NEW
Font size
WorksheetsBanking and Financial options Test Review
Total questions: 42
Worksheet time: 33mins
Which of the following would be considered a want rather than a need for most people?
a place to live
nutritious food
a smartphone
Warm clothes in the winter
You are going to buy a computer, but first you want to do some research to helpyou select the best model for your needs. Where should you look for the fairestand most reliable information?
The website of a popular computer company
Sales flyer in the local newspaper
Advertisements that a computer company puts in a computer magazine
An independent consumer education website that reviews and rates computers
You are creating a budget for your new business. What should you include?
Fixed expenses but not income
All income and expenses
Fixed and variable expenses but not taxes
Income but not variable expenses
Which of the following is a variable expense for many adults?
Their monthly rent payment
The monthly payment on their car loan
Their monthly cost of eating out at restaurants
Their monthly payment for health insurance
Your friend’s parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?
Car insurance
Cable service
Groceries
Rent payment
If you know the unit prices of two different brands of an item, you are better able to:
Estimate how much of the item you will need
Determine which of the two brands is higher quality
Compare the prices of the two brands
--
You received $50 as a birthday gift and chose to spend it on new wallpaper for yourroom. The opportunity cost of this decision is:
The other items you could have purchased with your $50
The price of the wallpaper you bought
The time you could have spent doing other things
Which of the following is NOT a successful budgeting strategy?
Pay with a credit card if you have a hard time sticking to a budget
Revisit your budget regularly and make adjustments
Keep some extra money in your budget for emergencies
Think about which items are your most important needs
Which of the following is the best reason to use cash for purchases?
Getting more from the ATM is easy to do
Splitting bills with friends is easier
Losing it won’t be a big deal
Keeping track of how much you have spent is simple
What factor has the biggest impact on a credit score?
The number of years that you have used credit responsibly
Your history of making payments on time
The amount of money you owe on your credit cards
Having a variety of types of credit
What is the best strategy to avoid paying interest on your credit cards?
Pay the full balance each month
Make payments online
Pay the minimum balance each month
Have credit cards from two different banks
Which of the following is not a source of income?
Your annual salary for doing your job
The stipend you receive for doing an internship
The wages you receive after a work shift
Your monthly student loan payment
Which of the following statements is TRUE:
Paying off a credit card balance in full can have a negative impact on someone’s credit score.
The longer you use credit responsibly, the higher your credit score.
Applying for several lines of credit in a short period of time can help boost a person’s credit score.
Low risk borrowers tend to have low credit scores.
Which of the following statements is TRUE about payday loans?
They are easier to pay back because of lower fees and higher interest rates
They are easier to pay back because of lower fees and lower interest rates
They are harder to pay back because of low fees and high interest rates
They are harder to pay back because of high fees and high interest rates
Amy's new summer job at the pool will pay her $9 per hour. Which term describes this type of hourly income?
Wage
Salary
Benefit
Stipend
Ashley wants to make a purchase using the money in her checking account. What method of payment should she use to access these funds immediately and directly?
Direct Deposit
Prepaid Card
Debit Card
Credit card
What is the problem with paying only your minimum credit card balance each month?
It lowers your credit score
You have to pay interest
You have to cancel your card
---
The average price of a gallon of milk increased from $3 last year to $3.50 this year. This is most likely due to _________________.
deflation
inflation
the stock market
mutual funds
In considering which financial institution to select, Lotus needs to be certain the money he/she deposits is secure in case the bank goes out of business. Which of the following agencies provide this protection
FDIC
FMLA
NCNM
Lotus is a middle school student and this last year has been asked by neighbors and family to do odd jobs such as babysitting, housework, and yard work. He/She has decided they need to make a plan for their earnings. After looking at the banking institutions in town, Lotus has narrowed the choices to Choice 1: Best Bank (Internet bank)Choice 2: All Employee Bank (Credit Union)Choice 3: D & L Bank (Commercial Bank) -- If Lotus wants to save a portion of her money and get the best interest rate which institution should she choose:
D & L Bank ( Commercial Bank)
All Employee Bank (Credit Union)
Best Bank (Internet banking)
Lotus is a middle school student and this last year has been asked by neighbors and family to do odd jobs such as babysitting, housework, and yard work. He/She has decided they need to make a plan for their earnings. After looking at the banking institutions in town, Lotus has narrowed the choices to Choice 1: Best Bank (Internet bank)Choice 2: All Employee Bank (Credit Union)Choice 3: D & L Bank (Commercial Bank) -- The definition of a commercial bank(D & L Bank of Hometown, Ohio) is
a. Non profit Financial institution owned by members that have a common bond
b. Financial institution owed by shareholders and operated for profit.
c. Financial institution that operates exclusively over the Internet. There is no building
d. Financial institution that originally specialized in providing funds to home buyers but now offers full service
Device that allows deposits and withdrawals using checks, debit cards and ATMs.
checking account
savings account
certificate of deposit
money market account
An individual can “bounce a check” if he/she has sufficient funds in a checking account.
True
False
If you make an error when writing a check you can ________ it
A. correct it
B. void it
C. send it anyway
D. none of the answers
once a month the bank sends a _____________ for you to compare your transactions against what the bank has recorded
A. check register
B. check
C. bank statement
D. reconciling
the price of money
interest
only $10.00
income tax
annual percentage rate
Juan has a summer job working as a lifeguard. He plans to save money from his job to purchase a $200.00 smart phone and a new 900.00 laptop by the end of the summer. In addition, his parents are requiring him to put 20.00 from each pay check in his savings account. Juan will work 25 hours per week and make 7.50 per hour. His boss will pay him weekly. -- If Juan is making $187.50 a week at his job. After taxes his bring home pay is $159.38. If he is putting $20 per week in his savings account and using $10 for fun (movies), how much per week will he be able to save for the phone-laptop fund?
a. 157.50
b. 139.38
c. 129.38
Juan has a summer job working as a lifeguard. He plans to save money from his job to purchase a $200.00 smart phone and a new 900.00 laptop by the end of the summer. In addition, his parents are requiring him to put 20.00 from each pay check in his savings account. Juan will work 25 hours per week and make 7.50 per hour. His boss will pay him weekly. -- What are some deductions that will appear on Juan’s paycheck?
a. Federal taxes, state taxes, city tax, and social security
b. Medical insurance, home owners insurance, lifeguard IRA, and 401K
c. School tax, city tax, county tax and child support
d. Uniform fees, beach towels, first aid kit, and life insurance
You are set on purchasing a new IPod touch and a set of high tech headphones to go with it. You don’t have any money. You ask your mom to purchase it for you. She explains that she just doesn’t have the money right now. You insist that she put it on her credit card. She explains to you that she doesn’t want to do this because she doesn’t have the money to pay the bill when it comes and her credit card carries a high interest rate. -- What would be the best choice for purchasing the IPod and headphones?
a. Save up for the items
b. Take the money from your mom’s purse
c. Put it on a credit card anyway
d. Take money out of your savings account
You are set on purchasing a new IPod touch and a set of high tech headphones to go with it. You don’t have any money. You ask your mom to purchase it for you. She explains that she just doesn’t have the money right now. You insist that she put it on her credit card. She explains to you that she doesn’t want to do this because she doesn’t have the money to pay the bill when it comes and her credit card carries a high interest rate. -- If you charge the items totaling $380.00 on your mom’s credit and you pay only $20.00 a month how long would it take to pay for the purchase (without interest)?
a. 12 months
b. 2 years
c. 19 months
You are set on purchasing a new IPod touch and a set of high tech headphones to go with it. You don’t have any money. You ask your mom to purchase it for you. She explains that she just doesn’t have the money right now. You insist that she put it on her credit card. It would cost about $380. She explains to you that she doesn’t want to do this because she doesn’t have the money to pay the bill when it comes and her credit card carries a high interest rate. -- If the monthly interest is $12.95 and it takes you 2 years to pay it off, what is the total cost of the item with interest?
a. 310.80
b. 690.80
c. 392.95
When the bill for your purchases comes you discover that there are 500.00 in additional charges that you and your mother did not make. What should you do now?
a. Cut up the credit card immediately
b. Call the credit card company
c. Call the better business bureau
d. Call the police
You are set on purchasing a new IPod touch and a set of high tech headphones to go with it. You don’t have any money. You ask your mom to purchase it for you. She explains that she just doesn’t have the money right now. You insist that she put it on her credit card. She explains to you that she doesn’t want to do this because she doesn’t have the money to pay the bill when it comes and her credit card carries a high interest rate. -- What is not a danger of using credit cards?
a. Over spending
b. Identity theft
c. Establishing a credit score
d. Interest rates
In the free enterprise system, the primary goal of a for-profit business is:
A Look out of the consumer.
B Maximize profits.
C Give back to the community.
Smart consumers do the following:
A Slow down and think.
B Trust marketing to tell the full story.
C Do independent research.
D Both A & C.
What is the check number on this check?
00000000
555
111
102
What is the checking account number on this check?
243
00005
1234567
200612
Who is the payee on this check?
Very Good Restaurant
ABC Savings & Loan
John Doe
What is the previous balance?
123.78
435.99
312.21
How much was the electric bill in this check register?
85
10
80
If Chris has car liability insurance, what damage would he be covered for?
Repairing damage to other cars if he got into an accident that was his fault.
Repairing damage to his own car if he got into an accident that was his fault.
Repairing damage to his own car that was caused by storms or theft.
Repairing damage to his own car that was caused by another driver who does not have car insurance.
In addition to paying $100 per month for health insurance, Janine is responsible for paying her first $500 medical bills every year before her insurance covers any costs. The $500 Janine must pay is called the:
deductible
premium
copay
annual out of pocket maximum
