WorksheetsMoneySkill Mania 2
Total questions: 20
Worksheet time: 20mins
When you buy a consumer durable good, such as a new refrigerator, and the person making the sale keeps trying to sell you an extended warranty on the product, what does that tell you?
It is never a good idea to buy an extended warranty
It is always a good idea to buy an extended warranty
The store is probably making a big profit on the extended warranty because it costs much more than the estimated costs of repairs
The salesperson is always looking out for the benefit of the customer
Lauren has a $200 annual (calendar year) deductible on her health insurance plan. By the end of 2017, she had paid $175 in medical expenses. On January 4, 2018 she went to the doctor for the first time that year and was charged $60 for an office visit. How much of that must she pay for herself?
$100
None
$25
$60
Bill quit a job working 20 hours per week at a Subway sandwich shop. He now makes his own sandwiches in his college dorm room that he sells to hungry students. If he had been paid $8 per hour at Subway and now works the same 20 hours per week but sells his sandwiches for $300 per week and pays only $100 per week for the supplies, how much economic profit does he make?
$80 per week
$300 per week
$20 per week
$40 per week
Which of the following types of loans is considered to be an "investment in your human capital?"
Credit Card charges
Auto Loan
Student loan
Mortgage loan
Mike has saved $6,000 for his college expenses by working part-time. He plans to start college next year and needs all of the money he saved. Which of the following is the safest place for his college money.
Locked in his closet at home
Corporate bonds
A bank savings account
Stocks
What is the primary purpose of life insurance?
To pay back our parents for the money they spent on us if we die
To help maintain the standard of living of those who depend on our income, such as your spouse and children
To pay us an income if we are injured and can't work
To help save money for old age
As soon as a new car leaves the dealership, its value decreases and is considered “used.” This is due to what?
Use tax
amortization
depreciation
fianance charges
This company was valued at $47 billion and on track for an IPO in 2019 before falling at the finish line and shelving its plans to go public indefinitely? (Current Event)
Uber
Airbnb
WeWork
Peloton
Using the "Rule of 72," if you invested $2,500 at 9% interest, how many years would it take before your investment was worth $5,000?
12
9
8
6
Why is group insurance generally less expensive than policies sold by insurance agents?
Groups make higher profits
It is worse insurance
Selling costs are lower
It is the law
If you make tips from waiting tables, how does the government collect income tax on the tips you get?
Your employer withholds taxes on at least 8% of the total bills paid by the customers you served
Your employer counts all your tips and withholds taxes on that amount
Tips are not taxable
a)The government counts all your tips and taxes you
Christopher puts $2,500 into a mutual fund with a 2 ½ percent front end load. When the sale has been completed, what is the net asset value of Christopher's shares?
$3,202.50
$2,743.50
$2,437.50
$2,500
If you get an email from your bank on its official stationary which asks for your account number, what should you do?
Don't reply to the email
Give them the account number but never give them your Social Security number
Reply by email that you will not give them that information
If the email looks genuine, send them the information they requested
Rosalie goes to a hardware store where her family has an account that must be paid monthly. When she writes the check for the $414.72 balance, the man behind the counter says, "Oh don't bother to write in the name of the store, we’ll fill in the store name." If Rosalie doesn't fill in the name of the store, what could happen?
The check won't be accepted by the bank
Nothing because the store will fill in its name with a stamp
The store clerk can fill in his name as the payee and cash the check, leaving no record that the bill was ever paid
The store can increase the amount of the check
Fred has a great new idea for a business but needs $25,000 to get it started. What would happen if he asked the bank for a loan?
They would probably give it to him if the idea appeared to be good
They wouldn't lend him the money under any circumstances
They may lend him money if he pledges sufficient equity in a home or a car
It is against the law for a bank to lend to a new entrepreneur
If Joey is single and his taxable income last year was $9,400, how much would he pay in taxes using the 2019 tax table below?
$40
$940
$400
$4
Juan has borrowed heavily to get through college and expects to be able to pay back his large student loans after he marries and begins a family. What is a problem with Juan's plan? (Income over the life cycle)
Income taxes will be much higher in a few years
For the first 10 years after college, he will be making less money in today's dollars
Many employers reduce the salary of their workers who have children
Many families have difficulty repaying loans after marriage and a family because they have the additional expense of children along with a drop in income (or an increase in child care costs) if a parent quits work to be home with the children
Samstown Baseball Hats had a very profitable year. The company decided to share some of the profits with the people who own shares of its stock (the shareholders). The money Samstown Baseball Hats sent to the shareholders is called:
A transfer payment
interest
rent
A dividend
Meredith puts all of her college savings into Pepsi stock because she feels it will go up in value. Gideon has his savings spread among several different stocks. Whose portfolio of stocks is riskier?
They are expected to do equally well so they are of equivalent risk
Gideon's
Meredith's
Neither portfolio has any risk
The graph depicts Andrew’s lifetime of earning and expenses. At age 28, Andrew’s earnings and expenses include his wife’s earnings and expenses. At age 30, Andrew and his wife have children. The blue line represents the income that Andrew earns over his life from age 22 to 55. What is the most likely reason the income earned by Andrew (blue line) in the graph dips down between the ages of 30 and 38?
Taxes are much higher when you have children
Andrew will be paid less at work because he has children
Expenses go way up when the children are born
Either Andrew or his wife will quit work until the youngest child is school age
