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Personal Finance Review

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.
The cost of borrowed money, usually expressed as a percentage.
a)
interest
b)
savings plan
c)
scarce
d)
purchase
2.
This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.
a)
compound
b)
sinking
c)
annual
3.
This term refers to the original amount of a loan OR the original amount of money invested. 
a)
Principal
b)
Interest
c)
Rebate
d)
Fixed Rate
4.

What is a credit score?

a)

a three-digit score that tells lenders how much money you make each year.

b)

A five-digit numerical rating that reflects how likely you are to repay your debt.

c)

A three-digit numerical rating that reflects how likely you are to repay your debt.

d)

A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

5.

What is a budget?

a)

A plan for how money will not be used

b)

A plan for how money will be used

c)

The amount you spend

d)

The amount you save

6.

What is this?

a)

Credit history

b)

Credit card

c)

Credit score

d)

None of the above

7.
401(k), IRA, and Roth IRA are all examples of a __________ account.
a)
Retirement
b)
College Savings
c)
Low Interest
d)
Stock
8.

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns

a)

1040

b)

1099

c)

w4

d)

w2

9.

What is the relationship between risk and return when it comes to investments?

a)

Lower Risk = Higher Reward

b)

Higher Risk = Lower Reward

c)

Lower Risk = Lower Reward

10.

Check all that apply...Which of the following are services offered by both banks and credit unions.

a)

Checking Accounts

b)

Savings Accounts

c)

Roth IRAs

d)

Credit Cards