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WorksheetsTransition Personal Finance Review
Total questions: 50
Worksheet time: 49mins
Name
Class
Date
1.
Which sentence describes the risk and returns of investing in stocks?
a)
They offer the lowest risks and the lowest potential returns
b)
They offer the highest risks and the highest potential
c)
They offer the lowest risks, but the highest potential returns
d)
They offer the highest risks, but the lowest potential returns.
2.
If a bank pays 3% interest on savings, how much interest will it charge for loans?
a)
3%
b)
less than 3%
c)
more than 3%
d)
the discount rate
3.
Which of the following might lower your credit score?
a)
Having worked at the same job for three years
b)
Having paid all your bills on time
c)
Never having applied for credit before
d)
Never having bounced a check before
4.
Of the following people, which one would probably pay the highest rates for car insurance?
a)
a 50 year old single man
b)
a 30 year old married woman
c)
an 18 year old boy
d)
an 18 year old boy
5.
If you switched to an insurance policy with a higher deductible, you could probably expect
a)
a higher premium
b)
a lower premium
c)
a higher coverage limit
d)
no coverage limit
6.
Rent Payment
a)
Fixed Expense
b)
Variable Expense
7.
Phone Bill
a)
Fixed Expense
b)
Variable Expense
8.
Which type of tax comes directly out of your paycheck?
a)
Property Tax
b)
Sales Tax
c)
Income Tax
d)
Ad Valorem Tax
9.
Kevin sees two amounts on his paycheck.
Gross Pay: $3500.00
Net Pay: $2800.00
Which one will actually be deposited into his bank account?
Gross Pay: $3500.00
Net Pay: $2800.00
Which one will actually be deposited into his bank account?
a)
Gross Pay
b)
Net Pay
c)
Trick Question! You have to take out taxes. So Neither!
d)
I am SOOOO confused.
10.
The main difference between a credit card and debit card is
a)
A debit card requires that you have the cash available in the account; a credit card doesn't
b)
A credit card has the Visa or MasterCard logo; a debit card doesn’t
c)
A debit card does not offer the same protections as a credit card.
d)
A credit card requires that you have the cash available in the account, a debit card doesn't
11.
Earning interest on interest is known as __________ interest.
a)
Composite
b)
Compound
c)
Augmented
d)
Amplified
12.
Disadvantages of using credit cards
a)
Fees mat be assessed, mat not be accepted in some stores, overspending
b)
Convenience of not carrying cash, counting change, quick form of payment
13.
What is a credit score?
a)
A credit score is a three-digit numerical rating that reflects how likely you are to fail at paying your debts
b)
A five-digit numerical rating that reflects how likely you are to repay your debt.
c)
A three-digit numerical rating that reflects how likely you are to repay your debt.
d)
A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts
14.
What financial habits determine your credit score?
a)
Payment History & Amount you owe
b)
Length of credit history & Amount of new credit applied for recently
c)
Types of credit open
d)
All of these are correct
15.
What actions can decrease your credit score?
a)
Pay your bills on time
b)
Only check your credit score once a year
c)
Max out your credit cards
d)
Pay off your full debt at one time
16.
What if I have bad credit?
a)
High interest rates on loans
b)
You can easily be approved for a loan
c)
You have a high credit score
d)
You may have to live with Mr. Trump.
17.
The amount borrowed is known as the ______.
a)
credit
b)
interest
c)
capital
d)
principal
18.
To build a good credit history, you should
a)
pay the minimum or more on your account each month
b)
pay on time or early
c)
be careful not to take on too much debt
d)
all of these
19.
If a credit card is used properly, what benefits does it have for the cardholder?
a)
The cardholder will pay higher interest rates on other forms of credit
b)
The cardholder will develop a positive credit history
c)
The cardholder will develop a negative credit history
d)
There are no benefits for the cardholder
20.
What is the first step in budgeting?
a)
Record what you spend
b)
Estimate your income
c)
Set financial goals
d)
Review and evaluate monthly
21.
The rule "pay yourself first" means to
a)
Save and invest first
b)
Have fun before you pay the bills
c)
Only cash your checks
22.
What does it mean to "live within your means"?
a)
use credit excessively
b)
spend what you make (or less)
c)
repay college loan debts before other debt
d)
spend more $ than you make
23.
When taking advantage of the time value of money, which of the following is most likely to result in the largest return?
a)
Invest a large principal amount of money and then make no additional investments
b)
Invest as long as possible and at the highest interest rate possible.
c)
Invest a small amount of money for a short period of time at the highest interest rate possible.
d)
Invest at a high interest rate because interest is the only factor that affects return.
24.
What is the danger in co-signing a loan?
a)
The bank wouldn’t give that person a loan without your help.
b)
If the person doesn’t pay, you become responsible for the debt.
c)
It automatically lowers both of your credit scores
d)
It could cause them to have a higher interest rate.
25.
Which of the following actions can NEGATIVELY impact your credit score?
a)
You disputed an item on your credit report.
b)
You forgot to pay the cable bill.
c)
You pay all your bills in cash.
d)
You use a small amount of your available credit.
26.
What is a credit card balance?
a)
The amount of interest you must pay the credit card company
b)
The required minimum payment to your credit card company
c)
A way to track your incoming and outgoing purchases
d)
The amount of money you still owe to the credit card company
27.
Stocks are:
a)
fixed expenses
b)
tax payments
c)
shares of ownership in a business
28.
What animal represents a market that is doing badly?
a)
Dog
b)
Cat
c)
Bear
d)
Bull
29.
If I buy a bond from a company for 100 dollars and then the company goes out of business, how much money do I receive?
a)
100 Dollars
b)
200 Dollars
c)
0 Dollars
d)
50 Dollars
30.
What is the general relationship between risk and reward?
a)
there is a relationship, but it is uncertain
b)
the higher the risk, the higher the potential reward
c)
the higher the risk, the lower the potential reward
31.
Items of monetary value a person or household owns
a)
Value
b)
Asset
c)
Tangible Assets
d)
Income
32.
A debt or obligation owed to others
a)
Liability
b)
Expense
c)
Income
d)
Debt
33.
Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:
a)
The market value of his car
b)
The value of his retirement account
c)
The combined total of his savings and checking accounts
d)
The balance on his credit card
34.
Your monthly budget should include:
a)
Variable expenses
b)
Discretionary Expenses
c)
Fixed Expenses
d)
All of the above
35.
A goal that you want to accomplish within the next year is called a ...
a)
Short Term Goal
b)
Long Term Goal
c)
Value Goal
36.
Interest
a)
payment made for the use of borrowed money
b)
show attention
c)
financial plan of revenue and expendtitures
d)
total amount of money owed
37.
mutual fund
a)
company that sells its stock to purchase stocks and bonds of other companies
b)
a payment card issued to users as a method of payment.
c)
total amount of money owed
d)
payment made for the use of borrowed money
38.
The amount of income you have before taxes and other deductions are taken out.
a)
Paycheck
b)
Net Pay
c)
Gross Pay
d)
Minimum Wage
39.
The amount of income left after taxes and other deductions are taken out.
a)
Gross Pay
b)
Surplus
c)
Deficit
d)
Net Pay
40.
The money that goes into and out of your wallet and bank accounts.
a)
Budget Variance
b)
Cash Flow
c)
Interest
d)
Supply
41.
A document that provides information for an individual's personal finances.
a)
Income
b)
Financial Statement
c)
Economics
d)
Savings Account
42.
Beliefs that you consider important are called
a)
Values
b)
Things
c)
Goals
d)
Ideas
43.
The price that is paid for use of another's money. Also, money gained from investments.
a)
Interest
b)
Income
c)
Expenses
d)
Annuity
44.
A credit score is intended to measure:
a)
Your financial success
b)
The risk of your not repaying debt
c)
Your income level
d)
The amount of money you have in the bank
45.
Which of the following is a sign that your identity may have been stolen?
a)
A call from a collection agency about a debt you didn’t incur
b)
Bank and / or billing statements don’t arrive on time
c)
Your credit report shows accounts you didn’t open
d)
All of the above
46.
Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.
a)
financing
b)
annual percentage rate (APR)
c)
lease
d)
inflation
47.
A yearly fee that is charged by the credit card company for the convenience of having the credit card.
a)
annual fee
b)
lease
c)
inflation
d)
loan term
48.
An interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time.
a)
new customer fee
b)
annual fee
c)
annual percentage rate (APR)
d)
introductory rate
49.
The term liability means which of the following?
a)
responsibility
b)
likelihood
c)
propensity
d)
capability
50.
The main difference between a credit card and debit card is
a)
A debit card requires that you have the cash available in the account; a credit card doesn't
b)
A credit card has the Visa or MasterCard logo; a debit card doesn’t
c)
A debit card does not offer the same protections as a credit card.
d)
A credit card requires that you have the cash available in the account, a debit card doesn't
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