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WorksheetsPersonal Finance EOC
Total questions: 60
Worksheet time: 30mins
When is the best time to start saving for long-term financial goals?
When you are young and have fewer financial obligations
After you have finished college
When you have a family of your own
When you are in your forties and earning more money
The highest median weekly income is earned by people who have completed which of the following levels of education?
Associate's Degree
High School Diploma
No degree
Bachelor's Degree
Individuals with which of the following education levels are the most likely to be unemployed?
Associate's Degree
Less than a high school diploma
Doctoral Degree
Bachelor's Degree
The amount of money a job pays is referred to as
Compensation
Opportunity Cost
Cash Inflow
Net Pay
A ___________ is an official document or record stating that you have met some standard for training or knowledge.
Internship
Apprenticeship
Certification
Accreditation
Master's Degrees, Law Degrees, and Doctoral Degrees are all examples of:
Undergraduate Degrees
Graduate/Professional Degree
Certifications
Accreditations
Associate's and Bachelor's Degrees are both considered:
Graduate Degrees
Undergraduate Degrees
Professional Degrees
Certificates
When low skill based work is traded for hourly wages it is most commonly referred to as:
A career
A job
Volunteer work
An internship
When someone is compensated monthly based on a year long total this is called:
Wages
Salary
Bank Statements
Pension Plans
When you receive money and immediately put a portion of it into your savings and investments you are following which investment principle?
Dollar cost average
Time value of money
Pay yourself first
Diversification of assets
The money in savings accounts is insured up to what amount by the FDIC?
$100,000
$250,000
$500,000
$1,000,000
Fees that support government programs and are required by law to be applied to income, property, and good are known as:
Assessments
Taxes
Earnings
Interest
Which of the following is considered cash outflow?
Rent or mortgage
Inheritance
Money made off investments
A paycheck
Which of the following is NOT an example of cash outflow?
A paycheck
Buying groceries
Car insurance
Rent or mortgage
Which of the following is NOT considered cash inflow?
A paycheck
Earning money from babysitting
Buying movie tickets
Investment earnings
Which of the following would be considered cash inflow?
Purchasing a new car
Paying car insurance
Buying groceries
Earning money for mowing laws
Fixed expenses do not include:
Insurance Premiums
Rent and Mortgages
Car Payments
Groceries
A fixed expense:
Changes depending on the amount of use
Varies each month
Does not change from month to month
Can vary depending on the time of the year
Variable expenses could include
Clothing and food
Rent or mortgage
Car or house payments
Loan repayment
Variable expenses:
Are always the same
Change month to month depending on use
Never change
Stay the same in each pay period
Risk is
The likelihood of incurring a loss
The careful planning of a budget
The creation of stocks
Constant from month to month
A good budget includes
All cash inflow and cash outflow
No variable expenses
No fixed expenses
Unrealistic goals for spending
When creating a budget, which of the following is true
All variable expenses should not be included
Only half of the income is necessary
All income, variable expenses, and fixed expenses should be included
Budgets should be rigid and allow for no freedom
Pay yourself first means:
Savings for each month should be done at the end of the month
There is no need to set aside money for things
Money should be put into savings as soon as it is received
100% of all income needs to go into savings
A reasonable amount of savings or Paying Yourself First should be:
At least 10%
At least 50%
100% of all income
0% of your income
What percentage of income is typically spent on housing?
50%
75%
10%
25%
Which of the following factors does NOT affect the cost of housing?
Proximity to a city center
Amount of groceries purchased in a month
Number of roommates
Size of the house or apartment
Transportation costs can include all of the following except:
Car insurance
Rent or mortgage
Cost of gas
Car payments
Which of the following variable expenses is most likely to make a person fail on their budget?
Mortgages or house payments
Car insurance
Utilities
Dining out impulsively
Which of the following is included in utilities?
Rent
Water
Car insurance
Mortgage
Recreational and "fun" spending should be done
After all fixed and variable expenses are considered
Immediately upon being paid
Never
Before your rent or mortgage
FDIC stands for
Fun dependency initial creation
Federal deposit inability concentration
Federal deposit insurance corporation
Financial dependency institution company
A privately owned institution in which one can open accounts and conduct financial transactions is called
A credit union
Payday loan business
Pawn shop
Commercial bank
These financial institutions are typically larger, have more branch locations, and charge higher interest rates
Credit Unions
Commercial Banks
Piggy Banks
Savings and Loan
A non-profit financial institutions that serves individuals and businesses in a given community is called:
A commercial bank
A pawn shop
A credit union
A museum
Which of the following ONLY allows someone to use an ATM to withdraw money from their account?
Debit Card
Credit Card
Gift Card
ATM Card
Which of the following methods of payment takes money directly from your checking account?
Credit card
Gift card
Debit card
ATM card
Which form of payment represents a small loan that is to be paid at a later date?
Debit Card
Credit Card
Cash
ATM Card
Which form of payment is typically directly linked to a checking account?
Credit card
Cash
Debit Card
Gift Card
Which form of payment is the most likely to increase debt?
Cash
Credit Card
Debit Card
ATM Card
What does APR stand for?
Annual Percentage Rate
Actual Part of Rehearsal
Annual Percentage Readiness
Accrued Personal Rate
What is a credit limit?
The minimum one can place on a credit card
The annual percentage rate
A person's credit score
The maximum one can charge on a credit card
Which would be BEST for your credit score
Never paying bills
Opening new accounts
Paying back loans in installment payments
Having very high credit limit
Which term describes someone who rarely pays interst?
Sub Prime Users
Credit Rehab Subscribers
Revolving Credit Makers
Convenience Users
Which of the following choices shows the range of credit scores one can obtain?
0-100
500-1000
300-700
300-850
Which of the following is NOT a credit reporting agency?
Equifax
Equicredit
Transunion
Experian
How many free credit reports are you entitled to every year?
Three
One
Five
Zero
What category of credit sores includes the time that oyu have successfully had accounts open?
Payment History
New Credit
Amount Owed
Length of Credit History
What is the most important category included in your credit score accounting for 35% of the score?
Payment History
New Credit
Amount Owed
Length of Credit History
What is the simple interest formula?
I=PAR
I=PYD
P=RTI
I=PRT
If a loan has a $10,000 principal amount, a 3% interest rare, and a 36 month payback period, how would you represent T in the simple interest formula?
T=10,000
T=.03
T= 36
T=3
If a loan has $5,000 principal, a 10% interest rate, and a 1 year payback period how much interest would be paid back?
100
5500
500
1200
When someone cannot pay back their debts, what option can combine all of their debts into one?
Open new accounts
Debt consolidation
Debt aversion
Bankruptcy
Which of the following institutions is likely to have interest rates over 100%
Credit Unions
Commercial Banks
Bankruptcy Lawyers
Payday Loans
What is the legal status declaring that a person or entiry cannot pay their debts?
Debt consolidation
Sub-prime users
Bankruptcy
Equifax
Which of the following is NOT a common reason for bankruptcy?
Medical expenses
Credit card debt
Business failures
Paying bills on time
Which type of retirement account is primarily used for private sector workers?
403(b)
401(k)
Pension
CD
What type of retirement account is normally reserved for tax-exempt organizations and public sector employees?
401(k)
403(b)
CD
Money Market Account
What two institutions' daily statistics would reflect the general health of the stock market?
The Dow Jones and The NBA
NASDAQ and ORHS
The Dow Jones and NASDAQ
SEC and IRS
What type of high interest saving account typically stays untouched for 1, 3, or 5 years?
IRA
Certificate of Deposit
Money Market Account
Mutual Funds
