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WorksheetsPFL 2nd Semester Exam - 5, 6, 10, 11, 12, 13, 14
Total questions: 50
Worksheet time: 2hrs 40mins
Name
Class
Date
1.
Which of the following is TRUE? [PFL#5]
a)
Savings and investing is only for wealthy people.
b)
Savings and investing is important for people of all income levels.
c)
Savings is only for people with limited income and investing is for people with high levels of income.
d)
Savings is only for people with high levels of income and investing is for people with limited income.
2.
Inflation refers to [PFL#5]
a)
an overall increase in prices.
b)
how quickly your money can double.
c)
the amount of money earned by investing.
d)
the level of risk associated with equity investing.
3.
Stocks and bonds are similar in that both [PFL#5]
a)
have a guaranteed rate of return.
b)
have relatively high levels of risk.
c)
provide ownership in a business.
d)
are tied to the rate of inflation.
4.
If you are planning to put aside money for long-term goals, your BEST option is probably [PFL#5]
a)
keeping your money in a jar by the bed because banks are not safe.
b)
putting your money in a savings account because it is insured.
c)
putting your money into a mutual fund because it is diversified.
d)
buying stock only in the company where you work.
5.
Liquidity is defined as [PFL#5]
a)
how easy it is to turn an item into cash without losing any money.
b)
how easy it is to lose money when you invest in a risky business.
c)
the ability of savings to earn interest.
d)
the potential loss from rising prices.
6.
Deciding whether to save $25 or buy a pair of shoes illustrates [PFL#5]
a)
risk.
b)
opportunity cost.
c)
budgeting.
d)
denial of benefits.
7.
Compound interest is calculated as [PFL#5]
a)
principal plus any interest they have already paid you.
b)
principal minus the amount you are paid annually.
c)
principal but not on the interest earned.
d)
prorated interest over the life of an investment.
8.
Which one of the following events could make your retirement benefit LESS than expected? [PFL#6]
a)
Inflation occurs at a lower rate than you calculated.
b)
Your rate of return is slower than you had calculated.
c)
You earn a larger retirement benefit than you had calculated.
d)
You inherit money you had not anticipated.
9.
Life expectancy refers to [PFL#6]
a)
your perception of how long you expect to live.
b)
an estimate of how much money you need for retirement.
c)
a statistical estimate of the number of years you will live in retirement.
d)
a statistical measure of the average life span of a specific population.
10.
As a young person, saving for your retirement is an example of a _____ goal [PFL#6]
a)
short-term
b)
value-added
c)
medium-term
d)
long-term
11.
When planning for retirement, you need to determine [PFL#6]
a)
how much money you need to live in a nursing home or retirement center.
b)
how much money you want your children to inherit.
c)
how much money you will need and how many years you will need it.
d)
where you plan to live after you quit working.
12.
Most people plan to work [PFL#6]
a)
more years than they actually do.
b)
until they are 60 years of age.
c)
until they are fired or forced to retire.
d)
only until they qualify for their company retirement.
13.
Which of the following statements about Social Security is the MOST accurate? [PFL#6]
a)
Even if you do not start saving and planning for retirement, you will earn enough money from Social Security to maintain your current lifestyle.
b)
Social Security was originally designed to be a supplemental income for people over the age of 65.
c)
Because Social Security is a government program, it is guaranteed to be there when you retire.
d)
The average income from Social Security is about $40,000.
14.
As a young person, saving for your retirement is an example of a _____ goal. [PFL#6]
a)
short-term
b)
medium-term
c)
value-added
d)
long-term
15.
When renting a place to live, utilities are [PFL#10]
a)
always included in the monthly rent.
b)
paid either by the tenant or the landlord.
c)
always paid by the tenant.
d)
not required when renting.
16.
If you want to buy a house, MOST experts would recommend that finance it with a(n) [PFL#10]
a)
adjustable rate mortgage.
b)
variable rate mortgage.
c)
fixed rate mortgage.
d)
any loan that you can qualify to receive.
17.
To reduce your monthly house payment, you can [PFL#10]
a)
make a larger down payment.
b)
increase your interest rates.
c)
make a smaller down payment.
d)
increase your emergency savings fund.
18.
When making decisions about a place to live, you should [PFL#10]
a)
determine what you want and figure out a way to pay for it.
b)
determine how much you can spend and stay within your budget.
c)
not worry about the cost because it is most important that you feel safe and happy with where you live.
d)
base your final choice on cost because you can learn to be happy living anywhere you can afford to live.
19.
Amenities refer to [PFL#10]
a)
the actual location of an apartment complex.
b)
extra features that cost more than most people can afford.
c)
additional features such as swimming pools, exercise rooms, etc.
d)
basic features such as the color of the walls, the type of carpeting, etc.
20.
A down payment is the [PFL#10]
a)
part of the purchase price paid in cash up front.
b)
amount that a person must pay when renting an apartment.
c)
difference between how much a house is worth and how much is owed on it.
d)
loan to finance the purchase of real estate, usually with specified payment periods and interest rates.
21.
A month-to-month lease can be terminated [PFL#10]
a)
only by the landlord.
b)
only by the tenant.
c)
only by the landlord or the tenant.
d)
only after all conditions of the lease have been met.
22.
Buying insurance would be classified as a way to _____ risk. [PFL#11]
a)
accept.
b)
minimize.
c)
transfer.
d)
avoid.
23.
The amount of money you pay before your insurance provides coverage is called a [PFL#11]
a)
premium.
b)
deductible.
c)
copay.
d)
benefit.
24.
Which of the following statement is TRUE? [PFL#11]
a)
You can control all risk factors.
b)
Your behavior has no impact on your level of risk.
c)
You can reduce your risk but not eliminate it.
d)
It is impossible to reduce your risk.
25.
Which kind of insurance protects you if someone is injured on your property or in your apartment? [PFL#11]
a)
Whole life
b)
Liability
c)
Renters
d)
Long-Term Care
26.
Which type of life insurance provides coverage for a specified period of time? [PFL#11]
a)
Long-Term Care Life
b)
Term Life
c)
Whole Life
d)
Universal Life
27.
Payments for insurance are called [PFL#11]
a)
costs.
b)
deductibles.
c)
copays.
d)
premiums.
28.
Your friend rides a four wheeler and says he does not worry about the risk even though he knows it is dangerous. [PFL#11]
a)
Risk Avoidance.
b)
Risk Retention.
c)
Risk Reduction.
d)
Risk Transfer.
29.
Which of the following is a potential social benefit of gambling? [PFL#12]
a)
Increased number of counseling jobs for people with gambling addiction.
b)
Increased number of attorneys needed for new bankruptcies.
c)
Increased revenue from advertising sales.
d)
Increased jobs in a local community.
30.
_____ implies that you have some knowledge about outcome of your choices. [PFL#12]
a)
Gambling
b)
Strategy
c)
Predictability
d)
Probability
31.
The odds of winning most games are [PFL#12]
a)
in favor of the player, not the sponsor.
b)
in favor of the sponsor, not the player.
c)
designed to give both the player and the sponsor equal odds.
d)
readily available, allowing players to improve their chances of winning.
32.
Which of the following statements is MOST accurate? [PFL#12]
a)
Casinos only have a positive impact on communities because they create jobs and generate wealth.
b)
Gambling is a moral issue, with little or no economic or financial impact on individuals or society.
c)
People at lower income levels use a larger percentage of their income to buy lottery and scratch tickets than people at higher levels of income.
d)
Most people who engage in gambling activities become addicted to it and end up taking bankruptcy because they cannot pay their bills.
33.
_____ is one sign that a person has a gambling problems. [PFL#12]
a)
Playing in poker tournaments
b)
Buying lottery tickets regularly
c)
Always thinking about gambling
d)
Frequent visits to a casino
34.
Probability is best defined as [PFL#12]
a)
taking a chance.
b)
forecasting the future.
c)
making choices based on past events.
d)
how likely it is that something will happen.
35.
An example of an independent event is [PFL#12]
a)
flipping a coin.
b)
a game of poker.
c)
the lottery.
d)
a game of blackjack.
36.
Bankruptcy is BEST defined as [PFL#13]
a)
being unable to repay your bills because of overspending and irresponsible behavior.
b)
being legally released from the obligation to repay some or all debt in exchange for giving up some of your assets.
c)
being in a situation where your monthly payments are greater than your monthly income.
d)
filing a request with the courts to dismiss your bills due to the inability to make payments as required.
37.
Which of the following statements about bankruptcy is TRUE? [PFL#13]
a)
People who file bankruptcy pay lower interest rates because they have no debts.
b)
Bankruptcy stays on your credit report for 10 years and decreases your credit score.
c)
Bankruptcy stays on your credit report for 7 years and decreases your credit score.
d)
Bankruptcy stays on your credit report for 10 years, but has little, if any, impact on your credit score.
38.
Bankruptcy should be considered when [PFL#13]
a)
your insurance company will not pay all of your medical bills.
b)
you lose part of your income due to a divorce or death of a partner.
c)
you have no other options.
d)
it become difficult to make your monthly payments.
39.
In order to rebuild your credit history after bankruptcy, you should [PFL#13]
a)
start borrowing money at any interest rate to prove you can handle payments.
b)
hire a credit repair company to remove the bankruptcy from your credit files.
c)
use credit cautiously and pay your bills on time.
d)
wait until the bankruptcy information is removed from your files to borrow money.
40.
Making false statements when filing bankruptcy is [PFL#13]
a)
a crime and has serious consequences.
b)
acceptable because everyone does it.
c)
a crime, but the penalty is so low that you still gain.
d)
only a problem if you get caught.
41.
Which of the following statements is TRUE? [PFL#13]
a)
Only poor people file bankruptcy.
b)
People who file bankruptcy can never get credit again.
c)
People who file bankruptcy are deadbeats who do not want to pay their bills.
d)
People who file bankruptcy pay higher interest because they are higher risk to lenders.
42.
People who file bankruptcy [PFL#13]
a)
are often victims of crime and need a fresh start.
b)
can still get credit but will pay higher interest rates until they rebuild their credit history.
c)
should be penalized for the rest of their lives for their lack of responsibility.
d)
are irresponsible individuals who should never be able to get credit again.
43.
Depending upon your level of income, you [PFL#14]
a)
have the right to deduct all of your donations from your personal income tax.
b)
can avoid paying any personal income taxes if you donate enough money to charitable organizations.
c)
may be able to deduct all or part of your donations from your personal income taxes.
d)
may need to increase deductions to offset the cost of making cash contributions to charitable organizations.
44.
Charitable contributions [PFL#14]
a)
should be a part of your budget or monthly spending plan.
b)
are a personal matter and should not be included in a budget or financial plan.
c)
have a negative impact on your budget and should be avoided.
d)
Should be a low priority unless you have a lot of money to throw around.
45.
Which of the following provides the MOST reliable information about a charitable organization? [PFL#14]
a)
Speaking with the president or director about the mission of the organization.
b)
Visiting the organization’s Web site.
c)
Reading the materials mailed out by the organization.
d)
Checking out the organization on one of the philanthropy Web sites such as guidestar.org.
46.
Being classified as a non-profit means an organization is [PFL#14]
a)
a legal entity that provides services without commercial or monetary gain.
b)
any organization that collects donations to help others.
c)
a legal entity that provides services to the community.
d)
any organization that provides benefits to the community.
47.
Following are several tips about making contributions to organizations. Which of the following is NOT recommended? [PFL#14]
a)
Avoid responding to telemarketers who call asking for contributions.
b)
Do not make donations in “cans” or “jars” sitting next to cash registers.
c)
If you get an e-mail asking for money, only send a check or ask if they take credit cards.
d)
Listen or read carefully to understand the organization’s name; it could be a “sound alike” organization instead of the one you want to support.
48.
In-kind contributions refers to [PFL#14]
a)
giving your time to charitable organizations.
b)
giving to people when working with charitable organizations.
c)
donating things you do not need to an organization.
d)
donating items of value to the receiving organization.
49.
Charitable contributions come in many forms, including all of the following EXCEPT [PFL#14]
a)
donating personal property
b)
volunteering your time.
c)
paying someone to work in your place.
d)
making cash donations.
50.
What year did Kingston Alumni start?
a)
1911
b)
1951
c)
2001
d)
2011
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