptcy this year and is expected to close up to 111 stores in the US?
b. Charlotte Russe
c. Forever 21
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