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Personal Finance CRT

Total questions: 47

Worksheet time: 26mins

Name
Class
Date
1.

Use the Rule of 72 to calculate how long it will take for your money to double if it’s earning 6% in interest:

a)

12 years

b)

16 years

c)

36 years

d)

72 years

2.

Asim earns $250 per month. Which statement below is most correct?

a)

Asim makes more than she spends.

b)

Asim spends more than she makes.

c)

Asim should save more in the future.

d)

a. Asim should stop saving in the future.

3.

Which of the following will most benefit you financially?

a)

A savings account that compound interest daily

b)

A savings account that compound interest monthly

c)

A savings account that compound interest yearly

d)

A savings account that does not compound interest

4.

Which of the following are examples of types of savings vehicles?

a)

Certificate of Deposit (CD)

b)

Money Market Account

c)

Savings Account

d)

All of the Above

5.

The first set of numbers (74894934) on the check represents the:

a)

Bank account number

b)

Check number

c)

Bank routing number

d)

Member number

6.

The set of numbers (101) on the top-right of the check represents the:

a)

Bank account number

b)

Check number

c)

Bank routing number

d)

Member number

7.

Which type of bank account typically offers no interest?

a)

Savings

b)

Money Market

c)

Certificate of Deposit

d)

Checking

8.

Which of the following typically have the highest fees?

a)

Retail Bank

b)

Credit Union

c)

Online Bank

d)

Payday Lender

9.

Which of the following typically has the lowest fees or costs to use?

a)

Debit Card

b)

Credit Card

c)

Cash Advance

d)

Payday Loan

10.

The term referring to the rate of yearly interest for your credit card is commonly known as:

a)

Default Rate

b)

APR

c)

COD

d)

Grace Period

11.

What is the customary APR on purchases after the initial 12 months?

a)

36.5%

b)

27.357%

c)

18.25%

d)

5.65%

12.

What is the annual fee for this card?$0

a)

$5

b)

$0

c)

$29

d)

$39

13.

Your credit history is tracked by all of the following EXCEPT:

a)

Equifax

b)

Federal Reserve

c)

Experian

d)

Trans Union

14.

Good credit is usually required for which of the following?

a)

Buying a new car

b)

Getting a credit card

c)

Purchasing a home

d)

All of the above

15.

Which of the following could potentially damage your credit score?

a)

Ignoring a late payment notice

b)

Paying a roomate back

c)

Opening a checking account

d)

None of the above

16.

The form filed by students to receive federal financial aid for school is known as:

a)

FIFA

b)

FAFSA

c)

FICO

d)

FAA

17.

Investors pooling all of their money together to buy different stocks and bonds is known as:

a)

Diversification

b)

Mutual Fund

c)

A way to minimize risk

d)

All of the above

18.

Which of the following is an advantage of federal student loans?

a)

Federal student loans have a fixed interest rate.

b)

Federal student loans are only available to students who can demonstrate financial need.

c)

Federal student loans must be paid back while you’re in school.

d)

Federal student loans do not accumulate interest.

19.

The amount of time a person has after the “due date” is known as:

a)

Promotional Period

b)

Default Period

c)

Payback Period

d)

Grace Period

20.

Which statement is most correct when choosing to rent or buy a home?

a)

Rent a home only until you can afford to buy one.

b)

Buy a home because it is better than renting one.

c)

Rent a home because it is better than buying one

d)

Buy or rent a home based on your individual circumstance.

21.

Which statement is most correct?

a)

A benefit of owning a home is that it is easier to move.

b)

A benefit of renting a home is that you can make renovations to the home.

c)

A benefit of owning a home is that the value may appreciate.

d)

A benefit of renting a home is that you can move out whenever you want.

22.

What are the responsibilities of a renter versus an owner?

a)

A renter living in a house has complete responsibility and control over the property.

b)

An owner of a house has complete responsibility and control over the property.

c)

Neither a renter nor an owner has any responsibility and control over the property – it’s completely controlled by the government.

d)

Both a renter and the owner have equal responsibility and control over the property.

23.

Which of the following should you take into consideration when deciding to buy or lease a car?

a)

Car interior and features

b)

Monthly loan payment

c)

Color of car

d)

None of the above

24.

Which form is your employer required to send to you before you file your tax return?

a)

W-2

b)

W-4

c)

1040EZ

d)

None of the above

25.

Isaiah needs to visit the doctor. The cost of the appointment without insurance is $200. Isaiah has an insurance plan through his employer with a $50 monthly premium and $20 co-pay. How much will Isaiah have to pay his doctor?

a)

$0

b)

$50

c)

$20

d)

$200

26.

By what date must federal taxes typically be filed and sent to the IRS?

a)

March 15

b)

April 15

c)

April 1

d)

March 1

27.

Which of the following drivers will likely pay the highest auto insurance premiums?

a)

Younger, inexperienced drivers

b)

Older, experienced drivers

c)

Drivers who have a safe driving record

d)

Drivers who travel short distances

28.

How often are you entitled to a free credit report from each of the major credit reporting companies?

a)

Monthly

b)

Daily

c)

Yearly

d)

Whenever you use your credit

29.

Which of the following provides the best protection against identity theft?

a)

Never use credit

b)

Pay all bills with cash

c)

Shred documents that contain personal information

d)

Open up a new bank account every year

30.

Which piece of information is most useful to an identity thief?

a)

Social Security Number

b)

Address

c)

Phone Number

d)

Student ID Number

31.

Which of the following steps best protects your credit history if you suspect fraud?

a)

Contact the credit bureaus and report suspected fraud

b)

Contact the store where your credit card was used and request a refund

c)

Contact the local police department and file a complaint

d)

Contact the chamber of commerce and close your bank account.

32.

When buying a stock in a company, you are

a)

Diversifying your portfolio

b)

Investing in an index fund

c)

Loaning money to a company

d)

Buying a portion of a company

33.

When you purchase a municipal bond, you are

a)

Loaning money to a municipality

b)

Diversifying your portfolio

c)

Investing in an index fund

d)

Buying a portion of a municipality

34.

The main trade-off that all investors must consider is

a)

Income vs. Cost

b)

Diversity vs. Uniformity

c)

Risk vs. Return

d)

Stocks vs. Bonds

35.

Diversification is important in investing because

a)

It helps you to balance your risk across different investment types

b)

It increases your overall risk, which guarantees that you will make more money.

c)

It helps you gain the highest rate of return despite any risks.

d)

It ensures that you only make low-risk investments.

36.

A finance charge is

a)

Impossible to avoid when using a credit card

b)

A fee associated with credit

c)

A fee associated with debit

37.

A grace period is a period of time during which you can

a)

Pay off balance and not incur a finance charge

b)

Get an interest free cash advance

c)

Exceed your credit limit

38.

Something of value that is pledged as security for a loan is called

a)

Lien

b)

Promissory Note

c)

Collateral

d)

Debit

39.

A down payment

a)

Increases the risk to the lender

b)

Is the portion of a purchase which the borrower pays up front

c)

Is the same as an early loan repayment

d)

Must be at least 10%

40.

Renters insurance covers the

a)

Rent payment

b)

Renters belongings

c)

Renters dwelling

d)

Deductible portion of replacement items

41.

An auto loan

a)

Is available for terms of 3, 4, 5, and 15 years

b)

Is an installment loan which is paid monthly

c)

Usually requires no collateral

d)

Can only be offered for a car sold at sticker price

42.

A bond pays

a)

dividends

b)

interest

c)

premium

d)

coins

43.

The most basic life insurance is

a)

Universal life

b)

Term life

c)

Whole term

d)

Whole life

44.

Which of the following is a way to invest in a business?

a)

Purchase publicly traded stock

b)

Start your own business

c)

Investing in someone else's business

d)

All of the above

45.

Kiena, Jessica, and Sierra agreed to share an apartment to help reduce their cost of living. The rent on their three-bedroom apartment is $1,075. If divided evenly, what is each person’s share of the monthly rent?

a)

$538.34

b)

$537.50

c)

$337.50

d)

$358.33

46.

Sondra loaned her sister $7,500 to start a small business. Her sister agreed to pay back the original amount plus 5% interest. The full amount is due in one year. What is the amount of interest that Sondra’s sister will pay?

a)

$375

b)

$3,750

c)

$787.50

d)

$7,875.00

47.

Deon recently graduated from college. He has a total student loan amount of $12,400. His monthly payments will be $165.13. He will make those payments for ten years. How much interest will Deon have paid on his student loans when they are completely paid off?

a)

$1,651.30

b)

$7,414.60

c)

$19,815.60

d)

$32,215.60