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FBLA Personal Finance Practice Test

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

The due date for filing personal income taxes every year is _____.

a)

December 31

b)

April 15

c)

January 31

d)

June 30

2.

Expenses that increase or decrease from month to month are called _____.

a)

Fixed expenses

b)

Unearned expenses

c)

Prepaid expenses

d)

Variable expenses

3.

 A form an employer must provide employees each year for income tax purposes is called a _____.

a)

W-2

b)

W-4

c)

1040

d)

1099-INT

4.

A “good” score on a credit report is around ___.

a)

400

b)

500

c)

600

d)

700

5.

Which of the following is a fixed expense?

a)

grocery bill

b)

entertainment

c)

car loan

d)

doctor bill

6.

A company that tracks down delinquent debt in exchange for a commission is called a _____.

a)

Debt agency

b)

Lending institution

c)

Credit union

d)

Collection agency

7.

A check is written to Sonya Perry.  On the back of the check, Sonya writes, “For Deposit Only,”  then signs her name.  What kind of endorsement is this?

a)

Special

b)

Blank

c)

Restrictive

d)

All of the above

8.

Hours Worked  ×  Rate =

a)

Overtime Pay

b)

Gross Pay

c)

Net Pay

d)

Take-home Pay

9.

Scholarships, work-study, grants, and student loans are examples of _____.

a)

free money

b)

financial dependency

c)

financial aid

d)

Winnings from essay writing contests

10.

A plastic card directly linked to a checking account and used to make purchases is a _____.

a)

Prepaid card

b)

Credit card

c)

Debit card

d)

Gift card

11.

A monthly report sent to an account holder by the bank, showing a transaction history and bank balances for the month is called a _____.

a)

bank reconciliation report

b)

bank statement

c)

bank history report

d)

financial statement

12.

When the stock market is trending upward or gaining value over a period of time, it is referred to as a _____.

a)

Bull market

b)

Bear market

c)

Stagnant market

d)

Super market

13.

Credit cards fall into the credit category of _____.

a)

Installment loans

b)

Revolving credit

c)

Cash advances

d)

Open credit

14.

APR stands for _____.

a)

Actual Percentage Rate

b)

Actual Production Rate

c)

Annual Production Rate

d)

Annual Percentage Rate

15.

A bounced check is a common term used when checks are written and there are _____.

a)

Sufficient funds

b)

Insufficient funds

c)

Certified checks

d)

Uncertified checks

16.

Copies of Form W-2 must be provided to employees by their employer for the previous tax year no later than _____.

a)

April 15

b)

December 31

c)

January 1

d)

January 31

17.

The form you must fill out when being hired for a job that determines the amount of withholdings your employer will take from your gross pay is the _____.

a)

W-4

b)

W-2

c)

I-9

d)

IRS Form

18.

A professional who can suggest a comprehensive, individualized action plan to help you reach your financial goals is called a ___

a)

Business Teacher

b)

Financial Advisor

c)

Loan specialist

d)

Collection agent

19.

Assets – liabilities =

a)

Net worth

b)

Net pay

c)

Net profit

d)

Net income

20.

Which of the following is not a main credit bureau for rating your credit score?

a)

Equifax

b)

TransUnion

c)

Western Union

d)

Experian

21.

 A technique involving simply copying your credit card or debit card numbers from your cards is an identity thief’s tactic called _____.

a)

Phishing

b)

Skimming

c)

Shoulder surfing

d)

Dumpster diving

22.

The following are ways to protect against identity theft except _____.

a)

being cautious about giving out credit card information over the phone

b)

keeping a list of all credit cards and bank accounts

c)

throwing away un-shredded mail with personal information in the trash

d)

shopping online only on secure sites

23.

Credit reports are issued by _____.

a)

Credit bureaus

b)

Your employer

c)

Credit unions

d)

Commercial banks

24.

Checking accounts protected by the FDIC are protected from loss for up to _____

a)

$100,000

b)

$250,000

c)

$500,000

d)

$1,000,000

25.

Getting information from a person online by asking her to complete a survey or provide certain information to win a free vacation or product is called _____.

a)

Skimming

b)

Phishing

c)

Pre-texting

d)

Hacking

26.

The phrase “pay yourself first,” refers to the idea of _____.

a)

If you want it now, buy it now.

b)

Do what you want first, then worry about the remaining amount.

c)

Save money first, then budget the rest of your money.

d)

Treat yourself. You deserve it.

27.

How can you determine if you have reconciled your bank account?

a)

All of the items on the bank statement match your check register.

b)

When the bank balance and your check register balance are the same.

c)

When you close your account at the bank.

d)

When you write the bank statement balance in your check register and use that amount.

28.

Harold writes a check to the power company for $203.22.  He should record this amount in his check register in the _____.

a)

Balance column

b)

Deposit/credit column

c)

Fee column

d)

Payment/debit column

29.

With _______, the bank deducts payments from your account and transfers them to the appropriate companies.

a)

automated teller machines

b)

automatic bill payment

c)

direct deposit

d)

credit cards

30.

Retirement planning should ideally begin_________.

a)

a few years before retirement

b)

when all debts are paid off

c)

when kids go off to college

d)

when the first paycheck is received

31.

A person's ______ is a measure of the amount of money coming in versus the amount going out.

a)

cash flow

b)

allowance

c)

income statement

d)

debt ratio

32.

A budget that shows a surplus means that ______.

a)

more money was spent on entertainment than orginally planned

b)

less was spent than what was earned

c)

you received a cut in pay

d)

spent money budgeted for emergencies on car repairs

33.

A general rise in the level of prices for goods and services over time is referred to as ___________.

a)

recession

b)

inflation

c)

liquidity

d)

deflation

34.

What are expenses that are essential to live and function?

a)

Wants

b)

Cost of Living

c)

Needs

d)

Variable Expense

35.

What is interest paid on interest previously earned?

a)

Compound Interest

b)

Interest Rate

c)

Inflation

d)

Rate of Return