WorksheetsTest 2 PF
Total questions: 25
Worksheet time: 13mins
Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he wants to explore ways he can receive money he won’t have to repay. Which set of options should he explore?
Work-study, scholarships and PLUS loans
Pell Grants, work-study, and scholarships
Federal Student Grants, PLUS loans, and scholarships
Federal Perkins Loans, PLUS loans, and local bank loans
Career assessments help to identify:
possible career areas related to one’s interests.
fastest and slowest growing careers in a particular occupation.
positions available in a particular occupation.
the job an individual should have if he/she wants high well‐being.
Gross income – deductions =
Social Security
Medicare
Net Income
Employee Benefits
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.
The regular schedule that employers use to pay their employees is called the:
Worker's Compensation
Pay Period
Employee Benefits
Employer Contributions
One’s lifestyle is to their standard of living as present is to:
Past
Recent
Future
Gift
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?
Social security, Medicare, federal income tax, and workers compensation are all required deductions.
Social security, Medicare, life insurance, and health insurance are all required deductions.
Federal income tax, state income tax, workers compensations, and life insurance are all required deductions.
Federal income tax, state income tax, social security, and medicare deductions are all required deductions.
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
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
Which statement is true regarding college-level expectations for studying and completing projects?
Plan backward from major deadlines.
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.
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.
It is best to study alone in a quiet environment.
Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and Indianapolis’ Cost of Living Index is 125, which is true?
Susan will have more spending power if she moves to Indianapolis.
Susan will have more spending power if she stays in Kansas City.
Susan will have the same spending power in Indianapolis as she has in Kansas City.
There is not enough information to decide,
The average cost of basic necessities, such as housing and food for a particular city is called the:
standard of living.
lifestyle.
cost of living.
economy of living.
A bond is:
a type of investment that has the potential for significant fluctuations over a short period of time.
a type of debt that a company issues to investors for a specified period of time.
a share of ownership in a company.
a type of investment that is only offered by depository institutions.
Elliot’s stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:
increases the risk/return ratio.
limits investor choices to only one or two investment tools.
indicates an investor is a good predictor of the return an investment will have.
decreases risk by investing money in a variety of investment tools.
When a goal has been set to save $100.00 a month for an emergency fund of $2,000.00, giving up food from the vending machine to achieve that goal is the:
opportunity cost.
interest.
specific part of the SMART goal.
trade-off.
Which statement is true of mutual funds?
Mutual funds are superior purchasing to a single stock.
Mutual funds are a form of real estate investment.
Mutual funds are speculative investments.
Mutual funds are diversified investments.
Alisa is looking for an investment that is structured to have tax benefits. She should look for information on:
tax-rated bonds.
speculative investments.
index funds.
tax-advantaged investments.
Harris is concerned about the effects of inflation on his investment returns. Which statement best describes inflation?
The rise in the general level of prices
The uncertainty about the return on an investment
The number of times something happens to money
The projected value of an investment at the end of a specified time frame
Which is a feature of a money market deposit account?
No minimum balance requirements
Unlimited transactions every month
Tiered interest rates
The money must remain in the account for a specific period of time
Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?
A brokerage firm
The New York Stock Exchange
Conner should complete this transaction on his own.
A real estate agent
Which is not true with regard to investing in stock?
A stockholder owns a part of a company.
A stockholder will always receive a profit when the stock is sold.
A stockholder may or may not receive a dividend.
Depending upon the current market price, stockholders may pay different prices for the same stock.
Compound interest is best defined as:
interest earned on the principal investment.
any form of interest earned from saving or investing.
earning interest on interest.
the effect interest has on the total return on investment.
The most common relationship between risk and return in investing can be stated as:
higher risk indicates lower return.
higher risk indicates higher return.
lower risk indicates higher return.
no relationship exists between risk and return.
Which is a feature of a certificate of deposit (CD)?
Funds deposited in a CD can be accessed via check or debit card.
Funds deposited in a CD are held for a certain length of time.
Funds deposited in a CD have tiered interest rates.
Funds deposited in a CD are very liquid.
In relation to other options, how liquid is a savings account?
More liquid than a checking account
More liquid than a certificate of deposit
Less liquid than mutual funds
More liquid than cash
