WorksheetsPersonal Finance Knowledge Check
Total questions: 30
Worksheet time: 15mins
The amount of federal income tax withheld depends on both your level of earnings and the number of withholding allowances claimed.
TRUE
FALSE
According to the "Rule of 72", my money will double in how many years: Investment earning 4%.
3
18
9
1
Which one describes the balance sheet equation:
Net Worth = Liabilities + Assets
Assets * Value = Equity
Assets = Liabilities + Net Worth (Equity)
None of the above
Every individual or married couple is required to file a federal income tax return regardless of the amount of income earned.
TRUE
FALSE
Tax credits and deductions reduce your taxable income by comparable amounts.
TRUE
FALSE
At most banks and other depository institutions, you will be hit with a hefty service charge if your checking account balance falls even just $1 below the stipulated minimum amount for just one day out of the month.
TRUE
FALSE
U.S. Series EE and I savings bonds are not a very good way to save.
TRUE
FALSE
How much would a home buyer have to pay at the time of closing -- take into consideration closing costs (50% of the down payment), down payment (20%), and a loan fee of 2 points. The home is $250,000 and requires a 20% down payment.
75,000
79,000
82,000
85,000
You should buy a car instead of leasing if you plan to drive it more than 150,000 miles over its life.
TRUE
FALSE
Excluding mortgage payments, most families will have little or no credit problems so long as they limit their monthly credit payments to 25 to 30 percent their monthly take-home pay.
TRUE
FALSE
Buying a new car is the major reason that people borrow money through consumer loans.
TRUE
FALSE
Consumer loans can only be set up with fixed rates of interest.
TRUE
FALSE
A low APR is not as important as having a low payment.
TRUE
FALSE
Selecting an insurance company is the first thing you should do when buying life insurance.
TRUE
FALSE
With health care insurance that covers the whole family, children may be included up to age 26 as long as they are full-time students.
TRUE
FALSE
Which one of the following include is not one of the most common financial resources needed after the death of a family breadwinner:
special needs of dependents
last medical & funeral expenses
new car
income needed to maintain an adequate lifestyle
If you lose a lot of money because a broker gave you a poor investment recommendation, you can recover most or all of your loss by filing a claim with the Securities Investor Protection Corporation.
TRUE
FALSE
You would have to save $2,500 a year in order to end up with a $25,000 nest egg in ten years.
TRUE
FALSE
When interest rates go down, bond prices also go down because such securities become less valuable.
TRUE
FALSE
In order to receive maximum social security retirement benefits, a worker must retire before his or her 66th birthday.
TRUE
FALSE
All of the following are pitfalls to good retirement planning except:
starting too late
not having any money
putting away too little
investing too conservatively
Due to recent changes in the law, a person no longer has to be mentally competent in order to draw up a valid will.
TRUE
FALSE
To obtain more of one thing society forgoes the opportunity of getting the next best thing.
utility
economic principle
opportunity cost
microeconomics
The state of being in short supply; shortage.
starvation
utility
margin
scarcity
The total value of all goods and services produced in a country.
Capital
Gross Domestic Product
Consumer Price Index
Inflation
A period of temporary economic decline during which trade and industrial activity are reduced.
recession
inflation
supply
shortage
The 4 types of market structures include: perfect competition, monopolistic competition, oligopoly, and monopoly.
TRUE
FALSE
A market structure in which many producers supply similar but varied products.
perfect competition
monopolistic competition
oligopoly
monopoly
Long-term debt securities issued by the Treasury, government agencies, and corporations to finance their operations.
mortgages
loans
bonds
stocks
Rule stating that more will be demanded at lower prices and less at higher prices.
Law of Supply
Law of Prices
Law of Utility
Law of Demand
