WorksheetsPersonal Finance Review 3
Total questions: 50
Worksheet time: 32mins
Name
Class
Date
1.
Compound interest is best defined as:
a)
Interest earned on the principal investment
b)
Any form of interest earned from saving or investing
c)
Earning interest on interest
d)
The effect interest has on the total return on investment
2.
When a goal has been set to save $100.00 a month for an emergency fund of $2000.00,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.
Which is not true in regards to investing in stock?
a)
A stockholder owns a part of a company
b)
A stockholder may or my not receive a dividend
c)
A stockholder will always receive profit when the stock is sold
d)
Depending upon the current market price, stodholders may pay differenet prices fo the soame sto
4.
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
5.
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
6.
In relation to the rate of inflation, it is best to have the rate of return on an investment:
a)
lower, in order to minimize taxes
b)
higher, to minimize risk
c)
lower, in order to minimize risk
d)
higher, to maintain purchasing power.
7.
Eli is looking for an investment that is structured to have tax benefits. He should look for information on:
a)
tax-advantaged investments
b)
index funds
c)
tax-rated bonds
d)
speculative investments
8.
Which statement is true with regard to paying taxes on investments?
a)
Since investments are considered unearned income, taxes do not have to be paid on earnings
b)
Taxes only have tot be paid on employer-sponsored investment accounts
c)
Taxes are always paid on investments either when the money is placed in the investment or removed from the investment
d)
Taxes are often owed on profits generated from investments
9.
A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.
a)
certificate of deposit
b)
savings account
c)
money buried in backyard
d)
a savings jar
10.
The percentage of increase in the value of savings from earned interest
a)
rate of return
b)
deficit
c)
annual percentage yield
d)
surplus
11.
The process in which interest is earned on both the principal and any previously earned interest
a)
compounding
b)
none of these
c)
rate of return
d)
annual percentage yield
12.
Which item is the least liquid?
a)
real estate
b)
$100 cash
c)
savings account
d)
$50 in pennies
13.
A company that is registered by a state and operates apart from its owners
a)
corporation
b)
sole proprietorship
c)
partnership
d)
cooperative
14.
Ability to easily convert financial resources into cash without loss of value
a)
liquidity
b)
values
c)
future value
d)
present value
15.
Ways in which people make, distribute, and use their goods and services is called
a)
the economy
b)
opportunity costs
c)
goals
d)
none of these
16.
Provides income over a specific period when a person is ill, physically or mentally disabled and unable to work. Most disability policies end at retirement
a)
Health
b)
Car
c)
Valuable Item
d)
Disability
17.
Provides financial protection to dependents of policy owners when the policy owner dies
a)
Disability
b)
Life
c)
Auto
d)
Homeowners
18.
Provides payment for certain healthcare costs including coverage for dental and vision
a)
Health
b)
Disability
c)
Auto
d)
Valuable Item
19.
Provides financial protection against losses caused by an auto accident or other damages to your car
a)
Homeowners
b)
Auto
c)
Renters
d)
Disability
20.
Tax levied by the government on a person’s income at the state or local level
a)
Property Tax
b)
Sales Tax
c)
Income Tax
d)
Sin Tax
21.
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
22.
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
23.
Employee benefits packages:
a)
Are non-wage compensations provided to employees in addition to their normal wages or salaries
b)
Should not be a consideration when looking for a job
c)
Never include retirement plans
d)
Are the same regardless of the company you work for
24.
The most secure method for an employer to pay employees is to use:
a)
direct deposit
b)
payroll card
c)
printed paycheck
d)
in‐store credit
25.
Shannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount?
a)
Net Income
b)
Hours and Earnings
c)
Employer Contributions
d)
Gross Income
26.
What is NOT an example of a durable good?
a)
Automobile
b)
Cell phone
c)
Food
d)
Clothing
27.
A rental agreement is often referred to as:
a)
a lease
b)
an amenity
c)
renters insurance
d)
a mortgage
28.
When making food decisions, which of the following is most likely to be least expensive?
a)
convenience foods
b)
fast food restaurants
c)
ready‐to‐eat foods
d)
full‐service restaurants
29.
What is the difference between fixed and variable expenses?
a)
Variable expenses are required to create a budget, while fixed expenses are not
b)
Fixed expenses are required to create a budget, while variable expenses are not
c)
Fixed expenses do not fluctuate like variable expenses
d)
Fixed expenses fluctuate, unlike variable expenses
30.
A pre-established amount that can be borrowed
a)
Space of Credit
b)
Credit Limit
c)
Balance Due
d)
Line of Credit
31.
What are the taxes that get taken out of your check?
a)
SS, Medicare, state Withholding, Federal withholding
b)
Sales tax, Property tax, Income tax
c)
SS, Property tax, State Withholding, Sales Tax
d)
All of the Above
32.
A special endorsement allows:
a)
The check to be transferred to another person
b)
Anyone to deposit the check
c)
The check to be deposited in a certain account
33.
What does the "S" in SMART stand for?
a)
Smart
b)
Simple
c)
Specific
d)
Sudden
34.
A __________ is a policyholder's formal request to the insurance company for payment of losses.
a)
policy
b)
claim
c)
coverage
policyholder
policyholder
d)
premium
prremium
prremium
35.
The amount of money that policyholders must pay toward their own covered expenses before the insurance company pays any of the costs is known as _______________.
a)
deductible
b)
provisions
c)
claim
co-insurance
co-insurance
d)
exclusions
36.
___________ pays a portion of your salary if you are unable to work because of illness or injury.
a)
Major Medical Insurance
b)
Basic Hospital Insurance
c)
Disability Income Insurance
d)
Workers Compensation
37.
A renters insurance policy provides _______ and _______ coverage.
a)
physical damages & liability
b)
personal property & liability
c)
personal property & real proerty
d)
liability & real property
38.
Which of the following is a common Internet scam in which an e-mail is sent from someone posing as your bank or other legitimate business asking for personal information?
a)
phishing
b)
hacking
c)
ponzi scheme
d)
pigeon drop
39.
Software or a hardware device that filters information coming in to your computer is called a(n)
a)
phishing net
b)
hacker
c)
firewall
d)
identity saver
40.
The amount of money a person has to spend after needs are met is called
a)
net cash flow
b)
discretionary income
c)
net worth
d)
disposable income
41.
Which of the following would NOT be included in a person's list of assets?
a)
$13,000 car loan
b)
$300 cash on hand
c)
$5,000 dinette set
d)
$1,000 savings account
42.
Sherry as $31,565 in total assets and owes $13,565 on her car loan and credit cards. What is Sherry's net worth?
a)
$18,000
b)
$45,130
c)
$428,179,225
43.
An all-purpose credit card, such as Visa, MasterCard, and Discover, is an example of which type of credit?
a)
30-day credit agreement
b)
revolving credit agreement
c)
closed-end credit
d)
service credit
44.
Credit that can be used again and again (as long as the balance owed does not exceed the limit) is called ____
a)
installment
b)
open-ended
c)
closed-end
d)
contract
45.
A method to make regular saving easier is ____
a)
savings accounts
b)
certificates of deposit
c)
automatic payroll deducation
d)
money market accounts
46.
What is the first step in budgeting?
a)
Record what you spend
b)
Estimate your income
c)
Set financial goals
d)
Review and evaluate monthly
47.
Credit union and commercial bank deposits of up to $250,000 are insured by what government backed program?
a)
FED
b)
NCU
c)
FDIC
d)
NAACP
48.
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
49.
Which statement is TRUE about Payroll Taxes?
a)
Payroll taxes are paid are paid on both earned and unearned income.
b)
Payroll taxes fund different operations and programs of the federal government.
c)
Payroll taxes fund the Social Security and Medicare programs.
d)
The amount of tax paid depends on many different factors but increases as income increases.
50.
Employment opportunities for Jackie and David are limited, but they both have jobs earning just a bit more than minimum wage. Which federal program will encourage them to file a tax return by offering a financial incentive to them?
a)
Social security
b)
TANF
c)
SNAP
d)
Earned income tax credit
100 %
