WorksheetsFinancial Literacy Final Exam Review
Total questions: 63
Worksheet time: 55mins
Name
Class
Date
1.
Which of the following is an advantage of using a credit card?
a)
Interest is charged for the use of a credit card.
b)
Consumers can purchase things now, and pay for them later in the event of an emergency.
c)
You could be a victim of identity theft.
2.
Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck. The total amount of money she is able to put in the bank is $75.62. What type of income does this amount describe?
a)
Gross Income
b)
Net Income
c)
Both Gross and Net Income
d)
None of the above
3.
Jonathan's new clothes cost a total of $572.50 before tax. What type of tax does Jonathan have to pay for his new clothes?
a)
Income Tax
b)
Property Tax
c)
Payroll Tax
d)
Sales Tax
4.
Anthony has a new job. He is paid twice a month. He wants to save $720 a year to put toward college. How much money does Anthony need to save from each paycheck?
a)
Anthony should save $30 from each paycheck.
b)
Anthony should save $20 from each paycheck.
c)
Anthony should save $10 from each paycheck.
d)
Anthony should save $5 from each paycheck.
5.
If Sammy’s expenses are greater than his income, what must he do to balance his budget?
a)
Earn more money
b)
Spend less money on expenses
c)
Earn more money AND spend less
d)
None of the above
6.
Which of the following is considered an advantage to using a debit card to make purchases?
a)
Debit cards are convenient and easy to carry around.
b)
Purchases can be made quickly and easily.
c)
You can use many ATMs to get cash.
d)
All of the above.
7.
Amanda has to pay taxes on her annual salary and investments. Which type of tax is Kimberly paying?
a)
Sales Tax
b)
Property Tax
c)
Payroll Tac
d)
Income Tax
8.
_____________ is the money earned for work people do.
a)
resources
b)
interest
c)
unplanned spending
d)
income
9.
When you buy something on ___________ you pay for it later.
a)
credit
b)
interest
c)
income
d)
saving
10.
When you put money aside to use in the future you are ________________ it.
a)
planned spending
b)
credit
c)
charity
d)
saiving
11.
Money you pay when you borrow money, or money you receive for lending money
a)
income
b)
resources
c)
interest
d)
charity
12.
Giving money to help others
a)
credit
b)
saving
c)
spending
d)
charity
13.
The actions of depositing and withdrawing money.
a)
Microtransactions
b)
Saving Money
c)
Transactions
d)
Shoe Laces
14.
To put money into an account.
a)
Deposit
b)
Withdraw
c)
Savings for a chicken
d)
Interest for a cow
15.
What is credit?
a)
Money allocated to a specific account for future use by the consumer without borrowing
b)
Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date
c)
The ability and willingness of an individual to pay back a loan as perceived by the lender
d)
An individual’s character, capital, capacity, collateral and conditions
16.
Amount charged if your payment is received after the billing date
a)
late payment fee
b)
overdue fee
c)
withdrawal fee
d)
loser fee
17.
Benefits of credit cards include:
a)
safe and convenient, bonuses are offered
b)
allows you to build a positive credit report
c)
needed for reservations and online shopping
d)
all of these
18.
Your credit score is not configured off of which of the following:
a)
Payment history
b)
Amount owed
c)
GPA
d)
Length of credit history
19.
What is the starting balance on this check register?
a)
4720.33
b)
4500.00
c)
4500.75
d)
4320.00
20.
What was the balance of the account at the end of the day on 7/24?
a)
4720.33
b)
4320.03
c)
5091.15
d)
4500.75
21.
Besides tuition, most colleges also charge their students for...
a)
room & board
b)
extra fees
c)
books
d)
all of the above
22.
Scholarships and grants are available for many college students, and they...
a)
have deferred payment
b)
give students a job to help pay
c)
don't have to be paid back
d)
have a low interest rate
23.
What degree provides the highest earning potential in pay?
a)
High School Diploma
b)
Associate's Degree
c)
Undergraduate Degree
d)
Master's Degree
24.
Bisbirudolfo bought some clothes at a department store and paid $157.95 for his new clothes. What type of tax does he have to pay for his clothes?
a)
Property tax
b)
Sales tax
c)
Payroll tax
d)
Income tax
25.
What is an advantage to use a debit or a credit card?
a)
They are both accepted in most places as a form of payment
b)
They are both linked to an individual's credit score
c)
There are usually no limits on the amount of money available for purchase
d)
There are usually no fees assessed for using these cards
26.
What defines income tax?
a)
A government tax required on goods and services
b)
A local government tax for real estate based on the value of a property
c)
A tax based on an employee's salary
d)
A tax charged on a person's annual income
27.
Tax collected by the federal government.
a)
Payroll tax
b)
Income tax
c)
Sales tax
d)
Property tax
28.
Homeowners must pay ________ based on the value of their homes.
a)
Property tax
b)
Payroll tax
c)
Sales tax
d)
Income tax
29.
What statement defines gross income?
a)
Gross income is the amount of income after taxes are paid.
b)
Gross income is the amount of taxes paid.
c)
Gross income is the amount of income before taxes are paid
d)
Gross income is the amount of income of buying goods and services
30.
Clodomiro received a paycheck for $685 after taxes and deductions. What type ofincome did Clodomiro receive?
a)
Net income
b)
Gross income
c)
Payroll income
d)
None of the above
31.
What is the name of the summary of transactions made into your bank account?
a)
Bank transaction
b)
Bank account
c)
Bank statement
d)
Bank balance
32.
A disadvantage of paying with a debit card is:
a)
Don't have to carry cash
b)
A thief can steal the card
c)
It's a quick form of payment
d)
It has no disadvantages
33.
Uses money you have in the bank.
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
34.
Cannot be used online
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
35.
Requires a PIN.
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
36.
Charges an overdraft fee if you try to spend more than you have.
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
37.
Can charge interest, late fees, and/or annual fees.
a)
Cash
b)
Debit Card
c)
Credit Card
d)
Check
38.
Has the risk of fraud.
a)
Cash
b)
Debit/Credit Card
c)
Online Banking
d)
All of them
39.
a)
A: Personal Check
b)
B: Debit Card
c)
C: Cash
d)
D: Credit Card
40.
a)
A: Personal Check
b)
B: Debit Card
c)
C: Cash
d)
D: Credit Card
41.
payment for goods and services, what you spend
a)
Income
b)
taxes
c)
expenses
d)
credit card
42.
when your expenses and Income are equal
a)
net income
b)
gross income
c)
balanced budget
d)
great
43.
A bill you pay that is always the same amount is called...
a)
fixed income
b)
fixed expense
c)
variable income
d)
variable expense
44.
A bill you pay that isn't always the same amount, isn't always a necessity, or changes amount based on usage is a...
a)
savings account
b)
fixed expense
c)
variable expense
d)
payroll tax
45.
My house payment is the same every single month. This is an an example of a....
a)
fixed income
b)
variable expense
c)
fixed expense
d)
profit
46.
Each month I pay around $40 for gas, but it depends on how much I travel and what the gas prices are. This is an example of a...
a)
variable income
b)
savings account
c)
fixed expense
d)
variable expense
47.
Something that you pay is called....
a)
income
b)
an expense
c)
a profit
d)
savings
48.
Will spends $8.00 on what he needs to make hot dogs. If he sells 20 hot dogs for $1.00 each, how much is his profit?
a)
$20.00
b)
$12.00
c)
$10.00
d)
$11.00
49.
When you take the amount of money earned and subtract your expenses you are finding the...
a)
fixed income
b)
profit
c)
savings
d)
taxes
50.
A checking account is:
a)
An account where money can easily be deposited and withdrawn by means of checks, debit cards and ATM transactions.
b)
An interest bearing account where your deposit remains for a set period of time.
c)
A computer program that checks your email account.
d)
Ownership in a company.
51.
Reasons for making a budget include:
a)
To keep track of your income and expenses.
b)
To achieve your long term goals.
c)
To have a spending plan.
d)
All of the above choices are correct.
52.
The lowest amount of money shown on your credit card bill that must be paid every month is called the:
a)
late fee
b)
minimum payment
c)
credit limit
d)
previous balance
53.
How can a cardholder avoid paying interest on a credit card?
a)
. Do not pay anything.
b)
Pay the minimum balance every month.
c)
Pay the minimum payment after the due date
d)
Pay the balance in full every month.
54.
Which situation shows a financially responsible citizen?
a)
Purchasing an expensive automobile you CANNOT afford.
b)
Only buying items that you CAN afford
c)
Throwing money out the window.
d)
Hiding your money under your mattress.
55.
Who has the better credit score?
a)
Monthly income: $1900
Credit Card Payment: $48
Credit Card Balance: 3857
Car Loan Payment: $218
Two late car loan payments
Credit Card Payment: $48
Credit Card Balance: 3857
Car Loan Payment: $218
Two late car loan payments
b)
Monthly Income: $3,300
Credit Care Balance: Pays Full Balance
Student Loan Payment: $100
Credit Care Balance: Pays Full Balance
Student Loan Payment: $100
56.
What is money borrowed that must be repaid, usually with interest?
a)
Loan
b)
Check
c)
Checking account
d)
Debit card
57.
a written record of checks, debits, fees, withdrawals, and deposits for a checking account; it keeps track of money going in and out of a checking account
a)
check register
b)
transaction
c)
debit card
d)
overdraft protection
58.
What is a machine that allows bank customers to deposit or withdraw money without visiting their bank?
a)
ATM (automated teller machine)
b)
Safe deposit box
c)
Credit card
d)
Certificate of deposit (CD)
59.
Car Repair
a)
Fixed Expense
b)
Variable Expense
60.
A fixed expense is something
a)
that will vary month to month.
b)
that will stay the same from month to month.
61.
Savings Account
a)
Asset
b)
Liability
62.
Car (paid off)
a)
Asset
b)
Liability
63.
Credit Card Debt
a)
Asset
b)
Liability
100 %
