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Personal Finance Final Exam

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

A reason that people need to save and invest is to:

a)

Enable their money to make money

b)

Increase the money supply

c)

Be able to get anything they want

d)

Have an opportunity to talk with financial service providers

2.

A retirement plan found in nonprofit organizations such as churches, hospitals, and schools

a)

GIC

b)

457

c)

401(k)

d)

403(b)

3.

Employee benefits packages:

a)

Should not be a consideration when looking for a job

b)

Never include retirement plans

c)

Are the same regardless of the company you work for

d)

Are non-wage compensations provided to employees in addition to their normal wages or salaries

4.

Single stocks and mutual funds carry the same amount of risk.

a)

True

b)

False

5.

You should start investing as soon as you have your college education funded.

a)

True

b)

False

6.

Getting the best deal on a purchase involves doing all of the following except:

a)

Having patience

b)

Negotiating

c)

Being first in line for a new product

d)

Shopping around to find the best deal

7.

Which of the following is typically not a good place to find a deal?

a)

Online Auctions

b)

Individuals

c)

Malls

d)

Consignment shops

8.

Which of the following describes why using cash is a great bargaining tool?

a)

Cash is emotional

b)

Cash has immediacy

c)

Cash is visual

d)

All answers are correct

9.

Using cash gives you more bargaining power than using credit.

a)

True

b)

False

10.

Making informed choices as a consumer will usually yield savings.

a)

True

b)

False

11.

Which of the following is not a need?

a)

Housing

b)

Eating out

c)

Utilities

d)

Food

12.

The purpose of advertising is to:

a)

Tease the consumer

b)

Inform the consumer

c)

Persuade the consumer

d)

All answers are correct

13.

Which of the following should you consider when making a significant purchase?

a)

Your buying motives

b)

If you cant pay with cash, don't buy it

c)

The opportunity cost

d)

All answers are correct

14.

A good salesperson will answer a question with a question:

a)

True

b)

False

15.

Inflation has no effect on your buying power:

a)

True

b)

False

16.

The total estimated student loan debt outstanding (unpaid) is over:

a)

$1 Trillion

b)

$10 Thousand

c)

$7 Trillion

d)

$1 Billion

17.

Which of the following are ways that you can invest in yourself?

a)

Find a mentor

b)

Surround yourself with people of have similar goals as you

c)

Read books

d)

All answers are correct

18.

The average repayment period for a student loan is:

a)

15 years

b)

5 years

c)

20 years

d)

10 years

19.

The average millionaire reads one nonfiction book a month.

a)

True

b)

False

20.

The best quality colleges are always the most expensive.

a)

True

b)

False

21.

What factors affect a credit score?

a)

Type of debt

b)

New Debt

c)

Duration of debt

d)

All answers are correct

22.

A credit score is intended to measure:

a)

Your financial success

b)

The risk of you not repaying debt

c)

Your income level

d)

The amount of money you have in the bank

23.

Which of the following is not a credit myth?

a)

The lottery and other forms of gambling will make you rich.

b)

You have ʺarrivedʺ financially once you get approved for a credit card.

c)

Debt is a tool and should be used to create prosperity.

d)

Borrowing money can have serious consequences and prevent you from building wealth

24.

You need to have a credit card to rent a car or check in to a hotel.

a)

True

b)

False

25.

Teens are a huge target of credit card companies today.

a)

True

b)

False

26.

Doing a budget does not:

a)

Show if you are overspending in an area

b)

Make overspending more likely

c)

Remove guilt and shame sometimes associated with a purchase

d)

Make your money go further

27.

Which of the following is something that a typical millionaire would do?

a)

Lease a new car

b)

Spend less money than he or she makes

c)

replace things that are not broken

d)

Carry debt

28.

Rent is a:

a)

Fixed expense

b)

Variable expense

c)

Discretionary expense

d)

Intermittent expense

29.

Budgeting is crucial to your financial success.

a)

True

b)

False

30.

A debit card cannot be used for online purchases.

a)

True

b)

False

31.

At your age, a fully funded emergency fund should be:

a)

$500

b)

$5000

c)

$100

d)

$1000

32.

Which of these is not a key to saving money

a)

Focus

b)

Your Income

c)

Making saving a habit and a priority

d)

Discipline

33.

Instead of borrowing money for large purchases, you should set money aside in a ________ over time and pay with cash.

a)

Emergency Fund

b)

Sinking Fund

c)

Credit Card Fund

d)

Mortgage Fund

34.

Americans typically maintain a very high savings rate

a)

True

b)

False

35.

You should hold off on investing for retirement until you have college or other post-secondary education paid for.

a)

True

b)

False