WorksheetsCH 8 Personal Finance
Total questions: 40
Worksheet time: 40mins
Name
Class
Date
1.
Intentional misrepresentation of a material fact is called
a)
duress
b)
mistake
c)
undue influence
d)
fraud
2.
An agreement entered into orally is
a)
enforceable
b)
unenforceable
c)
void
d)
voidable
3.
When your assets are greater than your liabilities, you are said to be
a)
responsible
b)
insolvent
c)
solvent
d)
rich
4.
Which of these is NOT required for a legally binding agreement?
a)
counteroffer
b)
agreement
c)
consideration
d)
capacity
5.
The price, which may be in the form of money, a promise, or a performed act, is known as a(n)
a)
offer
b)
acceptance
c)
competent parties
d)
consideration
6.
When a person changes the terms of an offer, she or he has made a(n)
a)
agreement
b)
acceptance
c)
counteroffer
d)
exchange
7.
Which of these is a liability?
a)
car
b)
car loan
c)
stereo
d)
savings account
8.
The IRS can audit your tax returns for a period of ______ year(s), except in the case of fraud, where there is no limit.
a)
one
b)
three
c)
six
d)
ten
9.
A personal property inventory is most commonly used for
a)
proof of loss from fire, theft, or property damage
b)
a car loan application
c)
a credit car application
d)
an employment application
10.
The most common purpose for a net worth statement is
a)
fire-loss proof
b)
damage report
c)
loan or credit application
d)
employment application
11.
A house payment and utilities are examples of
a)
income
b)
fixed expenses
c)
variable expenses
d)
investments
12.
Lunches, medical bills, personal care items, and clothing are all examples of
a)
inocme
b)
fixed expenses
c)
variable expenses
d)
investments
13.
Most financial experts agree that families should set aside at least ______ percent of their disposable income each pay period.
a)
10
b)
15
c)
20
d)
25
14.
A major reason for financial planning is to prevent careless spending.
a)
True
b)
False
15.
To prepare your personal budget, you should first list sources of money you expect to receive, known as income.
a)
Ture
b)
False
16.
Receipts and documents showing income and expenses should be kept in a safe place because they are proof or evidence to use in the event of an audit.
a)
True
b)
False
17.
When your assets are not greater than your liabilities, you are said to be solvent, which is a good financial position.
a)
True
b)
False
18.
A written agreement between two or more persons is known as an implied contract.
a)
True
b)
False
19.
Minors are not considered competent parties to enter into an agreement, unless they are married.
a)
True
b)
False
20.
A promissory note is an example of a negotiable instrument.
a)
True
b)
False
21.
When a person is a minor, the missing element to a valid contract is called offer and acceptance.
a)
True
b)
False
22.
A co-signer is not responsible for your debt if you fail to pay.
a)
True
b)
False
23.
Original document, such as insurance policies and wills, should be kept in a safe deposit box.
a)
True
b)
False
24.
An electronic filing system allows you to store important information on disks.
a)
True
b)
False
25.
Fixed expenses do not change; variable expenses change according to needs and short-term goals.
a)
True
b)
False
26.
Net worth is calculated by subtracting your variable expenses form your fixed expenses.
a)
True
b)
False
27.
An express agreement can only be written.
a)
True
b)
False
28.
A(n) _______ program sets information into charts where numbers and words can be visualized and used.
a)
negotiable instrument
b)
implied
c)
spreadsheet
d)
net worth
29.
The word _______ means legally collectible.
a)
negotiable
b)
co-signer
c)
contract
d)
assets
30.
The person to whom a negotiable instrument is made payable is called the ________.
a)
co-signer
b)
disposable income
c)
maker
d)
payee
31.
The person who creates and signs a promissory note is called the ________.
a)
maker
b)
payee
c)
co-signer
d)
variable
32.
A person who promises to pay the debt of another person is a(n) __________.
a)
maker
b)
co-signer
c)
payee
d)
assets
33.
A(n) _______ is a document that is a written order to release or issue money, the most common of which is a check.
a)
assets
b)
negotiable instrument
c)
liabilities
d)
net worth
34.
___________ are persons who are legally able to give sane and intelligent consent and are legally capable of entering into contracts.
a)
competent parties
b)
maker
c)
payee
d)
co-signer
35.
An orderly program for spending, saving, and investing the money you receive is known as a(n) __________.
a)
financial plan
b)
budget
c)
assets list
d)
liabilities list
36.
Money you have to spend as you wish - after all required deductions - is known as ________.
a)
financial plan
b)
disposable income
c)
net worth
d)
consideration
37.
A(n) _______ is an organized plan whereby you match your expected income with expenses and savings.
a)
warranty
b)
database
c)
budget
d)
maker
38.
A(n) _______ is a statement about a product's qualities or performance that the seller assures the buyer are true.
a)
budget
b)
warranty
c)
contract
d)
consideration
39.
Expenses that may change according to needs and short-term goals are called ____ expenses.
a)
consideration
b)
implied
c)
fixed
d)
variable
40.
Amounts of money owed to others, also know as debts.
a)
assets
b)
liabilities
c)
variable
d)
fixed
100 %
