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WorksheetsPersonal Finance Final Review
Total questions: 50
Worksheet time: 28mins
The ________ is the government body that enforces federal tax laws and collects the taxes.
United States Congress
Bureau of Labor
Commerce Department
Internal Revenue Service (IRS)
The deadline for filing your federal tax return each year is ________.
January 1
March 15
April 15
December 15
This is the person who would receive the financial benefits of life insurance
Beneficiary
Co-signer
Policy holder
Jack N.
Only type of Insurance that is required by law
Property Insurance
Renter's Insurance
Auto Insurance
Life Insurance
The only type of life insurance that is considered an investment
Term Life
Whole or Cash Life
This type of insurance covers the person's vehicle when YOU cause an accident
Auto Liability Insurance
Term Insurance
Renter's Insurance
Collateral Insurance
When you cannot work for a small period of time, but plan on returning to work you would want
Property Insurance
Disability Insurance
Life Insurance
Auto Insurance
The amount of money you pay before your insurance will start to pay
Premium
Policy Price
Insurance Money
Deductible
Type of investment with the least amount of risk
Futures
Annuities
Bonds
Single Stocks
A retirement plan found in a nonprofit organization such as churches, schools and hospitals
Roth IRA
403(b)
401(k)
Annuity
To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would want to contribute to a(n)
401(k)
Roth IRA
Annuity
Traditional IRA
The purpose of diversification in your investment is
Reduce risk
Increase return
Reduce tax liability
Increase risk
This is the tax form you would fill out if you want to take the standard deduction when filing your taxes and you don't have any special circumstances that you need to account for.
1040
1040EX
1040EZ
1140T
Ashley S. bought a new house last year, she recently got a letter from the city showing her the amount her house is worth and the additional fees she will pay in her mortgage because the value of her property increased. What is this type of tax called?
Sales Tax
Income Tax
Property Tax
Excise Tax
Formal documentation from your employment which acts as a summary, listing all your net income, income taxes and deductions from that year.
W9
W4
W7
W2
When Jack W uses credit irresponsibly, it will likely be more difficult for him to buy anything on credit for several years.
True
False
Nick got his paycheck today, he worked 40 hours a week, his gross pay was $500, but the amount of his check was $385. What is this tax called:
Income tax
Sales tax
Property tax
Death tax
Airemie owns a tire business and makes tires out of materials made from Germany, he pays an additional tax on the purchase of the materials
Sales tax
Excise tax
Income tax
Tariff tax
Talia purchased a new book at the store and was charged an additional 7%. This is called:
Income tax
Sales tax
Excise tax
Tariff tax
Federal income taxes, state income taxes, and Social Security withholdings are all ________.
Payroll taxes
Real estate taxes
Sales taxes
Capital taxes
In general, which type of tax is typically used to fund local schools?
sales tax
property tax
payroll tax
income tax
Real estate taxes are calculated based on the ________.
age of the property
size of the property
ownership of the property
estimated value of the property
The total amount of money Kenzie takes home in a pay period is her ________.
gross pay
net pay
adjusted gross income
capital gain
Which of the following types of investments offers an investor the most protection from a severe drop in the value of an investment?
stocks
bonds
mutual funds
real estate
A(n) ________ represents fractional ownership of a company.
stock
bond
credit card
asset
A(n) ________ is a promise to repay a certain amount of money at some future time.
investment
stock
mutual fund
bond
Which of the following is NOT a common type of investment?
stocks
series EE savings bonds
savings accounts
real estate
Which one of the following does NOT show a correct match?
cash inflow: scholarship award
cash inflow: interest paid on a loan
cash outflow; insurance premium
cash outflow: tuition
A(n) ________ expense is an expense that remains the same from time period to time period, often month to month.
fixed
variable
outflow
inflow
For individuals, ________ is referred to as income.
asset
liability
cash inflow
expense
Your FICO score can range from 300-875
True
False
Which of the following questions would you answer while establishing your net worth in the budgeting process?
How much income can I expect each month?
How much money do I usually spend in a month?
How much money do I have in the bank now?
How can I decrease the amount of income tax I owe?
Without insurance on a major purchase, the owner assumes all of the ________.
equity
asset
risk
investment
Which of the following is the best description of a financial plan?
A good financial plan is like a user's manual for a cell phone.
A good financial plan is like a registration guide for college classes.
A good financial plan is like a blueprint for a builder.
A good financial plan is like a to-do list for a busy student.
Which of the following is a long-term financial goal?
buying a cell phone
creating an emergency fund
taking a vacation
buying a house
Which of the following is false about credit cards
Many have benefits to them such as points or free money
Paying late results in a fee
Paying only the minimum balance every month will help you in the long run
Some have annual fees to use them
Typically credit cards have the lowest amount of interest
True
False
Which of the following student loan option is considered free money
Subsidized
Unsubsidized
Grant
Perkins Loan
The additional cost that is added onto your mortgage if you do not have a 20% down payment
Closing costs
Percentage of sweat equity
PMI (Private Mortgage Insurance)
TMI (Total Mortgage Insurance)
When you start paying off your house your ___________ will grow
Hair
Equality
Equity
Finger nails
This type of (mortgage) interest rate changes over time due to economic conditions
Fixed Rate
ARM (Adjustable Rate Mortgage)
This is the additional money you pay when borrowing money
Interest
Closing costs
Taxes
Lunch Money
This type of insurance covers any damage that would be done if there was a house fire
Property
Life
Personal
Auto
Noah has to decide whether to work an extra shift at his job at the movie theater or take the evening off and go to a concert with his friends. To make his decision, Noah adds up what he could make by working the extra shift and what he will spend at the concert. Noah is calculating his ________.
assets
credit
opportunity cost
financial goals
The best time to start investing money to reach your financial goals is ________.
now
in your twenties
in your thirties
in your forties
The purpose of insurance is to ________ your assets.
expand
protect
finance
manage
In general, the more education you have, the ________ your ________.
higher; salary
lower; salary
higher; debt
lower; debt
Which of the following provides the most accurate definition of personal finance?
all of the financial issues that can affect an individual
all of the financial issues involved in borrowing money
all of the financial issues involved in saving money
all of the financial issues involved in spending within a budget
Which of the following are characteristics of an effective personal goal?
It should be determined by your friends or parents.
It should be measurable and specific.
It should be easy to accomplish.
It should be vague.
When applying for a job, you should:
Provide a resume and cover letter
Follow up with the employer
Present yourself well
All of these
