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WorksheetsTest 1 Review
Total questions: 92
Worksheet time: 1hrs 2mins
Which of the following is NOT a common feature of a financial institution?
Helps to keep track of the money you receive
Helps to prioritize your spending
Helps reach short- and long-term financial goals
All of the above
Which of the following is NOT a common feature of a financial institution?
Access to ATMs
Investment trading
Direct deposit
Debit cards
Which of the following is NOT a common feature of a financial institution?
Direct deposit
Paper checks
Access to investment advice
Checking and savings accounts
Which of the following statements about check-cashing companies is TRUE?
They have limited operating hours during the day
They sometimes offer free services.
They charge high fees
They delay when you can access your cash.
Which of the following financial institutions typically have the highest fees?
Check cashing and payday loan companies
Check cashing and payday loan companies
Brick-and-mortar banks
Internet banks
Which of the following statements about check-cashing companies is FALSE?
They offer bad deals where you'll 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.
Which type of bank account typically offers the least (if any) interest?
Checking account
Savings account
Money market account
Certificate of deposit
Savings accounts typically offer more interest than what type of account?
Retirement account
Money market account
Checking account
Certificate of deposit
Which type of bank account is best for everyday transactions?
Checking Account
Savings Account
Money Market Account
Certificate of Deposit
A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.
TRUE
FALSE
Which savings account will earn you the least money?
One that compounds interest daily.
One that earns simple interest monthly.
One that earns simple interest daily.
One that compounds interest monthly.
Which savings account will earn you the most money?
One that compounds interest daily.
One that compounds interest monthly.
One that earns simple interest daily.
One that earns simple interest monthly.
Why is it important to reconcile your bank statements?
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 the above
How can you avoid spending more than what is in your bank account?
Check your bank statement once a month.
Ask your financial institution to notify you when you are close to $0 in your account.
Keep your own records to compare with your financial institution's records.
None of the above
How would you reconcile your bank account to avoid spending more than you have?
Contact your financial institution to read your transactions for the past month.
Compare your own records of your spending with your financial institution's records.
Review your bank statement once at the end of the month.
None of the above.
What should you do before you withdraw money from the ATM?
Ask someone nearby for help using the ATM.
Find a hidden ATM so no one will see you withdraw money
Inspect the ATM to make sure it wasn't tampered with.
Share your pin number with trusted friends so you don't forget it.
What should you do before you approach an ATM?
Make sure it is hidden so no one will see you withdraw money.
Ask someone nearby for help using the ATM.
Share a picture of your debit card with your friends.
Check for any suspicious people lurking nearby
What should you do before you use an ATM?
Inspect the ATM and its surroundings to make sure it is safe to use.
Ask someone nearby for help using the ATM.
Share your pin number with trusted friends so you don't forget it.
Memorize your debit card number because you'll need to type it in at the ATM.
Which of the following statements about savings accounts is FALSE?
Savings accounts pay interest on the money you deposit.
Savings accounts allow an unlimited amount of withdrawals each month.
Savings accounts may require you to maintain a minimum balance to avoid paying a fee.
Savings accounts are best used to store money for longer-term goals.
Which of the following statements about savings accounts is FALSE?
Savings accounts pay interest on the money you deposit.
Savings accounts limit the number of withdrawals that can be made each month.
Savings accounts don't usually require a minimum balance.
Savings accounts are best used to store money for longer-term goals.
Which of the following statements about savings accounts is FALSE?
Savings accounts don't usually pay interest on the money you deposit.
Savings accounts limit the number of withdrawals that can be made each month.
Savings accounts may require you to maintain a minimum balance to avoid paying a fee.
Savings accounts are best used to store money for longer-term goals.
Which of the following statements is TRUE?
If there is a mistake on one of your bank accounts, there is nothing you can do about it.
If there is a mistake on one of your bank accounts, you should wait 30 days as these issues tend to resolve themselves.
If there is a mistake on your bank account, you should contact your financial institution immediately.
None of the above.
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
The CFPB
No one, you can't resolve the issue
The local police station
Your financial institution
If there is an issue with your bank statement or account balance, who should you contact to resolve the issue?
The local police station
Your bank
The CFPB
All of the above
Your financial institution can't help you if there is a mistake on your bank account statement.
True
False
Which of the following statements about investing is TRUE?
On average, putting money in a savings account earns a higher return than investing money in the stock market.
Investing is riskier than putting money in a savings accounts.
Investing is best for short-term financial goals.
Investing is a guaranteed way to make money.
Investing is best for ________.
short-term financial goals, like building an emergency fund.
earning a little interest while keeping your money safe.
long-term financial goals, like paying for retirement.
guaranteed fast growth on your money.
Which of the following statements about investing is FALSE?
Investing is a guaranteed way to grow your money.
Investing is riskier than putting money in a savings account.
Investing is best for long-term financial goals, like paying for retirement.
On average, investing money in the stock market earns a higher return than putting money in a savings account.
A stock is ________.
A type of debt investment that acts like a loan.
A type of investment that invests in a mix of different types of investments.
A share of ownership in a company
A type of savings account that pays interest based on current interest rates in the money market.
A _______ is a share of ownership in a company.
bond
stock
mutual fund
money market account
A mutual fund is _________.
A type of debt investment that acts like a loan.
A share of ownership in a company.
A type of investment that invests in a mix of different types of investments
A type of savings account that pays interest based on current interest rates in the money market.
Which of the following statements about stocks is TRUE?
A stock is a share of ownership in a company.
A stock is a type of debt investment that acts like a loan.
A stock is a type of investment that invests in a mix of different types of investments.
A stock is a type of savings account that pays interest based on current interest rates in the money market.
Generally, the more education you receive, the higher your lifetime earnings will be.
True
False
There is no relationship between the level of education received and lifetime earnings.
True
False
For most careers, which degree will most likely result in the highest lifetime earnings?
High school degree
Associate's degree
Licensure or certification
Bachelor's Degree
What is net pay?
The amount of pay earned for the total number of hours worked.
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
The amount of money you're paid before all taxes and deductions are taken out of your paycheck.
Your gross pay plus any bonuses.
Net pay is NOT ________.
The money that you take home on your paycheck.
Your gross pay plus any bonuses.
less than gross pay
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.
Gross pay
Net pay
Total pay
Year-to-date pay
Which of the following is a possible tax or deduction that they may show up on your paycheck?
Federal income tax
Contributions to retirement savings
FICA
All of the above
Which of the following is NOT a possible tax or deduction that could show up on your paycheck?
State income tax
Contributions to retirement savings
FICA
Sales tax
Which of the following is NOT a possible tax or deduction that could come out of your paycheck?
FICA
Overtime pay
Federal income tax
Contributions to retirement savings
What is the purpose of the W-4 form?
To file your tax return.
To determine how much your gross pay should be
To inform your employer of how much federal income tax to withhold from your paychecks
To avoid paying income taxes on your paychecks.
The W-4 tax form is used to ___________.
tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.
determine how much your gross pay should be
file your tax return.
avoid paying income taxes on your paychecks.
When you start a new job, you fill out a W-4 form to _________.
determine how much your gross pay should be.
file your tax return.
avoid paying income taxes on your paychecks.
to determine how much federal income tax your employer should withhold from your paychecks.
Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year.
1040
W-2
W-4
W-9
What does the W-2 form tell you?
How much you've earned and how much taxes you've paid in the last year
When to file your tax return.
How much federal income tax your employer will withhold from your paycheck.
How often your employer will be paying you
The W-2 form is a form that tells you _______.
how often you will be paid.
how much taxes you owe to the federal government.
how much taxes to withhold from your paycheck.
how much taxes you've paid in the last year based on how much you've earned.
Which of the following statements is true about taxes?
Taxes pay for schools and government departments.
Taxes pay for roads and emergency services.
Taxes are often used at the federal, state, and local levels.
All of the above
What do taxes pay for?
Schools, government departments, roads, and emergency services
Privately-owned businesses
Operation of financial institutions
None of the above
How does the government pay for roads, schools, and emergency services?
They are funded through non-profits.
They are funded through taxes.
They are funded through charitable donations.
None of the above
The ___________ is a flexible market that allows you to work short-term, independent jobs.
gig economy
labor market
employee workforce
sharing economy
What is the gig economy?
The number of people in the economy who have full-time employment jobs.
The total availability of employment and labor in the economy.
An economic system in which assets or services are shared between individuals.
A flexible market that allows you to work short-term, independent jobs.
The gig economy offers ________.
the total availability of employment and labor in the economy
Flexible, short-term, and independent jobs.
An economic system in which assets or services are shared between individuals.
The migration of workers to high-tech jobs.
What do you need in order to fill out your 1040?
Your W-2
Your routing and bank account number
A record of any other supplemental income
All of the above
What do you NOT need in order to fill out your 1040?
Your W-2
Your routing and bank account number
A record of any other supplemental income
Your employer benefits documentation
What do you need in order to fill out your 1040?
Your W-2
Your employer benefits documentation
Your credit card statement
Your job offer
When considering a job offer, you should only consider how much you're being paid before you accept the offer.
TRUE
FALSE
When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer.
TRUE
FALSE
How much you're being paid is the only thing you need to consider when considering a job offer.
TRUE
FALSE
Which of the following is NOT considered part of your benefits package available from your employer?
Free technology equipment
Disability Insurance
Paid time off
Healthcare insurance
All of the following may be a part of your benefits package available from your employer, except:
disability insurance
matching contributions to a retirement account
FICA
healthcare insurance
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.
benefits
pensions
deductions
allowances
Which of the following is a benefit of using a budget?
Helps to keep track of the money you receive
Helps to prioritize your spending
Helps reach short- and long-term financial goals
All of the above
Which of the following is NOT a benefit of using a budget?
A budget can help you purchase anything you want.
A budget can help you keep track of your money.
A budget can help you make plans to reach your financial goals.
A budget can help you decide the importance of your expenses.
Why is using a budget beneficial?
Helps to keep track of the money you receive
Helps to prioritize your spending
Helps reach short- and long-term financial goals
All of the above
Which of the following should NOT be considered when setting a current budget?
Your financial goals
Future income
Needs and wants
Needs and wants
Which of the following should you consider when setting a budget?
Your financial goals
Needs and wants
Savings
All of the above
What should be considered when setting a budget?
Needs and wants
Savings
Time management goals
Needs, wants, and savings
___________ are good places to look to find your current expenses when building your budget.
Banks and credit unions
Grocery stores and concerts
Bank and credit statements
Online research websites
Where should you look to find your current expenses when building your budget?
ask your parents
your wallet
bank and credit statements
your bank representative
Bank statements, credit statements, and records of cash expenses help you to estimate your ________
credit score
emergency fund needs
expenses
available investments
In addition to needs, what should you plan for first when creating a budget?
Possible charitable donations
Shopping money
Investments
Recurring expenses
In your budgeting process, when should you look at recurring expenses?
Before reviewing your wants
After considering entertainment expenses
Before looking at your needs
After your wants but before you needs
Which of the following statements is TRUE?
Recurring expenses don't need to be planned for because they rarely happen.
Recurring expenses are expenses that can never be stopped.
Recurring expenses should be planned for after looking at your wants
None of the above
Which of the following is a way to track your spending?
Spreadsheet budget
Envelope method
An app
All of the above
The envelope method, notebook and pencil, and online software are all methods of ______.
planning for your future
understanding your current expenses
estimating your unexpected expenses
tracking your spending
Which of the following is NOT a good way to track your spending?
In your head
Notebook and pencil
Envelope method
Online software or app
Which choice or choices best describes the purpose of an emergency fund?
An emergency fund prepares you for unexpected expenses.
An emergency fund keeps you from borrowing money from friends and family.
An emergency fund removes the worry about expenses not in the budget.
All of the above are good reasons to have an emergency fund.
Which of the following is NOT true about emergency funds?
They are used for anything listed on the budget.
They can keep you from borrowing money from friends and family.
They help you prepare for unexpected expenses.
They help remove the worry about expenses not in the budget.
This helps you prepare for unexpected expenses.
Credit cards
Checking account
Emergency fund
None of the above
When setting a budget, you can choose to make room for:
Financial goals
Entertainment expenses
Charitable donations
All of the above
Charitable donations, entertainment expenses, and financial goals are all examples of...
activities that contribute to overspending.
things that are considered needs.
activities that are necessary for a healthy lifestyle.
things to consider when creating a budget.
When setting a budget, you should consider...
financial goals, current expenses, and income.
mostly income.
creative ways to spend your money.
mostly your goals.
Unexpected expenses…
can make it hard to stick to your budget.
may cause you to be unable to pay necessary bills.
should be planned for.
all of the above
Which of the following is TRUE regarding unexpected expenses?
They usually don’t affect your budget.
They should be planned for.
They usually don't affect your ability to pay bills.
They should not be included in your budget.
What is NOT true about unexpected expenses?
They do not occur if you have a budget.
They could impact your budget in a negative way.
They could interfere with your ability to pay your bills.
They should be planned for so that you can keep within your budget.
Which of the following expenses would be a good reason to spend money from an emergency fund?
Repair your laptop that you use for homework.
Upgrade your phone to the latest model.
Buy new track shoes because they’re in style.
Purchase concert tickets to see your favorite artist.
An emergency fund should NOT be used for…
fixing a blown tire on your car that you use to get to work.
repairing your laptop that you use for homework.
a last-minute school trip.
a sudden health issue that needs care.
An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for…
spending money from your “rent” envelope.
emergency fund spending.
tracking all of the money you spent in a month.
getting an extra job so you can have money to cover that expense.
What is NOT a good way to prevent unnecessary spending?
Cancel any unused recurring expenses like subscription boxes
Use an app to find the cheapest gas station
Make your own food more often
Buy all of your wants at one time.
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 at one time.
What budgeting tip(s) would help you to stay on track financially?
Find a friend with similar goals and hold each other accountable
Put aside fun money in your budget so you're not missing out
Only use your closest gas station to fill up gas
All of the above
