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Personal Financial Literacy : Module Test Study Guide

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

Alexis received paychecks from both her jobs and she would like to deposit them. One check is for $62.88 and the other is $523.22. She would like to keep $100 for herself. Is her deposit slip completed correctly?

a)

Yes

b)

No

2.

How is the employee paid?

a)

Wages

b)

Salary

3.

Consumer credit can help a lender determine how much a borrower is charged to borrow money.

a)

True

b)

False

4.

A secured loan is backed by __________________.

a)

“money from the government.”

b)

“money from the financial institution.”

c)

“collateral or something of value, posted by the borrower.”

d)

“a promise to repay the loan.”

5.

Using this graph, which budget item has the largest allowance?

a)

Groceries

b)

Dining out

c)

Debt repayment

d)

Housing

6.

The top salary you can make.

a)

Human capital

b)

Earning potential

c)

Productivity

d)

Career

7.

Is debt-to-income a factor when a lender is assessing whether to loan a borrower money?

a)

No

b)

Yes

8.

If a consumer DOES NOT have any collection accounts, does that have a negative impact on their score?

a)

Yes

b)

No

9.

What is the total amount of debt this person owes?

a)

$7,351

b)

$5,773

c)

$20,475

d)

$13,124

10.

The quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services.

a)

Human capital

b)

Opportunity cost

c)

Earning potential

d)

Productivity

11.

What is a credit score?

a)

An average of all of a borrower's credit accounts

b)

A number that represents the risk a lender takes on a borrower

c)

A score from a test given to borrowers by lenders.

d)

A number that represents how much money a borrower owes.

12.

How many hours of vacation has this employee used for this pay period?

a)

62

b)

16

c)

18

d)

08

13.

An account that allows you to save money, as well as make deposits and withdrawals.

a)

Certificate of Deposit

b)

Checking

c)

Money Market

d)

Savings

14.

What is a credit card?

a)

The non-interest portion of a loan.

b)

The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

c)

A card issued by a bank or business, allowing borrowers to purchase goods and services on credit.

d)

The fee that is paid to borrow money.

15.

What is principal?

a)

The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

b)

The fee that is paid to borrow money.

c)

The non-interest portion of a loan.

d)

The rate lenders charge borrowers for money.

16.

Phil Reagan has written a check to USA Electronics for $152.65. Is this check filled out correctly?

a)

No

b)

Yes

17.

A __________allows you to invest your money with a set interest rate for a pre-set period of time.

a)

Money Market

b)

Checking

c)

Savings

d)

Certificate of Deposit

18.

How many payments have been late by at least 30 days?

a)

Three

b)

Eight

c)

Six

d)

Four

19.

Wages, salary and commission are examples of what type of income?

a)

Passive

b)

Earned

c)

Portfolio

20.

How many credit accounts does this person have?

a)

16

b)

08

c)

10

d)

06

21.

Jimmy has poor credit, but would like to repair his credit with a credit card. For what type of card should Jimmy apply?

a)

Unsecured

b)

Secured

22.

What is an interest rate?

a)

The non-interest portion of a loan.

b)

The fee that is paid to borrow money.

c)

The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

d)

The rate lenders charge borrowers for money.

23.

What is the status of this account?

a)

The $500

b)

The Bahamas vacation

c)

The laptop

24.

Using misleading product images is an example of what type of deceptive advertising?

a)

Deceptive descriptions

b)

Deceptive pricing

c)

Deceptive comparison

25.

What is this employee's gross pay for this pay period?

a)

$7680

b)

$872.53

c)

$1,280

d)

$972.67

26.

Meredith received a refund of $500. Meredith needs a new laptop, but she would also like to go on vacation to the Bahamas. If Meredith purchases the laptop, what is her opportunity cost?

a)

The $500

b)

The Bahamas vacation

c)

The laptop

27.

Which influence on spending deals with a person's family, friends and cultural environment?

a)

Psychological

b)

Personal

c)

Social

d)

Cultural

28.

Money you earn from assets you have purchased or created. Generally recurring income.

a)

Portfolio

b)

Wages

c)

Earned

d)

Passive

29.

The life of a CD (Certificate of Deposit) can range from a few ____________.

a)

weeks to several months

b)

months to several years

c)

days to a few months

d)

years to a decade

30.

Income generated by selling an investment at a higher price than you paid for it.

a)

Passive

b)

Wages

c)

Portfolio

d)

Earned

31.

When budgeting, large expenses should be __________________.

a)

divided equally between all paychecks

b)

taken from one paycheck

c)

paid as they come up

d)

divided between two paychecks

32.

What is interest?

a)

The rate lenders charge borrowers for money.

b)

The non-interest portion of a loan.

c)

The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

d)

The fee that is paid to borrow money.

33.

James earns 10% of every sale he makes. This is an example of:

a)

Assets

b)

Wages

c)

Salary

d)

Commission

34.

Credit allows you to?

a)

Receive an item right now and never pay for it.

b)

Purchase an item right now and pay for it later.

c)

Purchase an item right now and pay for it right now.

d)

Pay for an item right now, but receive it later.

35.

How many hours did this employee work during this pay period?

a)

40

b)

08

c)

80

d)

72

36.

Lillian purchased a house for $150,000. Lillian and her husband invested $50,000 into home improvements. Lillian and her husband were able to sell the house for $200,000. Is this an example of portfolio income?

a)

Yes

b)

No

37.

Education, training, and experience are some factors that influence earned income.

a)

False

b)

True

38.

Randy earns $22 per hour. This is an example of:

a)

Salary

b)

Labor

c)

Wages

d)

Commission

39.

An account that allows you easy access to your money and allows the use of checks and debit cards.

a)

Savings

b)

Money Market

c)

Checking

d)

Certificate of Deposit

40.

What is the definition of a "want"?

a)

Something you do not need to survive.

b)

Something you would like to have.

c)

Something that is necessary for you to survive.

d)

Something that is important for you to have.”