WorksheetsFinancial Literacy Assessment Review
Total questions: 35
Worksheet time: 18mins
The total of monthly income remaining after all deductions have been taken out is known as
net monthly income
net annual income
gross monthly income
gross annual income
Which of the following should you remember when developing a savings plan?
Have only high risk investments
Pay off your low interest debt first
Pay yourself first
Wait until you are 40 years old
Of the following steps, which would be the FIRST step in financial planning?
Save money for the future
Start looking for a home to buy
Determine your needs and goals for the future
Get a job so you can start earning money
Alan has created a new budget. Which of the following should he NOT do?
Stick to his budget
Use credit for all items not in his budget
Spend less than he earns
Have a spending plan
Which of the following statements about credit is FALSE?
Most people will need credit at some point in their lives
Credit is something that is bad and should always be avoided
Always read the fine print in a contract when you buy something on credit
A credit score is something that can be used to determine if you get a loan
Money spent to buy or do something
Income
Fixed expense
Variable expense
Opportunity cost
Expenses
Expenses that vary from month to month
Income
Expenses
Fixed expenses
Variable expense
Opportunity cost
The next best alternative given up when a choice is made
Income
Expenses
Fixed Expenses
Variable expense
Opportunity cost
Expenses that do not change from month to month
Income
Expenses
Fixed Expenses
Variable expense
Opportunity cost
Any money earned or received
Income
Expenses
Fixed expense
Variable expense
Opportunity cost
Which of the following statements is NOT good advice for risk management?
Store your list of passwords in your phone
Don’t let anyone pressure you to buy something
Purchase insurance to lower your risk of out-of-Pocket expenses
Shred any mail that contains personal information
If a person plans to write a few checks and keep a small amount of cash in his or her account, which account would be the best choice?
Regular (budget) account
Interest bearing checking account
Minimum-balance account
None of the above
Most savings banks are insured by the _________________
NOW
NCUA
FSLIC
FDIC
Which of the following is a fixed expense?
Clothes
Food
Rent
All of the above
Which of the following is a flexible expense?
Insurance premiums
Recreation
Mortgage payments
Installment payments
By signing a loan agreement, which person promises to pay the loan if the borrower fails to pay?
Banker
Investor
Cosigner
Creditor
Which of the following taxes are deducted from a person's paycheck?
Personal income tax
Excise tax
Social Security tax
A check drawn on the bank's funds and signed by a bank officer
Bank statement
Cashiers check
Certified check
Money order
A personal check with the bank's guarantee that the check will be paid
Bank Statement
Cashier's check
Certified check
Money order
A record of check's, deposits, and charges on an account for a specific length of time
Bank statement
Cashier's check
Certified check
Money order
An order for a specific amount of money payable to a specific payee
Bank statement
Cashier's check
Certified check
Money order
A certificate of debtor obligation issued by a corporation or a government
Money market fund
Keogh Plan
Individual Retirement Account (IRA)
Certificate of Deposit (CD)
Bond
A savings method in which money is deposited for a specific length of time
Money market fund
Keogh Plan
Individual Retirement Account (IRA)
Certificate of Deposit (CD)
Bond
A tax deferred retirement plan for self-employed people or employees of unincorporated companies without pension plans
Money market fund
Keogh Plan
Individual Retirement Account (IRA)
Certificate of Deposit (CD)
Bond
A tax deferred retirement plan available in two types - traditional and Roth
Money market fund
Keogh Plan
Individual Retirement Account (IRA)
Certificate of Deposit (CD)
Bond
A type of mutual fund that deals only in high interest, short term investments
Money market fund
Keogh Plan
Individual Retirement Account (IRA)
Certificate of Deposit (CD)
Bond
A method in which savings earn interest on any interest already earned
Simple interest
Compound interest
Marginal interest
None of the above
The number of days allowed to pay for a new purchase before interest is charged
Installment account
Revolving charge
Grace period
An account in which the buyer pays for merchandise according to a set schedule of payments
Installment account
Revolving charge
Grace period
An account that allows customers the choice of paying for purchases in full each month or spending payments over a period of time
Installment account
Revolving charge
Grace period
An account in which the buyer pays for merchandise according to a set schedule of payments
Installment account
Revolving charge
Grace period
A legal proceeding for the purpose of stating a person's inability to pay his or her debts
Credit rating
Credit bureau
Collateral
Bankruptcy
A creditor's evaluation of a person's willingness and ability to pay debts
Credit rating
Credit bureau
Collateral
Bankruptcy
An agency that collects financial information on individual customers
Credit rating
Credit bureau
Collateral
Bankruptcy
Something of value held by the creditor in case a person is unable to repay the loan
Credit rating
Credit bureau
Collateral
Bankruptcy
