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WorksheetsW!SE Personal Finance Review
Total questions: 40
Worksheet time: 20mins
Name
Class
Date
1.
Which account is most liquid?
a)
Savings
b)
CD
c)
Checking
d)
Traditional IRA
2.
If you deposit $10,000 or more in a bank account, the bank must notify the
a)
US Treasury
b)
FDIC
c)
State Banking Commission
d)
Federal Reserve
3.
Which typically pays the highest rate of interest?
a)
Savings
b)
CD
c)
Money Market Account
d)
Common stock
4.
Payroll taxes include deductions for Social Security and Medicare.
a)
True
b)
False
5.
Which account is least liquid?
a)
Savings
b)
Checking
c)
Money Market Account
d)
CD
6.
Which of these financial institutions is not for profit & is owned by members?
a)
Commercial bank
b)
Savings & Loan Association
c)
Credit Union
d)
Investment Club
7.
Which of these is most liquid?
a)
Corporate bond
b)
Money Market Account
c)
CD
d)
Stock
8.
Income tax is paid only on income earned through your job.
a)
True
b)
False
9.
Traveler's Checks
a)
are equivalent to credit cards
b)
are free at most banks
c)
function like cash but are easily replaced if lost
d)
are FDIC-insured
10.
Which of these would be considered an employee benefit?
a)
Monthly salary
b)
Travel opportunities
c)
Walking distance from home
d)
Paid sick leave
11.
Net income is
a)
pay after taxes
b)
pay before taxes
c)
non-taxable
d)
pay before overtime is added
12.
Only people who own land and houses pay property tax
a)
True
b)
False
13.
Common fees that may be charged by a financial institution include all of the following EXCEPT
a)
overdraft fee
b)
early payment fee
c)
ATM fee
d)
Minimum balance fee
14.
The most secure method for an employer to use for paying employees is
a)
payroll card
b)
printed paycheck
c)
direct deposit
d)
in-store credit
15.
The higher a person's debt-to-income ratio
a)
the worse off financially they are
b)
the fewer liquid assets they have
c)
the better off financially they are
d)
the more liquid assets they have
16.
An account that requires you to keep a certain amount of money for a fixed period of time.
a)
Savings account
b)
Money Market Account
c)
CD
d)
Checking Account
17.
Which type of account is best for saving for retirement and only charges tax on withdrawals, not money deposited?
a)
CD
b)
Traditional IRA
c)
Roth IRA
d)
Money Market Account
18.
Which account is a savings deposit for retirement accounts where deposits are not tax deductible but withdrawals are tax-free?
a)
Roth IRA
b)
CD
c)
Traditional IRA
d)
Burk IRA
19.
You can withdraw money from a Roth IRA tax-free for all of the following reasons EXCEPT
a)
Buying your first house
b)
College tuition
c)
You are 60 years old
d)
You are unemployed
20.
Easy to convert to cash.
a)
Convertible
b)
Rate of Return
c)
Principal
d)
Liquid
21.
A blank endorsement on a check
a)
has no effect
b)
cancels the check
c)
is the most common endorsement
d)
restricts what can be done with the check
22.
Your annual income is $60,000. You contributed $3,000 to a traditional IRA pre-tax. Your taxable income is
a)
57000
b)
3000
c)
63000
d)
0
23.
Pam lost her credit card and didn't report it for 9 month.s If an unauthorized person uses it
a)
she'll lose $50
b)
she'll lose $500
c)
she will not lose any funds
d)
she can lose up to the full available balance
24.
Bankruptcy can remain on a credit report for
a)
10 years
b)
3 years
c)
until all debts are paid
d)
forever
25.
An uncollaterized loan means
a)
there is no co-signer
b)
the loan has no assets to cover the loan amount
c)
it is a home equity loan
d)
it is a loan on a life insurance policy
26.
Which is considered to be an open-end credit account?
a)
Mortgage
b)
Car loan
c)
Store charge card
d)
Installment loan
27.
When a person pawns a watch, the transaction is a(n)
a)
collateralized loan
b)
custodial loan
c)
unsecured loan
d)
sales agreement
28.
A credit card finance charge is
a)
the sales tax
b)
the cost of the items purchased
c)
the fee charged by the financial institution to use the card
d)
a late fee
29.
Which charges the highest interest rate?
a)
Credit Union
b)
Bank
c)
Finance Company
d)
Pawn Shop
30.
When can a person view their credit report for free?
a)
Whenever they want
b)
Once a year
c)
Once every 2 years
d)
Only when applying for credit
31.
A law that limits the interest rate charged by a lender is a(n)
a)
usury law
b)
anti-interest law
c)
abyeance lay
d)
retrointerest law
32.
Your credit card number is stolen by someone online who uses it. You still have the card and you report the theft immediately. Your potential liability is
a)
unlimited
b)
50
c)
0
d)
up to your credit limit
33.
You lose your credit card and don't report it. Someone uses the physical card. Your liability is
a)
0
b)
50
c)
the credit limit
d)
500
34.
A W-4 form
a)
tells you how much you were paid during the pay period
b)
is filed with your income tax return
c)
assist employers in determining the income tax to withhold
d)
can never be changed
35.
Someone who relies on a taxpayer for support is a
a)
beneficiary
b)
dependent
c)
burden
d)
tax recipient
36.
Medicare
a)
helps pay medical expenses for those with limited income
b)
is called the Affordable Care Act
c)
is the full Employment for Doctors act
d)
helps pay medical expenses for the elderly
37.
You found incorrect information on your credit report. You can
a)
only dispute the information if it is your name or address
b)
demand that the creditor remove false information
c)
send a written request with proof to the credit bureau to change the information
d)
void the credit report
38.
A savings account earns the greatest amount of money when the interest is compounded
a)
yearly
b)
monthly
c)
quarterly
d)
daily
39.
You have an auto loan with 60 months of equal monthly payments. You have
a)
an unsecured loan
b)
a non-installment loan
c)
closed-end credit
d)
a balloon loan
40.
New currency makes its way into the economy through the distribution system of the
a)
Treasury Department
b)
US Mint
c)
FDIC
d)
Federal Reserve
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