8. Which of the following investment choices best reflects a diversified portfolio?

Investing in an S&P 500 index fund

Investing in one large-cap restaurant stock

Investing in a mutual fund that invests in 30 to 40 oil and gas companies

Investing in 10 to 20 companies in the technology industry

10. Which of the following statements is TRUE about auto insurance premiums?

Auto insurance premiums can vary from company to company, therefore, it is important to comparison shop for the best price and coverage.

If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company.

If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease.

Auto insurance premiums are a fixed price across all insurance companies.

11. Which of the following transactions will REDUCE your checking account balance immediately?

Using your debit card to pay for groceries at the supermarket

Writing your monthly rent check which you will mail tomorrow

Using your credit card to pay for your school books

Depositing a check at a local bank branch

12. When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn ($29) + interest

Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

14. How is an online savings account different from a traditional savings account?

An online savings account is offered by a bank that customers can only access online rather than at a physical bank branch

An online savings account includes a mobile app, while a traditional savings account does not

Online savings accounts will only offer electronic statements rather than paper copies

Online savings accounts cannot be FDIC insured, whereas traditional savings accounts can

16. James deposits $1,000 into a savings account that pays 1% interest. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off ____________. If the account has compounding interest, the 1% interest for year two would be based off ________________.(NOTE: The first choice goes in the first blank, the second choice goes in the second blank)

The original deposit ($1,000); The year one account balance ($1,010)

The original deposit ($1,000); The year one interest ($10)

The year one account balance ($1,010); The year one interest ($10)

The year one account balance ($1,010); The original deposit ($1,000)

17. Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?

Your APR will be within that range, depending on the strength of your credit history

When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed

With credit card APRs, cardholders like higher APRs because they earn more

The APR on credit cards is usually fixed so it won't be adjusted as long as you are a cardholder

18. Leah is considering buying a $30,000 car. Which of these financing options will likely lead to the LOWEST MONTHLY payment?

$3000 down payment, 6% interest, 84 months

$3000 down payment, 6% interest, 60 months

$0 down payment, 6% interest, 60 months

$0 down payment, 0% interest, 36 months

19. Select the statement below that accurately describes a characteristic of a credit card.

Making full payments on time every month is the only way to avoid interest charges

You owe the same payment every month

You must have money deposited into a checking account to use the credit card for purchases

20. How can your credit score impact your financial situation?

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

A high credit score will mean higher rates of return on your investments

A low credit score will mean lower ATM and overdraft fees

If you have no credit history, you're automatically approved for loans you may need

21. Who tracks all of your credit information?

Companies named Equifax, Experian and TransUnion

Consumer Financial Protection Board (CFPB)

22. Matt works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

His gross pay is $3,000 and net pay is $2,500.

His gross pay is $2,500 and net pay is $3,000.

His gross and net pay are $3,000.

His gross and net pay are $2,500.

24. Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Dining out at local restaurants

Postponing a purchase for a big-screen TV

25. Which of the statements below BEST describes the relationship between risk and return when considering an investment?

Investors expect to earn a higher return when they invest in a high risk asset like stock in a small company

Investors expect to earn a lower return when they invest in a risky asset

Investors expect to earn a higher return when they invest in a low risk asset, like a bond

Investors do not expect to earn a return on a high risk investment but rather expect to lose their money

27. Which of the following are good reasons to buy a stock index fund that invests in the S&P 500?

It is diversified, has low fees and historically has performed better than most mutual funds investing in big companies

It is diversified, has low fees and will "beat" the market

It has high fees, is diversified and historically has performed better than most mutual funds investing in big companies

It is not diversified, has high fees and will "beat" the market

28. What is the best advice to prevent identity theft?

Be careful with your credit and bank account numbers, create strong passwords, and beware of phishing emails

If you check your three credit reports every year, it's almost impossible to become a victim of identity theft

Avoid buying anything online, as that's how 90% of identity theft occurs

Use a debit card instead of a credit card whenever possible

29. Why should you accurately complete a W-4 form any time you start a new job or change your tax status?

Your W-4 determines how much income tax money your employer should withhold

You need a copy of your W-4 to file your tax return annually

Your W-4 determines your total tax bill at the end of the year

Completing a W-4 will guarantee you receive a large tax refund

30. Which of the following statements about the W-2 form is TRUE?

You need a separate W-2 form from EACH of your employers in order to file your taxes

A W-2 lists all the money you earned in cash over the last year

The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form

The W-2 includes information about the interest you earned from your investments

31. Insurance companies make money by...

Collecting more in premiums than they need to pay out each year in claims

Refusing to pay out claims to policyholders

Collecting money from the government

Keeping costs low with minimal advertising

32. Tyler's renters insurance policy has a premium of $15/month, a deductible of $1000, and a personal property coverage limit of $40,000. His apartment is burglarized and $5,600 of possessions are stolen or destroyed. How much will Tyler pay in order to replace his stuff?

$15/month for as many months as it takes her to pay back off the $5600 (approx 370 months)

34. Delaney is trying to save up for an emergency fund of $3000. Which saving strategy would likely be most effective in helping her meet her goal?

Set up a direct deposit of $75 from each paycheck to automatically get put into her savings account instead of her checking account

At the end of the month put any leftover money from her checking account into her savings instead

Wait until she's paid off all of her credit card and student loan debt, and then start saving for an emergency fund

Every month, after she's paid for rent, student loan and credit card debt, utilities, and groceries, put $50 or $100 into savings

35. Which of the following would have the most positive impact on your credit score?

Make all payments on time, and focus on paying down any credit cards that are close to their credit limits

Close any credit cards you're no longer using

Spend more money on each of your credit cards

Take out a car loan for $18,000 or more

36. These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?

Jasmine, who had saved the $1500 previously and pays off the whole balance once her bill comes

Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0

Nelson, who makes the minimum monthly payment each month until the debt is $0

Robert, who makes $300 payments per month until the debt is $0

37. Using Target Date Funds can be beneficial for beginner investors, because...

It will automatically adjust your assets for you over time.

A fund manager customizes your asset allocations for you.

It guarantees that you will have enough money for retirement and doesn’t require a lot of management.

It minimizes risk by investing 50% in stocks and 50% in bonds.

38. Which person from this list is saving rather than investing?

Yvonne, who puts $750 per month into her bank account earning 1% interest

Danielle, who contributes 2% of her pay to her company's 401(k) plan

Daryl, who uses his $5000 end-of-year bonus to buy Treasury bonds

Alexis, who buys $100 worth of shares in an S&P 500 index fund every month

42. Susie works two jobs so she can pay tuition without using loans, helps her sick mother with housework and errands, and is attending college. She knows she should be saving for retirement. Which strategy is best for Susie?

Auto-invest a small fixed amount in a Roth IRA every month

Buy shares of the top 5 performing stocks every month. Switch which companies she's investing in based on their monthly performance

Wait until she's got more disposable income to invest -- if she starts now, she won't be investing enough to make it worthwhile

Pick one company's stock -- maybe her favorite store or restaurant -- and invest the same amount every month

43. Hudson always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay?

His credit card with a 19.7% interest rate

His car loan with a 6.9% interest rate

His private student loans with an 11.8% interest rate

His Federal student loans with a 3.76% interest rate

44. The monthly premium for Kevin’s renters insurance is $15, and his deductible is $500. During the month of April, someone breaks into his apartment and steals or destroys $2200 worth of his possessions. How much will Kevin pay and how much will the insurance pay to replace his items?

Kevin pays $500 // insurance company pays $1700

Kevin pays $0 // insurance company pays $2200

Kevin pays $15 // insurance company pays $2200

Kevin pays $500 // insurance company pays $2200

46. These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?

Jasmine, who had saved the $1500 previously and pays off the whole balance once her bill comes

Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0

Nelson, who makes the minimum monthly payment each month until the debt is $0

Robert, who makes $300 payments per month until the debt is $0

47. When you have liability coverage with your auto insurance policy...

Your insurance will cover your neighbor's fence repair if you crash into it backing out of the driveway

Your insurance will cover the payment for your broken windshield if your car gets broken into

You cannot be found liable or guilty of causing an accident

Your medical bills will be covered if you're in an accident, even if you are at fault

48. Maria earns $3,200 per month. She estimates her monthly costs to be: apartment rent of $1,000, car loan and insurance of $750, groceries of $300, utilities of $250, phone/internet of $150, and other expenses of $400. Which of the following is TRUE?

Maria has $350 left over each month that could be used to build savings or pay off debt

Maria’s expenses are higher than her income, so she will have to reduce her spending

Maria is spending exactly what she earns, leaving no money for savings

Maria cannot afford her car payment with her current income

2026 PRACTICE Personal Finance Final Exam

Authored by Meggan Quartz

others

11th Grade

2026 PRACTICE Personal Finance Final Exam

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

1. Which of the following statements is true about this Schumer Box?

Depending on your creditworthiness, the APR for a borrower will always be 8.99%, 10.99% or 12.99%

There is an introductory APR that is valid only for 1 year, but then the permanent APR is lower than that at 8.99%.

You will never be charged an APR higher than 14.99%

You may be charged an APR as high as 28.99% for a late payment

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

2. When taking out a loan, the shorter your term length, the _ your monthly payments, and the _ the total interest you will pay.

higher, lower

higher, higher

lower, lower

lower, higher

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

3. Each of the following financial products will help you build a credit history EXCEPT...

Secured credit card

Debit card

Auto loan

Credit card

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

4. Annetta and Eric are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Annetta has a credit score of 730 and Eric has a score of 600. Which of the following statements is TRUE?

Over the five year period, Eric and Annetta will pay the same amount for the car loan

Annetta's monthly payment on the auto loan will be about $100 more than Eric's payment

Eric's monthly payment on the loan will be about $100 more than Annetta's payment

Lenders are not allowed to charge people different interest rates based on their credit scores

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

5. Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?

creditkarma.com

freecreditreport.com

getcreditreportshere.com

annualcreditreport.com

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

6. Victor realizes he has a budget deficit of roughly $175 at the end of two months in a row. Which of these options makes the most sense for him to fix his problem?

Cancel his cable TV subscription and go out to dinner three fewer times each month with friends

Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing

Contribute $100 less to savings each month and $75 less to his retirement fund

Sell his current car and get a less expensive vehicle

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

7. You bought 10 shares of stock in StreamingVideoCo for $45 per share. Two months later you sold the 10 shares of stock for $80 per share. What was your profit or loss on StreamingVideoCo stock? Assume that StreamingVideoCo didn't pay a dividend and that you didn't incur any trading fees during that period.

Loss of $800

Gain of $350

Loss of $450

Gain of $800

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2026 PRACTICE Personal Finance Final Exam

1. Which of the following statements is true about this Schumer Box?

2. When taking out a loan, the shorter your term length, the _______ your monthly payments, and the _______ the total interest you will pay.

3. Each of the following financial products will help you build a credit history EXCEPT...

4. Annetta and Eric are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Annetta has a credit score of 730 and Eric has a score of 600. Which of the following statements is TRUE?

5. Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?

6. Victor realizes he has a budget deficit of roughly $175 at the end of two months in a row. Which of these options makes the most sense for him to fix his problem?

8. Which of the following investment choices best reflects a diversified portfolio?

9. What tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.

10. Which of the following statements is TRUE about auto insurance premiums?

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2. When taking out a loan, the shorter your term length, the _ your monthly payments, and the _ the total interest you will pay.