WorksheetsEconomics: Personal Finance
Total questions: 42
Worksheet time: 15mins
What are the 5 classifications of stocks?
Blue Chip, Income, Growth, Cyclical, Defensive
Income, Growth, Penny, Defensive, Mutual funds
Red Chip, Income, Growth, Cyclical, Technological
Preferred, Defensive, Common, Dividends, Defensive
What is the penalty if you withdraw money from your retirement account early?
you will have to repay it
the money you withdraw will be taxed as income at whatever your current tax rate is
you lose eligibility for that account
the IRS garnishes your wages
Who contributes to IRA’s?
employees and employers
employees/individuals only
employers and the government
employers only
What's an IRA?
One way to earn more interest from a bank is to
take out a loan
buy a certificate of deposit (CD)
buy stock in the bank
start a savings account
When should you start planning for retirement?
As soon as you turn 25
The sooner, the better; NOW would be best
in your 30s
in your 40s
Which of these financial options involves the most risk?
savings account
stocks
mutual funds
bonds
Which of these financial options involves the lowest risk & is the better investment for people nearing retirement age?
bonds
stocks
mutual funds
gambling in Vegas
Who owns commercial banks?
the government
depositors
stockholders
the bank employees
What is a guarantee of repayment required by lenders?
deductible
down payment
warrantee
collateral
How many credit cards should the average person have?
as many as they want
0-2
10
5-8
The federal income tax is ________ and generally impacts higher incomes because it taxes them at a higher rate.
bilateral
proportional
progressive
regressive
__________ is a formal legal declaration that you are unable to pay your debts.
insolvency
bankruptcy
litigation
impeachment
________ is the amount you have to pay on a claim before an insurance company will begin payments.
premium
deductible
annual
benefit
Who most likely pays the highest price for automobile insurance?
your 60 year old grandmother
a 40 year old father
an 18 year old girl
an 18 year old boy
a 35 year old mother of 3 kids
How do you make yourself more employable?
showing up for work tardy on a habitual basis
having chronic absenteeism
having many marketable skills
being rude to coworkers and customers
not having adequate education
All of the following are ways to build and improve your credit EXCEPT
Establish & maintain a long positive credit history
Applying for and using credit as often as possible
Pay bills on time
Keeping your debt to credit ratio low
What is the term for the yearly cost of credit?
Annual Percentage Rate
ATM
Premium
Downpayment
A ______________ is financial institution that is non-profit and requires membership.
payday loan
national bank
commercial bank
credit union
title pawn
What type of financial institution offers small, high interest loans?
commercial bank
credit unions
payday loan
national banks
A prolonged period of rising stock prices is known as
Bull Market
Bear Market
Commodities Market
Contractionary phase
A prolonged period of falling stock prices is known as
Bull Market
Bear Market
Commodities Market
Expansionary phase
Which federal agency regulates the stock market, overseeing the exchange of securities to protect investors?
World Health Organization
CDC
Securities & Exchange Commission
National Regulatory Commission
What is the concept that someone cannot gain a profit by a loss?
Indemnity
Deductible
Premium
Risk
What is the type of insurance that pays on a certainty?
auto insurance
health insurance
Property insurance
Life insurance
The average retirement lasts ____ years.
18 years
6 years
25 years
5 years
How much of your pre-retirement income can you expect to receive from Social Security?
25%
approx. 40%, if it's still around
100%
75%, if it still exists
Who is likely to make more money during their working career?
a high school graduate
a high school dropout
a college graduate
a tech school dropout
A line of credit that lasts for a specified period of time is called
open-end credit
cyclical credit
closed-end credit
lifetime credit
When applying for credit from a bank, a borrower must be
debt-free
poor
rich
creditworthy
The most important investment you can make in your life is
a car
a house
an education
a wardrobe
Before you are ready to save or invest you should satisfy your
parents' expectations
Needs
Wants
Curiosity
Economically speaking, the potential for loss is known as _________.
opportunity
trade offs
liability
risk
A reward or punishment that influences our behavior or choices is
a bonus
a trade off
an incentive
a liability
A _________ stock is the most expensive and most valuable type of stock.
cyclical
penny
blue chip
counter
Term for the monthly payment you make when you purchase insurance:
deductible
premium
maturity value
par value
During an economic recession, people tend to save/invest _________.
more
often
like they always do
less
When the economy is in a period of growth or expansion, people tend to save or invest
less
more
occassionally
never
Banks charge interest on loans because
the government requires that they charge a specific amount as interest on loans
because they know they can charge a fee
it is the fee for using their $ and how they make a profit
because they can't give away cash for free
Like an IRA, a 401 k is a type of retirement investment account. Unlike an IRA, a 401k _____________.
is an employer-sponsored retirement plan.
allows the investor to remove the money at any time without penalty
doesn't go with you if you change jobs
is a totally tax-free investment
__________ and __________ are the 2 most common types of life insurance.
universal and whole
term and disability
major medical and liability
term and whole
Three types of tax:
regressive, offensive, progressive
proportional, discretionalry, excise
regressive, proportional, progressive
regressive progressive, proponent
Changing your passwords regularly, shredding important documents, and only using secure internet networks are
steps you can take to improve your credit
steps you can take to protect yourself from identity theft
steps you can take to establish a credit rating
steps you can take to build new business networks.
