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Unit 2 Personal Finance

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is a type of financial institution?

a)

Commercial Bank

b)

Credit Union

c)

Insurance Company

d)

All of the above

2.

True or False: commercial banks charge higher rates on loans.

a)

True

b)

False

3.

Which one is NOT a true statement?

a)

Banks do not charge customers on loan

b)

A rate which is charged or paid for the use of money

c)

Banks pay to customers on savings accounts and certificates of deposit (CDs)

4.

True or False: Credit is the use of money that they do not have

a)

False

b)

True

5.

Why do people need credit?

a)

Purchase major expenses like cars,house, or higher education

b)

in case of emergency

c)

to not use your own money

d)

A and B

e)

B and C

6.

Why do you need Insurance?

a)

Damage to your car

b)

Legal fees

c)

Medications

d)

All of the Above

7.

Which One is not a type of Insurance ?

a)

Homeowners

b)

Car

c)

Disability

d)

Education

8.

What is Credit report?

a)

Payment history of loans/credit cards

b)

Your Credit Score

9.

What does NOT affect your credit?

a)

Making charges on debit card

b)

how much you earn

c)

Savings

d)

Based on Job history

10.

Spencer wants a new bicycle. Should he save or invest?

a)

Save

b)

Invest

c)

None of the above

11.

Felix is planning to buy a boat in 6 years. Should he save or invest?

a)

Save

b)

Invest

c)

None of the above

12.

Marc wants to buy new drum sets. Should he save or invest?

a)

Save

b)

Invest

c)

None of the above

13.

Which is NOT a type of interest?

a)

Similar interest

b)

Compound interest

c)

Fixed interest

d)

Variable interest

14.

True or False: Credit unions are similar to commercial banks.

a)

True

b)

False

15.

True or False: the more risk the more reward

a)

True

b)

False

16.

True or False:financial institution is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.

a)

True

b)

False

17.

Which one is NOT a function of money?

a)

Measure of Money

b)

Medium exchange

c)

Store of Value

18.

True or False: the amount of you expected return is based on the amount of risk you take with your money

a)

True

b)

False

19.

Which is type of savings is not insured by the FDIC?

a)

Money Market

b)

CDs

c)

Stocks

d)

Savings

20.

Which type of investment is the riskiest ?

a)

Stocks

b)

Bonds

c)

Mutual funds