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WorksheetsEPF Final Exam
Total questions: 35
Worksheet time: 18mins
The knowledge and skills possessed by workers is known as
Human Capital
Entrepreneurship
Worker Value
Productivity
Which of the following occupations requires the most human capital investment?
Medical doctor
Diesel mechanic
Middle school teacher
Banker
Truck driver
An I-9 form is used to verify that an employee has the--
legal right to work in the United States
required age to be employed
tax identification number needed to withhold taxes
human capital required for a position
Every employer must fill out which of the following forms for every employee?
I-9, W-2, and W-4
W-2 and W-4
W-4
W-2
I-9
Which of the following forms will determine how much income tax is withheld from an employee’s paycheck?
W-2 and W-4
W-4
W-2
I-9
What do economists mean when they say “There’s no such thing as a free lunch”?
Every choice, including having lunch, has an opportunity cost
What to have for lunch is a small and insignificant choice
Anyone who buys you lunch will always want something in return
Someone will always have to pay for lunch
Floater insurance
Special coverage for high-value personal property, such as jewelry.
Loss of Use
When property insurance covers the costs of living elsewhere.
Liability
Legal responsibility to cover the costs of injuries to others or damage to the property of others.
Personal property
Personal possessions you keep in your house—not the house itself.
Renter's insurance
Insurance that covers possessions but not the dwelling.
Endorsement
Special coverage for catastrophic events, such as earthquakes.
The _________ for a health insurance policy must be paid whether or not the insured has any healthcare costs.
premium
co-pay
deductible
The (a) for a health insurance policy determines how much the insured must pay before the insurance company pays for healthcare expenses.
The original capital deposited or invested is called the--
principal
interest
compounder
multiplier
If investing for a year, how frequently is simple interest paid on the principal investment?
annually
daily
hourly
never
Compound interest is paid periodically on the principal plus--
any interest earned
any taxes paid on the earnings
any taxes deducted from the earnings
Which of these statements is true?
Compound interest will lead to a larger sum of money than a comparable simple interest payment.
Simple interest payments equal compound interest payments if invested over 10 years.
Simple interest percentages must be lower than compound interest payments.
You have $2,000 to invest at 1.5% interest. How long will it take to double this investment using the rule of 72?
48 years
27.8 years
108 years
72 years
To get an approximation of how long it will take to double the size of your investment, use ________________________.
the Rule of 70 or the Rule of 72
the future value equation
a ratio of the dollar amount invested and the interest rate
the time value of money equation
Mutual Funds
Managed funds that pool money from many investors and invests the money in securities (i.e. stocks)
Retirement Plans
Long-term savings plans into which $ is added during a person's employment and drawn during retir.
Stocks
Represents an ownership share in a company
Real estate investing
The purchase, ownership, lease, or sale of land & any structures on it to earn money
Bonds
Loans you make to corporations, the government, or federal agencies; often called debt securities.
The chance you take of making or losing money on your investment is known as--
risk
reward
recession
income
__________ are not very liquid because you cannot take out money when you want or pay a penalty or lose interest; however, the longer the term the higher the return.
Certificates of Deposit
Savings Accounts
Stocks
Treasury Securities
Savings account – the most basic type of account a bank offers; deposits are insured and earn interest
Deposited funds earn interest, but at interest rates below most other options
Stock – a share in the ownership of a company.
A way to purchase a tiny fraction of a large company
Bond – a type of loan to a company or government.
Corporate debt purchased by an investor
Dividend – a portion of the profits of a company earned by owners.
Payments to the stockholders when a company performs well
As the length of the term increases, the interest rates...
stay the same
decrease
increase
The largest fixed expense for a homeowner would be the--
mortgage payment
electric bill
internet bill
water bill
State and local governments get most of their revenue from which of the following?
Income taxes
Property taxes
Payroll taxes
Excise taxes
Which of the following types of taxes generates revenue for federal, state, and local governments?
Income taxes
Property taxes
Payroll taxes
Excise taxes
The federal government does not collect--
sales taxes
income taxes
payroll taxes
Using the 7/70 method, a person with a $100,000 annual income should purchase how much life insurance?
$490,000
$49,000
$245,000
$700,000
This part of your car insurance policy pays for damages to your car in case you are in an accident.
Collision
Uninsured motorist
Comprehensive
Overall vehicle
For each money-related action below, drag and drop the financial institution service that best matches the action.
Saving
You keep your babysitting money in a jar in your room to buy a new pair of jeans.
Spending
You use an ATM at the mall to get some money for the movies.
Investing
You and a friend chip in on sound system so you can take some DJ jobs at parties around town.
Lending
You give your little brother $5 to buy baseball cards and make sure he pays you back.
Borrowing
You ask your parents for $120 to cover the cost of a new bike and plan to pay them back $10 monthly
A worker wants to cash their paycheck. At which of the following locations will it be least expensive to cash the check?
A grocery store
The bank that issued her paycheck
A check cashing store
When you save money in a piggy bank to buy a new cell phone, this is most like the financial institution service of (a)
The service of (a) provides a place to earn money over the long term by allowing other companies to use your money.
Cory gives his friend money to buy a cheeseburger since he forgot his wallet at home, but he expects to be repaid. This represents the financial service of:
(a)
Which of the following is an example of unearned income?
Interest income
Commissions
Overtime
Tips
Which of the following is the largest category of income?
Salaries and wages
Overtime pay
Gratuities and bonuses
Interest income
Capital gains
Taxes are included in which of the following?
Gross pay
Net pay
