WorksheetsFinancial Literacy Exam Review
Total questions: 40
Worksheet time: 20mins
Name
Class
Date
1.
Which of the following is an example of a durable good?
a)
A bottle of mouthwash
b)
A roll of paper towels
c)
A case of bottled water
d)
A car
2.
Which of the following correctly describes market forces based on the information below? When ___________________________ goes up, ____________________ goes down.
a)
Demand, Supply
b)
Supply, Sun
c)
Price, Inflation
d)
Demand, Price
3.
Saving up for retirement is an example of:
a)
A short term goal
b)
A budget
c)
A long term goal
d)
A personal financial plan
4.
Using the ALOE formula and the information below, what is Christopher's net worth (owner's equity)? Christopher has $5000 in savings and an $8000 car. He also has a loan for $5600 and owes $900 on his credit card.
a)
$6500
b)
$7700
c)
$13000
d)
$1700
5.
A series of equal annual deposits into a bank account is called a(n) ______________________.
a)
Annuity
b)
Equality
c)
Insolvency
d)
Direct Deposit
6.
Money left over on an income statement or budget is known as a ________________________, while a shortage of money is known as a ________________________.
a)
Surplus, Deficit
b)
Take home pay, insolvency
c)
Profit, Loss
d)
Asset, Liability
7.
If you make a mistake while writing a check, what should you do?
a)
Void the check
b)
Issue a stop-payment order
c)
Report it to your bank
d)
Use white-out
8.
Which of the following is NOT one of the 5C's of credit?
a)
Character
b)
Cash on hand
c)
Credit history
d)
Capital
9.
How many times a year can you obtain a free credit report?
a)
Once, from the credit bureau of your choice
b)
Three, once from each credit bureau
c)
Unlimited, from the credit bureau of your choice
d)
Zero, unless you have been denied a loan
10.
Which of the following is NOT a disadvantage of credit?
a)
The temptation to buy more than you can afford
b)
The potential damage to your credit score
c)
The option to buy now, pay later
d)
The cost to borrow
11.
______________________________________ refers to looking at prices and characteristics of products with similar features from different brands and sellers.
a)
Impulse buying
b)
price negotiation
c)
comparison shopping
d)
open dating
12.
Which of the following is a smart buying strategy?
a)
Purchasing products past their expiration date
b)
Timing the purchase based on seasonal offers
c)
Buying the cheapest product all of the time
d)
Making only the minimum monthly payment
13.
If you think your credit card was stolen, you:
a)
Can dispute the charge
b)
Should take immediate legal action
c)
Must pay the full amount
d)
Should close your account immediately
14.
Susan is deciding between two bottles of shampoo, both which make her hair equally beautiful and shiny. Using the information below, calculate the unit price for both bottles. Which is the better deal? HairSoNice Shampoo: 5.99 for 12 oz.; ShinyHairTime Shampoo 4.59 for 10 oz.
a)
neither
b)
both
c)
hairsonice
d)
shinyhairtime
15.
Nick buys a toaster. He expects his toaster to turn his bread into toast. What is this an example of?
a)
Limited warranty
b)
Lifetime warranty
c)
Implied warranty
d)
Express warranty
16.
High risk drivers who cannot get motor vehicle insurance are placed in:
a)
A mutual insurance fund
b)
An assigned risk pool
c)
Uninsured motorist's protection
d)
A no fault system
17.
To be insured, an individual pays a monthly ________________________, as well as a _____________________ for each claim made.
a)
Premium, Deductible
b)
Deductible, Co-Pay
c)
Deductible, Policy
d)
Policy, Deductible
18.
What can you use to determine the value of a used car?
a)
Kelly Blue Book
b)
Depreciation formula
c)
Warranty evaluation
d)
Miles per gallon
19.
Using the rule of 72, how long would it take for your $3,000 investment to double at a 4% interest rate?
a)
46 years
b)
1.6 years
c)
5.5 years
d)
18 years
20.
The longer it takes you to pay back a loan:
a)
The shorter the term
b)
The higher the interest rate
c)
The lower the interest rate
d)
The more interest you'll pay
21.
What is the process of spreading your assets out among several different types of investments to reduce risk?
a)
Diversification
b)
Portfolio
c)
Speculation
d)
Dividends
22.
Which of the following investments has a low risk level, low rate of return, and low liquidity level?
a)
Bond
b)
Mutual Fund
c)
Real Estate
d)
Stock
23.
The ___________________ is the person who borrows money, while the _______________________ is the lender of the money.
a)
Lender, Borrower
b)
Debtor, Creditor
c)
Tenant, Landlord
d)
Creditor, Debtor
24.
Which of the following is NOT a factor that influences motor vehicle insurance premiums?
a)
Driver classification
b)
Speed limit
c)
Vehicle type
d)
Rating territory
25.
Checks, cash, and debit cards are all examples of:
a)
Payment services
b)
Borrowing
c)
Savings
d)
Investments
26.
Which step in the home buying process includes "house hunting"?
a)
Find and evaluate a property
b)
Obtain financing
c)
Price the property
d)
Determine your homeownership needs
27.
A ______________________ is a non-profit financial institution that is owned by its members and organized for their benefit.
a)
Credit union
b)
Commercial bank
c)
Mortgage company
d)
Savings & loan association
28.
The cost of attendance to college includes:
a)
Tuition, fees, photocopies, and books.
b)
Meals, fees, tuition, and books.
c)
Room and board, tuition, fees, and books.
d)
Meals, tuition, fees, and housing.
29.
An example of a consumable good is:
a)
A laptop
b)
A car
c)
A couch
d)
A bottle of water
30.
The difference between the budgeted amount and the actual amount that you spend is known as _______________________:
a)
Budget surplus
b)
Budget variance
c)
Budget deficit
d)
Budget adjustment
31.
31. ____________ is an example of a variable expense:
a)
Rent payment
b)
Car loan payment
c)
Emergency savings
d)
Electricity bill
32.
Depositing money into a checking account is an example of a _______________ deposit, while depositing money into a savings account is an example of a ________________ deposit.
a)
Time, direct
b)
Direct, demand
c)
Time, demand
d)
Demand, time
33.
A mortgage is an example of:
a)
Open-end credit
b)
Closed-end credit
c)
Revolving credit
d)
Home equity loan
34.
Which of the 5C’s of credit considers whether you are trustworthy, stable, and willing to repay a loan?
a)
Credit History
b)
Capacity
c)
Collateral
d)
Character
35.
With credit cards, the lender often encourages you to make ___________________ because it means they will earn more interest in the long run.
a)
A larger down payment
b)
Frequent payments within the grace period
c)
Only the minimum monthly payment
d)
A declining balance
36.
Which of the following has the highest investment liquidity?
a)
Stock
b)
Certificate of deposit
c)
Corporate bond
d)
Real estate
37.
The investment pyramid recommends that you have the least amount of your money invested in:
a)
Level 1: Financial Security
b)
Level 2: Safety and Income
c)
Level 3: Growth
d)
Level 4: Speculative
38.
Labeling method that indicates the freshness, or shelf life, of a perishable produce, such as milk or bread.
a)
creditor
b)
impulse buying
c)
debtor
d)
open dating
39.
A time period during which no finance charges will be added to your account (such as in a credit card).
a)
impulse buying
b)
debtor
c)
open dating
d)
grace period
40.
Liana currently works in a chiropractic office making $1120 per month. She currently has a car loan of $159 per month, and has been trying to pay off her credit card debt a little at a time paying $65 to her creditors each month. Calculate Liana’s debt payments-to-income ratio (DPR):
a)
0.20%
b)
20%
c)
2%
d)
5%
100 %
