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WorksheetsPF Lesson 1 - 4
Total questions: 95
Worksheet time: 5hrs 16mins
Carter wants to participate in an activity that will improve his well‐being. Which of the following activities would contribute the least to his well‐being?
An activity his friends like to participate in.
An activity that doesn’t cost much money.
An activity that his teacher suggested to him.
An activity that makes him lose track of time.
Savings tools offered by depository institutions may earn interest. Which of the following statements is not true about interest?
Interest is the price paid for using someone else’s money.
When earning interest, look for low rates.
When paying interest, look for low rates.
The amount of interest earned or paid is determined by the interest rate.
David made a mistake in his checking account record keeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charged a/an:
ATM Fee
contact fee
safe deposit fee
overdraft fee
Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some student comments were based on fact while others were based on myths. Which aspect of security at a depository institution is not true?
Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit.
All money stored at a depository institution is kept safe at all times by numerous security measures.
Information about depositors and their accounts is kept in secure data storage.
Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than a $100,000 balance.
Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do?
Apply for mobile banking. That way she can access her money with her smartphone to pay for the things she needs. The amount she spends would automatically be deducted from her savings account.
Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account.
Apply for a credit card. That way she can use the card to purchase the things she needs and pay for it when the credit card statement comes from her checking account.
Request a cashier’s check from her depository institution. That way she can spend money from her checking account without risk of an overdraft fee.
A key difference between commercial banks and credit unions is that:
commercial banks are for-profit and credit unions are not-for-profit.
commercial banks typically pay higher interest rates than credit unions.
credit unions are more commonly located in rural areas while commercial banks are more commonly located in urban areas.
commercial banks offer more services, debit cards, and online banking than credit unions.
Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. What would be thebest advice for Ariel?
Check several depository institutions and choose one with a free, no-interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it.
Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.
Look for a credit union that offers share draft accounts. These secure accounts are designed especially for saving for long-term financial goals.
Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it.
Dylan is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?
A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC)
A credit union, since his deposits would be insured by the National Credit Union Association (NCUA)
He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.
Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.
Common fees that may be charged on savings or checking accounts include allexcept:
overdraft fee
late fee
atm fee
minimum balance fee
Who is Medicare designed to help?
Low-income families
Single parents
Senior Citizens
Children of unemployed parents
Which statement is true about payroll taxes?
Payroll taxes are paid on both earned and unearned income.
Payroll taxes fund different operations and programs of the federal government.
Payroll taxes fund the Social Security and Medicare programs.
The amount of tax paid depends on many different factors but increases as income increases.
As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be?
An excise tax on the shirt she purchased
Income tax on the shirt she purchased
Sales tax on the shirt she purchased
Which statement is not true about property taxes?
Property tax is often charged by states or local governments to pay for local schools.
The property tax rate is set by the federal government to be equal in every state.
The fee paid to license a vehicle is an example of property tax.
Property taxes are most often paid only once or twice each year.
Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he exclude from his presentation because it isnot correct?
Property taxes are assessed at the same rate for all types of property, including homes, land, and buildings, regardless of location or whether they are used for business or personal use.
Property taxes are usually charged by state and local governments to pay for local schools and other services and expenses incurred by these governments.
Property taxes are commonly paid on automobiles. This tax is usually paid once per year when the automobile is licensed.
Property taxes on homes, land, and buildings are usually only paid once or twice each year.
Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?
Austin calculated the hours he worked without deducting the hours he spent doing on-the-job training.
Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
Austin neglected to deduct the amount required to pay income and payroll taxes.
Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.
Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called which kind of taxes?
Sales
Excise
federal use
Property
Which formula should Jordyn use to calculate her net worth?
Assets – liabilities = net worth
Assets + liabilities = net worth
Assetsx abilities = net worthAssets – liabilities = net worthAssets x Assets x liabilities = net worth
Assets / liabilities = net worth
Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier?
Maggie, because her income minus her net worth is a smaller amount than Samantha’s.
Samantha, because her income minus her net worth is a larger amount than Maggie’s.
Maggie, because her net worth is higher than Samantha’s.
Samantha, because her annual income is higher than Maggie’s.
Brett is creating a Statement of Financial Position and needs to list his assets. Which of the following should he not list as an asset?
Money in his checking account
Money in the paycheck he will receive next week
His hockey equipment
The market value of his car
To increase his net worth, Jackson could
increase his liabilities.
decrease liabilities
increase his market value.
increase his assets
Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:
the market value of his car
the value of his retirement account.
the combined total of his savings and checking accounts.
the balance of his credit card
Which would most likely be considered a contractual expense?
Cell phone
Food
Entertainment
Clothing
Erin and her mother are putting together an Income and Expense Statement for Erin to use as she applies for a college scholarship. Which income source does shenot need to include for this statement?
Interest earned on her savings account
Money she received from her grandparents for her birthday
Social Security income her mother is receiving for her since her father died of cancer last year
Taxes she paid based on her income last year
Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. He is unsure which items should be recorded as expenses. Which should be recorded as expenses?
Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance
Money saved from his paycheck for emergencies, interest paid on his car loan, and his tax refund from filing last year’s tax return
The scholarship he receives for studying Chinese at the local community college, his car insurance payment, and stock dividends he received from his grandmother
Clothing he purchased for a job interview, tuition for a class he is taking at the local community college, and interest from his savings account
Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered that they have a net gain. What does this mean and what should they do?
Amanda and Marcus are spending more money than they are earning. They need find a way to balance their income and expenses by spending less on noncontractual expenses.
Amanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses.
Amanda and Marcus are spending more money than they are earning. One of them should consider getting a second job for a time to help boost their income.
Amanda and Marcus are earning more money than they are spending. They should increase spending for noncontractual items to bring their income into balance with the expenses.
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit that category?
Cell phone bill, gasoline, and car payment
Internet bill, entertainment, and clothing
Motorcycle payment, food, and cell phone bill
Gasoline, food, and entertainment
Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which statement is nottrue about spending plans?
Spending plans are used to record planned income.
Spending plans are used to record planned expenses.
A spending plan includes items not usually included when creating a budget.
When creating a spending plan, it is recommended that one examines trade-offs and opportunity costs.
Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his first step?
Decide what income and spending categories would reflect his values, needs, and wants.
Decide how much money he can spend for each of the bills he pays each month.
Track his current income and expenses—if he has already created an Income and Expense Statement then he has completed this step.
Develop a control system that will work with his life style.
If expenses were to exceed income on a spending plan, what would be a financially smart solution?
decreases expenses
Use a credit card more often
earn less income
Increase purchases
When is your spending plan complete?
When you have allocated all your income into categories for the month
When you have all of your current income and expenses recorded
Spending plans are always under revision so they are never complete.
Spending plans are complete each December 31st as one year ends and another year begins.
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?
An extracurricular activity in her school
The local private daycare center
Big Brothers/Big Sisters
Her elderly neighbor who needs yard work done
Steven is moving into his first apartment in a few weeks and has been busy packing. In addition to the things he has purchased with money earned from his full‐time job, his parents have told him that he can take the furniture in his bedroom and his bedding when he moves out. His parents are providing him with which type of income?
earned income
in-home income
gift income
in-kind income
Alyssa’s childcare provider called to tell her that the provider’s young daughter woke up ill and she won’t be able to care for Alyssa’s son today. Alyssa’s friend, who is a stay‐at‐home mother, agrees to care for Alyssa’s son today so Alyssa can go to work. Alyssa has utilized:
family child care
social capital
a non‐profit organization.
neighborhood watch
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?
Social Security
TANF
SNAP
Earned income tax credit
Which federal program assists low-income families in purchasing nutritious foods?
SNAP
TANF
Social Security
Medicare
Diana has faced the fact that she and her family need to explore assistance programs they might qualify for during the time she must be off work following an accident. How might she and her family locate an appropriate program?
Call the Social Security Administration.
Contact her local bank.
Go to www.govbenefits.gov on the web.
Inquire at the local food pantry.
Due to unexpected circumstances, Ariel is temporarily receiving income from a government assistance program. The funds she receives through the government program are most likely funded by:
small fees proportional to the income of clients.
fees that are charged to some, but not all, clients using the programs.
taxes at the local, state, and federal levels.
donations from large corporations.
Julie is a single mother who recently lost her job. She would like to obtain training in the medical field in order to increase her future income and support her two children. In order to do this, she will need help paying some of her expenses while she is going back to school. Which government program might offer her assistance to help with living expenses and job training?
Earned income tax credit
Unemployment insurance
TANF
Medicare
Which statement is true of government assistance programs?
Government programs were designed to provide permanent assistance to those in need.
The ultimate goal of government programs is to help individuals become self-sufficient and independent.
Government programs were developed to help one specific socioeconomic group.
All government programs vary from state to state.
Medicare is provided by the federal government for individuals in specified circumstances. In which of the situations below would the individual most likely be receiving Medicare funds?
Jim is a 37-year-old man who lost his job and is unable to afford health insurance for himself or his children.
Ivan is 60 years old and was injured at work. His employer needs to provide temporary income for him.
Rachel is a seventeen-year-old high school student who is pregnant and needs assistance with her medical expenses.
Rosie is 67 years old and in need of a health insurance program.
Which statement is not true?
Most people have several careers throughout their lifetime.
Jobs are paid positions.
People can develop human capital in a variety of ways.
Transferable skills can be applied to many personal and professional roles.
Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice?
Completing your college degree is the best way to prepare for a career.
Education pays in higher earnings and lower unemployment rates.
Human capital and transferable skills result from formal training.
Investing in yourself too early can lead to a lower standard of living.
Individuals with more formal educational training usually have:
higher estimated lifetime earnings.
lower personal satisfaction.
greater amounts of leisure time.
more comfortable work environments.
Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her:
salary
human capital
family
interest inventory
An example of a transferable skill is a skill:
used in your job that you acquired through past jobs, volunteering, hobbies, school sports, or other life experiences.
that can only be used in an individual’s job or career.
that each employer requires you to learn.
that is learned at one job and is required at other jobs as well.
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 that goal?
Spend additional time playing video games to further develop his eye-hand coordination.
Volunteer to pick up trash along the roadsides.
Attend a workshop on a topic he has little knowledge of.
Ask his employer if there are any new tasks at work that he might be assigned.
Miranda is working to develop a broad base of transferable skills. This means that she:
needs to maintain at least a part time job during the school year.
should use her available hours outside of school for paid employment rather than volunteering.
will not have as much time to develop her human capital.
will have a set of versatile skills that she can apply to many personal and professional roles.
One’s lifestyle is to their standard of living as present is to:
past
recent
future
gift
In order to make an informed career decision, a high school student will want to:
commit to a profession that requires a college degree.
choose a career that offers the amount of money desired.
develop personal goals, complete a career assessment, and research careers.
choose a training program that will guarantee employment after the course work is completed.
Which statement would not be true about the value of career research?
Everyone values different aspects of an occupation. One person might value the flexible schedule a particular job offers and another might care more about the amount of training that a career might require.
Current job availability and the outlook for future employment are as essential to consider as whether you have the skills, interest and abilities to pursue a particular career.
Opinions from different people working in the occupation should be considered before ruling out a particular career.
There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree.
Career assessments help to identify:
the job an individual should have if he/she wants high well‐being.
positions available in a particular occupation.
fastest and slowest growing careers in a particular occupation.
possible career areas related to one’s interests.
Joanna has arranged to complete a job shadow with a physical therapist to decide if this is a career she wants to pursue. Which of her concerns is she most likely to have answered as a result of her job shadow?
The future outlook for physical therapy jobs
The amount of money physical therapists earn
Common tasks and typical daily activities
Opportunities for advancement in the career
Zoe has been assigned by her school counselor to complete a career assessment. Which statement best describes why her counselor has suggested she do this?
Her counselor wants Zoe to find a career that will provide a high level of income to support Zoe’s lifestyle and well-being.
Her counselor wants Zoe to match her skills, abilities, interests and values with a list of specific occupations.
Her counselor wants Zoe to conduct interviews with people in her area of interest to determine if she truly enjoys the career she wants to prepare for.
Her counselor wants Zoe to search for a career that will allow occupational flexibility and provide for possible career advancement as she gains more experience working in her selected career.
David plans to apply for college in 2 years. His guidance counselor suggested that he begin adding items to a College/Training application folder. Which items would not be helpful as additions to this folder?
Copies of awards and achievements he earns
A list of all the extracurricular activities he gets involved in
A resume of all community service and volunteer work he is actively involved in
Copies of his elementary and middle school report cards
Erin has been in college for 2 years and has decided that the major she has been studying is not for her. Changing her major and/or her college could result in:
a well-rounded college degree.
the need for backward planning.
losing credits for classes she has already taken.
remediation courses to make up for the change in majors.
Which statement is true regarding college-level expectations for studying and completing projects?
It is best to study alone in a quiet environment.
Plan backward from major deadlines
Multitasking during study time develops the important skill of working while being distracted, so it is okay to message with friends or watch TV while studying.
The busier your schedule gets, the more important it is to write down only the most critical tasks to be done. Wasting time writing down smaller details is not recommended.
When Charles received his college placement test results, he is informed that he will need remediation in math. Which situation is not true of Charles’ situation?
Charles will need to take at least one course because he is not college-ready.
Since the remedial courses Charles must take will not count toward his degree, he needs to take the courses but tuition is not charged.
Charles should have taken a placement test earlier in high school so he could strengthen his academic skills before heading for college.
Remediation courses do not count toward his degree program so he may need to take extra credits and his college degree may take longer to complete.
As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is the least important one to consider at this point?
What kind of training and education do I need and how much will it cost?
Is there a career pathway available if I continue my education and training?
Can I get the education and training I need near where I currently live?
Will a job be available and will I earn enough in my career to pay for the education and training it requires?
It is recommended that one's educational loan payments require no more than 10–15% of one's estimated starting income. What should a student consider in order to calculate this amount?
opportunity cost
career pathway
benefit
debt-to-income ratio
The money one would have earned if she/he had worked instead of continuing her/his education is called the
debt-to-income ratio
opportunity cost
benefit
total estimated cost
Mallory has set a career goal of becoming a veterinarian but does not have the money to complete this goal without taking out very large student loans. She decides to attend a 2‐year program to become a veterinary technician, and then work for 3 years in that field while she saves money for her remaining 2 years of college and veterinary school. Mallory’s plan is known as a/an:
career pathway
opportunity cost
debt-to-income ratio
SMART goal
The regular schedule that employers use to pay their employees is called the:
worker's compensation.
pay period.
employee benefits.
employer contributions.
Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?
He could be denied credit cards, car or home loans, or apartment leases.
He could be denied credit cards, car or home loans, or apartment leases.
He may not be able to obtain a marriage license.
His wages may be garnished.
Carson’s family has always struggled financially due to his parents leaving high school before graduating and working lower paying jobs to support the family. His parents do not want him to make the same mistake and are encouraging him to apply for scholarships and any type of student aid he might qualify for. Which application will determine which type of need-based aid he will qualify for?
Perkins Federal Loan Application
Direct Subsidized Stafford Loan Application
Federal Work Study Application
Free Application for Federal Student Aid (FAFSA)
When Rob graduated from college, he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the U.S., Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy, but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. Rob’s parents asked him what employee benefits his employer was providing. Which would be considered an employee benefit?
Monthly Salary
Location within walking distance of his apartment
Paid sick leave
Travel opportunities
When Rob graduated from college, he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the U.S., Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy, but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. When Rob compared the Cost of Living Index for the city he currently lives in with the city where the other job was located, the index for his city was 106 and the index for the other city was 78. Which statement is most likely to be true?
Rob chose his current job because the Cost of Living Index indicated that it would be cheaper to live in his current city than it would have been in the other city.
Rob chose his current job for reasons other than a lower cost of living.
The cost of relocating to the other city increased the cost of living there so Rob chose to live in his current city.
Even though the job in the other city offered a higher salary, it wasn’t enough to make up the difference for that city’s higher cost of living.
To be considered for lifelong employment a person must continually maintain their employability. Which of these actions will not help maintain employability?
Maintain high standards in honesty, reliability, and punctuality.
Adjust your actions to be appropriate for different situations you find yourself in, because you realize that what is appropriate in social situations is not necessarily appropriate in the work environment.
Continue to learn by taking classes and striving for continual improvement on the job.
Seek ways to blend your personal and professional images online to enable current and future employers to see that you have a varied and interesting life both in and outside of work.
Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be true?
Federal income tax, state income tax, social security, and medicare deductions are all required deductions.
Federal income tax, state income tax, workers compensations, and life insurance are all required deductions.
Social security, Medicare, life insurance, and health insurance are all required deductions.
Social security, Medicare, federal income tax, and workers compensation are all required deductions.
Jamie has elected to be paid by direct deposit at her new job. This means:
she will receive her paycheck mailed directly to her each pay period.
she will receive her pay directly into her checking account at her depository institution for each pay period.
she will receive her pay automatically loaded onto her payroll card at the end of each pay period.
she will receive her paycheck delivered directly to her at her place of employment at the end of each pay period.
Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer will not be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement is most likely to be true?
Hunter will not need to pay taxes on the income from his summer job because the total amount he will earn is under the amount required for federal tax deductions.
It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so.
Hunter will need to pay his federal and state taxes on his own, since his employer is not paying these required taxes for him.
Hunter’s employer is doing him a favor by offering to pay him in cash. Hunter will potentially earn more by this method of payment.
Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob’s net pay on his paycheck?
$501.66
$363.32
$576.92
$640.00
All of the following are good ways to minimize the risk of wanting to change college majors or even switch schools except:
Meet with a guidance counselor or academic advisor at your school
Talk with your friends to see what classes are the easiest to pass
Be a long-term planner
Choose a program and school that matches your interests
