WorksheetsW!SE Pre-test
Total questions: 25
Worksheet time: 13mins
A deposit of $1,000 into a savings account paying 4% interest is estimated to double in 18 years is an example of
The Rule of 72
Inflation
Liquidity
An opportunity cost
An ATM fee may be charged if a withdrawal is made from an ATM
at your own bank branch
located at a local gas station but not owned by your bank
at another branch of your bank
owned by your bank but located in a shopping mall
A homeowner's mortgage payments are based on the amount borrowed, the length of the time, and the
interest rate on the loan
selling price of the property
owner's income
owner's age
Mary lives in a high crime area where there's a high level of break-ins. Tamara lives in an area where break-ins are very rare. Based only on this information, Mary's homeowner's insurance is likely to be
higher than Tamara's
lower than Tamara's
the same as Tamara's
cancelled
Which of the following is a variable expense?
rent
car payment
grocery bill
loan payment
A person's credit history is important because it is used by
employers to determine whether or not to give salary increases
lenders to determine whether or not to approve credit
banks to determine the rate of interest to pay on savings
insurance companies to determine the due date of premiums
Your car breaks down and you need to get it repaired in order to go to work. Which answer is the best choice to use to repair your car?
take your mother's jewelry to the pawn shop to get money
sell share of stocks
use money you've saved for emergencies
take out a payday loan
A good reason to have a credit card is that it
allows you to spend more than you earn
makes you budget your money
is safer than carrying cash
lets you pay whenever you feel like it
You should avoid a tax refund loan because
they are not insured by the government
they charge extremely high fees
they require a co-signer
they force you to make a budget
You have a $500 deductible on your dental insurance. You need a root canal and the dentist says that the bill will be $750. How much will you and the insurance company pay?
You will pay nothing because it's covered on your insurance
You must pay the entire $750.
The insurance will pay $500 and you will pay $250
The insurance will pay $250 and you will pay $500.
You should think about getting a life insurance policy when you
graduate from high school
retire
have a child
rent an apartment
You rent your first apartment and want to purchase insurance to cover your belongings in the apartment. What type of insurance should you buy?
homeowners
rental
car
health
What does "Pay Yourself First" mean?
go shopping as soon as you get paid
budget a certain amount for fun each month
paying your bills online each month
saving some money from each paycheck before spending it
What is NOT a way to protect yourself against credit card fraud?
use a strong password for your online credit card account
giving your credit card number and expiration date to an unsolicited caller
making sure that you are using a secure website when using your credit card online
if your card is lost or stole, report it immediately to your credit card company
How often must you file your income tax return?
when you feel like it
annually
at the end of the month
when you get paid
You have a 5 year car loan that allows prepayments without a penalty. You pay your car loan off in 3 years. As a result, you
earned a higher interest rate
qualify for a credit card
will receive a lower interest rate
saved money by not having to pay 2 years of interest
How do you determine net worth?
assets - liabilities = net worth
assets + liabilities = net worth
assets X liabilities = net worth
assets divided by liabilities = net worth
Your credit score is important. A person with an excellent credit score will have a score of
100-250
350-525
550-700
740-850
When retail prices increase faster than wages, your purchasing power tends to
remain the same
increase
decrease
be unpredictable
Saving for retirement should start
when you begin your first job
right before you retire
when you have children
when you buy a house
Which financial product is guaranteed to make money?
stocks
real estate
mutual funds
Certificate of deposit (CD)
In a "Bear Market", stock prices will generally
rise over a period of time
fall over a period of time
change according to SEC guidelines
change according to FDIC guidelines
As a consumer, you should avoid which of the following?
diversifying investments
using checks
getting payday loans
comparison shopping
When applying for a 5 year car loan, the larger the down payment the
higher the amount of your monthly payment
lower the amount of your monthly payment
higher your insurance premiums
lower your insurance premiums
You see an unauthorized charge on your credit card bill, what should you do?
wait to see if your credit card company takes it off
call your credit card company immediately to report it
call one of the credit reporting agencies to report it
call the police
