WorksheetsSummer School Final Exam Review
Total questions: 50
Worksheet time: 25mins
Use the Rule of 72 to calculate how long it will take for your money to double if it’s earning 6% in interest:
12 years
16 years
36 years
72 years
You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
Compounding 1 time a year
Compounding 4 times a year
Compounding monthly
Compounding daily
Which of the following is considered a "need"?
Food
Pizza
Gatorade
Cake
Which of the following is a type of savings vehicle?
Certificate of Deposit
Debit Card
Checking Account
Credit Account
Which of the following is generally true about savings vehicles?
Savings vehicles are only useful for long term investments
People should evaluate different forms of savings vehicles based on their needs
Saving vehicles are never insured
All of the above
Which type of financial institution typically has membership requirements?
Credit union
Online commercial bank
Commercial bank
Federal reserve bank
Which of the following fees would likely be the highest?
Overdraft fee
Account transfer fee
Monthly service fee
ATM fee
The numbers on the bottom of a typical check represent all of the following EXCEPT?
Social security nuber
Routing number
Account number
Check number
Which of the following is not a type of bank?
Credit union
Online bank
Payday lender
Retail bank
What’s the best strategy for avoiding ATM fees?
Only use ATMs close to your hosue
Only use ATMs to withdraw cash
Only use ATMs in your bank's network
Only use ATMs you have never used before
Which of the following payment types require you to pay upfront?
Money order
Cashier's check
Pre-paid card
All of the above
Which of the following is true?
Checks and Debit Cards both withdraw money directly from a bank account.
Checks are the most widely accepted form of payment
Debit Cards often have a higher interest rate than Credit Cards.
Debit cards offer the highest level of fraud protection.
Which payment method typically charges the highest interest rates?
Credit cards
Cashier's checks
Pre-paid cards
Payday loans
Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month?
Late fee
Annual membership fee
Balance transfer fee
Annual percentage rate
What is a credit card balance?
The amount of interest you must pay the credit card company
The required minimum payment to your credit card company
A way to track your incoming and outgoing purchases
The amount of money you still owe to the credit card company
All of the following make up the big three credit reporting agencies EXCEPT:
Equifax
TransUnion
Experian
Federal Reserve
Which of the following actions can NEGATIVELY impact your credit score?
You disputed an item on your credit report.
You forgot to pay the cable bill.
You pay all your bills in cash.
You use a small amount of your available credit.
Which of the following MOST influences your credit score?
Types of credit used
Payment history
Length of credit history
Amounts owed
In which of the following situations is having a good credit score important?
Buying a car
Applying for a loan at a bank
Renting an apartment
All of the above
Which of the following is NOT true of credit scores?
Only the credit bureaus truly know credit scores are calculated.
Having a high score means you are more likely to repay debts.
The more money you make, the higher your credit score.
Your credit score can impact the car or home you can buy.
The return on investment (ROI) from education is typically the highest for:
A high school graduate
A college applicant
Someone with a 2 year associates degree
Someone with a 4 year bachelors degree
When planing for college, you should consider:
Visiting colleges during your junior year
Speaking with your college/career counselor
Joining an after school club or sports team
All of the above
The Federal Application for Student Aid (FAFSA) form:
Is only used to apply for federal subsidized loans.
Can only be submitted by mail.
Is the free application for federal student aid.
Is only used to apply for federal unsubsidized loans.
Which of the following types of financial aid do not require you to pay the money back?
Grants
Private loans
Federal loans
All of the above
Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.
You have the potential to earn more money in the future when you continue your education past high school.
You have the potential to earn less money in the future when you continue your education past college.
Higher education is not an investment but a debt.
Earning potential is not affected by education level.
Typically homes ___________ over time and cars ______________ over time.
appreciate; depreciate
depreciate; appreciate
appreciate; appreciate
depreciate; depreciate
What is a lease?
A contract outlining the terms under which a landlord agrees to rent property to a tenant.
A loan from a bank used to buy a house
A loan from a bank used to rent a home
A contact outlining the terms of a mortgage
What is a mortgage?
A type of rent used to pay for housing
A type of loan used to buy property
A measure of the value of a home
A measure of your credit rating
Depreciating assets:
become more valuable over time
become less valuable over time
stay the same value
none of the above
John would like to move from the city into the suburbs and has been saving up a large down payment for a home. Which is the most cost effective way for John to buy a house in the suburbs?
Move to the suburbs and rent a house for one year before purchasing a home.
Finish the term of his apartment lease in the city and find a new home to purchase simultaneously.
Break his lease and move to the suburbs immediately without identifying a home to buy.
Break his lease once he has bought the perfect home.
Insurance can help you:
minimize monthly expenses
financially protect against unexpected accidents
reduce the changes of getting into an accident
cover all out of pocket costs
Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance?
Your basement floods, causing you to lose a valuable collection.
A burglar makes off with your laptop while you're out of town.
A tree branch breaks your bedroom window during a storm.
A fire destroys almost all your possessions.
Jan pays $70 each month for her auto insurance policy. This regular payment is called a:
co pay
deductible
premium
claim
If you cause a car accident, which type of insurance will require you to pay the least out of pocket?
high deductible plan
low deductible plan
The person who receives financial protection from a life insurance plan is called a:
beneficiary
payer
insured
giver
On a pay stub, what is the difference between "Net Pay" and YTD Net Pay"?
Net Pay is how much you've made in a year, YTD Net Pay is how much is withheld for taxes.
Net Pay is how much you've made during a pay period, YTD Net Pay is how much is withheld for taxes.
Net Pay is how much you've made during a pay period, YTD Net Pay is how much you've made this year.
Net Pay is how much you've made minus taxes in one year, YTD Net Pay is how you've made in the last pay period.
When you purchase an item in a store, you may be charged __________.
income tax
sales tax
property tax
capital gains tax
Which of the following statements about taxes is FALSE?
Taxes are collected at the local, state and federal level
Some states don’t collect income tax
Some states don’t collect sales tax.
Taxes at the local, state and federal level are all equal
When starting a new job, the form you complete to determine how much tax to withhold from your paycheck is called the _______.
1040EX
1099
W-2
W-4
A tax form employers send to each of their employers listing how much money that individual made during the last year and how much has already been paid in taxes is called the ______________.
1040EZ
1099
W-2
W-4
Identity thieves can use your personal information to:
Open a credit card
Sign up for electricity service
Get a cell phone contract
All of the above
What is the safest way to dispose of old bank account statements?
Throw them out in a neighbor's trash
Shred them in a paper shredder
Keep them bundled together in a folder
Put them in the trash unopened
Which document puts you at the LEAST risk of identity theft?
Cash receipts
Pre-approved credit card offers
Old tax records
Paycheck stubs
Which type of password would be considered secure?
abc123
password
SuMmEr3!$0.
123456789
What activities might require you to provide your social security number?
Starting a new job
Boarding a plane
Buying something with a credit card
Renting a car
When you buy a ____ , you are loaning money to an organization.
bond
stock
mutual fund
index fund
Generally speaking, the _______ the risk, the _______ the potential return or loss.
higher; lower
higher; higher
lower; higher
________ are typically comprised of a mix of ________ and ________.
Stocks; bonds; index funds
Bonds; index funds; mutual funds
Mutual funds; stocks; bonds
Stocks; index funds; bonds
If an investment is considered “volatile”, it means...
the investment will experience rapid growth over time.
the value of the investment may be hard to predict.
the investment is high-risk, and its price will increase quickly.
the investment is undervalued and may increase over time.
Which investment type typically carries the least risk?
individual stocks
treasury bonds
savings accounts
mutual funds
