WorksheetsADULT RESPONSIBILITIES FINAL REVIEW
Total questions: 98
Worksheet time: 58mins
1.A plan for future spending and saving, weighing estimated income against estimated Expenses.
Gross Income
Debt
Expense
Budget
2.The amount an employee earns once taxes and other items are deducted from his or her gross pay.
Budget
Debt
Gross Income
Net Income
3.The state of owing money to another individual or business, or the amount of money borrowed.
Gross Income
Net Income
Debt
Budget
6.Fees incurred when a customer withdraws more money from an account than what is available in the account.
Debt
Budget
Gross Income
Overdraft fees
7.The total amount of money an individual has earned before taxes are taken out.
Net Income
Checking Account
Gross Income
Overdraft
If an expense can NOT be removed from your budget to save money, it is considered a _____.
Income
Want
Need
Savings
Fixed or variable expense: Groceries
Fixed
Variable
Fixed or variable expense: Rent?
Fixed
Variable
How do wages and salary differ?
Wages describe what you earn on an annual basis
Salary describes what you earn on an annual basis
Wages mean you have a standard amount in each paycheck
Salaried employees are likely to be paid for overtime
How does the 50/30/20 rule of thumb for budgeting allocate your income?
50% Needs, 30% Wants, 20% Savings & Debt Repayment
50% Wants, 30% Needs, 20% Savings & Debt Repayment
50% Savings & Debt Repayment, 30% Wants, 20% Needs
50% Needs, 30% Savings & Debt Repayment, 20% Wants
Which of the following is an example of buying something you NEED?
"I want to replace something that is no longer working."
"I want to impress someone/ change how they feel about me."
"I'm feeling down, and I need to boost my spirits."
"I don't want to miss out on these deals during the sale!"
Which of the following is generally the most expensive category in a person’s budget?
Healthcare
Clothing
Transportation
Housing
The amount of money you take home is called your
Net Pay
Gross Pay
Total Pay
Available Pay
What should you consider when finding an apartment?
How far is it from work
What is the crime rate
What are the neighbors like
All of the above
In order to rent a place, what may be requested by the landlord?
That you own a car
References and/or a credit check
Proof of vaccinations
All of the above
Which of the following should you find out before agreeing to rent an apartment?
are pets allowed
late fees
when is rent due
all of the above
Heat, Electricity Water
Utilities
Landlord
Lease
This means that you as a tenant are able to rent the apartment to another person.
Lease
Rent
Security Deposit
Sublet
Which of the following with the Landlord do to ensure that you are a reliable renter?
Verify your employment
Check your credit score
Ask for references
All of the above
This is a fee that is paid to the landlord to show you are serious about renting a place.
Broker's Fee
Credit Check Fee
Application Fee
Security Deposit
An amount of credit extended to a borrower is known as a...?
Line of Extension
Several dollars lined up in a straight line
Available Credit
In the finance world it is referred to as a "long nose"
Revolving credit is...
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
a spinning door with money in it
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
Which of the following is not a characteristic of an installment loan?
repaid over time
scheduled payments
accompanied by an interest rate
also known as a revolving loan
What is a credit score?
a number between 300 and 850 representing your creditworthiness
a statistical number that evaluates a consumer's creditworthiness and is based on credit history.
Often referred to as a FICO score
All of the above
What is an interest rate?
it is your level of interest about a certain topic expressed as a percentage of your total interest
The amount in terms of dollars that you have to pay back on a purchase
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
What is bankruptcy?
A point in time where everything a person owns has been given to charity
A legal proceeding involving a person or business that is unable to repay outstanding debts in which the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt
When a bank is built on top of a volcano and the volcano erupts causing a bank(e)ruptcy
A legal proceeding involving a person or business that is more than capable of repaying outstanding debts in which all of the debtor's assets are measured and evaluated, and then given away to those in need
How can you build a positive credit history as a college student?
Get a credit card but don't use it to avoid more debt
Spend up to your credit limit each month
Become an authorized user on an adult's card
Make only the minimum payment each month
Which types of debt usually CANNOT be erased or reduced?
Federal student loans
Credit card debt
Medical bills
None of these types of debt can be erased or reduced
What can debt collectors do if you don't make payments towards your loans?
Have you arrested if you owe money
They can try contacting you at work
Call you between 8am-9pm to talk to you about your loans
Reach out to your friends about the debt you owe
What information can you find on a credit report?
Your medical insurance information
Your parents' and siblings' contact information
Your education level
Inquiries you've made on new lines of credit
There’s no penalty if I pay my credit card balance after the due date.
True
False
How do banks make money off of the credit they issue?
They charge a large, one-time fee at the start of the loan
They take out a small fee each month from your checking account
They charge a high interest rate on the loan
This is a trick question - they DON'T make money!
What information on a Schumer Box should you focus on when choosing a credit card? (hint: choose 3 correct answers)
The term of the credit card
Annual Percentage Rate (APR)
Grace Period
Fees
Which is TRUE when you make only the minimum payment each month?
You ar charged interest on the remaining balance
Your credit line is restored to its maximum amount
Credit card companies have permission to sell your information
It is the fastest way to pay off your debt
A shorter auto loan term means ____ monthly payments & ____ total interest you'll pay.
higher, less
lower, more
higher, more
lower, less
Which is a good definition of borrowing
Borrowing is an important part of a responsible financial plan
When you are borrowing, you are spending future income
Borrowing strongly affects the present self but has less impact on future self.
Borrowing builds a strong credit history because it requires indivisuals to file a credit report.
If you are 16 can you get a credit card
Yes, with your parents permission
No you must be 18 and have a co-signer
No you must be 25 years old
Yes, if she has a job
This is judged upon your character, capacity, and capital.
Your first loan
Credit worthiness
Character
Capacity
Your financial ability to repay a loan is measured by
Capacity
Character
Credit rating
Credit history
What is closed-end credit?
Interest varies depending on your credit history
Equal payments are required on a regular basis until the loan is repaid
Credit limits vary depending on the loan balance
It is a continuous loan you must pay back with a revolving ba lance
Credit established in advance so the borrower does not have to reapply for credit each time credit is needed.
open-end credit
close-end credit
a car loan with equal payments and must be paid on a regular basis
You are allowed to borrow an unlimited amount of money as long as you pay it back
Which of the following are parts of writing a check?
Date
Signature
Who you are paying
The address of the person you are paying.
What is wrong with this check?
They didn't write who they are paying.
The money amount in dollars is wrong.
The money amount written in words is wrong.
What is wrong with this check?
They did not draw the line at the end of the money amount.
The dollar amount is wrong.
The check was not signed.
The memo is wrong.
Where can you find the account number?
Next to the date.
At the top of your check.
At the bottom of your check.
Where can you find the check number?
At the bottom of the check.
At the top of the check next to the date.
Money is automatically transferred into Victor’s checking account for earnings from his job. This is a __________.
Which of the following is NOT a use for a signature card?
To verify a signature to make sure it matches someone on the account.
To identify who all is on the account and can access the account.
To sign up to receive promotional bank emails.
To show the identifying and contact information of the account holders.
Which of the following is NOT a guideline for check writing?
If you make a mistake scratch it out and write next to it.
Don't use nicknames when writing or signing a check.
Always use blue or black ink.
Be sure all figures are legible.
Which number in the diagram represents the routing number?
3
9
10
11
TRUE OR FALSE: If you deposit a check it will ALWAYS be available the same day.
TRUE
FALSE
TRUE OR FALSE: If there are 2 people on a checking account they are equally responsible for any negative balance that may occur.
TRUE
FALSE
When spelling out large numbers, use a hyphen to connect the two words. For example: twenty-two
True
False
Never sign a blank check.
True
False
If you make a mistake while writing a check you should?
Void the spoiled check and write a new one
Cross it out and write over it
Erase the mistake and correct it
Forget your purchase
A check that has been issued and recorded, but has not yet cleared the bank account on which it is drawn.
Outstanding check
Bill pay
Overdrawn check
Automatic check payment
The portion of the checkbook used for recording checks is the:
Deposit Slip
Reconciliation
Register
Statement
The numbers on the bottom left are identified by the bank as the __________________________numbers.
ABA number
Serial number
Account number
Routing number
The numbers located at the bottom in the center are identified by the bank as the___________________number?
ABA number
Account number
Routing number
Serial number
