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WorksheetsPersonal Finance Exam
Total questions: 67
Worksheet time: 34mins
Name
Class
Date
1.
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 shpped 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
2.
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 that his teacher suggested to him
b)
an activity that makes him lose track of time
3.
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 writes her goals down
4.
Erica wants her class project to reflect her values. Which items would be best to include
a)
Things that reflect her dundamental beliefs about what is worthwhile and important to her
b)
Things that are unnecessary but desired which increase the quality of her life
5.
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
6.
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
7.
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 he is 70 years old
b)
never - it is an ongoing process
8.
Which is likely to have the LEAST influence on an individual's values
a)
religious affiliations
b)
grade average
9.
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)
long-term
b)
unrealistic
10.
Ian has been shopping for a different vehicle for the past several months. He needs something reliable and would 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 they 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?
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.
11.
Austin 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 neglected to deduct the amount required to pay income and payroll taxes.
b)
Austin's employer made a mistake calculating the number of hours Austin worked during his first pay period.
12.
Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:
a)
the combined total of his savings and checking accounts.
b)
the balance on his credit card.
13.
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)
A spending plan includes items not usually included when creating a budget.
b)
When creating a spending plan, it is recommended that one examines trade-offs and opportunity costs.
14.
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
15.
Erin and her mother are putting together an Income ana 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)
social security income her mother is receiving for her since her father died of cancer last year
b)
taxes she paid based on her income last year
16.
Amanda and Marcus finished theirIncome/Expense Statement for last month. They discovered they have a net gain. What does this mean/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 .
17.
Which would most likely be considered a contractual expense?
a)
cell phone
b)
food
18.
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
19.
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 net worth is higher than Samantha's
b)
Samantha, because her annual income is higher than Maggie's.
20.
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
21.
Gross income - deductions =
a)
net income
b)
employee benefits
22.
Miranda is working to develop a broad base of transferable skills. This means that she :
a)
will not have as much time to develop her human capital.
b)
will have a set of versatile skills that she can apply to many personal and professional roles.
23.
which statement is not true
a)
most people have several careers throughout their lifetime
b)
jobs are paid positions
24.
To be considered for lifelong employment a person must continually maintain their employability. Which of these actions will not help maintain employability?
a)
Continue to learn by taking classes and striving for continual improvement on the job .
b)
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.
25.
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
26.
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
27.
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
28.
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)
losing credits for classes she has already taken
29.
Hunter got a job by a local mechanic who will pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money 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 true?
a)
Hunter will need to pay his federal and state taxes on his own, since his employer is not paying these required taxes for him.
b)
Hunter's employer is doing him a favor by offering a to pay him in cash. Hunter will potentially earn more by this method of payment
30.
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)
employer contributions
b)
gross income
31.
31. Employment opportunities for Jackie and David are limited, but they both have jobs earning just a bit more than minimum wage . Which federal program will encourage them to file a tax return by offering a financial incentive to them?
a)
SNAP
b)
Earned income tax credit
32.
Erica is an active member of the Silver Cord program at her school. Through this program, she commits to completing at least 25 hours of community service each year of high school. Her advisor has encouraged her to explore volunteering with nonprofit organizations. Which would qualify as a nonprofit?
a)
Big Brother / Big Sisters
b)
her elderly neighbor who needs yard work done
33.
Which federal program assists low-income families in purchasing nutritious foods?
a)
SNAP
b)
TANF
34.
Medicare is provided by the federal government for individuals in specified circumstances . n which of the situations below would the individual most likely be receiving Medicare funds?
a)
Rachel is a seventeen-year-old high school student who is pregnant and needs assistance with her medical expenses.
b)
Rosie is 67 years old and in need of a health insurance program.
35.
Due to unexpected circumstances, Ariel is temporarily receiving income from a government assistance program. The funds she receives through the government program are most likely funded by :
a)
taxes at th elocal, state, and federal levels
b)
donations from large corporations
36.
Alyssa's childcare provider called to tell her that the provider's young daughter woke up ill and she won't be able to care for Alyssa's son today. Alyssa 's friend, who is a stay-at-home mother, agrees to care for A lyssa 's son so Alyssa can go to work. Alyssa has utilized:
a)
family child care
b)
social capital
37.
37. Steven is moving into his first apartment in a few weeks and has been busy packing.In addition to the things he has purchased with money earned from his full-time job, his parents have told him that he can take the furniture in his bedroom and his bedding when he moves out. His parents are providing him w ith which type of income?
a)
gift income
b)
in-kind income
38.
Julie is a single mother who recently lost her job. She would like to obtain training in the medical field in order to increase her future income and support her two children.In order to do this, she will need help paying some of her expenses while she is going back to school. Which government program might offer her assistance to help with living expenses and job training?
a)
TANF
b)
Medicare
39.
Diana has faced the fact that she and her family need to explore assistance programs they might qualify for during the time she must be off work following an accident. How might she and her family locate an appropriate program?
a)
go to www.govbenefits.gov on the web
b)
inquire at the local food pantry
40.
Which statement is true of government assistance programs?
a)
Government programs were designed to provide permanent assistance to those in need.
b)
The ultimate goal of government programs is to help individuals become self-sufficient and independent
41.
Alisa is looking for an investment that is structured to have tax benefits. She should look for information on:
a)
index funds
b)
tax-advantaged investments
42.
Which is a feature of a certificate of deposit (CD)?
a)
Funds deposited in a CD are held for a certain length of time.
b)
Funds deposited in a CD have tiered interest rates.
43.
Which correctly describes the security level of savings tools?
a)
Savings tools are not secure because they have a high risk of losing money.
b)
Savings tools are secure because they are protected by the U.S. government against loss.
44.
Brett plans to save money toward purchasing a car. His coworker is telling him about a money market account he has that offers a tiered interest rate. What is Brett's coworker talking about?
a)
The amount of money he earns depends on the balance, i.e. the higher the account balance the higher the interest rate he would earn.
b)
The amount of money he earns depends on the number of accounts he has at the depository institution, i.e. the more accounts he has, the higher interest rate he will earn.
45.
Which is not true with regard to investing in stock?
a)
A stockholder may or may not receive a dividend.
b)
A stockholder will always receive a profit when the stock is sold.
46.
The most common relationship between risk and return in investing can be stated as :
a)
higher risk indicates lower return
b)
higher risk indicates higher return
47.
Which is a feature of a money market deposit account?
a)
tiered interest rates
b)
the money must remain in the account for a specific period of time
48.
Compound interest is best defined as
a)
earning interest on interest
b)
the effect interest has on the total return on investment
49.
Kaylee's Personal Finance class has been discussing the importance of understanding liquidity and she is trying to explain the term to another student. Which statement is the most correct description of liquidity?
a)
How quickly and easily an asset can be converted into cash
b)
The amount of savings available
50.
A bond is
a)
a type of debt that a company issues to investors for a specified period of time
b)
a share of ownership in a company
51.
Patty recently moved into a new apartment with her friend Emma. Who is responsible for purchasing renter's insurance?
a)
Patty and Emma's parents
b)
Patty and Emma
52.
Which is an act of identity theft
a)
receiving permission to use a parents' credit card for school clothes
b)
wrongfully acquiring and using someone's personal identification
53.
0 Perry would like to purchase a new car. What should he consider first in the planned buying process?
a)
Research different sellers to determine where to purchase the car from
b)
Evaluate the opportunity cost and trade-offs to purchasing the car
54.
Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is shopping online?
a)
use a debit card
b)
use a credit card
55.
The financial counselor that Ariel consulted about her use of credit recommended that she keep her use of credit within safe boundaries. Ariel's financial counselor most likely told her to :
a)
keep the total amount of money she has borrowed, not including her house, under 20% of her net income.
b)
keep the total amount of money she has borrowed, not including her house, under 40% of her net income.
56.
David earns $5,000 per month at his accounting job. He has a student loan payment of $120, a car loan of $300. Which statement is true?
a)
David's student loan payment is within the safe range but his car loan is not.
b)
David's credit payments are w ithin the safe range I for someone with his income.
57.
Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?
a)
Ca rrying all credit cards in her wallet so they do not get lost
b)
signing the back of her card with her signature and "Please see pictureID"
58.
Paxten is purchasing a new phone online. What is the best tip he should consider to do so safely and maximize his satisfaction?
a)
review shipping and return policies in advance
b)
purchase a warranty
59.
Paying the minimum payment on a credit card every month will:
a)
pay a large percentage of the total balance owed every month.
b)
make the final amount paid substantially higher than the amount initially charged to the card.
60.
Edward wants to develop a positive credit history. How should he do this?
a)
Maintain reasonable amounts of available credit
b)
Have one type of credit account
61.
What is the most appropriate type of giving at the following life cycle stages?
a)
School children host a book fair and donate sales to the March of Dimes.
b)
A CEO of a company suggests that his employees go paperless and not print out quarterly reports.
62.
Planned giving can occur through
a)
estate planning activities
b)
buying girl scout cookies on the way out of the grocery store
63.
Which statement would be true in MOST states
a)
teens under the age of 18 may writer their own will, but it may not be a legal document
b)
teens under the age of 18 may not write their own will
64.
Which is NOT considered part of the steps of estate planning
a)
family information
b)
selling off assets
65.
healthy giving occurs when
a)
someone decides to write a check for another
b)
an individual wants to give back and the result is positive emotions for both the giver and receiver
66.
advocacy is
a)
a wish list developed by nonprofit organizations
b)
the act or process of writing or speaking out in favor of or about a cause
67.
Which question does not represent a topic that teens should ask parents and guardians about estate planning?
a)
"How much money do you have in your checking .,, \ account?"
b)
do you have a life insurance policy
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