NEW
Font size
S
M
L
XL
WorksheetsPersonal Finance-U nit 2 Managing Money
Total questions: 24
Worksheet time: 17mins
Name
Class
Date
1.
A key difference between commercial banks & credit union is that
a)
Commercial Banks are "for profit" & credit unions are "not for profit".
b)
Commercial Banks typically pay higher interest rates than credit unions.
c)
Credit Unions are more commonly located in rural areas, while commercial banks are more commonly located in urban areas.
d)
Commercial banks offer more services, such as debit cards, and online banking, than credit unions.
2.
Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer then her piggy bank. Some students comments were based on myths. Which aspect of security at a depository institution is NOT TRUE?
a)
Information about depositors and their accounts is kept in secure data storage.
b)
Depository Institutions have insurance protection for up to $250,000 per depositor per account type. So if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit.
c)
All money stored at a depository institution is kept safe at all times by numerous security measures.
d)
Depository Institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than $100,000.
3.
Sanjay is concerned about the safety of the money in his savings account. Which type of institution should he choose?
a)
A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC).
b)
A credit union, since his deposits would be insured by the National Credit Union Association (NCUA).
c)
He could safely choose either as long as his savings account balance meets the insurance requirements.
d)
Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.
4.
Savings tool offered by depository institutions may earn interest. Which of the following statements is NOT TRUE about interest?
a)
Interest is the price paid for using someone else's money.
b)
When earning interest, look for low rates.
c)
When paying interest, look for low rates.
d)
The amount of interest earned or paid is determined by the interest rate.
5.
Common fees that may be charged by a depository institution include all EXCEPT:
a)
overdraft fee
b)
late fee
c)
ATM fee
d)
minimum balance fee
6.
David made a mistake in his checking account record-keeping & spent $10 more than he had deposited in his account. As a result, he can expect to be charged a(n)
a)
ATM fee
b)
contact fee
c)
safe deposit fee
d)
overdraft fee
7.
Which statement is TRUE about Payroll Taxes?
a)
Payroll taxes are paid on both earned and unearned income.
b)
Payroll taxes fund different operations & programs of the federal government.
c)
Payroll taxes fund the Social Security & Medicare programs
d)
The amount of tax paid depends on many different facators but increases as income increases.
8.
As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be?
a)
An excise tax on the shirt she purchased.
b)
Property tax on the shirt she purchased.
c)
Income tax on the shirt she purchased.
d)
Sales tax on the shirt she purchased.
9.
Who is Medicare designed to help?
a)
low income families
b)
single parents
c)
senior citizens
d)
children of unemployed parents
10.
Which statement is NOT TRUE about property taxes?
a)
Property tax is often charged by states or local governments to pay for local schools.
b)
The property tax rate is set by the federal government to be equal in every state.
c)
The fee paid to license a vehicle is an example of property tax.
d)
Property taxes are most often paid only twice each year.
11.
Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called ________________ taxes.
a)
sales
b)
excise
c)
federal use
d)
property
12.
Austin has just received his first paycheck. He worked 12 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176.00.His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin's pay is less than he expected to be?
a)
He calculated the hours worked without deducting the hours he spent doing on the job training.
b)
Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
c)
He neglected to deduct the amount required to pay income & payroll taxes.
d)
Austin's employer made a mistake calculating the number of hours Austin worked during his first pay period.
13.
Brett is creating a Statement of Financial Position & 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
14.
To calculate her net worth, Jordan should use the following formula:
a)
Assets-Liabilities=Net Worth
b)
AssetsxLiabilities=Net Worth
c)
Assets+Liabilities=Net Worth
d)
Assets/Liabilities=Net Worth
15.
Maggie earns $62.000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier?
a)
Maggie, because her income minus her net worth is a smaller amount than Samantha's.
b)
Samantha, because her income minus her net worth is a larger amount than Maggie"s.
c)
Maggie, because her net worth is higher than Samantha's.
d)
Samantha, because her annual income is higher than Maggie's.
16.
Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:
a)
the market value of his car
b)
the value of his retirement account
c)
the combined total of his savings & checking accounts
d)
the balance on his credit card
17.
To increase his net worth, Jackson should:
a)
increase his liabilities
b)
decrease his assets
c)
increase his market value
d)
increase his assets
18.
Erin and her mother are putting together an Income & Expense Statement for Erin to use as she applies for a college scholarship. Which income source does she NOT need to include for this statement?
a)
Interest earned on her savings account
b)
Money she received from her grandparents for her birthday
c)
Social Security income her mother is receiving for her since her father died of cancer last year
d)
taxes she paid based on her income last year
19.
Which of the following would most likely to be considered a contractual expense?
a)
cell phone
b)
food
c)
entertainment
d)
clothing
20.
If expenses were to exceed income on a spending plan, what would be a financially smart solution?
a)
decrease expenses
b)
use a credit card more often
c)
earn less income
d)
increase purchases
21.
Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which of the following statement is NOT TRUE about spending plans?
a)
Spending plans are used to record planned income.
b)
Spending plans are used to record planned expenses.
c)
A spending plan includes items NOT usually included when creating a budget.
d)
When creating a spending plan, it is recommended that you examine your trade-offs and opportunity costs.
22.
When is your spending plan complete?
a)
When you have allocated all your income into categories for the month.
b)
When you have all of your current income & expenses recorded.
c)
Spending plans are alwyas under revision so they are never complete.
d)
Spending plans are complete each December 31st as one year ends and another year begins.
23.
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit that category?
a)
cell phone bill, gasoline, and car payment
b)
internet bill, entertainment, and clothing
c)
motorcycle payment, food, and cell phone bill
d)
gasoline, food and entertainment
24.
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 & spending categories wold 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 & expenses. If he 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.
Reset
