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WorksheetsPersonal Finance Review Part 2
Total questions: 25
Worksheet time: 49mins
Name
Class
Date
1.
It is recommended that life insurance be purchased when the:
a)
individual reaches the age of 50.
b)
individual flies in an airplane.
c)
individual gets their first job.
d)
individual has dependents.
2.
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.
c)
the well‐being of only the receiver is affected.
d)
someone with limited resources gives all they have to make another happy.
3.
Which is a feature of a money market deposit account?
a)
No minimum balance requirements
b)
Unlimited transactions every month
c)
Tiered interest rates
d)
The money must remain in the account for a specific period of time
4.
Becky no longer wants to use her Clothes-R-Us store credit card. What is the bestthing she could do with the credit card?
a)
File the credit card away for use at a later time.
b)
Let a family member take over the credit account so her credit score will not be affected.
c)
Keep the credit card in her wallet in case she needs proof of identification.
d)
Close the account by phone and in writing, then destroy the card.
5.
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
6.
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.
7.
Compound interest is best defined as:
a)
interest earned on the principal investment.
b)
any form of interest earned from saving or investing.
c)
earning interest on interest.
d)
the effect interest has on the total return on investment.
8.
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
9.
When making food decisions, which is likely to be the least expensive?
a)
Convenience foods
b)
Fast food restaurants
c)
Ready-to-eat foods
d)
Full-service restaurants
10.
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
11.
Brett borrowed money to purchase a vehicle without making a down payment and now he owes more on the vehicle than it is worth. This situation is referred to as:
a)
depreciation.
b)
being upside down on the loan.
c)
leasing.
d)
a hidden cost.
12.
Which would most likely be considered a contractual expense?
a)
Cell phone
b)
Food
c)
Entertainment
d)
Clothing
13.
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.
14.
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.
c)
Savings tools are very secure because there are not risks involved with saving or investing.
d)
None of the above is true. It would be safer to keep the money at home in a shoe box.
15.
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.
16.
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.
17.
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, including her mortgage and her car loan, under 20% of her net income.
b)
keep the total amount of money she has borrowed, including her mortgage and her car loan, under 40% of her net income.
c)
keep the total amount of money she has borrowed, not including her house, under 20% of her net income.
d)
keep the total amount of money she has borrowed, not including her house, under 40% of her net income.
18.
Carson’s wallet with his driver’s license, a debit card, and his credit card has been stolen. Which is not something an identity thief might realistically do with this information?
a)
Rent an apartment under Carson’s name
b)
Use Carson’s name during an arrest
c)
Make purchases with Carson’s credit card
d)
Take a college admissions exam in Carson’s name
19.
The equity that one builds by making mortgage payments is:
a)
the value of the home after the mortgage debt is subtracted.
b)
purchasing a housing unit as rental property.
c)
a home loan where the real estate is collateral.
d)
the amount of money paid on the home at the time of purchase.
20.
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
21.
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
22.
Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?
a)
A brokerage firm
b)
The New York Stock Exchange
c)
A real estate agent
d)
Conner should complete this transaction on his own.
23.
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.
24.
Which federal program assists low-income families in purchasing nutritious foods?
a)
SNAP
b)
TANF
c)
Social Security
d)
Medicare
25.
Evan is writing a scholarship essay about the importance of responsible money management. He wants to explain the meaning of borrowing. Which would explain the importance of understanding the process of borrowing money?
a)
When you are borrowing, you are spending future income.
b)
Borrowing is an important part of a responsible financial plan.
c)
Borrowing strongly affects the present self but has less impact on the future self.
d)
Borrowing builds a strong credit history because it requires individuals to file a credit report.
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