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PFHS Unit 3.02 Financial Literacy

Total questions: 45

Worksheet time: 24mins

Name
Class
Date
1.

Why is saving important?

a)

because the future is unpredictable

b)

because people need to buy goods and services to grow the economy

c)

because protecting assets such as a house and vehicles is critical in case of accidents

d)

because people need to support local banks and credit unions

2.

In which category are a new car, designer clothes, and gaming systems?

a)

wants

b)

needs

c)

values

d)

income

3.

When Miranda opened her credit card bill, she was suprised to see that the amount she owed was more than the cost of the things she had purchased. What is the probable cause of this difference?

a)

credit

b)

debit

c)

interest

d)

equity

4.

Sally is excited about her new job. The salary she was quoted for the position does not have deductions taken out of the amount. What type of income was Sally quoted to earn?

a)

gross income

b)

net income

c)

hourly income

d)

weekly income

5.

Samantha is looking for an institution for her money management. She is looking for an account that pays interest on deposits, does not have check writing privileges, and has easy withdrawal access on demand. Which type of account would be best for Samantha?

a)

checking account

b)

certificate of deposit

c)

savings account

d)

mortgage

6.

The newlyweds wanted to start their marriage being financially responsible. What tool could they use to keep track of where their money is going?

a)

spending plan

b)

income

c)

expenses

d)

savings account

7.

Which method of payment most likely requires a personal identification number (PIN) to confirm electornic transfer of funds from an account?

a)

credit card

b)

debit card

c)

cash

d)

check

8.

Credit Union, Savings and Loan Institution and Commercial Banks are examples of:

a)

Saving Accounts

b)

Checking Accounts

c)

Depository Institutions

d)

Banks

9.

True/False: Keeping track of charges by keeping receipts is not necessary because they send you a statement every month.

a)

True

b)

False

10.

Which of the following is the most popular type of depository institution:

a)

Credit Union

b)

Savings and Loan Institution

c)

Commercial Banks

11.

Which account money can be withdrawn only a limited number of times each month with checks or a debit card?

a)

Certificate of Deposit

b)

Check register

c)

Money Market Deposit Account

d)

Savings Account

12.

What protects money in bank accounts from loss, thief or any disasters?

a)

Certificate of Deposit

b)

Check register

c)

Money Market Deposit Account

d)

Federal Deposit Insurance Corporation (FDIC)

13.

Which account if withdrawn early has a penalty fee is charged and the interest rate is higher than other options?

a)

Certificate of Deposit

b)

Check register

c)

Money Market Deposit Account

d)

Savings Account

14.

Which account has no check writing privileges and money can be deposited and withdrawn an unlimited number of times each month?

a)

Certificate of Deposit

b)

Checking Account

c)

Money Market Deposit Account

d)

Savings Account

15.

True/False: Paying the credit card payment late is not that bad and does not have an extra fee with it.

a)

True

b)

False

16.

Which account has check writing privileges and money can be deposited and withdrawn an unlimited number of times each month?

a)

Certificate of Deposit

b)

Checking Account

c)

Money Market Deposit Account

d)

Savings Account

17.

What is a difference between debit cards and credit cards?

a)

with one, the account is linked to your own personal bank account

b)

plastic cards

c)

can be used to purchase items

d)

it offers electronic transactions

18.

What is a tool to help people manage their money?

a)

Checking Account

b)

Spending Plan

c)

Debit Card

d)

Credit Card

19.

What are the two things that spending plans track?

a)

needs and wants

b)

expenses and income

c)

checking and saving accounts

d)

income and wants

20.

What is the most common form of earning money?

a)

borrowing

b)

loans

c)

working

d)

allowance

21.

What is a wide category of jobs with similar characteristics?

a)

human capital

b)

career

c)

occupation

d)

job

22.

What is a specific task done as a part of the routine of one’s occupation?

a)

human capital

b)

career

c)

occupation

d)

job

23.

What is a lifetime journey of building and making good use of your skills, knowledge and experiences?

a)

human capital

b)

career

c)

occupation

d)

job

24.

What is a process of self-investment?

a)

human capital

b)

career

c)

occupation

d)

job

25.

What is a skills acquired through the process of self-investing?

a)

human capital

b)

transferable skills

c)

occupation

d)

standard of living

26.

What is the minimum necessities, comforts, or luxuries thought to be essential?

a)

human capital

b)

transferable skills

c)

occupation

d)

standard of living

27.

What is the amount of money subtracted from the gross income for taxes?

a)

Gross Income

b)

Payroll Withholdings

c)

Net Income

d)

Pay Period

28.

True/False: Using credit cards can be convenient, useful for emergencies and often required to hold a reservation.

a)

True

b)

False

29.

What is the length of time for which an employee's wages are calculated?

a)

Gross Income

b)

Payroll Withholdings

c)

Net Income

d)

Pay Period

30.

What is the "take home" pay, the amount left after all payroll deductions have been taken from a person's pay?

a)

Gross Income

b)

Payroll Withholdings

c)

Net Income

d)

Pay Period

31.

What is the total amount of money earned before payroll withholdings?

a)

Gross Income

b)

Payroll Withholdings

c)

Net Income

d)

Pay Period

32.

What is card that electronically carries the balance of the employee's net income?

a)

Gross Income

b)

Paycheck

c)

Direct Deposit

d)

Payroll Card

33.

Which payment method allows employers a direct way of depositing employee's paycheck into the authorized employee's bank account?

a)

Gross Income

b)

Paycheck

c)

Direct Deposit

d)

Payroll Card

34.

Which payment method has no direct handling of a check and the employee knows exactly when he/she will be paid?

a)

Gross Income

b)

Paycheck

c)

Direct Deposit

d)

Payroll Card

35.

True/False: People should have at least six months worth of their monthly expenses saved in the bank for emergencies.

a)

True

b)

False

36.

Which payment method is the least secure and the employee is responsible for getting it to the bank?

a)

Gross Income

b)

Paycheck

c)

Direct Deposit

d)

Payroll Card

37.

Which form when getting a job states the amount of money earned and taxes paid throughout the previous year and is used to file income taxes by April 15th?

a)

Form W-2

b)

Form I-9

c)

Form W-4

d)

Taxes

38.

Which form when getting a job determines the employee's withholding allowance certificate and determines the amount of money withheld for taxes?

a)

Form W-2

b)

Form I-9

c)

Form W-4

d)

Taxes

39.

True/False: A redress is an action taken to remedy a wrong.

a)

True

b)

False

40.

Which form when getting a job is used to prove the identity of people and avoid hiring non United States citizens?

a)

Form W-2

b)

Form I-9

c)

Form W-4

d)

Taxes

41.

What is the money paid in future is not equal to money paid today?

a)

Savings

b)

Time value of money

c)

Pay Yourself First

d)

Trade-off

42.

True/False: Paying the credit card balance in full every month is the only way you can avoid paying interest on a credit card.

a)

True

b)

False

43.

What is the portion of income not spent on current expenses and should be used for unexpected events or emergencies?

a)

Savings

b)

Time value of money

c)

Pay Yourself First

d)

Trade-off

44.

True/False: A co-signer is someone that is equally responsible for the loan.

a)

True

b)

False

45.

What is the saving strategy of which you set aside money for saving before spending any money?

a)

Savings

b)

Time value of money

c)

Pay Yourself First

d)

Trade-off