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WorksheetsPERSONAL FINANCE - FINAL SEMESTER 2
Total questions: 55
Worksheet time: 1hrs 21mins
if you wanted to know what factors contributed to your credit score, how could you find out?
Check your credit report.
File a credit claim.
Call your credit card company.
Why should you stay away from borrowing up to your credit limit?
Because you're riding to the danger zone.
Because Dave Ramsey said so.
Because it reflects poorly on your credit score.
Which of the following deductions are you most likely to see on your pay stub?
Auto insurance deduction
Office cupcake deduction
Social Security deduction
What is the main purpose of the dual accounting method?
To help you think twice about purchases.
To help you double check what you are spending your money on by confirming all receipts.
To record every transaction twice, reflecting them in accounts and in your budget.
You find evidence that your identity has been stolen. Who should you contact first?
922
The Federal Trade Commission
Your local bank or credit union
What is a "hard inquiry"?
The document you must fill out when you apply for a loan.
When a financial institution requests information about your credit history for the purpose of extending more credit.
A note that is added to your bank account when you are withdrawn over your limit.
Which of these is NOT identity theft?
Someone uses your identity to benefit financially.
Someone steals your credit card and goes on a shopping spree.
A scammer poses as a representative from a charity and asks for money.
Which of the following shows up on your credit report?
How many open accounts you have
Your payment history
Both
What is a debt-to-income ratio?
The ratio of your debt compared to your annual income.
Something that lenders look at on your credit report.
Both
You hit a deer while driving. The deer is fine but your car is not. What kind of insurance must you have in order for the damage to be covered.
Liability.
Comprehensive.
Collision.
Which of the following is true about tax returns?
You must have an accountant sign off that you filed correctly to get your return.
The number of exemptions you declare will affect if and how much you get on your return.
The more you pay for tax filing services, the more you will get on yoru tax return.
Harper is filling out her new hire paperwork and sees an option to claim an exemption on her pay stub. Why might Harper want to claim this exemption?
It will reduce the money you have to pay for insurance.
It will lower the amount of taxable income you have.
What does APR stand for?
Annual Percentage Rate
Amortized Payoff Rate
Annual Principal Return
What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)awat
15 percent
18 percent
20 percent
You bought $230 in clothes and charged it to your credit card. What happens if you do not pay the balance off by the end of the month?
You'll get an exemption on your credit report.
You'll see an increase in your interest rate.
You'll start to accrue interest on your credit card balance.
What would be the main benefit of paying in cash for a car instead of taking out a loan?
You don't have to pay interest because you won't have a loan.
The price of the car is always 5% less when you pay in cash.
Paying in cash will give you a boost to your credit score.
You don't have dependents. Do you still need life insurance?
Yes; it will make health insurance more affordable.
No; the government will pay for your expenses.
Yes; it can pay for medical and funeral costs.
What is a 401(k)?
A retirement plan that automatically saves part of your tax return each year.
The more you pay for tax filing services, the more you will get on your tax return. A measurement of how much money you've contributed form your paycheck to taxes for the year.
An employer sponsored retirement plan where you contribute some of your paycheck
What is the best protection against uninsured drivers?
There is none.
Uninsured motorist coverage
Comprehensive insurance
Which of the following is true about car loan terms?
The shorter the term, the higher the interest rate.
The shorter the term, the lower the interest rate.
The longer the loan term, the lower the rate.
In order to qualify for a mortgage with good rates, you have to have a high enough _________.
Credit Score
Rate of Return
Credit Report
When you apply for a mortgage, the lending institution will likely use your gross income to help decide if you qualify. What is that?
Your income after taxes are taken out.
Your income before taxes are taken out.
The income you earn from investments and interest bearing accounts.
You got in a car accident and repairs will cost $3,000. After filing your insurance claim, you only paid $500. Why?
That's all you budgeted for car repairs.
Your deductible is $500.
Your exemption is up to 18%
Your ________ is the amount you own in assets minus everything you owe.
Net Worth
Net Income
Personal Return
When buying something with a loan, you can lower the amount you pay each month by paying a higher _________.
Inerest rate
Deductible
Down payment
Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck EXCEPT. . .
Medicare
Federal Taxes
Overdraft Fees
Zane is going to finance his car purchase using an auto loan. Which Statement below is accurate?
His principal is the cost of the car, minus any down payment she makes.
His interest rate is the total cost he'll pay after making all of his principal and interest payments.
Choosing a shorter term means it will take him longer to repay the loan.
Chloe is creating a budget for the first time and doesn't know which to use - NET PAY or GROSS PAY. What do you tell her?
"Use net pay, because it's the total amount you've earned minus taxes and other deductions."
"Use gross pay, because it's the total amount you've earned minus any recurring bills you owe for the month."
"Use net pay, because it's the total amount you've earned for the month."
Why is sending a personalized thank you after a job interview important?
It shows that you want the job even if you don't really like the company.
You can apologize for any mistakes you made in the interview.
It gives you the opportunity to leave a good impression by expanding on the answer you gave or a topic you discussed.
Haylie buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
Pays with a prepaid card she loaded earlier in the month.
Uses her credit card and says, "Credit" when the cashier asks, "Credit or debit?"
Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"
The monthly premium for Kevin's renters insurance is $15, and his deductible is $500. During the month of April, someone breaks into his apartment and steals or destroys $2,200 worth of his possessions. How much will Kevin pay and how much will the insurance pay to replace his items?
Kevin pays $0 // insurance company pays $2,200
Kevin pays $500 // insurance company pays $1,700
Kevin pays $15 // insurance company pays $2,200
All of the following can be found in your credit report EXCEPT . .
Your credit payment history
Your checking account balance history
The average age of your credit accounts
Braxton has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is he likely to receive during the first week on the job?
A Medicaid enrollment form
A W-4 form
A 1040 form
What is one step you can take to protect yourself from identity theft?
Check your bank statements each month to verify that all transactions are accurate
Log into you bank's mobile app using a public WiFi network
Throw away expired bank account cards and documents without shredding them
Comparison shopping is the practice of...
Comparing a product you bought a year ago to an updated version that is available now
Comparing the prices of two unrelated products you need to purchase
Comparing various factors of the same product offered by different retailers before making a purchasing decision
Which of the following best describes the amount of money you'll have if you put $1,000 into a savings account earning 1% annual compound interest for 10 years? You can ignore the impact of inflation in this question.
Exactly $1,100
Slightly more than $1,100
$2,000
In your own words, please describe a budget and why your personal goals are important when making financial decisions.
How can having a mix of credit accounts, such as a mortgage, car loan, and credit cards, affect your financial flexibility?
It limits the amount of credit you can access
It makes financial management more complex
It has no effect on financial flexibility
What is a 'Credit Score'?
A yearly charge for credit card usage
A measurement of someone's creditworthiness
An initial cash payment for a large purchase
Domonik is trying to improve his credit score, so he discussed this with his friend Emily. Which factors did she tell Domonik to focus on?
Payment history, credit utilization, length of credit history
Number of credit cards he has, types of credit used, recent inquiries
His social media activity, shopping habits, favorite color
What term is used to describe the income of an employee after all deductions are subtracted?
Annual salary
Gross pay
Net pay
Which budgeting method involves the use of placing money in separate packets to meet particular expenses?
The ___________ method involves placing money in separate packets to meet particular expenses.
envious
environment
envelope
Recommended methods to protect yourself from identity theft and fraud include
Placing a credit freeze with the credit bureaus.
Monitoring your credit report every 2-3 years.
Utilizing a specialty locking or monitoring service.
Identity thieves use both physical (stealing wallets) and electronic methods (hacking / phishing).
True
False
Match the following terms with their definitions related to credit and finance.
The maximum amount of credit a borrower can use
Credit Limit
A yearly charge for credit card usage
Annual Fee
A measurement of someone's creditworthiness
Credit Score
An initial cash payment for a large purchase
Down Payment
Before investing, a buyer should:
conduct thorough research.
be at least 25 years old.
graduate from college.
Which type of insurance would you really not need right after high school?
Renter's/Homeowner's
Life
Auto
Health
A financial professional who manages investments and has been trained and licensed to do so is a/an
investment advisor
insurance agent
financial teacher
Zach's gross pay is $1,900.00. All of his deductions total $550.00 what is his net pay?
$1,350
$1,900
$2,450
Identity theft is
the use of someone else's bathroom pass
the illegal use of someone’s personal information to purchase items or receive benefits
the use of someone's account with their permission.
Net pay is ...
income before deductions
income after deductions
income you take home
income with holdings
