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Personal and Family Finance: Final Review

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

In a pure market economy, the government controls most actions

a)

True

b)

False

2.

An example of a planned economy is

a)

A mixed economy

b)

A capitalist economy

c)

A socialist economy

d)

A laissez-faire economy

3.

If supply is high and demand is low, prices should

a)

drop

b)

rise

c)

stay the same

4.

The good and tools used to make products are referred to as

a)

capital

b)

labor

c)

resources

d)

entrepreneurial ability

5.

Capitalism is characterized by (select all that apply)

a)

Profits

b)

A market economy

c)

Privately owned businesses

d)

Government ownership of businesses

e)

Competition

6.

Individuals greatly impact the economy.

a)

True

b)

False

7.

An economy where more money is being collected than is being spent is known as having a(n)

a)

expansionary stance

b)

contractionary stance

c)

neutral stance

d)

capitalist stance

8.

A share of ownership in a company is known as a

a)

stock

b)

investment

c)

bond

d)

tariff

9.

Free or "freebie" items present costs only for the company that gives them away.

a)

True

b)

False

10.

In economic terms, what is another word for "marginal"?

a)

Outside

b)

Boundaries

c)

Additional

d)

Exceptional

11.

About what percentage of lottery winners end up with financial troubles?

a)

85

b)

15

c)

50

d)

70

12.

How often should you revisit your financial goals?

a)

Annually

b)

Every 5 to 10 years

c)

Every 2 to 3 years

d)

A few times a year

13.

Shared decision making is always a positive strategy to take.

a)

True

b)

False

14.

To reach your financial goals, you need to either (select two):

a)

Increase your savings

b)

Decrease your spending

c)

Decrease your savings

d)

Increase your spending

15.

The rise or fall in the price of an item is an example of

a)

Inflation Risk

b)

Interest Rate Risk

c)

Time value of money

d)

Opportunity cost

16.

401k accounts are an example of __________ accounts.

a)

Mortgage

b)

Bond

c)

Retirement

d)

Loan

17.

Which of the following is an example of a nondepository financial institution? (Select all that apply)

a)

Commercial Bank

b)

Credit Union

c)

Brokerage Firm

d)

Life Insurance Company

e)

Web-Only Institution

18.

Check cashing businesses do not require that an individual be an account holder; they will cash any valid check.

a)

True

b)

False

19.

Up to what amount does the FDIC in the U.S. insure some financial accounts?

a)

150,000

b)

50,000

c)

250,000

d)

500,000

20.

Certificates of deposit offer lower interest rates than a savings account.

a)

True

b)

False

21.

Progressive tax systems charge everyone the exact same percentage, amount, or proportion in taxes.

a)

True

b)

False

22.

On a tax return, the total of all sources of income minus specific deductions is known as your

a)

gross income

b)

adjusted gross income

c)

taxable income

d)

minimum income

23.

Who typically uses "estimated payments" when paying taxes?

a)

Someone who has taxes withheld on their paychecks

b)

Someone who hopes to get a large tax refund at the end of the year

c)

Someone who is self-employed, has investments, or where employer withholding does not apply

24.

In the United States, federal taxes are due on which day?

a)

April 15

b)

March 20

c)

July 4

d)

November 2

25.

What is a federal and/or state tax on specific goods such as gasoline, tires, airfare, or cigarrettes?

a)

Estate tax

b)

Ad valorem tax

c)

Excise tax

d)

Goods tax