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Dollars and Sense Final Review

Total questions: 16

Worksheet time: 11mins

Name
Class
Date
1.


How can you improve your credit score?

a)

pay all your bills on time

b)

spend more money on your credit cards

c)

pay off and then close all your credit cards

d)

when merchant ask, credit or debit? always choose credit

2.

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You then set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

a)

6 months

b)

1 year

c)

2 years

d)

3 years

3.

what are signs that your finances are being derailed by social media?

a)

falling for FOMO

b)

Believing in the fantasy

c)

Impulsive purchasing

d)

all of the above

4.

Whats the difference between saving and investing?

4 lines
5.


You overhear your cousin talking about the importance of creating and sticking to a budget. Which of the following reasons he gives below are true?

a)

A budget can help you identify any bad spending habits

b)

Using a budget can qualify you for special discounts at  your favorite stores

c)

Using a budget can allow you to work towards your financial goals

d)

Having a budget can help you create an emergency fund

6.

What payroll deductions does the Federal government use to operate

a)

FICA

b)

Income Tax

c)

Medicare Tax

d)

State income

7.

Joanne is buying a new car for the first time and wants to make sure she does everything she can do to minimize the overall cost. Which of the following will help her the MOST?

a)

Lowering her interest rate from 4% to 2%

b)

Increasing her loan term from 60 months to 84 months

c)

Putting an extra 50 bucks on her down payment

8.


A set dollar amount you agree to pay each time you receive medical treatment:

a)

Loss

b)

Liabiltity

c)

premium

d)

Copay

9.

A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn:

a)

401K

b)

Asset Class

c)

inflation

d)

IRA

10.

Which should you use when creating a budget - NET PAY or GROSS PAY?

a)

Net Pay

b)

Gross Pay

11.

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company:

a)

Dividend

b)

Stock

c)

Capital Gain

d)

Investing

12.


What form is used by employers to determine how much should be withheld from your paycheck

a)

W-4

b)

W-2

13.

what does it mean to have overdraft protection

a)

Overdraft protection means that the bank will cover the costs of any transactions that you do not have enough money in your account to cover the cost.  They will charge a fee plus the amount of the transaction.

b)

It means that you can use the banks money to pay for items and you don’t have to repay it

14.

The difference between liability and comprehensive coverage is:

a)

Liability covers the other person’s vehicle only and comprehensive covers your vehicle in the event of a wreck or natural disaster

b)

Liability covers your home and comprehensive covers your health

c)

They are both the same, comprehensive just costs more

d)

Liability covers your vehicle if the accident is your fault and comprehensive covers the other person’s car

15.

What are the two most important factors in calculating your credit score?

a)

Payment history and amounts owed

b)

Payment history and types of accounts

c)

Amounts owed and length of credit history

16.

The rate at which the price of goods increases and consumer purchasing power decreases over time:

a)

Inflation

b)

interest

c)

direct deposit

d)

Principal