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Worksheets

Personal Finance

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

What is the relationship between risk and return in terms of investments?

a)

Indirect

b)

Direct

2.

Which type of tax is constant and affects both groups with low and high incomes?

a)

Progressive

b)

Proportional

c)

Regressive

3.

Which type of tax affects individuals with higher incomes the most?

a)

Regressive

b)

Proportional

c)

Progressive

4.

Which tax affects individuals with low income?

a)

Regressive

b)

Progressive

c)

Proportional

5.

Which of the following best describes a credit union?

a)

Offers low interest rates

b)

Ensured by the FDIC

c)

More customer service oriented

d)

Aims to make profits

6.

Which of the following is a profit organization that offers individuals to open savings accounts?

a)

Title Pawn Lenders

b)

Credit Union

c)

Commercial Bank

d)

Payday Lenders

7.

True or False:

Health insurance covers your income whenever you are injured and unable to work.

a)

True

b)

False

8.

True or False:

Property insurance covers damage done to the car you own.

a)

True

b)

False

9.

True or False:

Life insurance protects your family from financial hardship in the event that you die.

a)

True

b)

False

10.

Which type of insurance protects you from medical expenses?

a)

Disability

b)

Life

c)

Health

11.

What is the difference between interest earned and interest charged?

a)

Interest earned and interest charged remain at the same rate unless it is said otherwise.

b)

Interest earned is greater than interest charged.

c)

Interest earned is less than interest charged.

d)

There is no difference between the two types of interest.

12.

Which of the following describes a deductible?

a)

The price of an insurance policy.

b)

Money that the insured must pay before an insurance company will pay a claim.

c)

Money offered by the government.

13.

Which of the following investment options is the most risky given that it is a share of a company?

a)

Certificate of deposit

b)

Stocks

c)

Mutual funds

d)

Savings account

14.

An investment sold by banks that is used to ensure that money stays where it is until time of withdrawal

a)

Stock

b)

Certificate of Deposit

c)

Bond

d)

Checking account

15.

What is a valid definition of diversification?

a)

The act of separating people based on income

b)

The act of investing in multiple investments

c)

The act of investing in several stocks

d)

An act performed by the government that involves handing out certain companies various amounts of subsidies

16.

An estimate of income for a set period of time is a valid definition for...

a)

Credit

b)

Insurance

c)

Premium

d)

Budget