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Week 9 - Test

Total questions: 35

Worksheet time: 2hrs 45mins

Name
Class
Date
1.

What is a budget?

a)

A calendar used to plan out your activities for the month

b)

A plan for spending and saving your money

c)

A plan to manage your time for the day

d)

A type of savings account

2.

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

a)

Will something bad happen if I don't have this?

b)

Do any of my friends have this item?

c)

How happy will this item make me?

d)

Will my teachers be excited if I buy this item, or will they be disappointed?

3.

What is net pay?

a)

The money that you earn before taking out deductions

b)

The money that you earn after taking out deductions

4.

Justine's part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her gross pay?

a)

$8.00

b)

$80.00

c)

$80.00, minus any taxes she has to pay

d)

$80.00, plus any taxes she has to pay

5.

Why should you use your NET pay when creating a budget?

a)

Your net pay will always be higher, so you'll have more money to spend

b)

Your net pay is a more accurate picture of how much money you have available to spend or save

c)

Your employer knows what your gross pay is, but you only know what your net pay is

d)

Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget

6.

Who has to pay taxes to the US government?

a)

Every citizen, regardless of their age or working status

b)

Every person or company that earns income in the US

c)

Anyone who owns a home or attends a public school

d)

No one has to - taxes are a voluntary program

7.

Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?

a)

50% needs, 30% wants, 20% savings

b)

50% budget, 30% needs, 20% wants

c)

50% saving, 30% needs, 20% wants

d)

$50 needs, $30 wants, $20 savings

8.

All of the following are costs of going to college EXCEPT...

a)

Tuition and fees

b)

Room and board

c)

Textbooks

d)

Scholarships and grants

9.

When does the FAFSA filing period open every year?

a)

January 1st

b)

June 1st

c)

October 1st

d)

December 1st

10.

Why should you file the FAFSA as early as possible?

a)

It can help your chances of being accepted into schools

b)

Aid is given out on a first-come, first-serve basis

c)

You're guaranteed to get more merit-based scholarships

d)

You'll get a lower interest rate on federal student loans

11.

How do scholarships and grants differ?

a)

Scholarships are need-based; grants are merit-based

b)

Grants are private forms of aid; scholarships are federal

c)

Grants are need-based; scholarships are merit-based

d)

They're not different; they are one and the same

12.

What do you need to file your FAFSA if you're a dependent?

a)

Just your tax forms

b)

Your high school student ID number

c)

Your and your parents' tax forms from 2 years priors

d)

A pay stub if you had a job in the past year

13.

Money you receive for school that does not have to be paid back. Select all that apply.

a)

Federal Student Loans

b)

Grants

c)

Private Student Loans

d)

Scholarships

14.

6. Which statement is TRUE?

a)

You can only submit FAFSA once. Most students do it in the last year of high school.

b)

You can only submit FAFSA once. Most students do it before the first year they will attend college.

c)

You must submit the FAFSA annually as you/your family's financial situation may change and therefore impact your aid.

15.

A legal process to get out of debt when you can no longer make all your required payment.

a)

Liquidation

b)

Bankruptcy

c)

Mean's Test

d)

Credit Counseling

16.

Bankruptcy will not remove the following: (Please select all that apply)

a)

Credit Card Debt

b)

Student Loans

c)

Child Support

d)

Alimony

17.

Which TWO statements are true about bankruptcy?

a)

It's a good option if you don't want to pay for things

b)

It will be nearly impossible for you to get a car loan, credit card, or mortgage for about 10 years

c)

Only you and the bank will be able to know you filed for bankruptcy

d)

Any savings accounts that you have will be emptied

e)

All student loans will be forgiven so you don't need to pay them back

18.

You should only give out your credit card information on the phone if...

a)

The person on the other side sounds professional

b)

YOU called the bank/company (they didn't call you)

c)

The call is from an 808 number

d)

The person emailed you before calling

19.

Which of the following situations is an example of responsibly taking on debt?

a)

Get a credit card but don't use it to avoid more debt

b)

Spend up to your credit limit each month

c)

Become an authorized user on an adult's card

d)

Make only the minimum payment each month

20.

How can you build a positive credit history as a college student?

a)

Get a credit card but don't use it to avoid more debt

b)

Spend up to your credit limit each month

c)

Become an authorized user on an adult's card

d)

Make only the minimum payment each month

21.
What makes up the largest part of your credit score?
a)
Length of credit history
b)
Income
c)
How well you pay off your bills
d)
Types of credit you use
22.
If you file bankruptcy how long will it stay on your credit record?
a)
2 years
b)
5 years
c)
7 years
d)
10 years
23.

Which of the following are common reasons people file bankruptcy

a)

Excessive medical

bills

b)

Small business failure

c)

Loss of job and too

much debt

d)

all of these

24.

Tick all the ways you can protect yourself from fraud.

a)

If a deal is too good to be true, ignore it.

b)

Sign up for Secure code or Verified by visa on your credit cards for extra protection.

c)

Shred receipts with your card details on.

d)

Lend your cards to others.

e)

Give your PIN to your best friend.

25.

Our tax money is spent on all of the following EXCEPT:

a)

Social Security

b)

The Military

c)

Private School Education

d)

National Parks

26.

Who primarily uses our tax money? (hint: choose 2 correct answers)

a)

Your employer

b)

The state government

c)

The Federal government

d)

Local Businesses

27.

What definition best fits for the word tax?

a)

Pointless fee everyone pays

b)

Fee the public pays to the government to help sustain public things

c)

Fees applied ONLY to food

d)

Fees that are the same for every person across the country

28.

IRS stands for

a)

Internal Revenge Service

b)

International Revenue System

c)

Internal Revenue Service

d)

Inspection Ravioli Sauce

29.
Federal Income tax is a _______tax
a)
proportional
b)
flat
c)
regressive
d)
progressive
30.
Sales tax is a ______ tax
a)
regressive
b)
progressive
31.

Lyla is applying for a loan to buy a home for the first time. Which of the following should she be certain to do when applying for the loan?

a)

Inaccurately report her debts

b)

sign blank documents

c)

read all paperwork carefully

d)

overstate her assets

32.

If you are 17 right now, what is the best age to begin investing?

a)

27

b)

32

c)

17

d)

25

33.

Which of the following is a variable expense that Jake must consider when developing his personal budget:

a)

Anticipated salary increases

b)

Unexpected car repairs

c)

fixed car-loan payments

d)

homeowner insurance premiums

34.

Saving the money you might ordinarily spend each day on a cup of coffee and a donut:

a)

is not a practical step in reaching your financial goals

b)

will not result in significant savings

c)

is the sacrifice you must make for the future financial security

d)

can help you achieve larger financial goals

35.

The key factors involved in compounding growth are the amount of money of money you invest, how much your investment grows each year, and

a)

your mutual fund manager's education

b)

how you earn money you invest

c)

your educational background and career

d)

how long your money is invested