NEW
Font size
WorksheetsPart 1: Personal Finance Final Exam Practice (Unit 1.00 - 4.00)
Total questions: 50
Worksheet time: 4hrs 10mins
Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?
When his financial goals have been established
When his money management plan has established high well-being
When he is 70 years old
Never – it is an ongoing process
Which of the following factors is not influenced by values?
Everything is influenced by values.
An individual’s daily decisions
An individual’s long-term decisions
An individual’s financial decisions
Which statement about our interactions with money is not considered to be true?
Your present self impacts your future self.
You are better off in a community than by yourself.
Investment increases risk and reduces your ability to cope with risk and uncertainty.
Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?
Short‐term
Intermediate
Long‐term
Unrealistic
Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?
Short‐term goal
Long‐term goal
Mid‐term goal
This is not an example of a goal.
Which of the following is likely to have the least influence on an individual’s values?
Media
Family
Religious affiliations
Grade average
Carter wants to participate in an activity that will improve his well-being. Which activity would contribute the most to his well-being?
An activity his friends like to participate in
An activity that does not cost much money
An activity that his teacher suggested to him
An activity that makes him lose track of time
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.
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
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.
Who is Medicare designed to help?
Low-income families
Single parents
Senior citizens
Children of unemployed parents
Which formula should Jordyn use to calculate her net worth?
Assets – liabilities = net worth
Assets × liabilities = net worth
Assets + liabilities = net worth
Assets / liabilities = net worth
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.
Which would most likely be considered a contractual expense?
Cell phone
Food
Entertainment
Clothing
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
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.
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.
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
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 the best 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.
Sarah learned in her Financial Education class that she needs to consider the cost of living when comparing job offers. Which is the most important consideration?
How much she will spend in moving expenses to relocate to the city where her new job is
The average cost of basic necessities, such as housing and food in the city where her new job is
The total value of the benefits package she will be offered in her new job
The total amount of her college costs compared to the salary she is being offered in her new job
One’s lifestyle is to their standard of living as present is to:
Past
Recent
Future
Gift
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
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.
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.
Direct Subsidized Stafford Loans offer some features that are different when compared to borrowing money from a bank to pay for college. Which is not a difference between a Direct Subsidized Stafford Loan and a typical bank loan?
Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time.
Stafford loans have deferment options
Stafford loans typically have a grace period.
Student families must complete a FAFSA (Free Application For Federal Student Aid) in order to apply for a Stafford loan.
Steven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called:
employee benefits.
job perks
work incentives
competitive hiring practices
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.
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?
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.
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
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.
The most secure method for an employer to pay employees is to use:
direct deposit.
a payroll card.
a printed paycheck
in-store credit.
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.
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
Gross income – deductions =
Social Security
Medicare
Net income
Employee benefits
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.
Jose has been challenged by his academic advisor 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.
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.
Shannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount?
Net Income
Hours and Earnings
Employer Contributions
Gross Income
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.
The regular schedule that employers use to pay their employees is called the:
worker’s compensation.
pay period
employee benefits
employer contributions
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.
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.
Which federal program assists low-income families in purchasing nutritious foods?
SNAP
TANF
Social Security
Medicare
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
Earn Income Tax Credit
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.
