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Personal Finance Review

Total questions: 36

Worksheet time: 36mins

Name
Class
Date
1.

A financial institution, owned by its members, that offers financial services, especially savings and mortgage lending.

a)

Bank

b)

Building Society

c)

Credit Union

d)

Broker

2.

What is a default notice?

a)

A notice that one has outstanding debt on their credit card that must be resolved immediately

b)

A notice from the council about housing eviction

c)

A document from a lender stating that a person has failed to carry out the terms of the contract

d)

A document from a lender stating that a loan needs to be paid.

3.

A non-profit making cooperative whose members can borrow from pooled deposits at low interest rates.

a)

Bank

b)

Building Society

c)

Credit Union

d)

Mortgage House

4.

A financial institution licensed to receive deposits and make loans. May also provide financial services, such as wealth management, currency exchange and safe deposit boxes.

a)

Bank

b)

Credit Union

c)

Mortgage Broker

d)

Building Society

5.

Which of the following is not a favorable option for dealing with debt?

a)

Pay the amount owing

b)

Negotiate a change in you payments

c)

Refinance you loan

d)

Apply for bankruptcy

6.

What is the first thing you should do if you cannot repay your loan?

a)

Contact a lender about your situation

b)

Tell your friends

c)

Go to the Ombudsman

d)

Seek advice from a lawyer

7.

Which of the following is not an example of how a financial planner can help you maximise your net worth?

a)

Interpreting and explaining complex financial issues including appropriate tax structures.

b)

Identifying your short and long-term goals.

c)

Preparing a financial plan customised to your specific needs

d)

Contacting a Bank and asking for a loan

8.

A payment, based on a percentage of proceeds, to musicians, artists and authors.

a)

Wage

b)

Royalties

c)

Fees

d)

Commission

9.

Payment to a salesperson, based on the percentage of the sales price.

a)

Commission

b)

Fee

c)

Royalties

d)

Wage

10.

A salary is ...

a)

A fixed amount of money paid on a regular basis (usually fortnightly or monthly) to a permanent employee of an organisation

b)

Money received by workers, usually on a weekly basis, for services they provide to an employer

11.

A wage is ...

a)

A fixed amount of money paid on a regular basis (usually fortnightly or monthly) to a permanent employee of an organisation.

b)

Money received by workers, usually on a weekly basis, for services they provide to an employer

12.

What is the name of the organisation that keeps on file the credit records of consumers.

a)

ASIC

b)

Royal Commission into Banking

c)

Credit Bureau

d)

Future of Financial Advice (FoFA)

13.

A sum payable as profit for shares; part of a firms profit that is divided among shareholders.

a)

Rent

b)

Commission

c)

Royalties

d)

Dividend

14.

Which of these is not an example of Fixed Income?

a)

Car Repayments

b)

Gym Fee

c)

Groceries

d)

Mortgage

15.

Which of these is not an example of a variable expense?

a)

Movie Tickets

b)

Car Registration

c)

Haircuts

d)

Electricity Bill

16.

The annual cost of borrowing credit or the annual return on invested savings.

a)

Fee Structure

b)

Interest Rate

c)

Commission Variability

d)

Foreign Exchange Rate

17.

Type of loan used to purchase items such as cars, furniture or travel.

a)

Mortgage

b)

Personal Loan

c)

Lay-By

d)

Overdraft

18.

Something pledged as security for the repayment of a loan, to be forfeited in the event of a default.

a)

Collateral

b)

Mortgage

c)

Personal Loan

d)

Insurance

19.

Individual or firm that specialises in buying and selling shares.

a)

Mortgage Broker

b)

Financial Advisor

c)

Creditor

d)

Stock Broker

20.

Facility that provides business loans and other credit facilities specifically for large businesses.

a)

Credit Union

b)

Finance Comapny

c)

Merchant Bank

d)

Building Society

21.

Which of the following is NOT a factors used to determine your credit rating

a)

Capacity

b)

Character

c)

Collateral

d)

Contract

22.

Someone who guarantees to pay back the money if the borrower does not

a)

Guarantor

b)

Co-Signatory

c)

Executive

d)

Mortgagee

23.

The amount of money to be paid to receive insurance cover.

a)

Commission

b)

Fee

c)

Premium

d)

Interest

24.

The lender in a mortgage, typically a bank, building society or savings and loan association.

a)

Capital Creditor

b)

Creditor

c)

Financier

d)

Mortgagee

25.

ASIC stands for ...

a)

Australian Stock Insurance Corporation

b)

Australian Securities Investment Commission

c)

Australasian Savings Instability Commission

d)

Australian Securities Insurance Coalition

26.

One of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits.

a)

Commission

b)

Share

c)

Capital

d)

Fee

27.

An investment fund run on behalf of an investor by and agent.

a)

Managed Fund

b)

Portfolio

c)

Superannuation Fund

d)

Property Portfolio

28.

Compulsory system of placing a minimum percentage of your income into a fund to support your financial needs in retirement.

a)

Portfolio

b)

Hedge Fund

c)

Income Tax

d)

Superannuation

29.

Buying something without giving much thought as to whether you really need it is called ...

a)

Purchase Immediacy

b)

Impulse Buying

c)

Short-Term Acquisition

d)

Caveat Emptor

30.

The amount of income an employee has left after income tax is deducted is called ...

a)

Salary

b)

Gross Income

c)

Wage

d)

Net Income

31.

Tom suffered serious injuries in a motor vehicle accident. He cannot work for six months according to his doctor as a result of his injuries.


What type of insurance will pay Tom an income until her recommences work?

a)

Life Insurance

b)

Health Insurance

c)

Comprehensive Insurance

d)

Income Protection Insurance

32.

Issy had borrowed $400,000 to purchase a house. Her parents have promised to pay the bank should Issy be unable to.


What have Issy's parents agreed to be for her?

a)

A Financier

b)

A Guarantor

c)

A Guardian Agent

d)

A Repossessing Agent

33.

Malcolm owes money to a finance company who helped him buy a mobile phone. Consequently, the finance company has a legal order to take a certain amount of money our if his weekly wage.


This process is called ...

a)

Direct Debiting

b)

Salary Sacrificing

c)

Garnishing Wages

d)

Budgeting of Wages

34.

Commission, dividends and royalties are all ...

a)

Types of Income

b)

Types of Insurance

c)

Types of Investments

d)

Types of Financial Advice

35.

Which of the following is a disadvantage of paying with credit cards?

a)

Having easy access to finance could lead to overspending

b)

An item may be able to be obtained instantly and paid for later

c)

Money remains in the bank earning interest until a bill is paid

d)

Bill can be paid for conveniently over the phone or the internet

36.

Mick had a car accident and contacts his insurance company. If he makes a claim, which of the following expenses for future insurance policies may increase for him?

a)

Exit Fee

b)

Joining Fee

c)

Interest Rate

d)

Premium Rate