WorksheetsMM Pre-assessment
Total questions: 34
Worksheet time: 17mins
Name
Class
Date
1.
Compound interest is interest paid on interest previously earned.
a)
True
b)
False
2.
it is important to build up your credit score (FICO) by taking out credit cards and car loans.
a)
True
b)
False
3.
The purpose of insurance is to transfer risk.
a)
True
b)
False
4.
Opportunity cost is the value of the option you chose to do.
a)
True
b)
False
5.
It is not necessary to record debit card transactions in your check register because accounts are now electronic and available online.
a)
True
b)
False
6.
Medicare and Social Security compose payroll tax called FICA.
a)
True
b)
False
7.
One of the most important factors to consider when choosing a career is income potential.
a)
True
b)
False
8.
One way to protect your identity is to carry your Social Security card in your wallet at all times.
a)
True
b)
False
9.
Mutual funds are comprised of several thousand stocks.
a)
True
b)
False
10.
A Roth IRA is used for retirement savings.
a)
True
b)
False
11.
The rule of 92 is a way to estimate the time or interest rate you’d need to double your money in an investment.
a)
True
b)
False
12.
A written budget will help you identify how and where you spend your money.
a)
True
b)
False
13.
It is not necessary to carry renter’s insurance if you live in a college dorm or don’t have items of high value.
a)
True
b)
False
14.
You are entitled to a free credit report once a year from each of the three major credit bureaus.
a)
True
b)
False
15.
Do not fund your 401(k) if your employer does not offer a match.
a)
True
b)
False
16.
Which of the following statements best explains why income alone does not determine wealth?
a)
a. Investing is the only factor that contributes to wealth building
b)
a. Income alone does determine a person’s wealth
c)
Only people who are natural savers can become wealthy
d)
a. How much money a person makes does not dictate his or her spending and saving behavior
17.
The widespread financial insecurity of Americans is primarily because:
a)
a. The incomes of Americans are low.
b)
a. Government programs are unavailable to help people when they are disabled or experience unemployment.
c)
a. Most Americans save a high proportion of their income.
d)
a. The saving rate of Americans is low and many borrow in order to spend more than they earn.
18.
Which of the following is not one of the three basic reasons for saving money?
a)
Have money available to lend to friends
b)
Build wealth
c)
emergency fund
d)
large purchases
19.
This principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This is due to both the opportunity to earn interest on the money and because inflation will drive prices up, thereby changing the “value” of the money.
a)
interest rate
b)
opportunity cost
c)
inflation
d)
time value of money
20.
Rent is a
a)
fixed expense
b)
variable expense
c)
discretionary expense
d)
intermittent expense
21.
Which of the following account records would have the most current balance?
a)
Your monthly bank statement
b)
Your own account register
c)
account balance from an ATM
d)
all of these will have accurate account balances.
22.
A credit score is intended to measure:
a)
your financial success
b)
your income level
c)
the risk of your not repaying debt
d)
the amount of money you have in the bank
23.
Which of the following things cannot be done with a debit card but can be done with a credit card?
a)
go into debt
b)
purchase an airline ticket
c)
rent a car
d)
purchase something online
24.
Which of the following statements is false?
a)
a. Students who are looking to learn specific skills can look into free or low-cost certifications found online, at community colleges, or through government-funded programs.
b)
a. All high-paying careers require a four-year college degree.
c)
a. An associate’s degree is a two-year degree that can offer specialized training and a flexible schedule that allows you to work while you earn your degree.
25.
When a company places an ad and offers no interest on your purchase for three years:
a)
a. They are showing their appreciation to you by giving you free money
b)
a. The cost of financing is built into the price of the item
c)
a. They are not interested in making a profit
d)
All of the above
26.
What concept is best explained by the statement, “money spent here cannot be spent there?”
a)
law of diminishing return
b)
delayed gratification
c)
opportunity cost
27.
Which of the following statements is false?
a)
a. Using a cost-benefit analysis approach to your buying decisions will make you a wise consumer.
b)
a. Your choices as a consumer have no impact on the larger social environment.
c)
a. In addition to economic savings, wise consumers also enjoy improved health and have a positive impact on the larger social and even global environment.
d)
a. Being a wise consumer involves developing a variety of skills, from product research to careful comparative analysis.
28.
Which statement is true about liquidity?
a)
the more liquid an investment, the less return
b)
the more liquid an investment, the more return
c)
the less liquid the investment, the less return
d)
both a and b
29.
A young investor willing to take moderate risk for above-average growth would be most interested in:
a)
mutual funds
b)
single stocks
c)
real estate
d)
bonds
30.
When buying and selling investments, you should not:
a)
a. Learn the different type of investments
b)
a. Switch your investment strategy often, based on market conditions
c)
a. Understand basic investment strategies and identify ones that will help you reach your goals
d)
a. Set your investment goals and consider a time frame
31.
Employee benefits packages:
a)
a. Are non-wage compensations provided to employees in addition to their normal wages or salaries
b)
a. Should not be a consideration when looking for a job
c)
a. Never include retirement plans
d)
a. Are the same regardless of the company you work for
32.
You are involved in a two-car accident in which you are at fault. The other drive is injured and your insurance covers the medical expense of the victim. This type of insurance coverage is called:
a)
comprehensive
b)
liability
c)
collision
d)
uninsured motorist protection
33.
What's the difference between gross pay and net pay?
a)
net pay describes your pay after deductions; gross pay is before.
b)
a. Gross pay describes your pay after deductions; net pay is before.
c)
a. Gross and net pay are the same.
d)
None of the above
34.
This tax pays for benefits that workers and families receive for either Social Security or Medicare.
a)
Federal Insurance contribution Act (FICA)
b)
sales tax
c)
state income tax
d)
excise tax
100 %
