NEW
Font size
S
M
L
XL
WorksheetsW!SE REVIEW
Total questions: 50
Worksheet time: 50mins
Name
Class
Date
1.
Which factor would most likely lead to an increase in the interest rate on a person's credit card?
a)
number of purchases
b)
late payments
c)
number of cash advances
d)
total amount charged
2.
A person's computer is stolen from their apartment, which insurance covers this?
a)
renter's insurance
b)
property liability
c)
collision
d)
comprehensiove
3.
A bank certificate of deposit is a:
a)
savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
b)
Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty
c)
Cash deposit in a savings account that earns interest
d)
Certificate of deposit that is issued for half the face value
4.
The National Credit Union Administration (NCUA) insures accounts in:
a)
Credit unions
b)
Savings banks
c)
Brokerage firms
d)
Commercial banks
5.
The phrase used for putting money into a savings account is:
a)
Balancing the account
b)
Making a deposit
c)
Making a withdrawal
d)
Verifying the account
6.
If a business wants to raise capital but not create debt, it can:
a)
Issue Common Stock
b)
Float a bond issue
c)
Borrow money from a commercial bank
d)
Borrow money from the governmnet
7.
A person buys insurance to:
a)
start a savings account
b)
to assure they will get a brand new car each time they make a claim
c)
protect themselves against financial hardship
d)
to insure their neighbors in case of a fire
8.
Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition for:
a)
credit
b)
taxation
c)
investing
d)
interest
9.
You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for a loss. The $500 the insurance did not pay is a result of your policy having a:
a)
hazard clause
b)
premium
c)
deductible
d)
co-insurance clause
10.
The phrase "don't put all your eggs in one basket" describes the following investment strategy?
a)
diversification
b)
pooling
c)
return on investment
d)
liquidity
11.
The only type of life insurance that does not develop a cash value is:
a)
universal life
b)
term life insurance
c)
variable universal life insurance
d)
whole life insurance
12.
Investors often buy shares of stock in a company to
a)
cash them in after maturity date
b)
loan money to the company
c)
improve their credit score
d)
earn dividends
13.
Insurance is frequently described as a method of "sharing the risk" because the:
a)
insured shares the risk of loss with all of the other policy holders
b)
insured can share the risk by spreading the cost over a number of years
c)
risk of loss is shared with the insurance company sales person
d)
risk of loss is shared with the government
14.
A person buys a homeowner's insurance policy with a $250 deductible, which means the person will
a)
have to pay a quarterly premium of $250
b)
only receive payment from the insurance company for $250 for any single article damaged
c)
have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company
d)
not be responsible for the first $250 of the claimed damages
15.
When the market has a steady incline in the stock prices over a period of time, it is known as a:
a)
bull market
b)
inflation market
c)
risky market
d)
bear market
16.
Which of the following is the most basic type of automobile insurance
a)
collision
b)
liability
c)
comprehensive
d)
hazard
17.
The federal agency that regulates the securities industry is the:
a)
Federal Trade Commission
b)
Securities and Exchange Commission
c)
Federal Reserve
d)
Department of Commerce
18.
John has a college student loan that he has to repay after he graduates. He will make his monthly payments over 10 years. He has the following kind of loan:
a)
secured
b)
non-installment
c)
collateralized
d)
installment
19.
Gwen receives a bill from her auto insurance company, and she sends a check to the company to make sure her policy is not cancelled. The cost of her policy is:
a)
co-insurance
b)
co-pay
c)
deductible
d)
premium
20.
How can individuals be prepared for losing their job or having a large medical expense?
a)
Save at least three months of expenses
b)
Maintain a checking account with sufficient funds
c)
Prepare a budget
d)
Pay credit card bills on time
21.
The "FED" is short for:
a)
FBI
b)
Federal Deposit Insurance Corporation
c)
US Mint
d)
Federal Reserve
22.
Bank offered products are insured by
a)
NCUA
b)
FDIC
c)
FICA
d)
IRS
23.
Generally, investors buy blue chip stocks because they are issued by corporations that
a)
manufacture their products in the United Stated
b)
are the only ones listed on the New York Stock Exchange
c)
have a reputation for steady earnings and quality management
d)
do not spend money on developing new products
24.
A blank endorsement on a check
a)
cancels the check
b)
has no effect on the check
c)
restricts the use of the check
d)
creates a check that can be cashed by anyone
25.
An advantage of having a Roth Individual Retirement Account (IRA) is that
a)
money withdrawn from the account is tax-free income after age 59 1/2
b)
only people collecting social security income can open an account
c)
this type of account gives unlimited income to a person for life
d)
money cannot be withdrawn from the account before age 70
26.
Financial goals should
a)
be vague with no details
b)
have dates of achievement and be detailed
c)
not be adjusted over time
d)
be the same for everyone
27.
To improve an UNFAVORABLE credit rating, a person should
a)
open a checking account
b)
pay bills on time
c)
apply for more credit
d)
increase the number of payroll deductions
28.
Richard's auto insurance policy expired on 5/15/15. Richard is upset with his insurance agent and decided to change insurance companies. At 10:00am on 5/16/15, as he drove to a different agent to buy his new policy, he had an accident (his own fault). Who is liable for the damage to his car and his personal injuries?
a)
His old agent
b)
His new agent
c)
Richard
d)
The DMV
29.
A Neon Oil Corporation tanker spilled oil in the ocean around Australia. As a result of this accident, the share price of Neon Oil stock is likely to
a)
remain the same
b)
increase
c)
decrease
d)
not be affected
30.
The activity of the New York Stock Exchange most closely resembles:
a)
an auction house
b)
a bank
c)
a dance hall
d)
a retail store
31.
Jane owns common stock, a corporate bond, shares in two mutual funds, and a US Treasury note. All of these together are called her:
a)
investment package
b)
portfolio
c)
retirement holdings
d)
new worth
32.
What is the purpose of overdraft protection?
a)
to provide the account holder with a line of credit for overdrawn checks
b)
to make sure the signature on the back of the check is correct
c)
to make sure the account holder's records agree with the bank's records
d)
to give you an online record of all your transactions
33.
Why does a corporation issue bonds?
a)
to comply with the SEC
b)
to keep from being bought-out by another corporation
c)
to expand ownership of the corporation
d)
to raise money for the expansion or other company operations
34.
Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?
a)
Commercial bank
b)
Savings and loan association
c)
Credit union
d)
Investment club
35.
Collateral is
a)
required for all loans
b)
a form of credit
c)
something that explains your net worth
d)
something of value that secures a loan to protect the lender
36.
Susie has been able to save 5% for the last year, but this year she can't afford to save anything becuase
a)
Interest risk
b)
Economic risk
c)
Deflation
d)
Inflation
37.
Which of the following investment products is guaranteed by the federal government?
a)
preferred stock
b)
corporate stock
c)
US Treasury notes
d)
common stock
38.
Ben's truck is crushed by a hit-and-run driver. Scott is hit by an uninsured driver. How will they receive payments?
a)
Auto liability coverage
b)
Insolvent motorist coverage
c)
State motorist coverage
d)
Uninsured or no-fault motorist coverage
39.
Which person needs life insurance the MOST?
a)
a single 20 yr old male college student
b)
a retired 75 yr old man who is not married
c)
a married woman with two children
d)
a single woman with no children but works full time
40.
A creditor determines your credit-worthiness based on
a)
address
b)
gender
c)
education
d)
character, collateral, capacity
41.
Purchases made with your debit card are usually
a)
deducted immediately from your checking account
b)
deducted from your credit card balance
c)
put on your credit card bill as a cash advance
d)
added to your credit card balance
42.
The Truth in Lending Act requires
a)
credit card companies to lend only to those people who tell the truth
b)
consumers to provide the credit card companies with their work attendance record
c)
credit card companies to inform customers of interest rates, cost of the loan, terms and conditions
d)
that credit card companies examine and correct information on their bills
43.
Which investment is most liquid?
a)
Municipal bonds
b)
Real estate
c)
Savings accounts
d)
Stocks
44.
Which financial product may pay a dividend?
a)
certificate of deposit
b)
common stock
c)
savings account
d)
money market account
45.
A common name for US currency is
a)
yellow backs
b)
green backs
c)
orange backs
d)
blue backs
46.
Municipal bonds
a)
guarantee high dividends to bondholders
b)
are issued by investment firms or banks
c)
are issued by local governments to raise money for roads, bridges and other construction projects
d)
a tax to raise money for city operations
47.
Generally, the higher the deductible on an insurance policy, the
a)
lower the premium
b)
higher the premium
c)
more frequently the premium is due
d)
less frequently the premium is due
48.
Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?
a)
50 shares of ABC Company Stock
b)
Certificate of deposit
c)
ABC Company bond
d)
Series EE savings bond
49.
Sarah has invested in corporate bonds which are
a)
issued by banks
b)
loans to the issuer of the bond
c)
loans with ownership priviledges
d)
shares of ownership in the corporaion
50.
A good reason for a person to prepare a budget is to
a)
manage their income and expenses to achieve financial goals
b)
determine their net worth
c)
get a consolidation loan and open a new credit card account
d)
determine if they can demand a raise at work
Reset
