WorksheetsTest 1
Total questions: 46
Worksheet time: 23mins
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 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 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.
Savings accounts typically offer more interest than what type of account?
Retirement account
Money market account
Checking 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 most money?
One that compounds interest daily.
One that compounds interest monthly.
One that earns simple interest daily.
One that earns simple interest monthly.
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
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 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 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 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 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
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.
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 _______ is a share of ownership in a company.
bond
stock
mutual fund
money market account
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.
There is no relationship between the level of education received and lifetime earnings.
True
False
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.
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 NOT a possible tax or deduction that could show up on your paycheck?
State income tax
Contributions to retirement savings
FICA
Sales tax
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.
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.
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
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
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
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.
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 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 consider how much you're being paid and any other employee benefits before you accept the 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
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 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.
Which of the following should NOT be considered when setting a current budget?
Your financial goals
Future income
Needs and wants
Needs and wants
What should be considered when setting a budget?
Needs and wants
Savings
Time management goals
Needs, wants, and savings
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
In addition to needs, what should you plan for first when creating a budget?
Possible charitable donations
Shopping money
Investments
Recurring expenses
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
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 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.
This helps you prepare for unexpected expenses.
Credit cards
Checking account
Emergency fund
None 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.
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
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.
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.
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.
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
