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Worksheets

Personal Finance EOC

Total questions: 60

Worksheet time: 30mins

Name
Class
Date
1.

When is the best time to start saving for long-term financial goals?

a)

When you are young and have fewer financial obligations

b)

After you have finished college

c)

When you have a family of your own

d)

When you are in your forties and earning more money

2.

The highest median weekly income is earned by people who have completed which of the following levels of education?

a)

Associate's Degree

b)

High School Diploma

c)

No degree

d)

Bachelor's Degree

3.

Individuals with which of the following education levels are the most likely to be unemployed?

a)

Associate's Degree

b)

Less than a high school diploma

c)

Doctoral Degree

d)

Bachelor's Degree

4.

The amount of money a job pays is referred to as

a)

Compensation

b)

Opportunity Cost

c)

Cash Inflow

d)

Net Pay

5.

A ___________ is an official document or record stating that you have met some standard for training or knowledge.

a)

Internship

b)

Apprenticeship

c)

Certification

d)

Accreditation

6.

Master's Degrees, Law Degrees, and Doctoral Degrees are all examples of:

a)

Undergraduate Degrees

b)

Graduate/Professional Degree

c)

Certifications

d)

Accreditations

7.

Associate's and Bachelor's Degrees are both considered:

a)

Graduate Degrees

b)

Undergraduate Degrees

c)

Professional Degrees

d)

Certificates

8.

When low skill based work is traded for hourly wages it is most commonly referred to as:

a)

A career

b)

A job

c)

Volunteer work

d)

An internship

9.

When someone is compensated monthly based on a year long total this is called:

a)

Wages

b)

Salary

c)

Bank Statements

d)

Pension Plans

10.

When you receive money and immediately put a portion of it into your savings and investments you are following which investment principle?

a)

Dollar cost average

b)

Time value of money

c)

Pay yourself first

d)

Diversification of assets

11.

The money in savings accounts is insured up to what amount by the FDIC?

a)

$100,000

b)

$250,000

c)

$500,000

d)

$1,000,000

12.

Fees that support government programs and are required by law to be applied to income, property, and good are known as:

a)

Assessments

b)

Taxes

c)

Earnings

d)

Interest

13.

Which of the following is considered cash outflow?

a)

Rent or mortgage

b)

Inheritance

c)

Money made off investments

d)

A paycheck

14.

Which of the following is NOT an example of cash outflow?

a)

A paycheck

b)

Buying groceries

c)

Car insurance

d)

Rent or mortgage

15.

Which of the following is NOT considered cash inflow?

a)

A paycheck

b)

Earning money from babysitting

c)

Buying movie tickets

d)

Investment earnings

16.

Which of the following would be considered cash inflow?

a)

Purchasing a new car

b)

Paying car insurance

c)

Buying groceries

d)

Earning money for mowing laws

17.

Fixed expenses do not include:

a)

Insurance Premiums

b)

Rent and Mortgages

c)

Car Payments

d)

Groceries

18.

A fixed expense:

a)

Changes depending on the amount of use

b)

Varies each month

c)

Does not change from month to month

d)

Can vary depending on the time of the year

19.

Variable expenses could include

a)

Clothing and food

b)

Rent or mortgage

c)

Car or house payments

d)

Loan repayment

20.

Variable expenses:

a)

Are always the same

b)

Change month to month depending on use

c)

Never change

d)

Stay the same in each pay period

21.

Risk is

a)

The likelihood of incurring a loss

b)

The careful planning of a budget

c)

The creation of stocks

d)

Constant from month to month

22.

A good budget includes

a)

All cash inflow and cash outflow

b)

No variable expenses

c)

No fixed expenses

d)

Unrealistic goals for spending

23.

When creating a budget, which of the following is true

a)

All variable expenses should not be included

b)

Only half of the income is necessary

c)

All income, variable expenses, and fixed expenses should be included

d)

Budgets should be rigid and allow for no freedom

24.

Pay yourself first means:

a)

Savings for each month should be done at the end of the month

b)

There is no need to set aside money for things

c)

Money should be put into savings as soon as it is received

d)

100% of all income needs to go into savings

25.

A reasonable amount of savings or Paying Yourself First should be:

a)

At least 10%

b)

At least 50%

c)

100% of all income

d)

0% of your income

26.

What percentage of income is typically spent on housing?

a)

50%

b)

75%

c)

10%

d)

25%

27.

Which of the following factors does NOT affect the cost of housing?

a)

Proximity to a city center

b)

Amount of groceries purchased in a month

c)

Number of roommates

d)

Size of the house or apartment

28.

Transportation costs can include all of the following except:

a)

Car insurance

b)

Rent or mortgage

c)

Cost of gas

d)

Car payments

29.

Which of the following variable expenses is most likely to make a person fail on their budget?

a)

Mortgages or house payments

b)

Car insurance

c)

Utilities

d)

Dining out impulsively

30.

Which of the following is included in utilities?

a)

Rent

b)

Water

c)

Car insurance

d)

Mortgage

31.

Recreational and "fun" spending should be done

a)

After all fixed and variable expenses are considered

b)

Immediately upon being paid

c)

Never

d)

Before your rent or mortgage

32.

FDIC stands for

a)

Fun dependency initial creation

b)

Federal deposit inability concentration

c)

Federal deposit insurance corporation

d)

Financial dependency institution company

33.

A privately owned institution in which one can open accounts and conduct financial transactions is called

a)

A credit union

b)

Payday loan business

c)

Pawn shop

d)

Commercial bank

34.

These financial institutions are typically larger, have more branch locations, and charge higher interest rates

a)

Credit Unions

b)

Commercial Banks

c)

Piggy Banks

d)

Savings and Loan

35.

A non-profit financial institutions that serves individuals and businesses in a given community is called:

a)

A commercial bank

b)

A pawn shop

c)

A credit union

d)

A museum

36.

Which of the following ONLY allows someone to use an ATM to withdraw money from their account?

a)

Debit Card

b)

Credit Card

c)

Gift Card

d)

ATM Card

37.

Which of the following methods of payment takes money directly from your checking account?

a)

Credit card

b)

Gift card

c)

Debit card

d)

ATM card

38.

Which form of payment represents a small loan that is to be paid at a later date?

a)

Debit Card

b)

Credit Card

c)

Cash

d)

ATM Card

39.

Which form of payment is typically directly linked to a checking account?

a)

Credit card

b)

Cash

c)

Debit Card

d)

Gift Card

40.

Which form of payment is the most likely to increase debt?

a)

Cash

b)

Credit Card

c)

Debit Card

d)

ATM Card

41.

What does APR stand for?

a)

Annual Percentage Rate

b)

Actual Part of Rehearsal

c)

Annual Percentage Readiness

d)

Accrued Personal Rate

42.

What is a credit limit?

a)

The minimum one can place on a credit card

b)

The annual percentage rate

c)

A person's credit score

d)

The maximum one can charge on a credit card

43.

Which would be BEST for your credit score

a)

Never paying bills

b)

Opening new accounts

c)

Paying back loans in installment payments

d)

Having very high credit limit

44.

Which term describes someone who rarely pays interst?

a)

Sub Prime Users

b)

Credit Rehab Subscribers

c)

Revolving Credit Makers

d)

Convenience Users

45.

Which of the following choices shows the range of credit scores one can obtain?

a)

0-100

b)

500-1000

c)

300-700

d)

300-850

46.

Which of the following is NOT a credit reporting agency?

a)

Equifax

b)

Equicredit

c)

Transunion

d)

Experian

47.

How many free credit reports are you entitled to every year?

a)

Three

b)

One

c)

Five

d)

Zero

48.

What category of credit sores includes the time that oyu have successfully had accounts open?

a)

Payment History

b)

New Credit

c)

Amount Owed

d)

Length of Credit History

49.

What is the most important category included in your credit score accounting for 35% of the score?

a)

Payment History

b)

New Credit

c)

Amount Owed

d)

Length of Credit History

50.

What is the simple interest formula?

a)

I=PAR

b)

I=PYD

c)

P=RTI

d)

I=PRT

51.

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?

a)

T=10,000

b)

T=.03

c)

T= 36

d)

T=3

52.

If a loan has $5,000 principal, a 10% interest rate, and a 1 year payback period how much interest would be paid back?

a)

100

b)

5500

c)

500

d)

1200

53.

When someone cannot pay back their debts, what option can combine all of their debts into one?

a)

Open new accounts

b)

Debt consolidation

c)

Debt aversion

d)

Bankruptcy

54.

Which of the following institutions is likely to have interest rates over 100%

a)

Credit Unions

b)

Commercial Banks

c)

Bankruptcy Lawyers

d)

Payday Loans

55.

What is the legal status declaring that a person or entiry cannot pay their debts?

a)

Debt consolidation

b)

Sub-prime users

c)

Bankruptcy

d)

Equifax

56.

Which of the following is NOT a common reason for bankruptcy?

a)

Medical expenses

b)

Credit card debt

c)

Business failures

d)

Paying bills on time

57.

Which type of retirement account is primarily used for private sector workers?

a)

403(b)

b)

401(k)

c)

Pension

d)

CD

58.

What type of retirement account is normally reserved for tax-exempt organizations and public sector employees?

a)

401(k)

b)

403(b)

c)

CD

d)

Money Market Account

59.

What two institutions' daily statistics would reflect the general health of the stock market?

a)

The Dow Jones and The NBA

b)

NASDAQ and ORHS

c)

The Dow Jones and NASDAQ

d)

SEC and IRS

60.

What type of high interest saving account typically stays untouched for 1, 3, or 5 years?

a)

IRA

b)

Certificate of Deposit

c)

Money Market Account

d)

Mutual Funds