WorksheetsFinancial Literacy Midterm Review
Total questions: 31
Worksheet time: 20mins
What is gross pay?
The amount of money before deductions.
The amount of money after deductions.
The number of deductions from your paycheck.
What is the difference between gross and net pay?
Gross pay is before taxes and deductions are subtracted; net pay is your take-home pay.
Net pay is before taxes and deductions are subtracted; gross pay is your take-home pay.
There is no difference between gross and net pay.
An agency of the federal government that insures bank deposits up to $250,000 is the
FAA
FDIC
FIDC
Fed
One way to deposit to my account is
writing a check
using my check card to purchase at a store
using the mobile app to take a picture of the front and back of a check
Withdrawing cash at a teller
What is one danger to "Keeping Up with the Joneses"?
People can become obsessed with physical or economic gains.
People can hit a plateau or "ceiling."
People who do not believe physical assets are important are left out.
The philosophy does not transfer to other countries
You are at the checkout counter at the local supermarket and use your DEBIT card to pay for your groceries. Where does the money for this purchase come from?
Your credit card company covers the cost
It is deducted directly from your checking account
Your credit card company provides you with a cash advance to cover the cost
It is deducted from your credit card account
Tami is trying to come up with a strong password for her new online banking account. What would be best for Tami to consider when creating the password?
She should use all lowercase letters and one number.
She should use all numbers
She should use at least one capital letter, one number, one symbol and it should be at least 8 characters long.
She should use her mothers name
When can personal loans be a better option than credit cards? (hint: choose 2 correct answers)
If you want to earn rewards and enjoy travel benefits
If you want a lower interest rate
If you want purchase protection & warranties
If you need a lump sum of money right away
What does the n stand for in this formula?
Initial amount
Final amount
Rate
Time
The number of times compounded per year
Daniel puts $80,000 in an account that earns 6% interest compounded annually. What is the ending balance after 15 years?
$72,000
$92,233,720.37
$191,724.66
$7,200,000
Not enough money in your account to pay for something.
interest rate
joint account
insufficient funds
bank statement
What is an overdraft fee?
Fee for withdrawing more money than you have in the account
Fee for writing a check
Fee for going below your minimum balance requirement
An itemized record of all transactions in a depositor's account over a given period, usually a month.
Bank Statement
Canceled Checks
Outstanding Deposits
Bank Service Charge
What is it called when you take money out of your bank account...
Credit
Fee
Overdraft
Withdrawl
You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…
Retirement, a house down payment, college tuition
A new cell phone, college tuition, a house down payment
A new cell phone, dinner with friends this weekend, a new bike
Retirement, college tuition, a vacation
Which represents the best time to start saving for your retirement?
As soon as you graduate and have your first full-time job
Right after you pay off your student loans
Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
At age 45, so you have exactly 20 years until retirement
Which of the following statements is TRUE?
The majority of Americans have an adequate emergency fund.
The majority of Americans have sufficient amounts of money saved for retirement.
The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement.
The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement.
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
Days
Weeks
Months
Years
What is meant by the term “impulse shopping?”
Comparison shopping for more expensive items while doing less work to compare cheaper products
Buying an item without giving it much thought, maybe because it’s on sale or you see it and simply love it
Using your emergency fund, rather than your checking account, to make a purchase
Shopping online instead of in stores
As is a general rule of thumb how much should you save?
5% of your income
10% of your income
25% of your income
30% of your income
Gabby wants to buy a new dishwasher that costs $500. She has already saved $100. She earns $1,200 a month and her total monthly expenses come to $1,000. Gabby is going to put all of her extra money each month into her savings account for the dishwasher. Assuming her expenses stay the same, how long will it take Gabby to save enough money for the dishwasher?
three months
Two months
five months
one month
Which card do you pay in advance?
debit cards
prepaid cards
credit cards
I can use a payment apps (like Venmo, Cashapp, or Apple Pay etc.) to do what?
Pay for groceries at Meijer
Pay for shoes online
Pay a friend for something
Pay for taxes
Which is a reason to have direct deposit?
Your check is deposited faster
Your pay is higher
You don't have to pay taxes
You get paid more often than employees without direct deposit
Individuals often must resort to alternative financial services such as check-cashing services, payday loans, pawn shop loans, and rent-to-own agreements, which incur extremely
High Fees
High Prices
High price items
Low Fees
People who are unbanked are most likely to...
Use a mobile banking app
Receive a monthly statement of their transactions
Deposit their checks at the ATM
Pay for services that would be free if they had an account
Which is a benefit of cooking at home?
costs more money
saves money
you don't know what is in your food
The average cost of basic necessities, such as housing and food refers to...
Wages
Employee Benefits
Cost of Living
Location
Which of the following should you find out before agreeing to rent an apartment?
are pets allowed
late fees
when is rent due
all of the above
In order to rent a place, a landlord may request
that you own a car
references and/or a credit check
medical history
All of the above
