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WorksheetsPersonal Finance
Total questions: 56
Worksheet time: 58mins
Name
Class
Date
1.
This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.
a)
compound
b)
sinking
c)
annual
2.
Cost of credit expressed as a yearly percentage
a)
Mortgage
b)
Principal
c)
APR
d)
Finance company
3.
The cost of borrowed money, usually expressed as a percentage.
a)
interest
b)
savings plan
c)
scarce
d)
purchase
4.
Amount of money originally borrowed
a)
Mortgage
b)
Principal
c)
Annual percentage rate (APR)
d)
Finance company
5.
401(k), IRA, and Roth IRA are all examples of a __________ account.
a)
Retirement
b)
College Savings
c)
Low Interest
d)
Stock
6.
What does CD stand for when talking about investments?
a)
Calculated Dividend
b)
Certificate of Deposit
c)
Central Dollar
d)
Current Deposit
7.
A mutual fund allows investments to be ___________.
a)
Secured
b)
Guaranteed
c)
Diversified
d)
Minimal
8.
Because mutual funds spread your investment around in multiple stocks and bonds, they are a great example of this term
a)
diversification
b)
overdraft
c)
debt
d)
beneficiary
9.
This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income. Sometimes employers will even match the employee contribution up to a certain amount.
a)
mutual fund
b)
401(k)
c)
Roth IRA
d)
savings
10.
A ____ is a debt or investment instrument that acts like an IOU for specified amount of time, during which the issuer makes regular interest payments/the investor receives regular interest payments.
a)
budget
b)
bond
c)
copay
11.
The average U.S. household has about $________ in credit card debt.
a)
$5,000
b)
$10,000
c)
$15,000
d)
$25,000
12.
In general, the higher the potential return on an investment, the riskier the investment.
a)
True
b)
False
13.
If a bank pays 3% interest on savings, how much interest will it charge for loans?
a)
3%
b)
less than 3%
c)
more than 3%
d)
the discount rate
14.
the money paid by the borrower to the lender for the use of the lender's money
a)
interest
b)
savings plan
c)
scarce
d)
purchase
15.
The amount of money you make per year
a)
Monthly income
b)
Annual income
c)
Monetary
16.
A financial intuition that is owned and operated by members to provide savings accounts and low interest loans is a
a)
Savings and loan
b)
Credit union
c)
Commercial bank
d)
Savings bank
17.
Some credit companies lure people into signing up by
a)
Offering low initial APR’s
b)
Offering debit and credit cards
c)
Linking up with commercial banks
d)
Engaging in heavy advertising
18.
Based on the table, how long would it take you to pay off you $1,000 credit card balance if you make the minimum required payment each month?
a)
7 years, 8 months
b)
3 years, 3 months
c)
2 years, 1 month
d)
1 year, 6 months
19.
Something of value used to secure a loan
a)
Finance charge
b)
Unsecured loan
c)
Collateral
d)
Interest
20.
According to the graph, which of the following expenses would be included in the highest consumer spending category?
a)
Movie tickets
b)
A new jacket
c)
Gas for your car
d)
Apartment rent
21.
Which of the following can increase net worth?
a)
Stocks
b)
Credit card debt
c)
Mortgage
d)
Business loan
22.
Suppose you are male and you are thinking about quitting high school before you graduate. Based on the averages in the table, about how much lower will your income be than if you decided to finish high school?
a)
a. $5,517
b)
b. $11,251
c)
c. $8,433
d)
d. $14,155
23.
Installment debt owed on houses, buildings, or land
a)
Mortgage
b)
Principal
c)
Annual percentage rate (APR)
d)
Finance company
24.
Cuby's truck has sat in the front yard for years. He originally paid $2000 for it. Someone drives by and offers him $1000. This is an example of
a)
Capital gain
b)
Capital loss
c)
Inflation
d)
Interest
25.
Buying things to feel better is an example of
a)
disposable income
b)
risk management
c)
impulse buying
d)
dividend
26.
profit earned by an investor is called
a)
dividend
b)
return
c)
collateral
d)
warrantee
27.
the inability to pay one's debts
a)
disposable income
b)
bankruptcy
c)
warranty
d)
dividend
28.
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
29.
When a goal has been set to save $100.00 a month for an emergency fund of $2,000.00, giving up food from the vending machine to achieve that goal is the:
a)
opportunity cost.
b)
interest.
c)
specific part of the SMART goal.
d)
trade-off.
30.
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
31.
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.
32.
As part of Nicholas’ new job, his employer will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as:
a)
government programs.
b)
household production.
c)
coverage.
d)
employee benefits.
33.
Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?
a)
Carrying 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 picture ID”
c)
Giving account numbers over the Internet rather than over the phone
d)
Using credit cards for all her purchases so she only needs to pay one bill each month
34.
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)
35.
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.
36.
Jake’s credit application has been declined because of his negative credit history. Which is most likely to be true?
a)
Jake pays his bills consistently and on time.
b)
Jake has applied for 4 credit cards and a car loan in the past 6 weeks.
c)
Jake has received 3 traffic tickets in the past 2 months.
d)
Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.
37.
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.
38.
Medicare is provided by the federal government for individuals in specified circumstances. In which of the situations below would the individual most likely be receiving Medicare funds?
a)
Jim is a 37-year-old man who lost his job and is unable to afford health insurance for himself or his children.
b)
Ivan is 60 years old and was injured at work. His employer needs to provide temporary income for him.
c)
Rachel is a seventeen-year-old high school student who is pregnant and needs assistance with her medical expenses.
d)
Rosie is 67 years old and in need of a health insurance program.
39.
What is a 401K?
a)
A savings plan offered by banks to help you buy a home
b)
A plan to help you save for college
c)
A retirement savings plan for self employed individuals
d)
A retirement savings plan usually offered by your employer
40.
What is a pension?
a)
A retirement plan offered by companies to employees that work for them over a long period of time
b)
A fund that self employed individuals set up to save for retirement
c)
A penalty for withdrawing funds from a retirement account early
d)
All of the above
41.
What are 401K funds and pension funds different?
a)
If a company goes out of business, employees lose their pension.
b)
If a company goes out of business, the employee still owns their 401k fund
c)
You own your 401k. The company owns the pension fund.
d)
All of the above
42.
Who can invest in a 403 B?
a)
Anyone over the age of 21
b)
Medical, Non-Profit, and School System Employees
c)
Married, filing jointly, and earning less than $150,000 per year
d)
All of the above
43.
Which is a good reason why you should borrow against your 401K?
a)
To pay for college tuition
b)
For emergencies
c)
For a down payment on your first home
d)
Never, ever, for any reason, borrow against your 401k
44.
How can you be prepared for financial emergencies?
a)
You can't, just deal with it
b)
Have a 401K that you can borrow against
c)
Have a good credit card with a high limit
d)
Have an emergency fund of at least $500
45.
Which of the following sources of income would NOT be counted as part of an individual's gross income?
a)
child support payments received
b)
tips
c)
sales of assets
d)
revenue from rental properties
46.
The deadline for filing your federal tax return each year is _____.
a)
January 1st
b)
December 15th
c)
March 15th
d)
April 15th
47.
Federal income taxes, state income taxes, and Social Security withholdings are all ____.
a)
payroll taxes
b)
sales taxes
c)
real estate taxes
d)
capital taxes
48.
The federal government does not impose a sales tax.
a)
True
b)
False
49.
The total amount you earn before any deductions are subtracted is called __________ pay.
a)
Bonus
b)
Gross
c)
Incentive
d)
Net
50.
Some deductions are required by law, but others are optional.
a)
True
b)
False
51.
Which of the following is not a required deduction?
a)
Federal Income Tax
b)
Savings Deposits
c)
State tax
d)
Social security Tax
52.
A full time job is generally ___ hours per week.
a)
35
b)
37
c)
40
d)
42
53.
Annual salary is the amount of money you are paid..
a)
Monthly
b)
Semi-Monthly
c)
Bi-Weekly
d)
Yearly
54.
24 pay periods; twice a month
a)
semimonthly
b)
monthly
c)
biweekly
d)
weekly
55.
12 pay periods
a)
monthly
b)
semimonthly
c)
weekly
d)
biweekly
56.
How much you make in a year
a)
Gross Income
b)
Net Income
c)
Annual Salary
d)
Commission
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