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Personal Finance Review

Total questions: 43

Worksheet time: 23mins

Name
Class
Date
1.

Which fee will most likely be charged by a bank?

a)

Online Statement Fee

b)

Monthly Maintenance Fee

c)

In-Network ATM Fee

d)

Sufficient Funds Fee

2.

Which is NOT a Mobile or email alert you get for your checking account?

a)

Low Balances

b)

Unusual Activity

c)

Deposits

d)

Credit Card Transactions

3.

You need a checking account to open a savings account.

a)

True

b)

False

4.

How does the 50-20-30 rule distribute your income?

a)

50% expenses, 20% flexible spending, 30% saving

b)

50% flexible spending, 20% saving, 30% expenses

c)

50% expenses, 20% saving, 30% flexible spending

d)

50% saving, 20% flexible spending, 30% expenses

5.

How much should you save in an emergency fund?

a)

1-3 months of living expenses

b)

3-6 months of living expenses

c)

6-9 months of living expenses

d)

9-12 months of living expenses

6.

You have $30 in your account currently. How will a bank reorder the 4 checks you wrote to charge you the most amount of fees?

a)

$7.50 check, $15 check, $5 check, $35 check

b)

$15 check, $5 check, $35 check, $7.50 check

c)

$35 check, $7.50 check, $5 check, $15 check

d)

$5 check, $7.50 check, $35 check, $15 check

7.

Which card takes the money out of your account immediately?

a)

Credit

b)

Debit

8.

Which financial institutions charge the most for interest by providing quick cash options?

a)

Credit Union

b)

Bank

c)

Savings and Loans

d)

Pay Day Loan Companies

9.

What information is NOT found on a consumer credit report?

a)

Criminal

b)

Medical

c)

Current and Past Addresses

d)

Employment History

10.

If a consumer is a victim of identity theft, what should they do?

a)

Do not call the police; only the credit bureaus

b)

Leave all fraudulent accounts open as proof for the investigation.

c)

Call all major credit bureaus to request a fraud alert to be put on file.

d)

Wait at least two weeks before taking action to be sure of the problem.

11.

When starting a job, what form/s will you need to fill out?

a)

W-2

b)

W-2 and I-9

c)

W-4 and I-9

d)

W-4 and W-2

12.

If you stop paying things such as your rent, water, gas or medical bills, that can lower your credits score.

a)

True

b)

False

13.

What two things will happen if you do not pay a credit card bill on time?

a)

Use your debit card

b)

Declare bankruptcy

c)

You will be charged a fee

d)

Pay interest

14.

Who pays interest on a loan?

a)

The borrower

b)

The bank

15.

Who pays interest on a savings account?

a)

The borrower

b)

The bank

16.

Bad credit can affect your ability to

a)

Rent an apartment

b)

Get a loan

c)

Get a job

d)

All of the above

17.

The least amount of money you can pay on a credit card per month.

a)

Credit limit

b)

Annual Percentage Rate

c)

Minimum Payment

d)

Opportunity Cost

18.

What deductions are always taken from your paychecks?

a)

Taxes, gross pay, medical

b)

Taxes, gross pay, city taxes

c)

Federal taxes, state taxes, FICA

d)

Net pay, FICA, benefits

19.

How long does it take one late payment to fall off of your credit report?

a)

5 years

b)

3 years

c)

7 years

d)

10 years

20.

Why might someone have a thin credit file?

a)

They've had multiple lines of credit open for 15 years

b)

They only have applied for credit, but not approved

c)

They only have 4 types of credit open

d)

You are relatively new to establishing credit

21.

How are a credit score and credit report related?

a)

A credit report is determined by the factors in your score

b)

Credit reports are less important than your credit score

c)

A credit score is determined by the factors in your report

d)

They're not related at all

22.

Using the debt snowball method, you make...

a)

minimum payments on all of your loans

b)

minimum payments on small loans; pay extra on large loans

c)

one large payment on one loan

d)

minimum payments on large loans; pay extra on small loans

23.

Using the high rate method, you...

a)

pay off all your loans in the least amount of time

b)

put extra money towards loans with the highest interest rate

c)

put extra money towards loans with the lowest interest rate

d)

make one large payment on the loan with the highest rate

24.

A cosigner's credit history can be affected by the loan they are cosigned on.

a)

True

b)

False

25.

A shorter auto loan term means ____ monthly payments & ____ total interest you'll pay.

a)

higher, less

b)

higher, more

c)

lower, more

d)

lower, less

26.

A debt that is tied to a specific asset that can be used as collateral and repossessed if borrower doesn’t make payments.

a)

Installment Loan

b)

Unsecured Debt

c)

Secured Debt

d)

Credit

27.

A debt that is not tied to a specific asset; there is no collateral that can be repossessed if borrower defaults.

a)

Installment Loan

b)

Unsecured Debt

c)

Secured Debt

d)

Credit

28.

A variable rate means...

a)

The interest rate can change with the market

b)

he interest rate stays the same

29.

Installment loans are used to finance a specific purchase for a specific amount of time. Regular payments are made to pay the interest and the principal.

a)

True

b)

False

30.

A fixed rate means...

a)

The interest rate can change with the market

b)

The interest rate stays the same

31.

The two types of students loans that require a credit check are:

a)

Direct Subsidized

b)

Direct Unsubsidized

c)

Direct PLUS

d)

Private Loan

32.

What is the application you fill out to see if you qualify for grants and student loans?

a)

Student Loan Application

b)

FAFSA

c)

Taxes

d)

Credit Check

33.

Some types of student loans have fees that are applied to your balance.

a)

True

b)

False

34.

Student loans amounts are based off of the cost of attendance minus any financial aid the student may receive.

a)

True

b)

False

35.

Select the information that can be found on your W-2 that is used for taxes.

a)

Total Wages

b)

Federal Income Taxes Paid

c)

State Income Taxes Paid

d)

Social Security Number

36.

What are W-4 documents that you fill out with your employer used for?

a)

To deduct the correct state income taxes

b)

To deduct the correct federal income taxes

c)

To get your personal information

d)

To see how much you owe on your taxes

37.

When filing basic taxes, what information do you need?

a)

W-2 Forms from ALL employers for the year

b)

Social Security Number

c)

Filing status - single, dependent, head of household

d)

Contact Information

38.

Every year you only need to file your Federal Income Taxes.

a)

True

b)

False

39.

If you are single, under the age of 65 and make less than $12,400 a year, you do NOT need to file taxes.

a)

True

b)

False

40.

An example of a fixed cost in a budget would be:

a)

Rent

b)

Groceries

c)

Gas

d)

Clothing

41.

An example of a variable cost in a budget would be:

a)

Rent

b)

Car Payment

c)

Insurance

d)

Groceries

42.

When budgeting for the month, do you use your gross income or net income?

a)

Net Income

b)

Gross Income

43.

How often should you review your monthly budget?

a)

Yearly

b)

Monthly

c)

Every Six Months

d)

When any major changes happen in you income or expenses