WorksheetsMKES2 - EVERFI - FINAL EXAM REVIEW
Total questions: 45
Worksheet time: 23mins
Which type of bank account typically offers the least (if any) interest?
Checking account
Savings account
Money market account
Certificate of deposit
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 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.
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
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.
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
The ___________ is a flexible market that allows you to work short-term, independent jobs.
gig economy
labor market
employee workforce
sharing economy
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
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
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.
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.
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
What should be considered when setting a budget?
Needs and wants
Savings
Time management goals
Needs, wants, and savings
In addition to needs, what should you plan for first when creating a budget?
Possible charitable donations
Shopping money
Investments
Recurring expenses
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.
An emergency fund removes the worry about expenses not in the 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 at one time.
Why is figuring out the unit price of something useful when shopping?
It helps you check to see if the price is correct.
It helps you locate items in the store.
It helps you determine the best deal.
It determines if a coupon is still usable.
Which example shows an advantage of owning a car over leasing one?
Smaller monthly payments and good warranty to cover repairs.
Expiring warranty means that you will get to handle repair payments.
No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.
You will drive a fairly new car for a limited period of time.
What is the best reason for why someone would want to lease a house instead of buy one?
They want full responsibility of all repairs.
They want to be able to hopefully make money when they sell the place.
They are planning on living there for a short period of time.
They want to avoid rent increases and dealing with a landlord.
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 is a benefit of having a good credit score?
Loan sharks will be less likely to bother you.
You'll get accepted to better education institutions.
You'll get more job offers.
When you need a loan, you'll have more loan offers to pick from.
Secured loans are less costly than unsecured loans because _________.
They usually have a lower interest rate.
They require collateral.
They are less risky for the financial institution.
All of these are true.
Which of the following will help you protect yourself from identity theft and fraud?
Regularly monitor your credit report.
Contact lenders and credit bureaus to address incorrect information.
Freeze your credit.
All of the above.
Paying only the minimum balance on your credit card can lead to...
an increase in your credit score
paying more interest.
late fees
All of the above
What will happen to your credit score if you do not manage your debt wisely?
You won't be able to track your credit score
Your credit score will go up
Your credit score will go down
It will not affect your credit score
Which is a positive reason for using a credit card to finance purchases?
You will get charged high interest.
Paying it off on time can help build your credit history
You won't have to budget for your credit card expenses.
You'll be able to spend a lot of money without paying it back
Making the choice to spend money on post secondary education pays off in the long run because:
You or your parents can write it off your taxes.
You can get grants and scholarships to pay for post secondary education while you are there.
The salary you will earn with a degree will pay back the cost of college over your career.
There are less expensive options for obtaining a post secondary education.
Cutting down on costs by earning an Associate’s degree first and then transferring to a four-year college or university can be done by going to what type of higher education institution?
A local community college.
A trade school.
A specialized training program.
Both b and c are correct.
Which of these additional costs will most likely be the most expensive?
Textbooks and supplies
Academic counseling
Room and board
Application fees
A 529 plan can help you save more money than a traditional savings account because...
it is a tax free.
it is given to you at a very young age.
the interest rates are considerably better.
it is linked to the stock market.
Which of the following is true about the Free Application for Federal Student Aid (FAFSA)?
The earliest you can submit your FAFSA is October 1st of each year.
The form is available online or on paper.
States may have different deadlines for applying for state aid.
All of the above
Which of the following answers lists 4 year colleges from generally the least expensive to most expensive?
In-state public university, private university, out-of-state public university
In-state public university, out-of-state public university, private university
Private university, in-state public university, out-of-state public university
Out-of-state public university, private university, in-state public university
Maria is a high school senior. She wants to go to the local community college and become a nurse. Her grades are average, but she comes from a low-income family. What could she do to in order to afford the next step in her dream to become a nurse?
Maria has to wait until she saves up enough money to pay for tuition.
Maria could apply for federal grants to help pay for college.
Maria can apply for need-based scholarships.
Both b and c are correct.
Federally-funded grants require the student to...
earn above average grades.
have a membership in a high school club.
perform volunteer work for a local community agency.
have financial need only.
Everyone interested in post secondary education should complete the Free Application for Federal Student Aid (FAFSA) because...
it gives you access to private student loans.
it gives you access to private student loans.
it allows you to be eligible for federal student aid and other scholarships and grants.
it is a requirement for college admission.
Wearing a seat belt, not texting when driving, and driving carefully are all examples of...
insurance policies.
warranties.
risk management strategies.
deductibles.
What is a risk management strategy you could use to protect your home?
Buying a home security system
Installing front porch cameras to monitor your home
Purchasing reflective clothing to wear while biking at night
A and B
Why is it important to have insurance?
It's important to have insurance so people can protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property.
So individuals can defend against the possibility of financial loss due to unpredictable event
So people can engage in risky behavior without financial consequences
A and B
How can insurance protect you from financial loss?
Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.
Insurance can offer easy monthly payment options for premiums.
Insurance can offer low co-insurance policies.
Insurance can offer warranties on household items.
An insurance deductible is...
the monthly premium on an insurance policy.
a commission paid to the agency for the purchase of a policy.
the amount you owe before insurance will cover the rest of the bill.
the contract fee applied to the monthly premium.
An insurance premium is paid by...
the insurance company.
the claims adjuster.
the government.
the policyholder.
Liability insurance is...
insurance that will pay for injury to another driver and/or damage to their car if you are in an accident.
insurance that will pay for damage to your car in the event of an accident.
insurance that will pay for damage done by someone who doesn’t have insurance.
Insurance that will cover injuries to yourself in the event of an accident.
What is a consequence of not having health insurance?
You must pay all costs for health care and medical emergencies.
You’re not allowed to go to a hospital.
You will get a lower standard of care from doctors.
You can only see doctors in your home state.
Which of the following is a reason someone should get health insurance?
Health insurance allows all medical procedures to be covered for free.
People with health insurance can get faster access to medical care at emergency rooms.
Health insurance protects you financially from medical emergencies.
Most health insurance policies also covers non medical procedures.
Choose the statement that is true about health insurance.
You should always have health insurance, regardless of your circumstances.
You don’t need health insurance if you are under age 26.
You don’t need health insurance if you are young and healthy.
You do not need health insurance if you do not have a full time job.
