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WorksheetsPF 1.00 - 3.00
Total questions: 85
Worksheet time: 43mins
Name
Class
Date
1.
Jacob is wondering how he can improve his intellectual well-being. Which would contribute the most to his intellectual well-being?
a)
Going to the gym three times per week
b)
Challenging himself by taking on a new project at work
c)
Joining a local service organization
d)
Taking a vacation from work
2.
Jenna wants to improve her financial well-being. Which would contribute the most to her financial well-being?
a)
Taking a personal finance class to learn how to manage her money
b)
Paying her grandma back the money she borrowed to take a school trip last year
c)
Talking to her friends about how to manage her money better
d)
Opening another checking account to help her organize her money
3.
Which statement about our interactions with money is not considered to be true?
a)
You are responsible for your present self and your future self.
b)
Your present self impacts your future self.
c)
You are better off in a community than by yourself.
d)
Investment increases risk and reduces your ability to cope with risk and uncertainty.
4.
Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?
a)
When his financial goals have been established
b)
When his money management plan has established high well-being
c)
When he is 70 years old
d)
Never – it is an ongoing process
5.
Carter wants to participate in an activity that will improve his well-being. Which activity would contribute the most to his well-being?
a)
An activity his friends like to participate in
b)
An activity that does not cost much money
c)
An activity that his teacher suggested to him
d)
An activity that makes him lose track of time
6.
Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario best represents the purchase of a need?
a)
Whitney is being inducted into the National Honor Society at her high school. Students have been directed to ‘dress nicely’. Whitney has a dress she wore to a wedding last year that still fits but her mom thinks she needs a new one to celebrate this occasion.
b)
Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress ‘professionally’ for one of the tours. She plans to wear her new jeans and a T-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more appropriate.
c)
Whitney has several pairs of jeans in her closet but found some that really fit her well at an excellent price when she and her mom were shopping. Her mom agrees that with these jeans at this price, they need to purchase a pair.
d)
Whitney will be traveling to Europe with a youth ambassador program this summer. She has been instructed to pack a rain jacket. The rain jacket she already owns does not have a hood since she always uses an umbrella in rainy situations. Her mom believes she needs to purchase a hooded rain jacket because it would be more convenient.
7.
Which of the following is likely to have the least influence on an individual’s values?
a)
Media
b)
Family
c)
Religious affiliations
d)
Grade average
8.
Which of the following factors is not influenced by values?
a)
Everything is influenced by values.
b)
An individual’s daily decisions
c)
An individual’s long-term decisions
d)
An individual’s financial decisions
9.
Megan’s mother suggested that she was experiencing the consequences of her trade-off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment?
a)
Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she had saved for the prom dress plus most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job.
b)
Megan had shopped at several stores when she found the prom dress of her dreams. She checked online and found a coupon that enabled her to save 30% when she returned to the store to purchase the dress.
c)
Megan had shopped in several stores and found six prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was the least expensive of the 3 she liked best.
d)
Megan had shopped in the store her mother recommended for her prom dress. She found two dresses she liked a lot. Megan purchased the one that was the most comfortable even though it cost $28 more than the other one.
10.
Erica wants her class project to reflect her values. Which items would be best to include?
a)
Things that she intends to acquire, do, reach, or accomplish in the near or distant future
b)
Things that are necessary or essential for life and survival
c)
Things that reflect her fundamental beliefs about what is worthwhile and important to her
d)
Things that are unnecessary but desired which increase the quality of her life
11.
Ian has been shopping for a different vehicle for the past several months. He needs something reliable and would really like something with a nice sound system. He and his parents have talked about how much he can afford and he plans to stay within the price guidelines he and his family have set. Ian was analyzing the opportunity cost of a trade-off regarding which car to purchase. Which situation best represents what he might be thinking through?
a)
Ian is comparing new vehicles at two car dealerships. He was able to find nearly identical cars at nearly identical prices. One dealership is 20 miles away and the other dealership is 30 miles away.
b)
Ian has found two different cars at a local dealership that meet his needs. The first car has a better sound system than the other. The second car has 20,000 fewer miles on it.
c)
Ian has been shopping for a vehicle online. He finds something that would meet his needs being sold by an individual near him. He would be able to purchase this car for less than he would have paid for a comparable vehicle at a car dealership.
d)
Ian’s older brother is trading vehicles and offers to sell Ian his used vehicle. This vehicle would meet Ian’s needs and he knew the service history of the vehicle was excellent.
12.
Amber’s academic adviser has asked her to set 3 academic goals for this semester. These goals are most likely to be accomplished if:
a)
Amber discusses her goals with her parents.
b)
Amber lets her friends set her goals.
c)
Amber writes her goals down.
d)
Amber thinks about her goals weekly.
13.
Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?
a)
Short‐term
b)
Intermediate
c)
Long‐term
d)
Unrealistic
14.
One element of a financial goal is missing in this example. “I will save $150 each month to go on a vacation in one year.” Which one is it?
a)
Time Bound
b)
Specific
c)
Attainable
d)
Measurable
15.
Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?
a)
Short‐term goal
b)
Long‐term goal
c)
Mid‐term goal
d)
This is not an example of a goal.
16.
A key difference between commercial banks and credit unions is that:
a)
commercial banks are for-profit and credit unions are not-for-profit.
b)
commercial banks typically pay higher interest rates than credit unions.
c)
credit unions are more commonly located in rural areas while commercial banks are more commonly located in urban areas.
d)
commercial banks offer more services, debit cards, and online banking than credit unions.
17.
Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some student comments were based on fact while others were based on myths. Which aspect of security at a depository institution is not true?
a)
Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit.
b)
All money stored at a depository institution is kept safe at all times by numerous security measures.
c)
Information about depositors and their accounts is kept in secure data storage.
d)
Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than a $100,000 balance.
18.
Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do?
a)
Apply for mobile banking. That way she can access her money with her smartphone to pay for the things she needs. The amount she spends would automatically be deducted from her savings account.
b)
Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account.
c)
Apply for a credit card. That way she can use the card to purchase the things she needs and pay for it when the credit card statement comes from her checking account.
d)
Request a cashier’s check from her depository institution. That way she can spend money from her checking account without risk of an overdraft fee.
19.
Sanjay is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?
a)
A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC)
b)
A credit union, since his deposits would be insured by the National Credit Union Association (NCUA)
c)
He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.
d)
Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.
20.
Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. What would be the best advice for Ariel?
a)
Check several depository institutions and choose one with a free, no-interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it.
b)
Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.
c)
Look for a credit union that offers share draft accounts. These secure accounts are designed especially for saving for long-term financial goals.
d)
Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it.
21.
Common fees that may be charged by a depository institution include all of these except which one?
a)
Overdraft fees
b)
Late fees
c)
ATM fees
d)
Minimum Balance fees
22.
David made a mistake in his checking account recordkeeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charged a/an:
a)
ATM fee.
b)
contact fee.
c)
safe deposit fee.
d)
overdraft fee.
23.
Savings tools offered by depository institutions may earn interest. Which of the following statements is not true about interest?
a)
Interest is the price paid for using someone else’s money.
b)
When earning interest, look for low rates.
c)
When paying interest, look for low rates.
d)
The amount of interest earned or paid is determined by the interest rate.
24.
Who is Medicare designed to help?
a)
Low-income families
b)
Single parents
c)
Senior citizens
d)
Children of unemployed parents
25.
Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he exclude from his presentation because it is not correct?
a)
Property taxes are assessed at the same rate for all types of property, including homes, land, and buildings, regardless of location or whether they are used for business or personal use.
b)
Property taxes are usually charged by state and local governments to pay for local schools and other services and expenses incurred by these governments.
c)
Property taxes are commonly paid on automobiles. This tax is usually paid once per year when the automobile is licensed.
d)
Property taxes on homes, land, and buildings are usually only paid once or twice each year.
26.
Which statement is not true about property taxes?
a)
Property tax is often charged by states or local governments to pay for local schools.
b)
The property tax rate is set by the federal government to be equal in every state.
c)
The fee paid to license a vehicle is an example of property tax.
d)
Property taxes are most often paid only once or twice each year.
27.
As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be?
a)
An excise tax on the shirt she purchased
b)
Property tax on the shirt she purchased
c)
Income tax on the shirt she purchased
d)
Sales tax on the shirt she purchased
28.
Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?
a)
Austin calculated the hours he worked without deducting the hours he spent doing on-the-job training.
b)
Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
c)
Austin neglected to deduct the amount required to pay income and payroll taxes.
d)
Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.
29.
Which statement is true about payroll taxes?
a)
Payroll taxes are paid on both earned and unearned income.
b)
Payroll taxes fund different operations and programs of the federal government.
c)
Payroll taxes fund the Social Security and Medicare programs.
d)
The amount of tax paid depends on many different factors but increases as income increases.
30.
Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called which kind of taxes?
a)
Sales
b)
Excise
c)
Federal use
d)
Property
31.
To increase his net worth, Jackson could:
a)
increase his liabilities.
b)
decrease his assets.
c)
increase his market value.
d)
increase his assets.
32.
Which formula should Jordyn use to calculate her net worth?
a)
Assets – liabilities = net worth
b)
Assets × liabilities = net worth
c)
Assets + liabilities = net worth
d)
Assets / liabilities = net worth
33.
Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier?
a)
Maggie, because her income minus her net worth is a smaller amount than Samantha’s.
b)
Samantha, because her income minus her net worth is a larger amount than Maggie’s.
c)
Maggie, because her net worth is higher than Samantha’s.
d)
Samantha, because her annual income is higher than Maggie’s.
34.
Brett is creating a Statement of Financial Position and needs to list his assets. Which of the following should he not list as an asset?
a)
Money in his checking account
b)
Money in the paycheck he will receive next week
c)
His hockey equipment
d)
The market value of his car
35.
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.
36.
Which would most likely be considered a contractual expense?
a)
Cell phone
b)
Food
c)
Entertainment
d)
Clothing
37.
Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. He is unsure which items should be recorded as expenses. Which should be recorded as expenses?
a)
Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance
b)
Money saved from his paycheck for emergencies, interest paid on his car loan, and his tax refund from filing last year’s tax return
c)
The scholarship he receives for studying Chinese at the local community college, his car insurance payment, and stock dividends he received from his grandmother
d)
Clothing he purchased for a job interview, tuition for a class he is taking at the local community college, and interest from his savings account
38.
Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered that they have a net gain. What does this mean and what should they do?
a)
Amanda and Marcus are spending more money than they are earning. They need find a way to balance their income and expenses by spending less on noncontractual expenses.
b)
Amanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses.
c)
Amanda and Marcus are spending more money than they are earning. One of them should consider getting a second job for a time to help boost their income.
d)
Amanda and Marcus are earning more money than they are spending. They should increase spending for noncontractual items to bring their income into balance with the expenses.
39.
Erin and her mother are putting together an Income and Expense Statement for Erin to use as she applies for a college scholarship. Which income source does she not need to include for this statement?
a)
Interest earned on her savings account
b)
Money she received from her grandparents for her birthday
c)
Social Security income her mother is receiving for her since her father died of cancer last year
d)
Taxes she paid based on her income last year
40.
Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which statement is not true about spending plans?
a)
Spending plans are used to record planned income.
b)
Spending plans are used to record planned expenses.
c)
A spending plan includes items not usually included when creating a budget.
d)
When creating a spending plan, it is recommended that one examines trade-offs and opportunity costs.
41.
When is your spending plan complete?
a)
When you have allocated all your income into categories for the month
b)
When you have all of your current income and expenses recorded
c)
Spending plans are always under revision so they are never complete.
d)
Spending plans are complete each December 31st as one year ends and another year begins.
42.
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his noncontractual expenses. Which of his expenses best fit that category?
a)
Cell phone bill, gasoline, and car payment
b)
Internet bill, entertainment, and clothing
c)
Motorcycle payment, food, and cell phone bill
d)
Gasoline, food, and entertainment
43.
If expenses were to exceed income on a spending plan, what would be a financially smart solution?
a)
Decrease expenses
b)
Use a credit card more often
c)
Earn less income
d)
Increase purchases
44.
Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his first step?
a)
Decide what income and spending categories would reflect his values, needs, and wants.
b)
Decide how much money he can spend for each of the bills he pays each month.
c)
Track his current income and expenses—if he has already created an Income and Expense Statement then he has completed this step.
d)
Develop a control system that will work with his life style.
45.
Individuals with more formal educational training usually have:
a)
higher estimated lifetime earnings.
b)
lower personal satisfaction.
c)
greater amounts of leisure time.
d)
more comfortable work environments.
46.
Which statement is not true?
a)
Most people have several careers throughout their lifetime.
b)
Jobs are paid positions.
c)
People can develop human capital in a variety of ways.
d)
Transferable skills can be applied to many personal and professional roles.
47.
One’s lifestyle is to their standard of living as present is to:
a)
past.
b)
recent.
c)
future.
d)
gift.
48.
Miranda is working to develop a broad base of transferable skills. This means that she:
a)
needs to maintain at least a part time job during the school year.
b)
should use her available hours outside of school for paid employment rather than volunteering.
c)
will not have as much time to develop her human capital.
d)
will have a set of versatile skills that she can apply to many personal and professional roles.
49.
Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice?
a)
Completing your college degree is the best way to prepare for a career.
b)
Education pays in higher earnings and lower unemployment rates.
c)
Human capital and transferable skills result from formal training.
d)
Investing in yourself too early can lead to a lower standard of living.
50.
Jose has been challenged by his academic advisor to develop some human capital this school year. Which activity would be the least effective way to reach that goal?
a)
Spend additional time playing video games to further develop his eye-hand coordination.
b)
Volunteer to pick up trash along the roadsides.
c)
Attend a workshop on a topic he has little knowledge of.
d)
Ask his employer if there are any new tasks at work that he might be assigned.
51.
An example of a transferable skill is a skill:
a)
used in your job that you acquired through past jobs, volunteering, hobbies, school sports, or other life experiences.
b)
that can only be used in an individual’s job or career.
c)
that each employer requires you to learn.
d)
that is learned at one job and is required at other jobs as well.
52.
Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her:
a)
salary.
b)
human capital.
c)
family.
d)
interest inventory.
53.
In order to make an informed career decision, a high school student will want to:
a)
commit to a profession that requires a college degree.
b)
choose a career that offers the amount of money desired.
c)
develop personal goals, complete a career assessment, and research careers.
d)
choose a training program that will guarantee employment after the course work is completed.
54.
Zoe has been assigned by her school counselor to complete a career assessment. Which statement best describes why her counselor has suggested she do this?
a)
Her counselor wants Zoe to find a career that will provide a high level of income to support Zoe’s lifestyle and well-being.
b)
Her counselor wants Zoe to match her skills, abilities, interests and values with a list of specific occupations.
c)
Her counselor wants Zoe to conduct interviews with people in her area of interest to determine if she truly enjoys the career she wants to prepare for.
d)
Her counselor wants Zoe to search for a career that will allow occupational flexibility and provide for possible career advancement as she gains more experience working in her selected career.
55.
Joanna has arranged to complete a job shadow with a physical therapist to decide if this is a career she wants to pursue. Which of her concerns is she most likely to have answered as a result of her job shadow?
a)
The future outlook for physical therapy jobs
b)
The amount of money physical therapists earn
c)
Common tasks and typical daily activities
d)
Opportunities for advancement in the career
56.
Career assessments help to identify:
a)
the job an individual should have if he/she wants high well‐being.
b)
positions available in a particular occupation.
c)
fastest and slowest growing careers in a particular occupation.
d)
possible career areas related to one’s interests.
57.
Which statement would not be true about the value of career research?
a)
Everyone values different aspects of an occupation. One person might value the flexible schedule a particular job offers and another might care more about the amount of training that a career might require.
b)
Current job availability and the outlook for future employment are as essential to consider as whether you have the skills, interest and abilities to pursue a particular career.
c)
Opinions from different people working in the occupation should be considered before ruling out a particular career.
d)
There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree.
58.
David plans to apply for college in 2 years. His guidance counselor suggested that he begin adding items to a College/Training application folder. Which items would not be helpful as additions to this folder?
a)
Copies of awards and achievements he earns
b)
A list of all the extracurricular activities he gets involved in
c)
A resume of all community service and volunteer work he is actively involved in
d)
Copies of his elementary and middle school report cards
59.
Erin has been in college for 2 years and has decided that the major she has been studying is not for her. Changing her major and/or her college could result in:
a)
a well-rounded college degree.
b)
the need for backward planning.
c)
losing credits for classes she has already taken.
d)
remediation courses to make up for the change in majors.
60.
When Charles received his college placement test results, he is informed that he will need remediation in math. Which situation is not true of Charles’ situation?
a)
Charles will need to take at least one course because he is not college-ready.
b)
Since the remedial courses Charles must take will not count toward his degree, he needs to take the courses but tuition is not charged.
c)
Charles should have taken a placement test earlier in high school so he could strengthen his academic skills before heading for college.
d)
Remediation courses do not count toward his degree program so he may need to take extra credits and his college degree may take longer to complete.
61.
Which statement is true regarding college-level expectations for studying and completing projects?
a)
It is best to study alone in a quiet environment.
b)
Plan backward from major deadlines.
c)
Multitasking during study time develops the important skill of working while being distracted, so it is okay to message with friends or watch TV while studying.
d)
The busier your schedule gets, the more important it is to write down only the most critical tasks to be done. Wasting time writing down smaller details is not recommended.
62.
As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is the least important one to consider at this point?
a)
What kind of training and education do I need and how much will it cost?
b)
Is there a career pathway available if I continue my education and training?
c)
Can I get the education and training I need near where I currently live?
d)
Will a job be available and will I earn enough in my career to pay for the education and training it requires?
63.
Mallory has set a career goal of becoming a veterinarian but does not have the money to complete this goal without taking out very large student loans. She decides to attend a 2‐year program to become a veterinary technician, and then work for 3 years in that field while she saves money for her remaining 2 years of college and veterinary school. Mallory’s plan is known as a/an:
a)
career pathway.
b)
opportunity cost.
c)
debt‐to‐income ratio.
d)
SMART goal.
64.
It is recommended that one's educational loan payments require no more than 10–15% of one's estimated starting income. What should a student consider in order to calculate this amount?
a)
Opportunity cost
b)
Career pathway
c)
Benefit
d)
Debt-to-income ratio
65.
The money one would have earned if she/he had worked instead of continuing her/his education is called the:
a)
debt-to-income ratio.
b)
opportunity cost.
c)
benefit.
d)
total estimated cost.
66.
Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he wants to explore ways he can receive money he won’t have to repay. Which set of options should he explore?
a)
Federal Perkins Loans, PLUS loans, and local bank loans
b)
Federal Student Grants, PLUS loans, and scholarships
c)
Pell Grants, work-study, and scholarships
d)
Work-study, scholarships and PLUS loans
67.
Carson’s family has always struggled financially due to his parents leaving high school before graduating and working lower paying jobs to support the family. His parents do not want him to make the same mistake and are encouraging him to apply for scholarships and any type of student aid he might qualify for. Which application will determine which type of need-based aid he will qualify for?
a)
Perkins Federal Loan Application
b)
Direct Subsidized Stafford Loan Application
c)
Federal Work Study Application
d)
Free Application for Federal Student Aid (FAFSA)
68.
Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?
a)
He could be denied credit cards, car or home loans, or apartment leases.
b)
The bank could refuse to allow him to open a checking account.
c)
He may not be able to obtain a marriage license.
d)
His wages may be garnished.
69.
Direct Subsidized Stafford Loans offer some features that are different when compared to borrowing money from a bank to pay for college. Which is not a difference between a Direct Subsidized Stafford Loan and a typical bank loan?
a)
Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time.
b)
Stafford loans have deferment options.
c)
Stafford loans typically have a grace period.
d)
Student families must complete a FAFSA (Free Application For Federal Student Aid) in order to apply for a Stafford loan.
70.
When Rob graduated from college, he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the U.S., Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy, but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. Rob’s parents asked him what employee benefits his employer was providing. Which would be considered an employee benefit?
a)
Monthly salary
b)
Location within walking distance of his apartment
c)
Paid sick leave
d)
Travel opportunities
71.
Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and Indianapolis’ Cost of Living Index is 125, which is true?
a)
Susan will have more spending power if she moves to Indianapolis.
b)
Susan will have more spending power if she stays in Kansas City.
c)
Susan will have the same spending power in Indianapolis as she has in Kansas City.
d)
There is not enough information to decide.
72.
Steven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called:
a)
employee benefits.
b)
job perks.
c)
work incentives.
d)
competitive hiring practices.
73.
The average cost of basic necessities, such as housing and food for a particular city is called the:
a)
standard of living.
b)
lifestyle.
c)
cost of living.
d)
economy of living.
74.
To be considered for lifelong employment a person must continually maintain their employability. Which of these actions will not help maintain employability?
a)
Maintain high standards in honesty, reliability, and punctuality.
b)
Adjust your actions to be appropriate for different situations you find yourself in, because you realize that what is appropriate in social situations is not necessarily appropriate in the work environment.
c)
Continue to learn by taking classes and striving for continual improvement on the job.
d)
Seek ways to blend your personal and professional images online to enable current and future employers to see that you have a varied and interesting life both in and outside of work.
75.
Sarah learned in her Financial Education class that she needs to consider the cost of living when comparing job offers. Which is the most important consideration?
a)
How much she will spend in moving expenses to relocate to the city where her new job is
b)
The average cost of basic necessities, such as housing and food in the city where her new job is
c)
The total value of the benefits package she will be offered in her new job
d)
The total amount of her college costs compared to the salary she is being offered in her new job
76.
When Rob graduated from college, he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the U.S., Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy, but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. When Rob compared the Cost of Living Index for the city he currently lives in with the city where the other job was located, the index for his city was 106 and the index for the other city was 78. Which statement is most likely to be true?
a)
Rob chose his current job because the Cost of Living Index indicated that it would be cheaper to live in his current city than it would have been in the other city.
b)
Rob chose his current job for reasons other than a lower cost of living.
c)
The cost of relocating to the other city increased the cost of living there so Rob chose to live in his current city.
d)
Even though the job in the other city offered a higher salary, it wasn’t enough to make up the difference for that city’s higher cost of living.
77.
Gross income – deductions =
a)
Social Security
b)
Medicare
c)
net income
d)
employee benefits
78.
Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob’s net pay on his paycheck?
a)
$501.66
b)
$363.32
c)
$576.92
d)
$640.00
79.
Jamie has elected to be paid by direct deposit at her new job. This means:
a)
she will receive her paycheck mailed directly to her each pay period.
b)
she will receive her pay directly into her checking account at her depository institution for each pay period.
c)
she will receive her pay automatically loaded onto her payroll card at the end of each pay period.
d)
she will receive her paycheck delivered directly to her at her place of employment at the end of each pay period.
80.
Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be true?
a)
Federal income tax, state income tax, social security, and medicare deductions are all required deductions.
b)
Federal income tax, state income tax, workers compensations, and life insurance are all required deductions.
c)
Social security, Medicare, life insurance, and health insurance are all required deductions.
d)
Social security, Medicare, federal income tax, and workers compensation are all required deductions.
81.
Shannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount?
a)
Net Income
b)
Hours and Earnings
c)
Employer Contributions
d)
Gross Income
82.
Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer will not be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement is most likely to be true?
a)
Hunter will not need to pay taxes on the income from his summer job because the total amount he will earn is under the amount required for federal tax deductions.
b)
It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so.
c)
Hunter will need to pay his federal and state taxes on his own, since his employer is not paying these required taxes for him.
d)
Hunter’s employer is doing him a favor by offering to pay him in cash. Hunter will potentially earn more by this method of payment.
83.
Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob’s gross pay on his paycheck?
a)
$501.66
b)
$320.00
c)
$576.92
d)
$640.00
84.
The most secure method for an employer to pay employees is to use:
a)
direct deposit.
b)
a payroll card.
c)
a printed paycheck.
d)
in-store credit.
85.
The regular schedule that employers use to pay their employees is called the:
a)
worker’s compensation.
b)
pay period.
c)
employee benefits.
d)
employer contributions.
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