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Personal Finance Final Exam

Total questions: 75

Worksheet time: 52mins

Name
Class
Date
1.

A list of investments is called a _________________?

a)

Mutual Fund

b)

Portfolio

c)

Risk

d)

Share

2.

The characteristic of an asset that permits it to be converted quickly into cash without loss of value.

a)

401(k)

b)

IRA

c)

Liquidity

d)

Risk

3.

A piece of ownership in a company, mutual fund, or other investment.

a)

Liquidity

b)

Portfolio

c)

Risk

d)

Share

4.

A retirement savings plan offered by a corporation to its employees with tax deferred growth.

a)

401(k)

b)

IRA

c)

Mutual Fund

d)

Stock

5.

Account or arrangement in which one would put their money for long term growth.

a)

401(k)

b)

Investment

c)

IRA

d)

Portfolio

6.

Degree of uncertainty of return on an asset.

a)

Liquidity

b)

Investment

c)

Risk

d)

Share

7.

Pool of money managed by an investment company invested in multiple companies.

a)

IRA

b)

Mutual Fund

c)

Portfolio

d)

401(k)

8.

An tax deferred individual retirement arrangement for a person with earned income.

a)

401(k)

b)

IRA

c)

Mutual Fund

d)

Share

9.

A single stock would be a good place to keep you emergency fund.

a)

True

b)

False

10.

It´s better to avoid using your _______ and start controlling your ______.

a)

customer/ expenses

b)

financial goals/ budget

c)

credit card/ expenses

d)

market/ investment

11.

It´s really important to stop _________ and plan carefully how we will spend our _______.

a)

investment/ market

b)

credit card/ funds

c)

maintenance/ gain

d)

overspending/ funds

12.

put money into a bank account

a)

deposit

b)

savings account

c)

safe-deposit box

d)

loan

13.

receiving money in return for labor, work, or service

a)

earn

b)

save

c)

spend

d)

donate

14.

to keep and store up money for future use

a)

earn

b)

save

c)

spend

d)

donate

15.

People create and keep a personal budget to help them _____.

a)

set and reach financial goals

b)

apply for loan

c)

buy anything they want

d)

earn promotions at work

16.

For which item would someone most likely need to save money in order to

purchase?

a)

a washing machine

b)

a tub of ice cream

c)

dinner for two

d)

a pair of socks

17.

Which of the following are considered variable expenses? (You can choose more than one.)

a)

Magazine subscription

b)

Electricity

c)

Insurance coverage

d)

Clothing

e)

Recreation and vacation

18.

Which of the following are considered fixed expenses? (You can choose more than one.)

a)

Cable subscription

b)

Electricity

c)

Insurance coverage

d)

Rent

e)

Medical fees

19.

Which of the following are considered WANTs? (You can choose more than one.)

a)

Concert tickets

b)

Water

c)

A new pair of shoes

d)

Rent

e)

Medical fees

20.

Which of the following are considered NEEDs? (You can choose more than one.)

a)

Airpods

b)

Water

c)

A new pair of shoes

d)

Food

e)

Playstation 5

21.

Which of the following statements about money is false?

a)

Money can buy happiness.

b)

Money is a tool.

c)

Everyone needs money to purchase goods.

d)

A penny saved is a penny earned.

22.

Which of the following people would benefit MOST from a personal budget?

a)

Tim carefully keeps track of his expenses.

b)

Sue spends less than she earns.

c)

David is saving for a major purchase.

d)

Bob does not have enough money to pay bills.

23.

The first step in creating a budget is _________.

a)

know your income

b)

determine fixed expenses

c)

determine variable expenses

d)

review periodically

24.

A budget or a financial plan would not work if you ___________.

a)

know how to set smart goals

b)

are a disciplined person

c)

wait for the end of the year to record your expenses

d)

know how to prioritize

25.

The income part of a personal budget

a)

is not important if it is large.

b)

only includes money from a paycheck (job).

c)

includes all income from various sources.

d)

is the amount left over.

26.

The expenses section of a personal budget

a)

should be larger than the income section of the budget.

b)

shows the amount of money that is spent each month.

c)

includes the amount of interest earned on investments.

d)

is not important if income is greater than expenses.

27.

People keep a personal budget to help them

a)

set and reach financial goals.

b)

earn promotions at work.

c)

buy with credit.

d)

buy anything they want.

28.

A budget is a list of

a)

income and expenditures

b)

things to buy

c)

how much to save

d)

needs and wants

29.

There are two types of expenses. They are ____________ and _______________. Choose two.

a)

Essential Expenses (things that you need)

b)

iReady expenses

c)

Non-Essential Expenses (things you don't need but spend money on anyways)

30.

Which of the following are considered WANTs? (You can choose more than one.)

a)

Concert tickets

b)

Water

c)

A new pair of shoes

d)

Rent

e)

Medical fees

31.

Which of the following are considered NEEDs? (You can choose more than one.)

a)

Airpods

b)

Water

c)

A new pair of shoes

d)

Food

e)

Playstation 5

32.

A retirement savings plan offered by a corporation to its employees with tax deferred growth.

a)

401(k)

b)

IRA

c)

Mutual Fund

d)

Stock

33.

Account or arrangement in which one would put their money for long term growth.

a)

401(k)

b)

Investment

c)

IRA

d)

Portfolio

34.

Degree of uncertainty of return on an asset.

a)

Liquidity

b)

Investment

c)

Risk

d)

Share

35.

Pool of money managed by an investment company invested in multiple companies.

a)

IRA

b)

Mutual Fund

c)

Portfolio

d)

401(k)

36.

An tax deferred individual retirement arrangement for a person with earned income.

a)

401(k)

b)

IRA

c)

Mutual Fund

d)

Share

37.

Which of the following is a good investment option?

a)

Gold

b)

Viaticals

c)

Futures

d)

Mutual Funds

38.

It´s better to avoid using your _______ and start controlling your ______.

a)

customer/ expenses

b)

financial goals/ budget

c)

credit card/ expenses

d)

market/ investment

39.

Allison would like to bake a cake but realized she is out of milk. Which of the following stages of the consumer decision making process is this an example of?

a)

Need Identification

b)

Information Searching

c)

Alternative Evaluation

d)

Purchase Decision

40.

Buying the same brand of goods is a result of which of the following types of information searching?

a)

Internal Searching

b)

External Searching

c)

Basic Searching

d)

Extensive Searching

41.

Which of the following does NOT affect when people make a purchase?

a)

Time Pressure

b)

Discount Sales

c)

Certain Holidays

d)

Store Atmosphere

42.

Which of the following questions measures a person’s activity?

a)

Do you agree the U.S. medical system needs reform?

b)

How important is it to you to try new food?

c)

How often do you visit shopping malls?

d)

Do you enjoy reading?

43.

When reading a magazine, Lisa pays attention to some ads but ignores the others. Which of the following types of selective perception is this an example of?

a)

Selective exposure

b)

Selective attention

c)

Selective comprehension

d)

Selective hearing

44.

The stars-and-stripes flag is an example of which of the following cultural elements?

a)

Ritual

b)

Value

c)

Symbol

d)

Hero

45.

Which of the following stages in the family life cycle does a family typically downsize their house?

a)

Newlywed

b)

Early parenthood

c)

Late parenthood

d)

Retirement

46.

Where can a car buyer find the value of a particular model?

a)

Kelley Blue Book (KBB)

b)

Underwriter's Laboratories (UL)

c)

Better Business Bureau (BBB)

d)

American Auto Association (AAA)

47.

If you want to make a good impression, you need to...

a)

be on time

b)

be impolite

c)

be well-groomed

d)

avoid eye contact

48.

If you are communicative and creative, you should become a...

a)

post man

b)

roofer

c)

hairdresser

d)

scientist

49.

What qualifications does a nursery school teacher have?

a)

be patient

b)

be good at explaining things

c)

love animals

d)

have a university degree

50.

Be prepared....a job interview.

a)

to

b)

with

c)

for

d)

on

51.
If you are part of a team where a team member makes frequent negative comments, you should
a)
disagree with the negative comments
b)
try to exclude the team member from conversation
c)
provide good suggestions to encourage the team member
52.
A wage is a set payment amount
a)
True
b)
False
53.
A child care worker get paid a wages based on the hours they work
a)
True
b)
False
54.
A Salary is a _____________________
a)
hourly pay amount
b)
fixed regular payment
c)
paid bi weekly or monthly.
55.
A cashier makes a salary
a)
True
b)
False
56.

a car that is unsatisfactory or has defects. a buyer often does not know about the defects.

a)

trim

b)

lemon

c)

horsepower

d)

warranty

57.

different versions of the same car that include or do not include specific features

a)

total cost of ownership (TCO)

b)

insurance

c)

trim

d)

warranty

58.

the power the engine makes is compared to the power of a horse. the more power, the faster your car can accelerate or the heavier the weight it can carry.

a)

horsepower

b)

trade-in

c)

lemon

d)

MSRP

59.

if you are willing to give your car to the dealer in exchange for a new car, you can often get a better price

a)

lease

b)

VIN

c)

warranty

d)

trade-in

60.

manufacturer's suggested retail price. price that car builders say the car should be sold at.

a)

downpayment

b)

MSRP

c)

MPG

d)

total cost of ownership (TCO)

61.

a long term rental of a car. you need to pay monthly payments for the vehicle and it must be returned at the end of the contract.

a)

seller

b)

lemon

c)

lease

d)

downpayment

62.

most people cannot afford to pay for a new car in one day. you pay the cost over time, but sellers require a certain amount of money the day you buy it.

a)

downpayment

b)

VIN

c)

insurance

d)

seller

63.

the person/company that is selling the car. this could be a person or a dealership.

a)

seller

b)

total cost of ownership (TCO)

c)

MPG

d)

warranty

64.

miles per gallon - the amount of miles (distance) a car can drive on one gallon of gasoline or fuel

a)

MPG

b)

warranty

c)

trade-in

d)

MSRP

65.

there is a manufacturer's warranty and an extended warranty. the dealer will cover SPECIFIC issues with the car even after you buy it. they will pay for some issues for a certain amount of time

a)

warranty

b)

VIN

c)

horsepower (HP)

d)

downpayment

66.

vehicle identification number. every single car ever made has its own.

a)

VIN

b)

lemon

c)

trade-in

d)

trim

67.

every car and driver must have car insurance to legally drive in Illinois. driving without this or getting into an accident without this can be EXTREMELY costly.

a)

insurance

b)

MSRP

c)

lease

d)

downpayment

68.

A legal agreement that allows other individuals to use a person's land for a set purpose.

a)

Escrow

b)

Title

c)

Deed

d)

Easement

69.

A member of the national, state, and local board of realtors.

a)

Real Estate Agent

b)

REALTOR

70.

A person licensed by the state to aid in real estate transactions.

a)

Real Estate Agent

b)

REALTOR

71.

provision stating fulfillment of a contract depends on certain conditions

a)

Closing

b)

Contingency

c)

Mortgage

d)

Inflation

72.

fee charged by a lender for the use of borrowed money; expressed as a percentage of the amount borrowed

a)

Closing

b)

Interest

c)

Inflation

d)

Credit History

73.

written proof a lender is willing and ready to lend an individual a specific amount of money for a mortgage based on verified income and asset

a)

Credit History

b)

Pre-approval

c)

Offer to Purchase

d)

Debt-to-income Ratio

74.

value of an owner's share in a property; value minus debt

a)

Closing

b)

Mortgage

c)

Inflation

d)

Equity

75.

detailed written document which, once signed by

both parties, becomes a legally binding contract

a)

Credit History

b)

Pre-approval

c)

Debt-to-income Ratio

d)

Offer to Purchase