WorksheetsFiancial Literacy Review 3
Total questions: 66
Worksheet time: 1hrs 6mins
What is a tool that allows people to save money for future use?
a debit card
a dividend
a savings instrument
concentrated risk
What is a liquid asset or liquid account?
when it rains outside the bank
an account that makes it easy to withdraw and spend funds
an insurance policy
an account with extra funds
Opportunity cost is...
a way to invest money
a savings instrument
how much it costs to apply for a new job
the next-best alternative that you give up when you make a choice
What is NOT an advantage of a statement savings account?
You earn a lower interest rate than with other savings instruments
Your money is easy to access
You can open the account with a low amount of money
You can withdraw money whenever you want
What is an advantage of a certificate of deposit (CD)?
Banks pay a lower interest rate on CDs than any other savings instrument
The interest rate earned is locked in so it won't drop even if regular rates go down.
A penalty must be paid if funds are withdrawn early
A large (about $500) is required to open a CD account
What is saving?
Accumulation of excess funds by intentionally spending less than you make
Cash set aside to cover the cost of unexpected events
A monetary asset that contributes to your net worth
Money available today that is worth more if received in the future
What is emergency savings?
Transferring money into your savings before you pay your bills
Original amount of money saved or invested
Cash set aside to cover the cost of unexpected events
Maximizing your return by selling stocks at a higher price than what you paid for
When is an item considered an asset?
While you are making monthly payments on time
Converting an asset into cash
When cash is used for emergencies
When it is fully paid off and can be sold for cash
How much money should you save for emergencies?
2 months worth of expenses
6 months worth of expenses
Cash in whatever stocks you have to pay for an emergency
As a neighbor for a loan if needed
Stocks are:
A share of ownership in a company
Organization pays interest to the lender
Form of lending to a company or the government
A specified time in the future when the principal amount of the bond is repaid to the bondholder
What is a bond?
A share of profits distributed in cash to stockholders
A share of ownership in a company
When an organization pays interest to the lender (purchaser) until the maturity date is reached
A Form of lending to a company or the government
Putting Money Away for Later *
Savings
Net Pay
Loan
Interest
What is Borrowed Money called? *
Interest
Loans
Savings
Investment
monthly BANK report that states your transactions and balance
WALL STREET JOURNAL
BANK STATEMENT
SCHOOL STAEMENT
CHECKING REPORT
Withdraw
Keeping track of money
Taking money out of bank account
Putting money in bank account
Income
Money earned from working
Putting money in a bank account
Tracking where you spend money
Example of a bank
McDonald's
Chase
Seguin HS
Kohls
If a customer writes 26 checks per month, which bank will charge him the least in fees
The interest rate on a CD is __________ than that on a regular savings account.
Lower
Higher
Same
Does not earn interest
Another name for an overdraft fee is non-sufficient funds.
true
false
A life insurance policy on yourself is designed to protect....
your possessions
your family
your future
Every driver in the US must have ______ insurance.
full coverage
comprehensive
liability
Some services offered under full coverage insurance are..
uninsured coverage
collision coverage
comprehensive coverage
The total amount of money that you pay for an insurance policy is known as the...
premium
deductible
co-pay
The out of pocket cost to the insured when a loss occurs is called...
Premium
Deductible
This professional analyzes statistics and uses them to calculate risks and premiums.
Agent
Actuary
Claims Clerk
Underwriter
A stone hits your windshield. Which type of coverage would likely cover this expense?
Collision
Liability
Comprehensive
None
What factors impact the cost of your auto insurance premium? (hint: choose 3 correct answers)
Deductible amount
The vehicle you are insuring
Your credit score
Your income
A policy is a contract between the
Policyholder and the injured person
Driver and the government
Consumer and the insurance company
Consumer and the insurance agent
Under current law, until what age can a child stay on their parents' health insurance?
18
21
26
29
Your health insurance copay is
Amount paid out of pocket before your insurance coverage
Paid by the insurer
Applied on an annual basis
A fixed amount of money you pay each time you use your plan
The FDIC insured deposit limit is
$150,000
$200,000
$250,000
$300,000
Which insurance coverage is required by law? (hint: choose 2 correct answers)
Homeowners insurance
Auto insurance
FDIC
Disability insurance
Two main reasons for managing finances are?
Escape rewards
Avoid risk
Obtain rewards
Minimise risks
Obtain risks
Minimise rewards
Avoid rewards
Escape risk
A shareholder may receive these if a company has already paid tax on its profits.
shares
dividends
interest
bonus
Shares are bought and sold on the ...
(a)
Virtual or digital currencies are a form of electronic money called?
investments
nft's
cryptocurrency
monopoly
If a goal is set to be achieved within 1 - 5 years. Is it considered a short, medium or long term goal?
(a)
Which type of interest grows your savings more?
Simple
Compound
Which is employer-sponsored
401(k)
Roth IRA
Which takes money directly from your paycheck?
401(k)
Roth IRA
Both
neither
Which one has penalities for withdrawing contributions?
401(k)
Roth IRA
both
neither
Traditional IRA’s give you tax benefits now while Roth IRA’s give you tax benefits in retirement.
True
False
You can contribute to both a Roth IRA and a Traditional IRA in the same tax year.
True
False
