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WorksheetsFinancial Literacy Practice Final Exam
Total questions: 140
Worksheet time: 1hrs 21mins
Debit cards are a convenient way to pay because you don’t have to carry cash or take time to write a check.
True
False
Debit card purchases are “buy now, pay now” so you must have enough money in your account to cover your purchase.
True
False
If you spend more money than is in your account, your bank will charge you a fee.
True
False
Price $17.95
Tax 6%
Mr. Lucas bought a new lounge chair for his game room. The one he chose was $425. He had to pay a sales tax of 8.2%. What was the amount of sales tax he paid on the chair?
$24.90
$44.30
$34.85
Not Here
Mrs. Adele is buying a new tie from Macy's. It says the tie costs $15.00 but there is a sign above it that says 25% off. How much will the tie cost?
$3.75
$18.75
$15.25
$11.25
You're going to buy a new bicycle. What should be one of your first steps in
comparison shopping?
Decide what bicycle features you care most about
Visit the store that sells the least expensive bicycles
Locate a coupon for bicycles
Sell your old bicycle
Randall needs to make two purchases today -- a box of donuts to share
with his homeroom and a pair of running shoes for the upcoming track
season. For which item should he do MORE comparison shopping?
Neither -- both of these purchases are very easy
The donuts -- because he wants to get a lot of flavors
The shoes -- because they need to fit well and last for the
whole season
Both -- you should comparison shop for every item you buy
Sofia wants to buy a new pair of jeans. At Pants World, the jeans she wants
cost $40 and they're having a 25% off sale. At All Clothes, the same jeans
cost $38 and she has a $6 off coupon. What is the best deal?
Purchase at Pants World, because the cost after discount will be $15
Purchase at Pants World, because the cost after discount
will be $30
Purchase at All Clothes, because the cost after coupon will be $32
Purchase at All Clothes, because the cost after coupon will be $34
What do you need in order to open a checking account?
A form of ID and proof of address
At least $50 saved up
A report card showing you've passed all your classes
Two letters of recommendation
Which of these is a common reason someone would use a peer-to-peer
payment app?
To deposit a work paycheck into their checking account
To buy groceries at the supermarket
To repay a friend who covered their costs at a restaurant
To keep track of their spending and saving
Which statement best describes how to comparison shop?
Buy many brands of the same item, see which you like best, and
return all the rest
Set a budget, decide what features you want, and see which
stores/brands best fit your needs
Visit many stores and ask the salespeople to lower the price until one
offers something you can afford
Start your own website that compares the current store prices of
items you shop for regularly
Which of the following transactions will REDUCE the amount of money in your checking account?
Deposit a check your uncle gives you for your birthday
Use your debit card to get money from an ATM
Buy an expensive new bike using cash
Transfer funds from your saving account to your checking account
Coupons
A voucher providing a discount for a particular item when purchased.
A deduction from the usual cost of something.
An opportunity that encourages you to purchase a specific item (eg a discount).
A document acknowledging that a person has received money or property after a sale.
Discounts
A deduction from the usual cost of something.
A voucher providing a discount for a particular item when purchased.
A distinctive attribute or quality of something.
A sum of money (added to the bill total) given by a customer to a waiter or waitress for their service.
Comparison Shopping
The practice of comparing the price of products or services from different vendors before buying, often to find the best deal or price.
An opportunity that encourages you to purchase a specific item (eg a discount).
A sum of money (added to the bill total) given by a customer to a waiter or waitress for their service.
A type of bank account that allows a person to deposit and withdraw their money.
Tax
A mandatory financial charge that the government adds to the cost of some goods, services, and transactions.
A document acknowledging that a person has received money or property after a sale.
A sum of money (added to the bill total) given by a customer to a waiter or waitress for their service.
An amount of money you take out of a bank account.
ATM
Automatic Teller Machine. Allows a customer to take out physical currency from their bank account.
A document that tells a bank to pay a specific amount of money from one person's account to another person's account.
The monthly record of your account transactions sent to you by your bank.
The amount of money you have in your bank account.
True or False: A Withdrawal is an amount of money you add to a bank account.
False
True
Balance
The amount of money you have in your bank account.
The amount of coins you have in your piggy bank
A type of bank account that allows a person to deposit and withdraw their money.
A document acknowledging that a person has received money or property after a sale.
True or False: A Checking Account is a type of bank account that allows a person to deposit and withdraw their money.
True
False
A card that is loaded with a specific cash amount and can be used at ANY store.
A Prepaid Card
A Credit Card
A Gift Card
A mobile Wallet
A card that is loaded with a specific cash amount and can only be used at a SPECIFIC store.
A Gift Card
A Prepaid Card
A Credit Card
A Debit Card
An online process that allows you to send money directly from your checking account to another person using a username, email address, or cell phone number.
A Peer to Peer Payment App
A Mobile Wallet
A Credit Card Transfer
An Atm withdrawl
A Mobile Wallet is.....
A virtual wallet that stores payment card information on a mobile device
A card that is loaded with a specific cash amount and can only be used at a SPECIFIC store.
An online process that allows you to send money directly from your checking account
Play Money
A card issued by a bank allowing the owner to transfer money electronically to another bank account when making a purchase.
A Debit Card
A Credit Card
A Gift Card
A check card
If an expense can NOT be removed from your budget to save money, it is considered a _____.
Income
Want
Need
Savings
Which one is a fixed (same amount, same time) payment?
food
power
mortgage
petrol
Fixed or variable expense: Groceries
Fixed
Variable
What is debt?
Another word for death
Something, typically money, that is owed or due
A loan on which you do not have to pay interest
That which is incurred during childhood and consummated in college
What is a credit card?
The ace of diamonds
A large plastic card designed to ruin consumer's finances
A small plastic card issued by the government attached to a line of credit
A small plastic card issued by a bank and attached to a line of credit
An amount of credit extended to a borrower is known as a...?
Line of Extension
Several dollars lined up in a straight line
Available Credit
In the finance world it is referred to as a "long nose"
Revolving credit is...
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
a spinning door with money in it
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
What is a credit score?
a number between 300 and 850 representing your creditworthiness
a statistical number that evaluates a consumer's creditworthiness and is based on credit history.
Often referred to as a FICO score
All of the above
What is an interest rate?
it is your level of interest about a certain topic expressed as a percentage of your total interest
The amount in terms of dollars that you have to pay back on a purchase
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
The process of collecting funds that are owed and past due is called...
gathering
dollar collecting
overdrafting
collections
Your credit score is not configured off of which of the following:
Payment history
Amount of money owed
Grades in School
Length of credit history
Which of the following is one of the 3 nationally recognized credit bureaus?
Equifax
Federal Reserve
Postal Credit
TripleUnion
Which is an exceptional credit score?
672
555
713
813
My credit history does not affect my chances for renting my first apartment.
True
False
To build a positive credit history, I should pay cash for all purchases.
True
False
Paying my bills late could negatively affect my credit history.
True
False
A bank account that allows you to deposit/withdraw money at any time and earns interest is a
money market fund
money market deposit account
regular savings account
certificate of deposit
A ______ account is a great place to store your money so you can continue to grow it and not spend it.
Checking
Savings
401K
503C
You want to make as many _______ as possible with few withdrawls.
deposits
withdrawals
cash
drops
The bank pays you money for keeping your money in savings accounts.
True
False
What is the extra money that the bank pays you to keep your money in an account called?
Savings
Checking
Interest
You need a checking account to open a savings account.
True
False
This account allows you to withdraw money, pay a bill, or make purchases easily.
Savings Account
Checking Account
Market Money Account
CD Account
This allows you to withdraw cash from your account or make payments electronically.
Loan Account
Debit Card
The action enters money into an account.
Loan
Withdrawal
Deposit
Deduction
Which of these statements about saving are correct?
People often believe they are saving when they buy products at a listed discount, even if they didn't need the product in the first place.
It is extremely difficult to open a savings account, as you typically need at least $10,000 for your initial deposit.
Without a separate savings account to pay yourself first, it's more likely that you'll spend all of your income each month.
Billions of dollars are spent on marketing to persuade consumers to spend money instead of saving it.
When a bank says their savings account earns 1% interest, that typically means you will earn 1% interest over what period of time (Note: this is not referring to the compounding frequency or frequency of interest payment)?
Daily
Monthly
Qarterly
Annually
Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays a simple interest rate of 3.8%. What will be the amount of interest earned after 15 years?
$3182.50
$270.75
$2707.50
$745.75
Emily’s parents put $1500 in her bank account for college tuition at a simple interest rate of 8.25%. What will be the balance after 18 years?
$22,275
$2227.50
$12,375
$3727.50
Mark took out a loan for $25,690 to purchase a new truck at a simple interest rate of 5.2%. How much interest will he pay on his truck after 5 years?
$6,679.40
$32,369.40
$66,794
$679.40
Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% simple interest. If she spent $7400 on furniture, how much will she have paid in total after 8 years?
$5624
$13,024
$56,240
$1302.40
The Henley’s took out a new home loan for $195,000 at a simple interest rate of 4.3%. How much will they pay in interest after 30 years?
$446,550
$2515.50
$25,155
$251,550
Riley invested $1,000 in a savings account. If the account earns 6.75% simple interest, what is the balance in her account after 15 years?
$1,012.50
$10,012.50
$2,012.50
$201.25
A type of savings with a fix interest rate and maturity date, holding the savers's money until it matures. If withdrawn before that time,the bank imposes a penalty fee.
Savings Account
Certificate of Deposit (CD)
Checking Account
Money Market Account
Money set aside for unanticipated expenses or loss of income
Disposable Fund
Sinking Fund
Emergency Fund
Savings Fund
original amount invested
savings
principal
assets
an independent agency created by the federal government insuring deposits in US banks against failure
Federal Deposit Insurance Corporation
Financial Depository Insurance Company
National Collapse Urgency Agency
National Credit Union Association
How is an online savings account different from a traditional savings account?
An online savings account includes a mobile app, while a traditional savings account does not
An online savings account is offered by a bank that customers can only access online rather than at a physical bank branch
Online savings accounts will only offer electronic statements rather than paper copies
Online savings accounts cannot be FDIC insured, whereas traditional savings accounts can
Three of these statements best describe a checking account. Which statement best describes a savings account?
This account offers a convenient way to pay bills and access cash from an ATM
This account pays you interest on money you have put away for later to help your money grow
This account is automatically debited when you use a debit card
This account typically allows an unlimited number of transactions per month
Find the balance in the account after the given period.
$12,000 principal earing 4.8% compounded annually after 7 years.
$3,243.19
$16,661.35
$15,243.19
$4,661.35
Find the balance in the account after the given period.
$3400 principal earning 3.6% compounded annually after 2 years
$3,420.43
$3,649.21
$3,675.39
$6,288.64
Your $54,200 2 year car loan is at 15.1% compounded annually. What will you have paid for your car after 2 years?
$62,693.15
$62,384.20
$71,804.21
$341,465.42
What are the 4 simple rules of investing?
Ignore the expert stock pickers
Don't try to beat the market
Diversify and choose funds with low fees
It's hard to beat the market
All of the above
Which of the following is NOT a stock index?
DOW JONES
S & P 500
NASDAQ COMPOSITE
P/E RATIO
A type of investment that invests in a lot of different companies is called
Stocks
Bonds
Mutual funds
T-bills
What is a stock?
A loan an investor makes to a company or government that pays interest over time.
A share of ownership in a company
A collection of investments sold as a package.
An option to purchase something in the future at todays price.
What is the primary reason for a company to issue stock?
The stocks help investors earn a higher rate of return
To raise money to grow the company
To distribute the risk of bankruptcy across more investors
To increase greater awareness of the company
This is where your orders to buy or sell stock are sent and carried out
Stock Exchange
Brokerage Firm
Stock Meeting Place
Money Exchange
All of the following are ways to earn money as a stockholder EXCEPT:
getting dividends
selling the stock at a higher value
stock splits
selling the stock at a lower value
Spreading your investments around to inrease financial security
Risk assessment
Diversification
Stocks, bonds & cash
Liquidity trap
Ownership in a publicly traded corporation
CD-certificate of deposit
Money Market
Treasury bill
Stock
The number of years it takes for your money to double
72 Rules
Rule of 72
If you bought a stock at $20 a share and now it's worth $40 a share how much do you make per share if you sell all your stock now?
$10
$40
$20
-$20
The out of pocket cost to the insured when a loss occurs is called...
Premium
Deductible
A type of car insurance that covers damage to your OWN motor vehicle is
collision
comprehensive
bodily injury
uninsured motorist
This is the minimum required by law, only repairs the vehicle you hit, not your own
Liability
Collision
Comprehensive
Deductible
Which type of Life Insurance policy only pays a beneficiary when a person dies during a pre-determined time period?
Term Life Insurance
Whole Life Insurance
Variable Life Insurance
Universal Life Insurance
What role does insurance play in financial planning?
It guarantees that income and assets are protected
It helps build and maintain one's credit score
It helps cover day-to-day expenses
It grows in value and appreciates over time
A stone hits your windshield. Which type of coverage would likely cover this expense?
Collision
Liability
Comprehensive
None
Reading
hard skill
soft skill
Computer skills
hard skill
soft skill
Communication
hard skill
soft skill
Great Work Ethic
hard skill
soft skill
________________means to take responsibility for outcomes through the appropriate use of resources, personal integrity, and self-monitoring.
Originality
Dependability
Accountability
Empathy
Soft skills are...
Having a gentle touch
Attributes that help you work effectively and harmoniously with others
skills that you think need improvement
only required if you work in the health care field
Hard skills are...
Skills you learn with a strict curriculum
Technical abilities that you've gained through life experiences
Learning the hard way
Training for 10 hours a day
Examples of soft skills include...
Being a power user for Microsoft Office
Integrity, teamwork and effective communication
Taking care of your parents
accomplishing light as a feather, stiff as a board
Examples of hard skills include, check all that apply.
Quickbooks certified
bilingual or multilingual
can snowboard
Data analysis
Good with pets
All of the following are costs of going to college EXCEPT...
Tuition and fees
Room and board
Textbooks and school supplies
Scholarships and grants
How do scholarships and grants differ?
Scholarships are need-based; grants are merit-based
Grants are private forms of aid; scholarships are federal
Grants are need-based; scholarships are merit-based
They're not different; they are one and the same
Which is TRUE about the FAFSA?
You only need to file the FAFSA 1x in your college career
Your parents must earn below a set amount for you to apply
You need to file it at the start of every quarter/semester
There is no cost to file the FAFSA
What are two things you will need to do if you accept a Federal student loan?
Agree to an official credit check by the government
Complete entrance counseling
Pay a refundable deposit to secure your loan
Sign a Master Promissory Note
Your high school transcript will include each of these items EXCEPT...
The name of your school
Your GPA calculated with all of the courses you’ve taken so far
A list of your test and quiz grades in each course
The courses you’ve taken and when you took them
Which document outlines your courses and grades throughout all of
high school?
Resume
Report Card
Transcript
Letter of Recommendation
What is the purpose of a resume?
An official record of your GPA, courses taken, number of credits earned, and academic honors
To highlight your skills, experiences, and accomplishments to an employer with the goal of getting a new job.
To demonstrate your qualifications and request an increase in income for a job you already have
A listing of the current projects, tasks, and goals at your current place of employment
Bronson does not have any previous work experience. What do you
recommend he include on his resume instead?
Create a list of jobs he plans to apply for
Extracurricular activities and/or achievements
Simply type "No previous work experience" directly on the resume
His parent's work history since he still lives with them
What is an elevator pitch?
A concise introduction that lets the other person know who you are, what you’re interested in, and how they can support you
A written document that states your personal and professional goals
A formal, professional greeting in which you list your education and previous work experience
A short slogan or tagline that best describes your work ethic and professional goals
It is important to highlight both hard and soft skills on a job resume.
Which characteristic best describes a soft skill?
A characteristic or skill specific to your job
A skill learned through formal education
A skill that is harder to measure but can be used in every job
A skill that is measurable and easy to demonstrate
Renee is developing her resume for a job she wants to apply for and
asks you for suggestions. What is the best piece of advice you can
offer her?
Use action words to clearly communicate your skills and experience
Add a lot of detail and make your resume as long as possible
Always hand-write your resume so it is more personal
There is no need for a resume, just request a direct interview instead
Egan is applying for a job as a lifeguard. What is one soft skill AND
one hard skill he should list on his application/resume?
Positive work ethic & strong leadership
Trained in CPR & AED certified
Enjoys video games & a fast runner
Strong work ethic & CPR certified
Annaleise is preparing for a job interview. Select the most
appropriate clothing option for her.
Jeans and a t-shirt
Her most comfortable outfit, likely a sweatshirt
A formal dress
A collared shirt and slacks/skirt
Kennedy has her first job interview tomorrow. What can she do to
prepare?
Stay up all night playing video games to relax
Research the company
Email the interviewer with specific questions she wants answered during the interview
Delete her LinkedIn profile
