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WorksheetsPFL 1st Semester Exam - 1, 2, 3, 4, 7, 8, 9
Total questions: 50
Worksheet time: 2hrs 29mins
Name
Class
Date
1.
What is the opportunity cost of dropping out of school? [PFL#1]
a)
Having interesting hobbies
b)
A wider choice of jobs
c)
Lower future income
d)
Higher future income
2.
Which of the following is NOT a required payroll deduction? [PFL#1]
a)
FICA
b)
State income tax
c)
Health insurance
d)
Federal income tax
3.
John Taxpayer has a gross income of $2823.08 and $892.34 in deductions. How much would John’s paycheck be this month? [PFL#1]
a)
$3,715.42
b)
$1,900.00
c)
$1,930.74
d)
$2,823.08
4.
The BEST description of a budget is a [PFL #1]
a)
financial tool for consumers who have very little money.
b)
set of restrictions on how you can spend your money.
c)
plan for saving and spending your money.
d)
statement of your assets and liabilities.
5.
If you sign a lease on an apartment, your rent is a [PFL #1]
a)
fixed expense
b)
variable expense
c)
fixed income
d)
variable income
6.
When setting long-term goals, [PFL #1]
a)
setting short-term and medium-term goals is not important.
b)
setting short-term goals should be avoided because it takes away from your long-term goals.
c)
they become more important than your short-term goals.
d)
set short-term and medium-term goals as steps to accomplish your long-term goals.
7.
Which of the following do many employers offer as benefits to employees? [PFL #1]
a)
Health insurance
b)
Employee leave
c)
Retirement plans
d)
All of the above
8.
Which of the following statements is TRUE? [PFL#2]
a)
Many people are able to cheat the government and avoid paying taxes by using phony deductions or failing to report their income appropriately.
b)
Taxes paid provide services that impact only quality of life in the United States, not the standard of living.
c)
Everyone who receives a paycheck is required to submit a tax return to the IRS by April 15.
d)
Individuals do not have to pay taxes if they believe it is a violation of their religious beliefs.
9.
People pay taxes for many reasons. Which of the following is NOT one of those reasons? [PFL#2]
a)
controlling how their tax dollars are spent
b)
moral reasons
c)
fear of IRS penalties and imprisonment
d)
civic duty
10.
If you knowingly underpay your taxes, the IRS can impose all of the following EXCEPT
a)
forcing your children to pay your tax burden
b)
assessing a penalty
c)
bringing charges ending in imprisonment
d)
collecting the taxes
11.
The primary purpose of taxes is to [PFL#2]
a)
provide goods and services that are too expensive for people to buy
b)
provide services that improve our quality of life
c)
c. take money from one group and give it to another
d)
d. allow people to have free goods and services
12.
An honor system under which you pay your taxes is called [PFL#2]
a)
corporate compliance
b)
mandatory compliance
c)
individual compliance
d)
voluntary compliance
13.
Which of the following taxes is regressive? [PFL#2]
a)
Where the amount paid depends on income
b)
Federal Income Tax
c)
Oklahoma State Income Tax
d)
Sales Tax
14.
The division of the United States Treasury that is charged with the responsibility of maintaining confidence in and managing the federal tax system is called the [PFL#2]
a)
Department of Justice
b)
Internal Revenue Service
c)
President
d)
Congress
15.
A financial institution that provides compensation in case of a disaster or accident is called a(n) [PFL#3]
a)
bank
b)
insurance company
c)
credit union
d)
investment bank
16.
A stock broker is BEST described as a [PFL#3]
a)
company that provides advice on insurance
b)
business that provides services to others
c)
person who makes loans to people who need to borrow money
d)
person who assists others in buying investments such as stocks and bonds
17.
A company that specializes in home loans is called a(n) [PFL#3]
a)
mortgage company
b)
bank
c)
insurance company
d)
credit union
18.
Financial service providers charge fees to [PFL#3]
a)
take advantage of their customers
b)
offset the cost of low interest rates
c)
make increased profits for their stockholders
d)
cover the cost of providing services to their customers
19.
The primary difference between a debit card and a credit card is credit cards [PFL#3]
a)
charge interest and debit cards pay interest
b)
pay interest and debit cards change interest
c)
charge interest and debit cards directly deduct funds from your account
d)
directly deduct funds from your account and debit cards allow you to buy now/pay later
20.
Which of the following options would provide the GREATEST protection for your coin collection? [PFL#3]
a)
Buying an insurance policy
b)
Burying it in the backyard
c)
Buying a lockbox to keep in the closet at home
d)
Getting a safety deposit box at your bank
21.
The primary difference between a bank and a credit union is [PFL#3]
a)
there is no primary difference between a bank and a credit union.
b)
a credit union provides financial services for individuals and a bank provides financial services for businesses.
c)
a bank is a for-profit financial service provider and a credit union is a non-profit financial service provider.
d)
a credit union provides services to anyone who wants to use it and a bank requires you to have a membership.
22.
Writing a check for insufficient funds (commonly called a “hot check”) [PFL#4]
a)
can be easily avoided if you do not use an ATM.
b)
is impossible as long as you have checks in your checkbook.
c)
can result in expensive fees, fines and even jail time, if convicted.
d)
is really no big deal as long as you pay the fees and cover the check amount.
23.
A check is defined as [PFL#4]
a)
a written document showing the balance in your checking account.
b)
an automated order transferring money from your savings to your checking account.
c)
a written document that allows you to buy goods and services today and pay for them in the future.
d)
a written document ordering a financial institution to transfer money from your account to some else.
24.
The first set of numbers at the bottom of your check are called [PFL#4]
a)
check routing numbers
b)
checking account numbers
c)
deposit numbers
d)
banking numbers
25.
When you receive your monthly bank statement, it is recommended that you [PFL#4]
a)
file it with your other personal records.
b)
use it to reconcile your checking account.
c)
use it to record all of your transactions for the past month.
d)
review it carefully, then shred it before throwing it in the trash.
26.
Reconciling a bank statement is used to [PFL#4]
a)
find your daily account balance.
b)
write down all transactions with your account.
c)
determine if there are any discrepancies in your records.
d)
track all fees paid to your financial institution.
27.
A debit card [PFL #4]
a)
is the same as a credit card.
b)
charges interest on all transactions.
c)
is the same as a check, only in plastic form.
d)
is similar to a check, but delays payments like a credit card.
28.
The PRIMARY purpose of a check or debit card is to [PFL #4]
a)
encourage people to spend more money.
b)
replace cash so the government has a record of your activities.
c)
replace cash so the government does not have to pay to print bills or make coins.
d)
make it easier for people to buy goods and services, pay bills, and make other financial transactions.
29.
Lenders in the United States rely on three primary credit bureaus. Which of the following is NOT one of them? [PFL#7]
a)
Experian
b)
Equitable
c)
Equifax
d)
TransUnion
30.
Before applying for a loan, it is advisable to [PFL#7]
a)
get a copy of your credit report to check it for errors.
b)
ask your banker to review your report to see if you will qualify.
c)
ask your creditors to remove any negative information from your credit file.
d)
wait to see what happens, then complain if something is wrong with your credit file.
31.
If you want to dispute any information included in your credit file, you [PFL#7]
a)
must sue the credit bureau.
b)
need an attorney to write a letter.
c)
need to write a letter or file a report online with the credit bureau.
d)
have no right to protest and must wait until the credit bureau removes it from your file.
32.
If your credit card is lost or stolen and you report it immediately to your credit card company, the most you can lose is [PFL#7]
a)
$10
b)
$25
c)
$50
d)
$100
33.
Most negative information – such as late payments and defaults on loans – stays in your credit file for _____ years. [PFL#7]
a)
2
b)
7
c)
10
d)
15
34.
Which of the following types of lenders offers loans to high risk customers at very high fees? [PFL#7]
a)
Payday loan companies
b)
Home equity bank loans
c)
Credit card cash advance
d)
Credit unions
35.
Interest rates on credit cards [PFL#7]
a)
vary with your level of income.
b)
are basically the same for everyone.
c)
will vary greatly, depending upon several factors.
d)
will vary little from credit company to credit card company.
36.
After completing an online purchase, be sure to [PFL#8]
a)
call the seller to be sure they got your order.
b)
print off a copy of your receipt and order number.
c)
exit the Web site quickly so your purchase cannot be tracked.
d)
visit a local merchant to see if they can beat the deal you got online.
37.
Which of the following statements is BAD advice for a credit card user? [PFL#8]
a)
Read your statement carefully each month to see if it contains any errors.
b)
If you cannot make a payment when the bill arrives, just wait until next month.
c)
Save all monthly receipts so you can match it with the charges on your monthly statement.
d)
If you can only make minimum payments on your credit cards, it indicates you are spending more than you can afford to spend.
38.
The “s” in https indicates you are using a _____ Web site. [PFL#8]
a)
superfast
b)
state-approved
c)
secure
d)
seller’s
39.
The minimum payment on your statement indicates the [PFL#8]
a)
least amount you can pay without additional late fees.
b)
amount the credit card company expects you to pay.
c)
amount you are required to pay.
d)
amount you should pay each month.
40.
If you get a credit card with a special introductory low interest rate, [PFL#8]
a)
your rate will always increase within six months.
b)
you should charge as much as possible because the rate is low.
c)
your card guarantees you that rate as long as you make your payments on time.
d)
you should read the agreement carefully to see what happens when the offer expires.
41.
All of the following are good reasons to buy locally EXCEPT you [PFL#8]
a)
have more selection.
b)
can have the product immediately.
c)
can see and feel the product before buying.
d)
have more opportunities to negotiate the price.
42.
Whether buying online or buying from a local merchant, always [PFL#8]
a)
use a credit card.
b)
buy from a reputable company.
c)
pay the lowest price.
d)
withhold your payment until you are satisfied with the product.
43.
One of the BEST ways to protect yourself from identity theft is [PFL#9]
a)
using your Social Security number as your driver’s license or ID number.
b)
throwing away all credit card offers without opening them.
c)
shredding all papers with personal information.
d)
keeping your Social Security card in your billfold.
44.
Which of the following is NOT a good way to protect yourself from being a fraud victim? [PFL#9]
a)
Get all information in writing before giving money or personal information.
b)
Avoid letting emotions interfere with financial decisions.
c)
Take time to do careful research before giving money or personal information.
d)
Enter your personal information on a Web site so you can get more information before deciding on an investment.
45.
The MOST secure password for Internet or other uses should include [PFL#9]
a)
a combination of numbers, letters, and symbols
b)
a series of letters than mean nothing
c)
your Soial Security number
d)
your first name and birthday
46.
People who attempt to swindle or trick you into illegal schemes are commonly called [PFL#9]
a)
embezzlers
b)
con artists
c)
film flames
d)
schemers
47.
Using a person’s name or personal information without permission to make purchases or get loans is called [PFL#9
a)
impersonation
b)
acting
c)
identity theft
d)
fraud
48.
“Dumpster Diving” refers to the practice of [PFL#9]
a)
throwing a prize in a dumpster, then everyone jumps in to see who can find it first.
b)
going through someone’s trash looking for personal information on it.
c)
a new video game where you race dumpsters through a junk yard.
d)
going through someone’s trash to find any hidden treasures.
49.
Bargain City advertises a special price on a certain type of rollerblades. They really do not have those rollerblades in the store. Instead, they have a much more expensive brand to sell you at double the advertised price. This practice is called [PFL#9]
a)
false advertising
b)
illegal advertising
c)
bait and switch
d)
fraud and hook
50.
What day is Christmas?
a)
February 14th
b)
4th of July
c)
October 31st
d)
December 25th
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