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WorksheetsChapter 8 - Personal Financial Literacy
Total questions: 48
Worksheet time: 42mins
Aliyana is a retired nurse. She does not use a debit card but writes many checks. She does online banking and transfers money from her savings account to her checking account twice a month. Aliyana's bank is one of the four financial institutions described. Which most likely is Aliyana's bank?
Bank 1
Bank 2
Bank 3
Bank 4
What happens to a bank account when a deposit is made?
The bank balance increases.
The bank balance decreases.
The bank balance stays the same.
None of the above.
Based on the transactions recorded in the check register, what would be the ending bank balance?
$60.95
$160.95
$240.95
$150.95
Toya wants to know what lenders look for when they review loan applications. What is the most important factor that lenders look at?
Payment history
Permanent address
Credit card limit
Telephone number
Sam has been saving money for college since he was 10. Every birthday, he puts money away in his savings account. Even with his careful savings, he will need more money for college. He wants to apply for financial aid that he will not have to pay back because he wants to be debt free when he graduates. Which of the following choices is not a good option for Sam?
Grant
Student loan
Scholarship
Work study
Sasha's family doesn't have a lot of money to help her pay for college. She completed a financial aid application. Now, Sasha receives $2,500 per semester from the government to help her pay for college. This money does not have to be paid back. What type of payment is this considered?
Grant
Student loan
Scholarship
Family support
A college will give Kimberley $3,200 per year toward tuition if she competes on the track team. What type of college funding is this?
scholarship
grant
savings
loan
Victoria is learning about credit reports in school. She is becoming acquainted with the types of information contained in reports. Which of the following information is not found in credit reports?
Diplomas earned
Amounts owed
Credit types
Payment history
Which of the following does not describe a function of a credit report?
It helps a lender determine if you are able to get a loan.
It determines whether or not a person is issued a debit card.
It helps a credit card company determine your credit limit.
None of the above.
Which of the following does not describe a reason for establishing a good credit history?
It helps you get a better interest rate on a loan.
It helps a lender determine if you are eligible for a loan.
It makes your resume look better.
It allows you to have a higher credit limit on a credit card.
Kyrie needs to shop for automobile insurance. Which is not a reason insurance companies will look at his credit report?
To determine the right rate for him
To see whether he pays bills on time
To determine what his credit score is
To see what cell phone company he uses
What is Borrowed Money called? *
Interest
Loans
Savings
Investment
Putting Money Away for Later *
Savings
Net Pay
Loan
Interest
What you bring home after all your Deductions? *
Gross Pay
Savings
Annual Pay
Net Pay
What you make before deductions?
Gross Pay
Savings
Earned Income
Net Pay
When you keep track of your money.
Spending
Savings
Earnings
Budgeting
Interest Paid Yearly
Annual Percentage Rate (APR)
Taxes
Earnings
Gross Pay
Most millionaires inherited their money.
True
False
Most millionaires are college graduates.
True
False
What are the three rules for staying out of poverty?
1. Don't graduate from high school.
2. Never have children
3. Have a side hustle.
1. Graduating from high school.
2. Have many children.
3. Having a fun job.
1. Graduating from college.
2. Get married as soon as you graduate high school.
3. Having a full-time job.
1. Graduating from high school.
2. Waiting to get married until after 21 and do not have children till after being married.
3. Having a full-time job.
Anything that is purchased with the hope that it will generate income or be more valuable at a future date.
investment
loan
income
expense
Who said...
"Compound interest is the eighth wonder of the world. He who understands it, earns it...he who doesn’t...pays for it.”
Abraham Lincoln
Bruce Wayne
Andrew Carnegie
Albert Einstein
What do we call the amount of money left over each month after you have paid all of your expenses?
Surplus
Straight cash homie
Debt
Diversification
The longer the money is invested the better?
True
False
How much a year does the average high school dropout make?
$19,000-$21,000
$16,000-$18,000
$13,000-$15,000
$10,000-$12,000
Which of the following budget items is an example of a fixed expense?
Car Payment
Groceries
Entertainment
Vacation
Why is it important that people “pay themselves” first before paying any bills?
There is no benefit to paying yourself first
You work hard, so you deserve to pay yourself first
If you wait to buy nice things for yourself until all your budget items are taken care of, you won’t be able to “treat yoself” as much as you want
If you wait to save money until all your budget items are taken care of, you won’t have as much savings as you could/should
Mitch and Erica have a budget, but they have decided to start saving for a trip to Greece. They plan on putting $500 aside every month until they can afford it. What payment can lower from their variable expenses to reach this goal?
Social Security
Mortgage
Clothing
Student Loan
What ways can you spend money you placed in your checking account?
Debit Card
Writing a Check
Visiting an ATM or bank teller to withdraw money
All of the above
What information do you need from your check in order to have you salary placed on direct deposit?
Checking Account Number
Bank Routing Number
Both a Checking Account Number and a Bank Routing Number
None of the Above
What type of savings account will earn you the most money in the long run?
One that offers compound interest
One that offers a principal
One that offers simple interest
One that offers accrued interest
How can you manage your credit responsibly?
Only apply for loans when you know you can pay them back
Limit the amount of credit you take out
Limit your credit purchases to what you can pay off at the end of the month
All of the Above
Aleena takes out a home mortgage loan from Wells Fargo. The home loan is for $225,000 at 6% interest. How much total will Aleena end up paying for her house?
$13,500.00
$225,000.00
$238,500.00
$225,000.06
What does a company do with stock consumers have purchased?
They use the money to invest in other companies
They give out personal loans to employees
Nothing. The stocks just sit there collecting interest
They use the money to invest in their company
When do you make or lose money from stocks?
When the government pays you back
When you sell it
Any time the stock moves up or down in the stock market
When you buy it
Kunj currently has $75 in his bank account. However, he goes to the Nike Outlet sale and puts $78.24 on his debit card. What happens?
Nike refuses to run Kunj’s card and Kunj has to put a pair of socks back
Kunj is allowed to walk out of the store with all of his items and is charged no fee
The bank takes care of the extra $3.24 and Kunj pays them back from his next pay check
The bank charges a $29 overdraft fee
Which of the following is NOT a benefit of having a credit card?
It helps to bank make money through interest
It helps out in emergencies
It helps you establish good credit history
You can use the goods while you pay for them
