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WorksheetsCareers Final Review
Total questions: 62
Worksheet time: 2hrs 4mins
Even though Willie works and earns about $62/week. He still asks his mom for money. What is something that he can change so that he doesn't have to ask his mom for money? Select all that apply.
find other income
reduce amounts spent for wants
buy more stuff
set aside money each week to pay for big-ticket items
What are three strategies that will help someone stick to their financial plan? Select all that apply.
write out goals
spend when you want
tell others about goals
review plan regularly to make adjustments
Any money you receive such as an allowance or paycheck is known as...
inheritance
income
paycheck
gifts
An amount of money spent to buy something or do something that is the exact same amount every time is known as...
fixed expense
actual amount
exact amount
recurring amount
Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals is known as...
saving
Pay Family First (PFF)
better plan
Pay Yourself First
(PYF)
Money taken out of a paycheck by an employer to pay for taxes, health insurance, and other payments is known as...
cruelty
payroll deductions
taxes
retirement plans
Take-home pay is known as...
net income
gross income
Rule of 72 is useful in calculating the...
interest an investor needs to earn to reach goal
Rage of money
time required to double an investment
fluctuations of the stock market
The basic rule of a risk-to-return relationship is that the...
lower the risk, the higher the return rate
higher the risk, the higher the return rate
higher the risk, the lower the return rate
two are not related
Which one of the following types of investments has the lowest risk and lowest rate of return?
savings bonds
stocks
collectibles
real estate
Which one of the following types of investments has the highest risk and the highest potential rate of return?
money market mutual fund
stocks
government bonds
savings bonds
Which statement below is true about mutual funds?
all mutual funds buy stocks
mutual funds offer guaranteed returns
mutual funds are convenient and professionally managed
you can choose which stock to include in your mutual funds
When items are bought on credit and paid for over a long period of time, the cost to the buyer
is the same as if the items were bought with cash
is less than if the items were bought with cash
is more than if the items were bought with cash
The maximum amount you can charge on a credit card is called the
credit limit
capacity
collateral for the card
credit ratio
Which is not a type of credit?
car loan
car registration
gas company credit card
house mortgage
If you want to move into an apartment but are worried that you won't have significant credit history. What can you do to start using credit wisely?
rent an apartment with a friend who'll sign the lease
apply for a store credit card
apply for several major credit cards
close her checking account to avoid bouncing a check
Which of the following agencies provides free credit reports for consumers?
Equifax, credit unions
Credit unions, your bank
Experian, Credit Reports Association
TransUnion, Experian
none of the answers
Credit experts recommend that you check the status of your credit reports at least
every time you apply for a loan or credit card
when you apply for your first loan or credit card
once a year
once every five years
Who may review your credit report without permission?
your parents after you're 18
your current employer
the car salesperson you talked to when you inquired about a loan to buy a car
your doctor
Under the Fair Debt Collection Act, creditors are allowed to do all but which one of the following actions?
hire collection agency to collect what you owe
call any co-signer of a loan
send you a second notice of what you owe
charge additional debt collection fees without notice
Of the following, which is the best strategy to reduce excessive debt?
pay off loans with highest interest rate
make regular minimum payments on each loan and credit card until balances are paid
use on large loan to pay off all other debts
file Chapter 7 bankruptcy
Which of the following can impact your credit rating?
borrowing money from a friend to pay for lunch
living with parents until you earn enough money to afford to rent an apartment
paying cash for used car
making a late car loan payment
What rights must lenders respect according to the Truth in Lending Act?
You have the right to lowest possible interest rate
You have the right to know why you were turned down for a loan
You have the right to cancel any loan agreement within 10 days of signing the loan
You have the right to change the loan terms
What is the best way to store money when trying to meet a goal?
keep the money in a good hiding place at home
deposit the money into a savings account
deposit the money into a checking account
purchase another share of favorite stocks
You need to deposit money into an account to use all of the following services except a
savings account
share draft account
debit card
credit card
When you open a share account, what will you need to provide?
identification, your signature, your address, a deposit
your signature, your name, the name of co-signer
your current and previous address, a credit report, a deposit
your Social Security number, your phone number, and a reference letter
What is one benefit to using a checking account that is not a benefit of using a savings account?
interest earned
insured deposits
electronic deposits and withdrawals
proof of payment
After you write and sign your check, who can legally cash the check?
you and the payee
the bank or credit union and the payee
any family member of payee
only the payee
Who is responsible for keeping track of your debit card purchases?
the stores will send you statements after every purchase
your bank or credit union
you
the debit card company
What is on benefit to using a debit card that is not a benefit of using a credit card to make a purchase?
easy to carry
able to make purchases on demand
purchase is paid in full without adding to debt
transactions can be verified on a monthly statement
The maximum amount you can charge on a credit card is called
your credit limit
the capacity
the collateral for the card
your credit ratio
You can apply for a credit card at each of the following places except
the local post office
a gas station
your local credit union
a state bank
You can't find your credit card, and you think it may have been stolen. What should you do?
wait at least 90 days to report the card as missing or stolen
immediately apply for another card to cancel out stolen card
contact your bank for replacement
call credit card company as soon as you are aware the card is missing
Online banking is available
during normal local business hours
every weekday, 8 am - 8 pm, local time
every day except Sunday
every day, all day
Which of the following would be a good reason to use online banking?
a college student attending school in Minnesota but her bank is in Colorado
your online accounts will earn more interest than your other accounts
you won't have any fees
What is an advantage of electronic funds transfer (EFT)?
you earn more interest on EFT accounts than checking accounts
you can control your balance because you are only able to make deposits to EFT account
this is the best way to always keep your personal and financial information secure
your paycheck can be deposited directly to your checking account
If you've been a victim of identity theft, what can you do to prevent someone from using your personal information?
stop using your accounts to see if there is any activitiy that you didn't authorize
get new Social Security number
place a fraud alert on your credit report
get a new photo ID
You get a message about a deal that you can only get by calling. You should
give caller your credit card number
place an order by phone and promise to pay when you receive an invoice
end the call and find a phone number you know is real and call them about the deal
place the order and give out your friends phone number so they can get a deal
What is the difference between a debit card and a credit card?
debit cards already have money to use on them, credit cards you buy now but pay later
debit cards have no money on them, credit cards have money on them
debit cards and credit cards have no money on them
debit cards and credit cards have money on them
T or F: If you fill out your check clearly and completely, a sales clerk must accept your check for payment.
True
False
T or F: Using a credit card for purchases is a low interest way to buy now and pay later
True
False
T or F: Credit unions and banks typically provide the same types of financial services.
True
False
What basic skills do employers value in employees besides clear communication and the ability to read. Select all that apply.
honesty
reliability
leadership
relationships
What are two sources of funding you might use to help pay for college or training fees?
scholarships
loans
FAFSA
Nothing helps pay for college or training
Rent is one factor in a person's cost of living. What are two other factors that will affect a person's cost of living?
car payments
gas
travel
pets
What are the four ways to manage risk?
avoid it, reduce it, lose it, share it
avoid it, reduce it, accept it, share it
see it, reduce it, lose it, share it
see it, leave it, lose it, share it
To get insurance coverage, the loss must be unintentional and unexpected, you must be ___, and there must be a way to provide evidence of loss.
at fault
broke
directly impacted financially
present
What are some specialist insurance topics? Select all that apply.
auto
health
homeowners
life
What should you avoid when there has been an auto accident? Select all that apply.
leaving the scene
sharing too much
falsifying claims
pointing fingers
What is the guideline for the maximum amount you should owe each month for loan payments (not including a home loan payment)?
10% of monthly gross income
10% of monthly net income
20% of monthly gross income
20% of monthly net income
Madeline is comparing her options to borrow $5,000 to buy inventory and equipment for her new
sub sandwich shop. Which loan appears to be the best deal? (Hint: Use the simple interest
formula to estimate the interest. I=PRT)
7% interest loan due in 2 yrs
8% interest loan due in 18 months
10% interest loan due in one year
Which of the following can impact your credit score?
getting bonus pay from your employer
living with your parents to cut down on monthly expenses
paying cash for a used car
making a late car loan payment
If you use a credit card to buy something online from the Internet, look for the following on the Web site page:
"SECURE"
"APPROVED BY THE FEDERAL TRADE COMMISSION"
Who is responsible for reporting identity fraud?
the victim of fraud
the company that accepted the stolen credit card or false information
any of the three credit reporting agencies
the police
Use the 20-10 Rule to calculate the debt limits for the income amount below. If you earn any income
now, also compute your debt limits.
Net Income: $3,400
What is the Maximum total debt? (20% of annual net)
What is the Maximum monthly payment? (10% of monthly net)
Write both answers and don't forget the $
(a)
When items are bought on credit and paid for over a long period of time, the cost to the buyer is the same if the items were bought with cash.
true
false
a type of income investment is known as...
asset
savings account
stock
diversification
a type of growth investment is known as...
compounding
rate of return
stock
windfall
earning interest on previously earned interest plus the principal amount is known as...
compounding
dollar cost averaging
stock
savings account
a system where the public can buy or sell stock shares
stock
savings account
stock exchange
asset
something of value that can be changed into cash
asset
stock
dollar cost averaging
windfall
What is the historical long-term annual average rate of inflation?
1%
3%
5%
7%
