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Finance Pre-Test

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following financial institutions typically have the highest fees?

a)

Internet banks

b)

Brick-and-mortar banks

c)

Credit unions

d)

Check cashing and payday loan companies 

2.

Which type of bank account typically offers the least (if any) interest?

a)

Checking account 

b)

Savings account

c)

Money market account

d)

Certificate of deposit

3.

Which type of bank account is best for everyday transactions? 

a)

Certificate of Deposit

b)

Money Market Account 

c)

Checking Account 

d)

Savings Account

4.

What does it mean to reconcile your checking account?

a)

Check your bank statement once a month.

b)

Set up notifications for when your account balance is close to $0 

c)

Compare your own records of spending with your financial institution's records

5.

Investing is best for ________.

a)

short-term financial goals, like building an emergency fund. 

b)

earning a little interest while keeping your money safe. 

c)

long-term financial goals, like paying for retirement.

d)

guaranteed fast growth on your money.

6.

A stock is ________.

a)

A type of debt investment that acts like a loan. 

b)

A type of investment that invests in a mix of different types of investments. 

c)

A share of ownership in a company. 

d)

A type of savings account that pays interest based on current interest rates in the money market. 

7.

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called

a)

Gross Pay

b)

Net Pay

c)

Total Pay

d)

Year-to-date Pay

8.

What is the purpose of the W-4 form? 

a)

To help determine how much federal income tax to withhold from your paychecks

b)

To verify how much you have already paid in Federal Taxes

c)

To determine how much your gross pay should be

d)

The form used to file your Federal Taxes

9.

Your employer sends you a _______ form that tells you how much you've made and how much you've paid in  taxes in the last year. 

a)

1040

b)

W-4

c)

W-2

d)

I-9

10.

The ___________ is a flexible market that allows you to work short-term, independent jobs. 

a)

gig economy 

b)

labor market 

c)

employee workforce

d)

sharing economy 

11.

The price of a single item within a group of items is known as the ______________ of the item.

a)

Group Price

b)

Unit Price

c)

Item Price

d)

Total Price

12.

Which payment option takes money out of your bank immediately? 

a)

Check

b)

Debit Card

c)

Credit Card

13.

The cost of a secured loan is typically lower than the cost of an unsecured loan because _______. 

a)

it requires collateral

b)

the loan takes longer to get. 

c)

it has high interest rates. 

d)

they require a co-signer

14.

Your credit score is highly impacted by which of the following?

a)

Payment History

b)

Length of Credit

c)

Types of Credit

d)

Credit Limit

15.

If you pay your credit card bill off every month, the credit card company will not charge you any interest on your purchases.

a)

True

b)

False

16.

Making sure you save money every month for emergencies and retirement is known as

a)

The Rule of 72

b)

Pay Yourself First

c)

Compound Interest

17.

Equifax, TransUnion and Experian are all ____

a)

Credit Reporting Agencies

b)

Tax Assistance Agencies

c)

Money Transfer Agencies

d)

Payday Lenders

18.

What method is used as a quick way to estimate how long it will take for your money/investments to double in value?

a)

The Rule of 72

b)

Pay Yourself First

c)

Compound Interest

19.

Which types of loans are the worst (charge the highest interest)?

a)

Personal loans

b)

Car Loans

c)

Payday Loans

d)

Mortgages

20.

What is the relationship between risk and reward?

a)

Higher the risk, Higher the reward

b)

Lower the risk, Higher the reward

c)

Higher the risk,

Lower the reward

21.

Which of the following does NOT represent a way to invest for wealth building?

a)

IRA

b)

Mutual Funds

c)

Bonds

d)

Savings Account

22.

A Visa Card falls under which type of financing?

a)

Revolving Credit

b)

Installment Loan

c)

Mortgage

23.

Tax Day is typically April 15th, which taxes have to be filed by this time?

a)

State and Federal

b)

State, Local and Federal

c)

Federal Only

d)

State, Local, Sales and Federal

24.

Which of the following is the correct way to write an amount on a check?

a)

Four dollars and twenty-five cents

b)

Four and 25/100

c)

Four and twenty five/one hundred

d)

Four dollars and 25 cents

25.

Which of the following are stock exchanges in the US?

a)

NYSE and NASDAQ

b)

S&P500 and DOW

c)

Equifax, Experian and TransUnion

d)

Discover, Visa and Mastercard