WorksheetsPersonal Finance Review
Total questions: 25
Worksheet time: 8mins
Monitoring financial accounts and reading bank statements on a regular basis can help detect activities associated with
Personal hijacking
Property infringement
Identity theft
security fraud
The process of matching your checkbook register with the bank statement is called
journaling
reconciing
totaling
depositing
The equation for computing your statement of financial position is
Net Worth = Assets - liabilities
Net worth = Assets + Liabilities
Assets - liabilities - Net Worth
Net Worth - Assets = Liabilities
Which of the following is NOT considered a need?
Shelter
A car
Shoes
Medical Care
Which of the following is NOT something that influences your personal values?
Family
Experiences
Beliefs
Financial Status
An example of a fixed expense is
Rent
car maintenance
grocery expenditures
the electric bill
An example of an occasional expense is
Buying gas for your car
Getting an oil change for your car
receiving cash from your grandma for Christmas
paying your parents each month for car insurance
Before you make a purchase over $50 you should
Use the Stop, Drop and Think Test before you buy.
Walk away and think about it for 24 hours.
See if it fits with your budget and goals.
All of the above.
When using the DECIDE Method to make a purchase decision, the first thing you need to do is
Make a goal
Establish a criteria for a successful purchase
Compare 2 or 3 options
Evaluate your choice
One advantage of setting attainable goals is that you
Work harder to achieve a very high goal.
Can measure your progress.
Are less likely to get discouraged
Can picture it in your mind.
Which of the following is a benefit of writing down your goal?
Changing your goal when necessary
Clarifying the goal in your mind
Picturing what it would be like to reach your goal.
Sequencing smaller sub-goals.
The most important factor in determining your credit score is
Your age and education level
How many credit cards you have
What job you have
Your history of paying your bills on time.
The equation for simple interest is
P=I*R*T
P=I+R+T
I=P*R*T
I+P+R+T
An arrangement by which businesses and individual can purchase now and pay later is known as
Credit
Capacity
Interest
Collateral
When you purchase a car, which type of credit are you most likely to use?
Regular
Installment
Budget
Revolving
Molly's credit report shows that her credit score has dropped over the past nine months. What is the most important thing Molly can do to improve her credit score?
Close all of her older credit card
Apply for another credit card
Increase the amount of money owed.
Pay all her bills by the date they are due.
Which of the following individuals is a good candidate to purchase life insurance?
21-year old single woman with no children
35-year old married man with 2 children and a mortgage
50-year old single man with no children, debt or dependents
80-year old widower who owns his home and has no dependents.
If Danilla invests $6,000 at a simple annual interest rate of 5%, the value of her investment at the end of 5 years is
$7,650
$7,500
$1,500
$1,200
A lower APR means __________ monthly payments
Lower
Higher
Stable
Fluctuating
What is the first thing you should do if you see a charge on your credit card bill that you don't think you made?
Call the company where the charge came from to report it.
Cancel your card so on one else can use it.
Call one of the credit reporting agencies to report it.
Call the credit card company to inquire about the charge.
One of the main reasons why individuals make investments based on their future financial needs is to:
Develop a living will
Avoid paying taxes
Set up a trust fund.
Generate retirement income
What is a primary consideration when evaluating the time value of money?
Tariffs
Premiums
Interest rates
Credit limits
Sheila decides to invest some money. She doesn't like to take big risks, and she wants to be able to access all of her money at all times. She also doesn't mind not earning much interest. She should invest her money in
Savings account
Stock
Certificate of Deposit (CD)
Money Market Account
Lisa has $50 taken out of each paycheck to add to the mutual fund she purchased last year. This is an example of
Time Value of Money
Dollar Cost Averaging Investing
Compound Interest
Saving
How is liquidity best defined?
The amount of savings available for a person.
Amount of money needed for necessities and comforts
Measurement of how much a person owns after debt is subtracted
How quickly and easily an asset can be converted to cash.
