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WorksheetsPPT 2
Total questions: 60
Worksheet time: 47mins
Allow employees to make contributions into a retirement account that may feature a range of investment options
401(k) / 403(b) plans
annuity
CD
APY
Upfront money from the buyer that is used pay for a portion of the house
adjustable rate mortgage
collateral
down payment
fixed rate mortgage
Cash distributed to company shareholders
bond
diversification
dividends
coupon payments
Government agency that regulates and monitors the stock market
Securities and Exchange Commission (SEC)
shareholders
stocks
bond
Serves as the central bank of the United States
Federal Reserve System
inflation
money orders
fiat money
A process in which the courts provide protection for a person who is unable to pay off his or her debts
bankruptcy
credit card
credit check
credit provider
Allows a homeowner to borrow against the equity in his or her home. Equity is the difference between the home's value and the amount owed to a lender
collateral
down payment
home equity loan
fixed rate mortgage
An agreement to allow borrowing as needed up to a certain amount of money
line of credit
collateral
down payment
policy riders
A numeric score that uses your credit history to assess your creditworthiness
credit score
identity theft
installment credit
interest
When someone uses your personal information without your permission for personal gain
credit score
identity theft
installment credit
interest
Fees charged by a lender to borrowed money
credit score
identity theft
installment credit
interest
The rate that factors in all the financing costs so that borrowers know exactly what they are paying and can make informed decisions
annual percentage rate
collateral
down payment
liability coverage
The date at which the loan will be completely repaid
maturity date
collateral
FAFSA
lease
The Free Application for Federal Student Aid is a six page form that requires detailed financial information from you and your parents
lease
cosigner
FAFSA
personal loans
Assume you carry a $3,000 balance on your credit card that charges 24% annual interest. How much interest will you pay for this account next month?
$73.00
$41.00
$60.00
$81.00
Harry has three credit cards with limits of $6,000, $3,000 and $2,000. If he has all of his cards charged up to 70% of his limit, how much does he owe?
$7,700
$8,100
$5,000
$5,500
Sally opened a $20,000 line of revolving credit at the bank. How much can she borrow if she has already borrowed $5,000 and paid back $3,000 of that amount?
$17,000
$18,000
$13,000
$19,000
John borrowed $2500 from the bank and will make interest only payments for the first year. Assuming the annual interest rate is 12% (1% each month), how much will he need to pay every month?
$43
$38
$54
$25
Paying your bills on time and paying at least the minimum required each month has the largest impact on changing someone's FICO score. True or False?
(a)
It is a good idea to obtain your free credit report annually to review the accuracy of the report and file a written complaint if there are mistakes. True or False?
(a)
It is important to be cautious before you agree to become a cosigner of a loan because the cosigner will be required to make payments on the loan if the borrower defaults. True or False
(a)
Shorter loan periods have higher monthly payments. For instance, a 6 year loan will have lower monthly payments than a 5 year loan. True or False?
(a)
An Unsecured Loan is a loan that requires no collateral to be pledged against the loan.
(a)
Credit cards are an easy way to establish a credit history. True or False?
(a)
If a person wants to buy something but does not have the money, it is better to either buy a less expensive item or save their money until they have enough for the purchase in order to keep from using a credit card. True or False?
(a)
If a lender requires a minimum 8% down payment on a $250,000 house, how much will you be financing?
$19,500
$18,200
$230,000
$160,000
A subprime mortgage is a High interest rate mortgage given to people with weak credit. True or False?
(a)
Private mortgage insurance (PMI) is usually requires buyers to make a down payment of less than 20%. True or False?
(a)
Christy has logged into her checking account from her computer. She has written three checks lately for $25.00, $30.00 and $50.00. Only the first check has cleared her account. How much are her outstanding checks?
$80.00
$60.00
$40.00
$50.00
Tony has $400.00 dollars in his account but has written a check for $153.00 that has not cleared. Does he have enough money in his account to make a car payment of $240.00?
Yes
No
An Individual Retirement Account (IRA) is a type of savings account created by the government to encourage people to save for retirement.
(a)
How much money will Luke earn in interest this year on a $3000 CD that pays 4.5% annual interest, assuming annual compounding?
$135
$128
$140
$143
Banks will give higher interest rates to those who are willing to leave money on deposit for longer periods of time. True or False?
(a)
Checking accounts are the most liquid. True or False?
(a)
If you own 500 shares of stock in a company that has 200,000 shares of stock outstanding, what percentage of the firm do you own?
1 %
1.2 %
0.5 %
0.25%
It is important to have an emergency fund within your financial plan to plan for unexpected situations like the loss of your job, serious illness, or if your car breaks down. True or False?
(a)
If a person has two different investment options, Option 1 should generate 10% annual returns and Option 2 should generate 8% annual returns, you could not tell which would have the most risk. True or False?
(a)
When sales are strong, the value of stock goes up. True or False?
(a)
When inflation rises, stock prices will decrease. True or False?
(a)
There are many reasons that make it hard to forecast stock prices. True or False?
(a)
How much will an investor receive annually if he buys a $3,000 face value bond with a 5% coupon?
$100.00
$150.00
$170.00
$185.00
What will be your total dollar return when you buy a $2,000 5% coupon bond for $1,000 and hold it for 5 years until it matures?
$1500.00
$1000.00
$1200.00
$1600.00
Mutual Funds typically require a minimum deposit of $500 - $3,000
True
False
In order to make an investment where you will earn the highest return, you must accept that you must take higher risks
True
False
What has the largest impact on changing someone's FICO score?
(a)
Why is it a good idea to obtain your free credit report annually?
(a)
Why is it important to be cautious before you agree to become a cosigner of a loan?
(a)
Which loan requires no collateral to be pledged against the loan?
(a)
Many people use credit cards irresponsibly and end up with a large amount of debt. However, when used appropriately, credit cards can be beneficial. What is an advantage of having a credit card?
(a)
Gary knows that he cannot afford to pay $400 for a new gaming system that he really wants. The financially responsible decision to make is to (a)
A subprime mortgage is...
(a)
Private mortgage insurance (PMI) is usually required...
(a)
What is the benefit of using a debit card instead of a credit card?
(a)
What accurately describes an Individual Retirement Account (IRA)
(a)
Which of the following accurately describes why banks pay different interest rates at different periods of time?
(a)
Which is the most liquid account?
(a)
Why is it important to have an emergency fund within your financial plan?
(a)
What is something that will increase the value of stock?
(a)
When inflation rises, stock prices...
(a)
Why is it challenging to forecast stock prices?
(a)
