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Personal Finance Unit 3 Financial Planning Quiz Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

How might taxes have an impact on your financial plan?

a)

Taxes control the rate of inflation

b)

Taxes control how much of your income you keep

c)

Taxes don't apply to money you add to your financial reserve

d)

Taxes impact how high interest rates are

2.

Which of the following will affect the amount of net pay you earn on your paycheck?

a)

Rent expense

b)

Car insurance

c)

House payment

d)

State income tax

3.

What is a tax bracket?

a)

The rate of sales tax in a state

b)

The rate at which income is taxed

c)

The way the government calculates tax returns

d)

A comparison between Federal and State taxes

4.

What is a Financial Reserve?

a)

A plan for what you'll do with your money

b)

An amount of money that's been set aside for short-term goals

c)

An amount of money that's been set aside for emergencies

d)

A way of organizing finances to set and meet goals

5.

Which of the following is a variable expense?

a)

Netflix subscription

b)

Groceries

c)

Rent on an apartment

d)

Car payment

6.

What tax applies to investments and other personal property?

a)

Sales tax

b)

Excise tax

c)

IRS tax

d)

Capital gains tax

7.

What does a person's will list?

a)

What should happen to their finances after they die

b)

What their plan for retirement is

c)

What types of insurance they have

d)

What their current financial goals are

8.

What is financial responsibility?

a)

Paying for video games and entertainment with cash

b)

Making sure you get a pay stub with your paycheck

c)

Being responsible about the way you spend your money

d)

Going to dinner with your parents and offering to pay

9.

The size of an iPod would be what aspect of the product?

a)

Asset

b)

Benefit

c)

Feature

d)

Quality

10.

Which of the following is an unexpected expense?

a)

Utility bill

b)

Groceries each month

c)

Car repairs

d)

Phone bill

11.

Which of the following is NOT a discretionary expense?

a)

Rent

b)

Gym membership

c)

Entertainment

d)

Vacation

12.

Which of the following is a financial goal?

a)

Graduating from high school

b)

Becoming a teacher

c)

Learning to play basketball

d)

Buying a car

13.

Transaction taxes and Excise taxes are two types of ______________ taxes.

a)

City taxes

b)

Sales taxes

c)

Federal taxes

d)

State taxes

14.

Which of the following is an example of earned income?

a)

Transfer payments

b)

Wages

c)

Investments

d)

Gifts

15.

What are Social Security taxes used for?

a)

Building schools and playgrounds

b)

Unemployment

c)

Income for retired and disabled people

d)

Medical benefits for people ages 65 and over

16.

What type of information is required on a 1040EZ form?

a)

A financial projection for the next year

b)

A list of each purchase made in the previous year

c)

Your gross and net income for the previous year

d)

Your bank statements from the previous year

17.

Which of the following is true about wants?

a)

They include items such as food and shelter

b)

They are non-discretionary expenses

c)

They are discretionary expenses

d)

They are usually essential

18.

Which of the following is a benefit of an iPod?

a)

The number of songs it holds

b)

How small it is

c)

How long the battery lasts

d)

How it allows the purchaser to listen to music anywhere

19.

Which example is a fixed expense?

a)

electricity

b)

entertainment

c)

car payment

d)

groceries

20.

Which of the following is a short-term financial goal?

a)

Saving for retirement

b)

Saving for college

c)

Buying a house

d)

Buying the new video game you want