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WorksheetsW!SE Practice Test Questions
Total questions: 93
Worksheet time: 2hrs 33mins
Most landlords require the renter to pay a security deposit at the beginning of the rental agreement. Which is true about the security deposit?
The deposit is kept by the landlord to cover his management costs
The deposit can never be greater than $100
The deposit can be used to repair damage caused by the tenant during the term of the lease
None of these
The most important thing to consider when choosing an apartment is:
Whether or not pets are allowed
How many bedrooms there are
Whether or not the apartment is located on a bus line
If you can afford to pay your rent and other costs on an ongoing basis
Which of the following information would not be found in a typical lease?
The amount of the monthly rent, and the day of the month it is due.
The name of the previous tenant.
The address of the unit being rented.
The beginning and ending dates of the rental agreement.
A landlord can refuse to rent you an apartment if which of the following is true:
You are married.
You own a cat and a dog.
Your ancestors were immigrants
You are a member of a particular faith group.
Which of the following are considerations in choosing an apartment?
Cost
Proximity (how close or far) to work
Availability of mass transit (public transportation)
All of the above
The location of a home is important because:
A good location will make the home easier to sell.
Homes in good locations will usually appreciate (increase) in value.
Not all locations have good school systems or the same amenities.
All of the above.
A real estate agent is able to:
Get you a lower price on a home
Arrange for you to tour homes that you are interested in purchasing
Assist you at closing
Both B & C
This will allow you to borrow the money to buy a car. You will have to pay it back, with interest, over time:
Gift
Lease
Loan
Lend-lease
This allows you to use a car for a specific period of time for a specified monthly payment:
Loan
Contract
Lease
Gift
Tax deductions and tax credits can _______ tax liability.
increase
reduce
not affect
none of the above
A budget can help you reach a financial goal by:
Showing you how you can earn more income
Allowing you to see where you can cut back on spending
Giving you the tools to change more fixed expenses
All of the above
Buying a home includes:
Choosing a home
Signing a contract
Securing a down payment
Financing a home
All of the above
Consumers have:
Rights
Responsibilities
Remedies
All of the above
A credit union:
requires membership, but in other respects, is like a bank.
never has interest rates as good as a bank.
can't offer savings accounts.
is only open to college students.
A deductible is:
the discount you deduct from your premium.
The amount of loss you pay before your insurance pays.
The amount that is deducted when you buy a policy.
The discount received by the health care provider.
Diversification is good because:
it focuses investments on a single stock to take advantage of growth potential
mutual funds have higher fees than individual stocks
interest rates rise and fall
it spreads out the risk of the investment
A good password:
is an easily remembered number like your phone number or your Social Security Number.
Should be used for all of your online accounts, including ones you share with friends.
should include a combination of letters and numbers that are memorable and meaningful to you.
should be written down in your wallet so you will have them wherever you go.
How can you make the most of a tight budget?
make a list before going shopping
buying things on sale
setting good priorities
all of the above
How much of your take-home pay should be budgeted for all housing related expenses?
10%
33%
60%
80%
If you get your first credit card while you're a full-time student, what can you expect about the card's APR on outstanding balances?
It will probably be about the same as the APR on your parents' cards.
It will probably be low until you graduate, and then it will rise.
It will probably be low.
It will probably be high.
Financial planning calls for:
Short-term goals
Long-term goals
Both A & B
None of the above
If you have a long-term horizon for investing, you should:
Lean toward high-risk investments, with high-return potential.
Keep at least 75% cash or money market funds for immediate availability.
Own only one stock
Diversify into savings accounts and US Savings Bonds
If your MP3 Player is stolen form the apartment you are leasing, what time of insurance would it be covered under?
Auto
Homeowners
Renters
Life
An important economic role for government is _______________ property rights.
Define
Establish
Reinforce
All of the above
Improving your credit score will let you get:
Lower interest rates on loans
Higher interest rates on savings accounts
Neither of the above
Both of the above
Inflation is:
Always exactly 5% per year
The reason most people get ahead by saving money in their mattress
The rise in the cost of purchasing everyday goods.
The annual rate of return on a savings account
Inflation is:
A number set by the government that causes prices to rise
A number measured by the government that describes the changing prices of everyday goods.
Automatically subtracted from interest rates quoted by banks for their savings accounts
Investing in a global stock fund is a good idea to:
focus all risk on the US economy
keep your portfolio dependent solely on the US dollar
Diversify into municipal and corporate bonds
diversify holdings to spread risk outside of the US
Long term investors:
sit tight through bull markets and bear markets
buy and sell on a daily basis
may adjust their holdings to sell when others are selling and markets are falling
always lose money in the long run
Money in your emergency fund could be wisely used:
to buy a new pair of shoes that went on sale
to lend money to a friend to pay off credit card debt
To pay for an unexpected health expense
to put money down on a new car
Most insurance companies sell you insurance because:
the government requires them to do so
they are charitable institutions with a mission to reduce hardship
the generally take in more in premiums than they pay out
Negative items on a credit report that are not correct:
can never be removed
should be removed once the mistake is shown to the credit reporting angency
don't affect your credit rating
are best ignoredx
Net pay is:
equal to gross pay
greater than gross pay
what remains after deductions are subtracted from gross pay
none of the above
Online bill payment:
can happen automatically every month, even if you set it up just once.
will definitely cause an overdraft charge.
can only be set up by making an appointment with a bank branch manager
cannot be set up online
Over about 40 years, your portfolio should probably:
sell every holding each year to figure out how well you're doing
change from higher-risk to lower-risk investments
grow equally well in all sectors, or it is a bad financial plan
become less and less conservative, increasing in risk from year to year
An overdraft fee:
is a fee charged by a business when a check you write them bounces
is the minimum balance required to be held in a bank account
is a fee paid to a payday loan company
is the fee charged by a bank when your checking account balance goes below zero.
A paycheck has withholding tax taken out:
if a person earns more than $600 a year.
that is paid to state and federal taxing authorities
that is automatically refunded to workers even without filing a 1040EZ form
that is always equal to $9.54
Preparing a budget is:
an ongoing process
something you only have to do once in your lifetime
not an effective way to save money
a method for calculating take home pay
A property right to a good or service includes the right to:
Exclude others from using a good or service
Transfer ownership or the use of the resources to others
Both a and b
None of the above
A regular paycheck helps your credit score because:
It can be cashed and spent quickly
It has taxes pulled out
It shows you will not pay your bills on time
It indicates you are likely a good credit risk
Someone who can tolerate a risky investment would:
wake up in the middle of the night worrying about the investment
be very concerned that downturn would wipe out the long-term capital gains
understand that an investment that fell when the entire market fell was not necessarily a bad investment
keep all money in a savings account at bank for long-term growth
Tax refunds:
occur when a taxpayer's income tax withholding exceeds what they owe
come from extra money the federal government has left over at the end of the year, and are distributed around February 15
Come to taxpayers regardless of whether they file an income tax return or not
include interest paid to the taxpayer by the federal government based on holding that money throughout the tax year
This type of insurance pays to fix damages that you cause, bu does not cover your own car.
No-fault
Collision
Liability
None of the above
To file your taxes, you need:
every pay stub from the entire year
every deposit slip from your savings account
W2 and 1099INT reports, and charitable deduction receipts
a computer
A budget is an important tool for managing one's money to achieve short- and long-term goals
True
False
Advertising and marketing do no affect consumer demand and decision making.
True
False
A net worth statement shows one's financial position.
True
False
Basic economic concepts can be used to understand consumer spending.
True
False
Social Security replaces about what percent of most people's pre-retirement income?
70%
40%
100%
10%
Basic economic concepts can be used to understand the pricing of products
True
False
Comparison shopping provides information that does not help consumers obtain the best quality for the best price.
True
False
Conspicuous consumption can lead to financial troubles
True
False
Consumers have a responsibility to be vigilant.
True
False
Consumers should not weigh costs and benefits to prioritize discretionary spending decisions.
True
False
Economic understanding and economic conditions do not affect a personal financial plan.
True
False
Government actions, such as changes in taxes, do not affect personal financial planning.
True
False
Independent living involves ongoing housing costs such as utilities and maintenance.
True
False
Individuals have few choices to make when selecting insurance.
True
False
People should set up and maintain a filing system for financial information.
True
False
Insurance can reduce financial risk
True
False
Insurance does not play a role in financial planning.
True
False
Personal choices about education, training, and skill development impact earnings.
True
False
Some sources of income and expenses are unanticipated.
True
False
Student loans often don't require you to start paying them back until you've completed the program or leave school.
True
False
People can receive income from a variety of sources.
True
False
The information of a worker provides on the W-4 form does not impact federal tax deductions and personal income.
True
False
There are costs and benefits to both buying and leasing a vehicle.
True
False
There are costs and benefits to both renting and buying a home.
True
False
There are many types of identity theft and methods for avoiding becoming a victim.
True
False
The use of decision models can hinder purchase decision making
True
False
All investments eventually increase in value if held long enough.
True
False
If you buy enough different stocks, you can diversify out all risk in the stock market.
True
False
The W4 form:
lists the number of people who claim the worker as a dependent on their tax returns.
is filled out by each employee, stating the number of withholding allowances claimed.
is a report sent from the employer to both the IRS and the employee showing gross wages.
should be attached to the tax return with a staple when filing.
A wage and tax statement, known commonly as the W2 form provides information for completing:
state tax forms
Federal tax forms
both A and B
none of the above
When should you start saving for retirement?
As soon as you enter the workforce.
Before age 50 and not after
After age 50.
When writing a check:
Always print your signature.
Sign on the line that says "Pay to the order of"
Spell out the dollars and cents on the line that ends in "Dollars"
Spell out the dollars and cents in the short box next to the 4 symbol.
Which factor is most important in securing well-paying jobs throughout your career?
Having a car
Having a good education
Have a clean driving record
Having established credit
Which of the following best describes a lease?
A legal document that contains all the details of the agreement between the landlord and renter which is signed by both parties.
An informal agreement between the renter and the landlord which the renter signs if s/he is thinking about renting an apartment.
A document that describes, in detail, the apartment for rent.
An agreement between someone searching for an apartment to rent and his or her real estate agent.
Which is NOT a step in researching your purchase?
Comparing prices
Getting your friends' approval
Looking at customer reviews
Trying on apparel
Which of the following is a benefit of an employer-sponsored retirement plan?
Contributions are not taxed
Employers often match contributions
All of the above
None of the above
Which are types of insurance?
auto
health
life
property
all of the above
Which of the following is the best definition of a minimum payment on a credit card?
A fee that must be paid whether the card is in use, or not
The smallest payment that will keep a credit card holder in good standing with the lender
The interest on a purchases that were made on the credit card
A low, introductory payment offered by the lender for a few months until the card holder has established good credit.
Which of the following is the best example of irregular income?
full-time job
part-time job
graduation gift
all of the above
Which of the following utilities may be billed separately from your rent?
Water
Electricity
Phone/Internet Service
All of the above
Why is it harder to estimate expenses than to estimate income?
Expenses often change more from month-to-month
You can never truly know how much you spend.
Your income will never change
None of the above
Why is it not a good idea to make early withdrawals from your 401(k)?
You usually have to pay a strict penalty
You cannot put the money back in once you take it out
You will lose your tax-deferred status on the entire account
With online banking, you can:
Access accounts that are not your own and transfer money into your own account.
Use a telephone to talk to a bank teller.
Pay bills, check your balance, and see if checks have cleared on your bank's online website.
Put a check through a scanner to pay bills.
Without health insurance, a routine checkup at the doctor's office can cost you:
Nothing because doctors don't charge if you don't have insurance.
Several hundred dollars.
Almost as much as a car.
Nothing, because you can't get treated without insurance.
You can order a copy of your credit report:
Free, online from www.annualcreditreport.com, once a year from each of the credit reporting companies.
Free, online from the Fair Isaac Corportation
Only if you have good credit because this service isn't available if you are a poor credit risk.
Only if you are applying for a credit card or loan.
You forgot to pay last month's credit card bill. Your creditor will probably:
Cancel your account.
Send you a reminder to pay the bill.
Add finance charges and late fees to your bill.
Reduce your minimum payment.
You ran short of cash and borrowed $50 from your rich cousin. When you paid her back, she insisted that you owed $60. What is the extra $10 called?
Bribery
Interest
Principal
Credit
Your credit history tells:
the history of your saving, borrowing, and repayment performance.
the history of your report cards.
the history of formation of the Experian and Equifax companies.
the history of your parents' saving, borrowing, and repayment performance.
Your return with a diversified portfolio will:
be exactly 11.3% each year
rise and fall, but has less risk than a smaller number of stocks and a smaller number of sectors and asset classes
fall if a single company goes out of business
beat absolutely every other investor.
