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WorksheetsPersonal Finance Review 2
Total questions: 45
Worksheet time: 1hrs 5mins
Name
Class
Date
1.
Which of the following is the best use of credit?
a)
You can't buy everything you want on your current income.
b)
You have a credit card with a low interest rate.
c)
You want to purchase something now instead of having to wait to use it.
d)
You can take advantage of a sale price that is lower than the normal cost of the item plus your cost of credit.
2.
Which of the following is NOT an advantage of credit?
a)
acquire valuable assets
b)
allows consumers to take advantage of sales
c)
interest increases the costs of purchases
d)
useful in an emergency
3.
What is credit?
a)
the ability to borrow money
b)
a type of card used to get money from a checking account
c)
a useful tool for borrowing more money that you can afford to repay
d)
a way to borrow money that is only used by businesses and the government
4.
Which is an example of a "real" investment?
a)
a new house
b)
piggy bank
c)
savings account
d)
stock mutual fund
5.
What does "Pay Yourself First" mean?
a)
a person spends money on goods and services and saves whatever is left over at the end of the month
b)
a person decides to invest their money and then put their profit into savings
c)
a person borrows money from the bank in order to start a savings account
d)
a person saves before spending money on goods and services
6.
What is a plan for saving and spending?
a)
a budget
b)
a checking account
c)
a savings account
d)
a will
7.
When an individual invests money in bank accounts, certificates of deposit, or mutual funds, it is called
a)
a checking account.
b)
a financial investment.
c)
a real investment.
d)
risking one's savings.
8.
Joshua wants to purchase stocks with the money he received from this tax return. Who would he contact to make the transaction?
a)
A real estate agent
b)
A brokerage firm
c)
The New York Stock Exchange
d)
Joshua should complete this transaction on his own
9.
What is inflation?
a)
The rise in the general level of prices
b)
The projected value of an investment at the end of a specified time frame
c)
The uncertainty about the return on an investment
d)
The number of times something happens to money
10.
A bond is:
a)
a share of ownership in a company
b)
a type of debt that a company issues to investors for a specified period of time
c)
a type of investment tha is only offere by depository institututions
d)
a type of investment that has the potentioal for significant fluctuations over a short period of time.
11.
Which statement is true of mutual funds?
a)
Mutual funds are diversified investments
b)
Mutual funds are speculative investments
c)
Mutual funds are superior purchasing to single stock
d)
Mutual funds are a form of real estate investmenet.
12.
What federal legislation requires employers of 50 or more employees to give 12 weeks of unpaid leave for the birth or adoption of a child?
a)
Taft-Hartley Act
b)
Labor Management Relations Act
c)
National Labor Relations Act
d)
Family and Medical Leave Act
13.
A company allowance for full-time employees whereby they are paid even though they are absent for a set number of days is called
a)
profit sharing
b)
leave of absence
c)
sick pay
d)
retirement plan
14.
A technique for training employees to be efficient in more than one specialized are is called
a)
core time period
b)
job rotation
c)
flextime
d)
job sharing
15.
A decision made by a neutral third party is called
a)
lobbying
b)
seniority
c)
collective bargaining
d)
mediation
16.
Amounts, both required and optional, subtracted from gross pay are called ______.
a)
deductions
b)
vested
c)
incentive
d)
seniority
17.
Yearly pay, or salary , is also known as _______ pay.
a)
incentive
b)
annual
c)
vested
d)
seniority
18.
Profit sharing is a way to encourage employees to do more and better work, and is known as a(n) __________.
a)
lobbying
b)
seniority
c)
gross pay
d)
incentive
19.
A group of people working in the same or similar occupations, organized for the benefit of all, is a(n) _________.
a)
Association
b)
collective bargaining
c)
lobbying
d)
labor union
20.
The major function of unions is ________, which is the process of getting together with employers to negotiate an employment contract.
a)
to collect dues
b)
collective bargaining
c)
lobbying
d)
strike
21.
The principle of _________ states that the person who has worked the longest should be the last to be laid off.
a)
seniority
b)
lobbying
c)
incentive
d)
collective bargaining
22.
The total or agreed-upon rate of pay or salary is called
a)
gross pay
b)
net pay
c)
incentive
d)
lobbying
23.
A person is ______ when he or she is entitled to an account balance when employment is terminated.
a)
job sharing
b)
incentive
c)
lobbying
d)
vested
24.
James received his first medical bill of the year. It was a total of $1,000. His health insurance policy has a $500 deductible and a 20% co‐insurance. How much of the medical bill will James be responsible to pay?
a)
$0, insurance will cover the entire medical bill
b)
$500
c)
$600
d)
$700
25.
What is the difference between property and liability insurance?
a)
Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people.
b)
Property insurance pays for loss to other people whereas liability insurance pays for loss to the insured person.
c)
The difference between property and liability insurance depends on the specific insurance policy purchased.
d)
The difference between property and liability insurance depends on whether automobile, homeowners, or renters insurance is purchased.
26.
A rental agreement is often referred to as:
a)
a lease.
b)
an amenity.
c)
renters insurance.
d)
a mortgage.
27.
Chad has decided to rent an apartment and is gathering information to be sure he has enough money saved for all the expenses when he moves in. His landlord explained to him that he would need to pay a refundable fee to cover any potential damages that might occur while Chad is living in the apartment. This fee is called the:
a)
rental agreement.
b)
down payment.
c)
amenities.
d)
security deposit.
28.
Rent is defined as:
a)
the cost of using someone else’s property.
b)
the fee charged for performing property management tasks.
c)
an advance payment for costs beyond normal wear and tear.
d)
the purchase price of a housing unit.
29.
Shelby is working on her spending plan and would like to spend less on her food for 6 months as she saves toward purchasing a more reliable vehicle. As she makes her plan, which factor would be leastimportant to consider?
a)
How much time she has available to prepare food
b)
The skills she has acquired for preparing meals
c)
The nutritional value of the foods she purchases
d)
Her personal preferences
30.
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
31.
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.
32.
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.
33.
Shown on your net worth statement are things you own, known as
a)
Liabilities
b)
Net Worth
c)
Assets
d)
Net Income
34.
A written promise to pay on a specified date
a)
implied
b)
legally collectible
c)
mutual assent
d)
promissory note
35.
Which are options to pay for college that does NOT have to be paid back?
a)
Federal Perkins Loans, PLUS and local bank loans
b)
Federal Student Grants, PLUS Loans, and scholarships
c)
Pell Grants, Work-study, and scholarships
d)
Works-study, Scholarships, and PLUS Loans
36.
Steven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called:
a)
employee benefits
b)
job perks
c)
work incentives
d)
competitive hiring practices
37.
Erin has been in college for 2 years and has decided that the major she has been studying isn't for her. Changing her major and/or college could result in:
a)
a well-rounded college degree.
b)
the need for backward planning.
c)
losing credits for classes she has already taken.
d)
remediation courses to make up for the change in majors.
38.
Ones lifestyle is to their Standard of Living as present is to:
a)
past
b)
recent
c)
future
d)
gift
39.
Individuals with more formal educational training usually have:
a)
higher estimated earnings
b)
lower personal satisfaction
c)
greater amounts of leisure time
d)
more comfortable work environments
40.
Jose has been challenged by his academic adviser to 'develop some human capital' this school year. Which activity would be the LEAST
effective way to reach the goal?
effective way to reach the goal?
a)
Spend additional time playing video games to further develop his eye-hand cooordination.
b)
Volunteer to pick up trash along the roadsides.
c)
Attend a workshop on a topic he has little knowledge of.
d)
Ask his employer if there are any new tasks at work that he might be assigned.
41.
An example of a transferable skill is a skill:
a)
used in your job that you acquired through past jobs, volunteering, hobbies, school sports, or other life experiences.
b)
that can only be used in an individual's job or career.
c)
that each employer requires you to learn.
d)
that is learned at one job and is required at other jobs as well.
42.
A tax on property such as land, houses, or cars.
a)
Sales tax
b)
Excise tax
c)
Property tax
d)
Income tax
43.
A tax on items purchased in retail stores.
a)
Property tax
b)
Sales tax
c)
Income tax
d)
Excise tax
44.
Organizations that exist for human service, conservation, religious, or other charitable purposes to benefit others. These organizations are not required to pay taxes.
a)
Government
b)
Non-profits
c)
Commercial businesses
d)
Colleges and Universities
45.
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 adviser 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
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