WorksheetsPersonal Finance Final Exam
Total questions: 35
Worksheet time: 18mins
A reason that people need to save and invest is to:
Enable their money to make money
Increase the money supply
Be able to get anything they want
Have an opportunity to talk with financial service providers
A retirement plan found in nonprofit organizations such as churches, hospitals, and schools
GIC
457
401(k)
403(b)
Employee benefits packages:
Should not be a consideration when looking for a job
Never include retirement plans
Are the same regardless of the company you work for
Are non-wage compensations provided to employees in addition to their normal wages or salaries
Single stocks and mutual funds carry the same amount of risk.
True
False
You should start investing as soon as you have your college education funded.
True
False
Getting the best deal on a purchase involves doing all of the following except:
Having patience
Negotiating
Being first in line for a new product
Shopping around to find the best deal
Which of the following is typically not a good place to find a deal?
Online Auctions
Individuals
Malls
Consignment shops
Which of the following describes why using cash is a great bargaining tool?
Cash is emotional
Cash has immediacy
Cash is visual
All answers are correct
Using cash gives you more bargaining power than using credit.
True
False
Making informed choices as a consumer will usually yield savings.
True
False
Which of the following is not a need?
Housing
Eating out
Utilities
Food
The purpose of advertising is to:
Tease the consumer
Inform the consumer
Persuade the consumer
All answers are correct
Which of the following should you consider when making a significant purchase?
Your buying motives
If you cant pay with cash, don't buy it
The opportunity cost
All answers are correct
A good salesperson will answer a question with a question:
True
False
Inflation has no effect on your buying power:
True
False
The total estimated student loan debt outstanding (unpaid) is over:
$1 Trillion
$10 Thousand
$7 Trillion
$1 Billion
Which of the following are ways that you can invest in yourself?
Find a mentor
Surround yourself with people of have similar goals as you
Read books
All answers are correct
The average repayment period for a student loan is:
15 years
5 years
20 years
10 years
The average millionaire reads one nonfiction book a month.
True
False
The best quality colleges are always the most expensive.
True
False
What factors affect a credit score?
Type of debt
New Debt
Duration of debt
All answers are correct
A credit score is intended to measure:
Your financial success
The risk of you not repaying debt
Your income level
The amount of money you have in the bank
Which of the following is not a credit myth?
The lottery and other forms of gambling will make you rich.
You have ʺarrivedʺ financially once you get approved for a credit card.
Debt is a tool and should be used to create prosperity.
Borrowing money can have serious consequences and prevent you from building wealth
You need to have a credit card to rent a car or check in to a hotel.
True
False
Teens are a huge target of credit card companies today.
True
False
Doing a budget does not:
Show if you are overspending in an area
Make overspending more likely
Remove guilt and shame sometimes associated with a purchase
Make your money go further
Which of the following is something that a typical millionaire would do?
Lease a new car
Spend less money than he or she makes
replace things that are not broken
Carry debt
Rent is a:
Fixed expense
Variable expense
Discretionary expense
Intermittent expense
Budgeting is crucial to your financial success.
True
False
A debit card cannot be used for online purchases.
True
False
At your age, a fully funded emergency fund should be:
$500
$5000
$100
$1000
Which of these is not a key to saving money
Focus
Your Income
Making saving a habit and a priority
Discipline
Instead of borrowing money for large purchases, you should set money aside in a ________ over time and pay with cash.
Emergency Fund
Sinking Fund
Credit Card Fund
Mortgage Fund
Americans typically maintain a very high savings rate
True
False
You should hold off on investing for retirement until you have college or other post-secondary education paid for.
True
False
