WorksheetsFinance Review
Total questions: 50
Worksheet time: 50mins
Name
Class
Date
1.
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
2.
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.
3.
One’s lifestyle is to their standard of living as present is to:
a)
past.
b)
recent.
c)
future.
d)
gift.
4.
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.
5.
Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?
a)
Short‐term goal
b)
Long‐term goal
c)
Mid‐term goal
d)
This is not an example of a goal.
6.
Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice?
a)
Completing your college degree is the best way to prepare for a career.
b)
Education pays in higher earnings and lower unemployment rates.
c)
Human capital and transferable skills result from formal training.
d)
Investing in yourself too early can lead to a lower standard of living.
7.
Erica is an active member of the Silver Cord program at her school. Through this program, she commits to completing at least 25 hours of community service each year of high school. Her advisor has encouraged her to explore volunteering with nonprofit organizations. Which would qualify as a nonprofit?
a)
An extracurricular activity in her school
b)
The local private daycare center
c)
Big Brothers/Big Sisters
d)
Her elderly neighbor who needs yard work done
8.
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 and expenses recorded
c)
Spending plans are always under revision so they are never complete.
d)
Spending plans are complete each December 31st as one year ends and another year begins.
9.
In which scenario should renters insurance be considered?
a)
Steve and Teri have purchased a home in a rural area.
b)
Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home.
c)
Zach and Leah have rented an apartment in an urban area.
d)
Don and Denise are landlords for several rental properties.
10.
Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and Indianapolis’ Cost of Living Index is 125, which is true?
a)
Susan will have more spending power if she moves to Indianapolis.
b)
Susan will have more spending power if she stays in Kansas City.
c)
Susan will have the same spending power in Indianapolis as she has in Kansas City.
d)
There is not enough information to decide.
11.
Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?
a)
He could be denied credit cards, car or home loans, or apartment leases.
b)
The bank could refuse to allow him to open a checking account.
c)
He may not be able to obtain a marriage license.
d)
His wages may be garnished.
12.
The Equal Credit Opportunity Act (ECOA) gives all credit applications the same basic _______________. A lender may not use race, nationality, age, gender, marital status, age, and certain other factors to discriminate against you.
a)
tax
b)
ability
c)
rights
d)
credit limit
13.
The smallest percentage of the outstanding balance that must be paid each month
a)
debt
b)
annual percentage rate
c)
credit limit
d)
minimum payment
14.
The maximum amount of purchases you can charge to a card
a)
debtor
b)
annual percentage rate
c)
credit limit
d)
minimum payment
15.
Giving up something in exchange for something else is also known as...
a)
Opportunity Cost
b)
Opportunity bargain
c)
Money Management
d)
Fiscal cost
16.
Money management is using a combination of priorities and...
a)
Short term goals
b)
Long term goals
c)
proactive spending
d)
reactive spending
17.
A document that shows shows your overall financial standing is known as a
a)
Cash Flow Statement
b)
Personal Balance Sheet
c)
Personal financial statement
d)
personal balance statement
18.
A personal balance statement shows a person's
a)
current debt
b)
current assets
c)
net worth
d)
net wealth
19.
This is something that can quickly be converted to cash
a)
Liquid Asset
b)
Liability
c)
Debt
d)
Real Estate
20.
Why do you have to file for taxes every Spring.
a)
You don't
b)
To figure out if you have to pay more for taxes or if you paid to much
c)
To show proof that you had a job
d)
To show changes to your address/life to the government
21.
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)/ 403 (b)
c)
Checking Account
d)
savings
22.
This term refers to the original amount of a loan OR the original amount of money invested.
a)
Principal
b)
Interest
c)
Rebate
d)
Fixed Rate
23.
Interest and other fees that come from credit. I.E. the total dollar amount you pay to use credit.
a)
Credit
b)
Debit
c)
Finance Charges
d)
OTHER
24.
Ownership in a company, used to raise funds for a company. Higher risk than some investments, but also the chance of a higher return.
a)
Stocks
b)
Bonds
c)
Mutual Funds
d)
CDs
25.
Carlton is injured while working at a retails store. Which type of insurance in MOST LIKELY to provide benefits while he is temporarily out of work?
a)
Life Insruance
b)
Disability Insurance
c)
Property Insurance
d)
Automobile insurance
26.
The income that results from saving money in a bank is called
a)
Wages
b)
Rent
c)
Interest
d)
Dividends
27.
Which of the following is MOST likely to cause wages to increase for United States workers
a)
An increase in interest rates
b)
An increase in the value of the dollar
c)
An increase in worker productivity
d)
An increase in retirement rate among United States workers
28.
Who is hurt MOST by unanticipated inflation?
a)
Savers at a fixed rate of interest
b)
Borrowers at a fixed rate of interest
c)
Workers with a union cost-of-living adjustment in their contracts
d)
speculators in gold and other precious metals
29.
Ken makes $50,000 per year and Kirby makes $30,000 per year. Ken pays a higher average tax rate on his income than Kirby. This infers that taxes on income are
a)
Regressivde
b)
Proportional
c)
Progressive
d)
Marginal
30.
The main difference between a credit union and a commercial bank is that
a)
Only commercial banks offer checking account services to its members
b)
Commercial banks make loans, but don't offer checking or savings account services
c)
Credit unions don't make home and car loans, wheras commercial banks do make home and car loans
d)
Credit unions are only available to specific customers, but commercial banks are available to everyone
31.
Credit worthiness is MOST AFFECTED by
a)
Whether or not ones owns a house
b)
Payment history on current loans
c)
Job history showing many different types of jobs
d)
The amount of funds currently available in a savings account
32.
Eric has $2,000 that he wants to place in a savings account. He has researched two accounts, and both accounts pay 3.5% interest. Account X pays simple interest. Account Y pays compound interest. Eric should choose
a)
Account X because it would pay tax free interest
b)
Account Y because it would pay interest on interest
c)
Account X because the interest rate would increase over time
d)
Account Y because the interest rate would decrease over time.
33.
Alicia owns a home in the suburbs. If a neighbor wrecks an automobile in Alicia's yard and damages property, Alicia is protected from financial loss by
a)
The neighbor's automobile liability policy
b)
The neighbor's property insurance policy
c)
Alicia's disability insurance policy
d)
Alicia's automobile liability policy
34.
Principal = $350.
Interest rate = 2.5%
TIme = 3 years.
How much simple interest?
Interest rate = 2.5%
TIme = 3 years.
How much simple interest?
a)
$7.50
b)
$26.25
c)
$87.5
d)
$262.50
35.
What is a beneficiary?
a)
When an insurance company makes money off of a client
b)
Someone who gets free health insurance
c)
The person receiving the insurance money after someone dies
d)
A child staying on his parent's insurance plan
36.
An increase in sales tax has a larger negative effect on
a)
A higher income groups that have large discretionary spending
b)
People with incomes that change according to prices
c)
Workers getting paid in foreign wages
d)
Low income groups that buy only essential items each month
37.
a good example of the effect of education on income would be that
a)
Workers who learn to make a high demand products
b)
only job applicants with high school diplomas get job interviews
c)
People with college degrees usually earn more than those with less education
d)
Employees who learn to perform high risk jobs always get paid more
38.
A request for payment for a loss is called a
a)
coverage
b)
deductiible
c)
claim
d)
benefit
39.
Credit may not be denied because
a)
you are not employed
b)
you receive public asistance
c)
your work is temporary
d)
you have filed for bankruptcy in the past
40.
Premiums for underemployment compensation are usually paid by
a)
employees
b)
employers
c)
government
d)
private health insurance companies
41.
If the regular rate of pay is $8.00 an hour, and overtime pay is 1 1/2 times the regular rate, what is the gross pay for a 47-hour workweek?
a)
$404
b)
$320
c)
$324
d)
$400
42.
Goals that you would expect to complete in the next few months or years?
a)
Short-term
b)
Long-term
c)
Intermediate
d)
None
43.
Which of the 4 basic automobile coverage is usually required by state law?
a)
Collision
b)
Comprehensive
c)
Liability
d)
Personal Injury
44.
Which of the following debts is not erased by bankruptcy?
a)
Mortgage
b)
Payments
c)
Student Loans
d)
Credit card purchases
45.
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.
46.
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.
47.
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
48.
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
49.
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
50.
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
100 %
