WorksheetsFinal Exam: Career Prep: 2022
Total questions: 63
Worksheet time: 32mins
What is the definition of a budget?
Money coming in each month.
Money being spent or saved each month.
The money you earned from a job.
A plan for how to spend or save the money you've earned.
Choose the correct order of Maslow's Hierarchy of Needs from the BOTTOM of the pyramid to the TOP.
self-actualization, self-esteem, love and belonging, safety and security, physiological needs
physiological needs, safety and security, love and belonging, self-esteem, self-actualization
self-esteem, love and belonging, physiological needs, safety and security, self-actualization
love and belonging, self-esteem, self-actualization, safety and security, physiological needs
The total money you get to "take home" from your paycheck after taxes and deductions is:
gross pay
net pay
budget deficit
inflows
What does the acronym "S.M.A.R.T" goals stand for?
Sudden, Measurable, Accurate, Relatable, Timely
Sentient, Meaningful, Attainable, Relevant, Time-sensitive
Specific, Measurable, Attainable, Relevant, Timely
Simple, Meaningful, Accurate, Relatable, Timely
What is buyer's remorse?
an unplanned decision to buy a product or service
a return of a purchase after buying something
sense of regret after having made a purchase
when you buy something that cause you to overdraw your bank account
What are physiological needs?
general safety and health, employment, family, resources
respect for self/personal worth, respect for and from others, confidence, achievement
self-awareness, personal growth, focus on being one’s best self
food, water, sleep, air
A budget deficit occurs when:
Inflows are greater than outflows.
Inflows are equal to outflows.
Inflows are less than outflows.
Inflows are equal to income.
What is a goal?
Something that you accomplish.
Another word for a plan.
Anything that makes your life more fulfilling.
Something that you need in order to survive.
Rent is an example of which kind of expense?
fixed
periodic
variable
savings
Your power bill is an example of which kind of expense?
fixed
variable
periodic
savings
What is a fixed expense?
Expenses that occur every month but the amounts are usually different.
Expenses that occur occasionally and are hard to plan for.
Expenses that don't change month to month.
Expenses that require outside income to pay.
What is a periodic expense?
Expenses that occur every month but the amounts are usually different.
Expenses that occur occasionally and are hard to plan for.
Expenses that don't change month to month.
Expenses that require outside income to pay.
Which income is money earned regularly with little or no effort?
Earned
Portfolio
Passive
Periodic
The first step to financial success is creating and sticking to a budget.
True
False
What is the total money earned BEFORE tax and deductions called?
Gross Income
Net Income
Earned Income
Deducted Income
What is marketing?
Promoting and selling products and services.
Creating products for consumers.
The study of consumer habits to create products.
The study of consumers and how they have a financial affect on the market.
Is your debit card attached to your checking account or your savings account?
Checking
Savings
Most financial experts advise adults to have at least ___ months of expenses saved for emergencies.
Four
Three
Eight
Six
What is the first step to building wealth?
Build an emergency fund.
Build a short-term savings account.
Invest.
Calculate your interest on your investments.
When you prioritize _______ as the most important bill, your life will be transformed.
investing
saving
your mortgage
your car payment
Having a portion of your paycheck direct deposited into a __________ is a great way to begin building wealth.
investment account
Roth IRA
401K
Savings Account
When should you start saving?
Today
When you get a full-time job
When all of your bills are paid
When you turn 21
What age do most people retire?
55
65
45
75
How many years do you need to be prepared to have money for after retirement?
20
30
35
45
What is the formula for calculating simple interest?
t=ipr
r=pti
p=tir
i=prt
What is the formula for "The Rule of 72"?
72= Length of time in years/interest rate
i=prt
t=pri
Length of time in years=72/interest rate
All savings accounts are the same.
True
False
What is the concept of "risk and reward"?
If you risk too much of your money, you will not reap any of the rewards.
You should not take big risks in regards to finances because you will not reap many rewards.
Rewards only come with big risks.
The more you are willing to risk, the higher your potential reward.
What are the three main kinds of savings accounts? Choose three.
Traditional
Money Market
Investment
Roth IRA
Certificates of Deposit
If you want to really build your wealth, should you put your money in a savings account or invest it?
invest it
put it in a saving account
What is a dividend?
the current price a given stock is trading
money shared with stockholders when the corporation makes a profit
a measure of how much the stock changes from day-to-day
the total value of all of a company's outstanding shares of stock
A for-profit financial institution that accepts deposits, offers loans, and provides other financial services to its customers.
commercial banks
payday lender
check-cashing center
credit union
A nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
commercial bank
mortgage company
payday lender
credit union
Why are credit unions able to offer a higher interest rate on savings accounts and a lower interest rate on loans?
The customers are the owners of the credit union. When the credit union makes a profit, it can be returned to the owners with better interest rates.
The customers lease an ownership in the bank. They set their own interest rates.
The bank owners place more value on their customers. They know that to retain their customers, they have to offer better interest rates.
Credit unions do not offer higher interest rates on savings accounts. They offer higher interest rates on mortgages
Loans that are backed up by something of value, and include car loans and mortgages
high value loans
artesian loans
unsecured loans
secured loans
A loan that is not backed up by something of value.
credit card
unsecured loan
secured loan
mortgage
What will happen if you do not make car payments?
You will receive a negative credit report.
You will be taken to court and allowed to keep your car.
Your debt will be cleared and you will be allowed to keep the car.
They will repossess your car and you will receive several negative marks on your credit report.
Allows money to be deposited directly from your employer into your checking or savings account
internet banking
direct deposit
apps
indirect deposit
Customers can sign in to their account via the Internet or a phone app to check balances and pay bills
direct deposit
ATM
internet banking
apps
Who are banks insured by?
The State Government
Federal Insurance Deposit Corporation
MSBC
SWBC
How old do you have to be to open a bank account by yourself in Alabama?
15
16
19
18
How do banks and credit unions make most of their profit?
From earning more in interest from loans than they pay out in savings accounts
From charging a higher interest rate on mortgages
From earning more in fees
From having fluctuating interest rates
Fees that are charged when your balance goes below zero
balance fees
ATM fees
Credit Card Fees
Overdraft Fees
When a bank links your checking account to a savings account to act as an emergency fund
overdraft reconciliation
overdraft protection
micromanaging
safety net
When signing a check, you should always write your name in print.
True
False
What is the amount the FDIC insures for deposits in a bank or credit union?
125,000
250,025
1,075,000
250,000
A financial institution that has come under fire recently for targeting the poor and most vulnerable people in society with extremely high interest rates.
credit card companies
check cashing companies
mortgage companies
payday lenders
If you don't have a traditional bank account and you need money from a check , you may visit this financial institution, where they will cash your check for you for a fee:
check cashing company
mortgage services
payday lender
bank
Credit unions and banks provide similar types of financial services.
True
False
A financial institution that specializes in helping people get a loan to purchase a house.
credit union
mortgage company
commercial banker
payday lender
Banks and credit unions do not usually charge fees for processing overdrafts.
True
False
It is best to write your checks in pencil so you can easily erase any mistakes.
True
False
When a checking account does not have enough funds to cover transactions.
overdraft protection
insufficient resources
insufficient funds
overextension benefits
The main goal of Chapter 11 Bankruptcy is to develop a plan to return the business to profitability, while also paying creditors.
True
False
_________________ allow customers to pay a deposit on an item, and then later pay the balance. Under these plans, the customer does not receive the item until the balance is paid in full.
Automatic bank payments
Layaway plans
Credit cards
Debit cards
A loan for a house is known as a _____________.
credit card
mortgage
down payment
revolving loan
Paper and coins widely accepted as payment.
checks
cash
credit cards
debit cards
____________ cards are linked to your checking account, while _________ cards are paid later.
debt; credit
credit; debt
credit; debit
debit; credit
Which of the 5 Cs refers to an individual’s credit history?
character
collateral
capacity
capital
Which of the following is NOT one of the 5 Cs of credit?
checking
collateral
capacity
character
If I don't read the terms and conditions, then I don't have to follow them.
True
False
Which of the six factors of a binding contract states that both parties must be legally able to enter a contract?
capacity
consideration
genuine agreement
legality
Which of the six factors of a binding contract states that no fraud is taking place by either party?
genuine agreement
legality
capacity
consideration
