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WorksheetsPersonal Finance Final
Total questions: 65
Worksheet time: 33mins
In a market economy, the 3 economic ?'s are answered by the ______________.
Government
Cultural leaders and the traditions of society
People
Government and People working together
A general increase in prices in the market place are/is called
_____________.
Scarcity
Deflation
Demand
Inflation
If supply is low and demand is high, what will generally happen to price?
Increase
Decrease
Remain the same
Unpredictable
Man-made resources used in the production process i.e. machines in a factory would be which factor of production?
Land
Labor
Capital
Entrepreneurship
When quantity supplied is greater than the quantity demanded, what has occurred?
A surplus has occurred
A shortage has occurred
Equilibrium
Government always intervenes
A processing plant would be an example of which level of economic activity?
Primary
Secondary
Tertiary
Quaternary
Which economic system has the LEAST amount of government control?
Command
Mixed
Market
None of these
I will save money every month for a new car by working 20 hours a week at a second job for 4 years. Which element of a SMART goal is missing?
Specific
Measurable
Attainable/Realistic
Timebound
Buying a house in 5 years would be a ____________ goal.
Long Term
Short Term
What element of a SMART Goal is missing? I will pass personal finance with a B by May 2021.
Specific
Measurable
Attainable/Realistic
Timebound
I plan to save $2,500 to buy a used Ford Focus. I will do this by reducing the amount of eating out that I do and save $100/month. Which of the SMART goal elements is missing?
Specific
Measurable
Attainable/Realistic
Timebound
What is NET pay?
The amount of pay you earned for the total number of hours worked.
The amount of money that you are paid before all taxes and deductions are taken out of your paycheck.
The amount of money you are paid after all taxes and deductions are taken out of your paycheck.
Your gross pay plus any bonuses or incentives.
What is the purpose of the W-4 form?
You need it to file your taxes.
To determine how much your gross income should be.
To avoid paying taxes on your paycheck.
To inform your employer how much federal tax should be withheld from your paycheck.
Which of the following is true about payroll taxes (FICA)?
You are not required to pay FICA taxes
Payroll taxes are based on a progressive tax model.
The employee pays the full 12.4% in Social Security and 2.9% in Medicare.
The employer and employee share the responsibility for payroll taxes.
Which of the following is a clue that you are considered a self-employed contractor?
Instead of getting an I-9 you receive a W-4
You have Social Security taxes withheld from your paycheck.
Instead of receiving a W-2, you receive a 1099 form
You have Medicare taxes withheld from your paycheck.
If you are owed a tax refund from the IRS, then ___________.
You may have up to 3 years to file your tax refund and get a refund
You MUST file a tax return and meet the regular tax deadlines to receive your refund.
You don't have to file a tax return, the IRS will just send you a check in 5-8 weeks.
You have to file on a different form (not the 1040) to claim your refund.
What is the last day to file your taxes each year without an extension?
January 1
January 31
April 15
October 15
Out of the following individuals, who DOES NOT have to file taxes?
Janet, who earned $30,000 but was paid half of it in CASH
Jim, whose total income from 3 part-time jobs was $10,000
Oscar who owns and Etsy shop and generated an income of $1,300.
Dani who is a barista at Starbucks and earned $14,000 plus $3,000 in tips
Which of the following individuals would be required to file taxes?
Michael who sells records through Ebay and made $380
Juanita who earned $1,000 in unearned income from her investment accounts.
Josh who babysat for the neighbors and made $500
June who made $30,000 in earned income, $1,050 in unearned income and $400 selling craft items on Etsy.
Your employer sends you a _____ form that tells you how much you have made and how much you have paid in taxes last year.
W-2
W-4
I-9
1099
As a single person, once you have over _________ in earned income, you are required by law to complete a tax return.
$400
$1,100
$12,200
$24,400
Which is not an example of a risk management strategy?
Wearing reflective clothing while biking at night.
Buying a new car
Wearing a helmet while driving
Wearing a seat belt while driving
When filing an insurance claim, the policyholder must pay a _________, which is the amount you owe before insurance will cover the rest of the bill.
Deductible
Premium
contract fee
Commission
An insurance premium is ______________.
an extra fee you need to pay your insurance for filing a claim out of network.
a commission paid to the agency for the purchase of a policy.
the amount of money you pay for an insurance policy
the amount of money you pay before the insurance company will pay if you've made a claim.
What does liability insurance not cover in the event of an accident?
Damage to someone else's car
Damage to someone else's property
Injury to the other driver
Injury to yourself
Someone who receives money if an insured person dies?
Policyholder
Underwriter
Beneficiary
Insurance Agent
David's father is in a car accident and cannot work. What type of insurance will cover a portion of his father's earnings?
Health
Life
Disability
Property and Liability
When is it ok NOT to have health insurance?
If you are young and healthy
You should always have health insurance
If you do not have a full time job
If you are a student under the age of 26
Your home is destroyed by an earthquake and needs to be rebuilt. What type of coverage would pay for this?
Homeowner's Liability Coverage
Renter's Insurance
Uninsured/Underinsured
Homeowner's property coverage
The minimum auto liability in Missouri is 25/50/10. What does the 10 represent?
$10 property damage caused by you.
$10,000 bodily injury per person per accident.
$10,000 bodily injury per accident
$10,000 property damage per accident.
A _________ is a share of ownership in a company.
Stock
Bond
Mutual Fund
Money Market Account
A mutual fund is _________________.
A type of debt instrument that acts like a loan.
A share of ownership in a company
A type of investment that invest in a mixture of different types of investments. (Usually 90 - 200)
A savings account that pays interest based on current rates in the money market
Money set aside for unanticipated expenses or loss of income.
Emergency Fund
Mutual Funds
Mortgage Fund
Retirement Funds
The rate a which the costs of goods INCREASE and consumer purchasing/buying power DECREASE.
Recession
Economic Loss
Inflation
Deflation
Which of the following financial institutions typically have the highest fees?
Online or internet banks
Credit Unions
Brick and Mortar (like F&C)
Check cashing and payday loan companies
Which type of bank account typically offers the least (if any) interest?
Savings Account
Checking Account
Money Market Account
Certificate of Deposit
Which savings account will earn you (the consumer) the most money?
One that earns simple interest annually
One that earns compound interest annually
One that earns compound interest quarterly
One that earns compound interest monthly
Mobile alerts can be set up on your checking account. Why is this a good idea?
It will eliminate you from having to review your bank statements in the future.
The alerts will automatically transfer extra money into your account to prevent you from an overdraft
The alerts may warn you in time to prevent costly mistakes.
By using alerts, the bank will never be able to charge you a fee again.
Using the Rule of 72. At what interest rate would I have to invest $5,000 to have it double in 6 years?
3%
6%
12%
18%
John has $100 in his checking account and uses his debit card at Yoss Bros. for a $125 purchase. He has overdraft protection. What will most likely happen?
His purchase is approved an he pays no fees.
Purchase will be declined
His purchase is approved, but he will pay an overdraft fee
Yoss Bros. will notify the local police to report him for fraud.
Using the Rule of 72. You have invested $10,000 in a mutual fund paying 11% interest. How many years will it take your investment to double?
Less than one year
6.5 years
11 years
65 years
Which of the following statements about check cashing companies is FALSE?
They offer bade deals where you will owe a lot more than you borrowed.
They charge low fees
They can take a percentage of your check on top of fees
They make it easy to fall into a loan cycle that is hard to get out of
Why is it important to reconcile (balance) your bank statements each month?
To avoid spending more than what is in your account
To detect any errors in your account
To determine if you were charged any fees
All of these are correct
The smallest part of a credit card bill that a card holder must pay during a billing cycle to remain in good standing with the lender.
Minimum Payment
Balance
Annual Fee
Late Fee
The amount of time that you have to pay off your loan.
Principal
Term
APR
Interest
Something of value pledged as security for repayment of a loan, to be forfeited in the event of a default.
Unsecured Loan
Revolving Credit
Collateral
Credit Score
The total amount borrowed.
Interest
Principal
Term
Down Payment
The paying off of debt with a fixed repayment schedule in regular installments over a period of time.
Revolving Credit
APR
Unsecured Loan
Amortization
What is the range for credit scores?
0 to 800
300 to 850
200 to 700
300 to 950
What is a negative credit factor that can have the most impact on your credit score?
Late payments
Over the limit fees
Annual Fees
Bankruptcy
Which is a positive reason for using a credit card to finance purchases?
You will get charged a high interest rate
Paying it off on time can help you build your credit history
You'll be able to spend a lot of money each month without having to pay it all back
You won't have to budget for your credit card expenses
What might NOT impact the interest rate of your loans?
Your level of education
The loan amount
Your credit score
The relationship with your financial institution
Why does the amount of interest you owe on a loan decrease over time?
The bank trusts you more, so they lower you interest rate over time.
With each payment, principal decreases, so interest decreases
Banks are legally required to reduce your interest rates over time
With each payment, principal increases, so interest decreases
Which of these payback strategies would lead to the HIGHEST interest charges?
Making the minimum payment with an occasional late payment
Making only the minimum payment
Paying off your credit card balance in full each month
Paying off 20% of your credit card bill each month
Which of the following should NOT be considered when setting a budget?
Your financial goals
Future income
Needs and wants
Savings
Which of the following is TRUE regarding unexpected expenses?
They usually don't affect your budget
They usually don't affect your ability to pay bills
They should be planned for
They should not be included in your budget
How can you ensure you don't go over your budget?
Round up your expense estimates to add a buffer
Use most of your budget for entertainment expenses
Find a friend that enjoys going shopping
Buy all of your wants a one time
When shopping, which payment options takes money out of your account immediately?
Cash
Check
Debit Card
Credit Card
When making large purchases, you should avoid everything EXCEPT __________.
excessive fees
being forced to buy additional warranties
add-ons that seem too good to be true
a price that fits comfortably in your budget
Which fact supports the idea that renting is a good option for living in a place for a short period of time?
Renting requires a large down payment
Leases are generally for one year but can be month to month
Landlords take care of most of the maintenance
Mortgages are usually for 15 or 30 years
Which housing option gives you more freedom and more responsibility?
Leasing a house
Living with relatives
Housesitting
Buying a house
Which method of payment actually is a form of borrowing money that needs to be paid back later?
Cash
Credit Card
Debit Card
Check
What type of federal funding is FREE money, but is based on financial need only?
Federal Grants
The 529 plan
Parent Plus Loans
Private Loans
Which type of student loan does the Department of Education pay the interest on as long as you are enrolled in college at least half time?
Subsidized
Unsubsidized
Parent Plus
The 529 Plan
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of ______ available from your employer.
pensions
deductions
benefits
allowances
