Personal Finance Final Exam Review Part 2 2025

Which of the following statements about car insurance is TRUE?

• If you have insurance and are pulled over for speeding, you won't get "points" on your license

• If you cause an accident and another driver is injured, your insurance will cover portions of his/her medical bills

• If you are in an accident, the other driver cannot sue if you have car insurance

• If you pay your premium on-time every month, you won't have to pay anything extra if you are in an accident

Which of the following people is MOST likely to be a victim of identity theft?

• Chelsea, who regularly checks her bank account balance while connected to the WiFi at her local cafe

• Morgan, who shreds all documents containing personal information before throwing them away

• Abby, who avoids posting on social media about topics that could be used as security questions

• Jordan, who uses different, strong passwords for various accounts

Which description of the difference between saving and investing is MOST accurate?

• Savings accounts provide a stated rate of return that is less risky. On the other hand, investors do not know what their return will be, making investing riskier.

• If you have less than $10,000 in an account, what you are doing is saving. If you have more than $10,000 in your account, you are investing

• Investing is best for the short-term and for emergencies while saving is best for the long-term

• Saving and investing are the exact same thing

Now that you have a part time job, you'd like to open a checking account where you can deposit your biweekly checks and then use your debit card to pay for expenses with your friends. You'll probably have at most $450 in your account at any one time. As you decide where to open the account, which account feature should you probably care LEAST about?

• ATM fees

• The annual fee

• Overdraft fee

• The interest rate

Anna receives her first paycheck and realizes that her take-home pay is substantially less than the rate she was offered when hired. Which of the following would help explain this problem?

• Most employers charge a "payroll fee," which the company collects to offset the cost of preparing each employee's paycheck every pay period

• Her company is downsizing and has decided to pay her less without notice

• Anna's pay is smaller than she anticipated because businesses typically pay high school students less than minimum wage

• Taxes, social security, and Medicare are being deducted from her pay

Each of the following is a benefit of using online and mobile banking EXCEPT...

• You can eliminate overdraft fees

• You can transfer money electronically between accounts

• You can keep an ongoing record of your deposits and withdrawals

• You can check your balances before you make a purchase

Carmen has just graduated from college and receives a bunch of paperwork from her new job's Human Resources department. Which of the following should be her first step in making sure she's paying the correct amount of taxes?

• Complete a 1040 form

• Buy a copy of TurboTax and file her taxes

• Complete an I-9 form

• Complete a W-4 form

Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?

• A budget surplus of $200

• A budget surplus of $4800

• A budget deficit of $200

• A budget deficit of $4800

Which of the following is TRUE about robo-advising?

• Robo-advisers usually come with much higher fees than if you were to use a fund manager

• Robo-advisers are primarily used by people from older generations

• Robo-advisers will automatically adjust your asset allocation based on your preferences

• Robo-advisers are a form of active investing

Tahira wants to put a small portion of every paycheck into a low-risk investment. Which would be her best option?

• Save in a savings account

• Invest in an S&P 500 index fund

• Pick 2 individual stocks and invest half of her money in each

• Buy shares of a super profitable tech company