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WorksheetsF21 - Fin Lit Introduction
Total questions: 91
Worksheet time: 49mins
Money Math. Which of these do we need for the math in this class.
Addition
Subtraction
Multiplication
Division
Calculus
Which of these are true statements about extra credit?
Extra credit points raise your grade quicker because they add to the denominator, but not the numerator
Extra credit points raise your grade quicker because they add to the numerator, but not the denominator.
Extra credit points raise your grade quicker because they add to both the denominator and the numerator
Extra credit points don't raise your grade quicker than "regular" points
True or False. Nearly half of all households live paycheck to paycheck and could not come up with $2,000 in an emergency.
True
False
Which of these statements about our financial system is FALSE:
It does a better job serving people who have money, than people who don't have money
Once you get into financial trouble, the system makes it easy for you to recover
Once you get into financial trouble, the system makes it harder and more expensive to recover
People who are least able to pay are the ones that are most likely to be charged fees, higher interest, and penalties
Which statement is NOT true about using your debit card to buy groceries at Walmart, and also geting "cash back":
The cost of the groceries comes out of your checking account
The cash back comes out of your checking account
You will pay interest on the groceries, but not the cash back
You won't pay interest on either the groceries or the money back
True or False. Athletes who earned millions of dollars don't need to know how to manage their money.
True
False
Most high school students surveyed said which of these classes benefit their lives more than financial literacy classes:
Math
Science
Social studies
English Literacy
None of these
Most college students can attend college without borrowing money.
True
False
Which TWO of these statements about retirement are NOT true:
Most people have saved enough money to retire
$50,0000 is enough to retire on
$50,000 is NOT enough to retire on, but more than half of workers have not even saved that much
You should invest (not save) money for your retirement
People who had financial literacy in high school were NOT more likely to do which TWO of these :
Save money
Have a budget
Invest
Declare bankruptcy
Have their paychecks garnished
Which of these are NOT true statements:
96% of college students say they are determined to finish college
Only 46% of college students think they have enough money to graduate college
80% of those that quit college say money trouble was the main reason for quitting
These are all true
True or False. Credit card debt is at a high interest rate, compared to car loans or mortgages.
True
False
True or False. Americans charge more than $1 Trillion every year on credit cards.
True
False
True or False. The debt system keeps many people from building wealth, because they are constantly paying for things that they bought years ago.
True
False
"Wealth" is which of these:
How much income you make each year
How much money you spend each year
The assets you accumulate, minus the liability you accumulate - aka Net Worth.
None of these
Which one of these best describes anything of value that you own
Interest
Debt
Assets
Mutual funds
None of these
Which one of these describes the money you earn for loaning people your money
Interest
Debt
Assets
Mutual funds
None of these
Which one of these describes money that you pay for borrowing money
Interest
Debt
Assets
Mutual funds
None of these
Which one of these do you invest in, if you want a fund manager to decide which specific companies to invest in.
Interest
Debt
Assets
Mutual funds
None of these
Which one of these best describes money that you owe:
Interest
Liabilities
Assets
Mutual funds
None of these
Which one of these terms best describes how quickly an asset can be converted to cash?
Diversification
Liquidity
Compound interest
Principal
Which one of these terms best describes using a variety of investments, to reduce the loss if any one of them loses money
Diversification
Liquidity
Compound interest
Principal
Which one of these terms best describes the loan amount when you borrow money?
Diversification
Liquidity
Compound interest
Principal
Which of these statements about a 401(K) is NOT rue
The money comes out after taxes - so you pay federal income tax on the money when it goes in to the 401(k), but you don't pay taxes when you withdraw the money (hopefully when you retire).
They are one of the best ways to invest for the future
The money comes out of your pay before you get the paycheck - so you may not even "feel it."
The money comes out before taxes - so you don't pay federal income tax on the money when it goes in to the 401(k), but you do pay taxes when you withdraw the money (hopefully when you retire).
Many employers "match" the money that you put in your 401(k) - so you immediately have a 100% return on your investment.
True or False. There is no homework in this class.
True
False
Most millionaires are college NOT graduates.
True
False
More than half of all millionaires inherited their money. True or False.
True
False
Most millionaires attended public schools. True or False
True
False
Most millionaires drive expensive new cars. True or False
True
False
Most millionaires do NOT work in glamorous jobs, such as sports, entertainment, or high tech. True or False
True
False
The most common way to become a millionaire is by winning the lottery. True or False
True
False
A college graduate earns almost double the annual income of a high school graduate. True or False
True
False
Millionaires tend to be married rather than single. True or False
True
False
_______ _______ borrowers in the US owe 1.5 Trillion dollars
(a)
True or False. Credit cards typically charge about 20% interest.
True
False
True or False. In bankruptcy, you turn over all of your assets and all of your liabilities to the Court.
True
False
True or False. Language of money. Default is when you don't make loan payments on time.
True
False
True or False. Language of money. Bankruptcy is when you turn in most of your assets and most of your liabilities (except student loans) to the Court and start from zero.
True
False
True or False. Your employer withholds payroll deductions from your gross pay, before you get paid your net pay.
True
False
Language of money. _____ _____ is when you spend the limit on your credit card.
(a)
A common way to buy partial ownership of a company.
Stocks
Bonds
None of these
A common way to loan money to a company.
Stocks
Bonds
None of these
True or False. Interest is money you PAY for using other peoples' money.
True
False
True or False. Interest is money you are paid for letting other people use your money.
True
False
True or False. Assets are anything of value that you OWN.
True
False
True or False. Liabilites are what you OWE.
True
False
True or False. Mutual funds are a way to buy stocks or bonds without picking the specific company.
True
False
True or False. Using a variety of investments to reduce the risk if any one investment loses value is called diversification.
True
False
Language of Money. (a) is how quick and easy an asset can be converted to cash.
True or False. When you buy bonds from a company, you become a part owner of the company.
True
False
You earn $10 an hour, contribute $2,000 to your ROTH, and have a 10% tax rate. What is your taxable income: $______
$1,800
$2,000
$18,000
$20,000
None of these
You earn $10 an hour, contribute $2,000 to your 401(k), and have a 10% tax rate. What is your taxable income: $______
$1,800
$2,000
$18,000
$20,000
None of these
You earn $10 an hour, contribute $2,000 to your 401(k), and have a 10% tax rate. How much will you pay in income taxes: $______
$1,800
$2,000
$18,000
$20,000
None of these
Which of these are NOT true statements about S & P 500 index funds:
They are a type of mutual fund
The fund uses the S & P 500 to decide which stocks to buy and sell.
They are diversified because they invest in 500 different companies.
They are betting on the market, instead of betting on individual companies.
They are guaranteed not to lose money.
Which of these is the FIRST step in figuring out how much you will have to pay for income taxes:
Multiply hourly pay times 2 thousand
Figure out your pre-tax deductions
Figure out your taxable income
Multiply your tax rate times your taxable income
Which of these is the SECOND step in figuring out how much you will have to pay for income taxes:
Multiply hourly pay times 2 thousand
Figure out your pre-tax deductions
Figure out your taxable income
Multiply your tax rate times your taxable income
Which of these is the THIRD step in figuring out how much you will have to pay for income taxes:
Multiply hourly pay times 2 thousand
Figure out your pre-tax deductions
Figure out your taxable income
Multiply your tax rate times your taxable income
Which of these is the FOURTH step in figuring out how much you will have to pay for income taxes:
Multiply hourly pay times 2 thousand
Figure out your pre-tax deductions
Figure out your taxable income
Multiply your tax rate times your taxable income
Which of these is offered by many employers, and is a way to invest in your retirement, without paying income taxes when you contribute money:
401(k)
ROTH
IRA
Mutual Fund
Index Fund
Which of these is offered by many employers, and is a way to invest in your retirement, without paying income taxes when you retire:
401(k)
ROTH
IRA
Mutual Fund
Index Fund
Which of these is a way to invest in your retirement if your employer doesn't offer a retirement plan:
401(k)
ROTH
IRA
Mutual Fund
Index Fund
Which of these uses a fund manager to decide what stocks and bonds to invest in:
401(k)
ROTH
IRA
Mutual Fund
Index Fund
Which of these uses the S & P 500 to decide what stocks and bonds to invest in:
401(k)
ROTH
IRA
Mutual Fund
Index Fund
Which of these describes the first time that a company sells their stock to the public:
IPO
Price-to-Earnings Ratio
Dividends
None of these
Which of these is a factor that many people consider when deciding whether to buy the stock of a company:
IPO
Price-to-Earnings Ratio
Dividends
None of these
Which of these is one of the two ways that people make money buy owning stocks:
IPO
Price-to-Earnings Ratio
Dividends
None of these
If you want to loan money, which of these can you do:
Buy stocks of a company
Buy stocks from the government
Buy Bonds from the government
Buy bonds from a company
Which of these means how quickly an asset can be converted into cash:
Liquidity
Diversification
Neither of these
Both of these
Which of these means you invest in a wide range of assets:
Liquidity
Diversification
Neither of these
Both of these
Which of these does diversification lower:
Risk
Return
Neither of these
Both of these
Which of these should you do to build an emergency fund:
Savings
Investing
Neither of these
Both of these
Which of these should you do to build your retirement fund:
Savings
Investing
Neither of these
Both of these
"Compound Interest" means that you pay interest on:
The principal amount
The amount of unpaid interest
Both of these
Neither of these
True or False. Most loans compound interest daily, which makes the total amount owed increase very quickly.
True
False
Which of these is "interest":
The amount you pay when you borrow money
The amount you get when you loan money
The penalty that you pay for not having cash
All of these
None of these
Which of these is used to describe the interest rate:
Annual Percentage Rate
Advertised Percentage Rate
Actual Percentage Rate
Anticipated Percentage Rate
Which of these is used to describe the amount that the government assumes your family can help to pay for your college education:
Expected Family Contribution
External Funds Contribution
Extra Financial Contribution
All of these
None of these
Which of these is used to describe the out of pocket cost for attending college:
Cost of Attendance
Core of Alliance
College of Attendance
All of these
None of these
What do we call the money that you could have made if you finished your four-year degree in four years instead of six?
Opportunity Cost
Sunk Cost
Cost of Attendance
All of these
None of these
Which of these should you consider when figuring out how much going to college will cost you:
Cost of Attendance
Opportunity Cost
Both of these
Neither of these
Which of these is the basic forumula for figuring out how much financial aid you can get for college:
Cost of Attendance minus Expected Family Contribution
Cost of Attendance plus Expected Family Contribution
Cost of Attendance minus Opportunity Cost
Cost of Attendance plus Opportunity Cost
Which TWO of these are used to calculate your Expected Family Contribution:
Income
Assets
Expenses
Liabilities
As a general rule, your student loan debt should be ____ or less than your starting salary when you graduate college.
10 %
20 %
30 %
100 %
Which of these determine how much you will collect from Social Security when you retire:
How old you are
How much money was taken out of paychecks for social security (FICA)
Both of these
Neither of these
Which of these do you normally need to pay before you can move into an apartment:
First month's rent
Last month's rent
Security deposit
All of these
None of these
Which of these are true statements about what happens when you die:
your assets and liabilities go into your "Estate"
your assets are used to pay off your liabilities
what's left over goes to your heirs
All of these
None of these
Which of these are true statements about what happens when you declare bankruptcy:
your assets and liabilities go into your "Estate"
your assets are used to pay off your liabilities
most of your liabilities are discharged
All of these
None of these
True or False. When you declare bankruptcy, you give up all of your assets, and all of your liabilities are discharged.
True
False
Income - Expenses =
Surplus if positive
Surplus if negative
Deficit if positive
Deficit if negative
True or False. If you spend more than you earn, it ALWAYS decreases your net worth.
True
False
True or False. If you spend less than you earn, it ALWAYS increases your net worth.
True
False
