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WorksheetsAOF: CTE Review (Financial Literacy)
Total questions: 60
Worksheet time: 1hrs 1mins
A credit union...
is a financial institution that focuses on taking deposits and using them to fund mortgages.
is a non-profit institution owned by its members and provides financial services to its members.
offers a broad range of deposit accounts and gives loans to individuals and businesses.
is a financial institution for students only.
Casey is 21 and in college. She wants a credit card to order items online. Her mother offers to let Casey use her card, but Casey would like one in her own name. What is the advantage of having it in her own name?
She will get a finance charge with a lower APR.
She can get discounts on goods.
If she pays her bills promptly, she is establishing a good credit history.
She will be given more time to pay her bills.
If the demand for software engineers increases more rapidly than for office clerks, what would you expect to happen to the average pay for the two occupations?
The relative pay for the two occupations would not change.
The pay for software engineers will go up, and the pay for office clerks will not change and may even fall.
The pay for software engineers will go up relative to the pay for office clerks.
The pay of office clerks will go up relative to software engineers.
If someone tells you about an investment that had a return averaging 25% per year, how risky is this investment likely to be?
Not very risky at all
About as risky as the average stock
About as risky as a savings account
Much riskier than most stocks
Rachel has found a great apartment that costs $800 per month. To move in, her new landlord requires the first month's rent in advance, plus a damage deposit equal to a month's rent. If she signs a year's lease and does no damage to the apartment, which of the following will be true?
She must pay $800 before moving in and will get back $1,000 when she moves out.
She must pay $1,600 before moving in and gets back $800 when she moves out.
She must pay $1,000 before moving in and will get it back when she moves out.
She must pay $800 before moving in and will get it back when she moves out.
Caleb has decided to invest $1,000 in a bond that has a return rate of 6%. Use the Rule of 72 to determine how many years it will take for his original investment to double.
36 years
12 years
72 years
60 years
When you buy a consumer durable good, such as a new refrigerator, and the person making the sale keeps trying to sell you an extended warranty on the product, what does that tell you?
It is never a good idea to buy an extended warranty.
It is always a good idea to buy an extended warranty.
The store is probably making a big profit on the extended warranty because it costs much more than the estimated costs of repairs.
The salesperson is always looking out for the benefit of the customer.
Lauren has a $200 annual deductible on her health insurance. By the end of 2023, she had paid $175 in medical expenses. On January 4, 2024, she went to the doctor for the first time that year and was charged $60 for an office visit. How much of that must she pay herself?
$100
None
$25
$60
What is the primary purpose of life insurance?
To pay back our parents for the money they spent on us if we die.
To help maintain the standard of living of those who depend on our income, such as our spouse and children.
To pay us an income if we are injured and can't work.
To help save money for old age.
As soon as a new car leaves the dealership, its value decreases and is considered 'used.' This is due to what?
Use tax
Amortization
Depreciation
Finance charges
Joey is single and had earnings of $90,000 last year. Identify his tax bracket.
22%
24%
10%
32%
Academy Baseball Hats had a very profitable year. The company decided to share the profits with its shareholders. The money Academy Baseball Hats sent to its shareholders is called:
A transfer payment
Interest
Rent
A dividend
_____ is the application for federal and state grants, work-study, and student loans.
Scholarships
FAFSA
Boko Grant
Bobcat Cares
What keeps our finances safe?
Budgeting
Not Paying for Them
Insurances
Consumer Protection Laws
A plan for using money is called a ___________
loan
savings
income
budget
Money you receive before taxes is called:
gross income
net income
pay day
bank loan
Money you receive after taxes is called:
gross income
net income
salary
pay day
How can a credit cardholder avoid paying interest?
Do not pay anything
Make the monthly minimum payment
Pay the balance within one year
Pay the balance in full every month
Tyler worked 24 hours last week. At a rate of $15 per hour, what was Tyler's gross pay?
$15
$295
$360
$312
A type of loan that always has the same interest rate.
Adjustable Rate
Mortgage
Fixed Rate
FICO
The time when no interest is charged on a credit card is known as the 'Grace Period'. During this time, if the balance is paid in full, no interest will be charged on new purchases.
FICO
Grace Period
Collateral
Adjustable Rate
The first time the stock of a private company becomes available to the public.
Secondary Market
IPO
NASDAQ
Capital
A(n) _______ lists a business's assets compared to its liabilities and equity.
Business Plan
Cash Flow Statement
Income Statement
Balance Sheet
Business Plan
Cash Flow Statement
Income Statement
Balance Sheet
This market index is seen as the leading indicator of the U.S. economy.
NYSE
NASDAQ
S&P 500
FTSE
Why is it important to have insurance?
To protect others from your mistakes
To protect your assets from claims by others
Guard against financial loss that cannot be predicted
All of these are correct
What is the name for the portion of a claim that you must pay before the insurance coverage kicks in?
Premium
Benefit
Contracted amount
Deductible
If you do not own your home, which type of insurance should you purchase to cover your personal belongings (contents)?
Renters Insurance
Liability Insurance
Homeowners Insurance
Life Insurance
Insurance designed to pay for the repair or replacement of a car in the event of damage not resulting from an accident.
total coverage
comprehensive coverage
liability
replacement coverage
Payment made to have insurance
premium
deductible
liability
coverage
A 401(k) is...
An employer-sponsored retirement plan where contributions are tax-deferred. This means that the money you contribute is not taxed until you withdraw it, usually during retirement.
A budgeting method where you record your earnings twice; once in your account and once in your budget.
Measures the performance of the 30 largest companies traded on the New York Stock Exchange.
Dow Jones
S & P 500
IPO
NASDAQ
A collection of financial assets
Portfolio
Return
Maturity
Par value
Yield
Sarah received an email asking her to confirm her credit card information. She clicked the link, where it asked for her name, social security number, and credit card number. The site looked legitimate. Soon after, she received a credit card bill with several purchases she did not make. This is an example of...
Stealing
Hacking
Pretexting
Phishing
Amortization is paying off debt with a __________ repayment schedule in regular installments, such as with a mortgage or car loan.
fixed
variable
differentiated
fluctuating
You got paid $200 for babysitting and deposited it into your bank account. How is this recorded by your bank?
Credit
Debit
What is the main difference between a W-2 and a W-4 form?
A W-2 form is used to apply for jobs, while a W-4 form is used for tax purposes.
A W-2 form is for reporting annual wages and the amount of taxes withheld, while a W-4 form is used to determine the amount of taxes to withhold.
A W-4 form is used to report tips, while a W-2 form is used to report salaries.
There is no difference; they are used interchangeably.
Which of the following is a characteristic of a progressive tax system?
Everyone pays the same tax rate, regardless of income.
Lower-income earners pay a higher percentage of their income in taxes.
Higher-income earners pay a higher percentage of their income in taxes.
Taxes are only applied to sales and purchases.
"Assets = Liabilities + Equity" can be displayed on which financial statement?
Balance Sheet
Income Statement
Statement of Owner's Equity
Neither
What financial term describes the total value of a company's outstanding shares of stock?
Market Capitalization
Equity Value
Asset Total
Revenue
Which auto insurance would cover damages to your car in an accident?
Comprehensive
Collision
Bodily Injury
Property Liability
What type of auto insurance coverage will cover someone keying your car
Collision
Comprehensive
Property Liability
Bodily Injury
A formal request made by the insurance policyholder to the insurance company for payment or services covered by the insurance policy.
Claim
Accident
Premium
Coverage
You are unable to work for one year and need income to pay for living expenses.
Life
Disability
Health
Liability: Automobile
Property: Homeowners
Renter’s insurance is purchased by the ________.
Landlord
Tenant
Property manager
What is the term for the interest rate that remains the same throughout the life of a loan?
Fixed Rate
Fluctuating Rate
Variable Rate
Adjustable Rate
Which financial document summarizes a company's revenues and expenses over a specific period?
Balance Sheet
Cash Flow Statement
Equity Statement
Income Statement
What is the term for the amount of money a borrower must pay back in addition to the principal of a loan?
Interest
Dividend
Premium
Capital
