WorksheetsPersonal Finance Practice EOC Part 1
Total questions: 25
Worksheet time: 13mins
Which describes the best way for people to understand trends in their spending?
analyzing all expenditures
saving 10% from each paycheck
tracking automatic bill payments
keeping receipts for all purchases over $10
Which payment method is most often used when purchasing a home?
cash
check
mortgage
credit card
Which feature of using a local bank or financial institution is an advantage for account holders?
free ATM access
short lobby hours
not federally insured
limited customer service options
What guarantees that sufficient funds for a payment exist in a bank account?
deposit ticket
check register
certified check
personal check
Tyler is unable to visit the bank during business hours to deposit his paycheck, so he must drop the check into the night depository. Which type of endorsement should he use on the check?
special, because he is using a special method of deposit
blank, because the paycheck is made payable only to him
restrictive, because he is not presenting the check in person
none, because the bank will automatically deposit the check
Jackson could not find his debit card but assumed he had misplaced it and would eventually find it. He did not look at his next bank statement when it arrived because he was too busy. When he did reconcile his account, he discovered that someone had used his debit card. Jackson contacted the bank and was told that he would be responsible for $500 of the unauthorized transactions. Which statement best explains the bank's response?
Debit cardholders must be able to prove they did not authorize transactions.
Debit cardholders must contact a bank within 48 hours of discovering a card is missing to avoid liability.
Debit cardholders are responsible for all unauthorized charges if they do not report a missing card within 60 days.
Debit cardholders are responsible for a specified amount of unauthorized charges if they report a missing card between 48 hours and 60 days.
The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) both guarantee to protect accounts containing up to
$50,000
$100,000
$250,000
$400,000
Transportation maintenance costs include fuel and oil changes. Which other expense would be included in this category?
tires
speakers
sunglasses
window tint
Why do insurance companies create policies?
to assist individuals in a crisis
to postpone payment for a loss
to help plan for natural disasters
to provide coverage for unexpected financial loss
Which statement best explains why Carmen would increase the deductibles on her auto insurance policy?
to reduce her premium
to increase her coverage
to eliminate her liability risk
to stop worrying about accidents
A car insurance agent reviews applications for risk factors before writing a policy. Which factor benefits the applicant?
being married
being 79 years of age
having a credit score of 550
living in a densely populated area
Jasmine, a recent college graduate, is starting her first full-time job. She does not have much savings, but she wants to make several purchases, including a car to drive to work, a vacation to celebrate graduation, some new professional clothes for her job, and new furniture to upgrade from the furniture she used in college. For which item would a credit card be most appropriate if Jasmine is unable to pay cash at the time of purchase?
$12,000 for a car
$4,000 for a vacation
$2,000 for new furniture
$1,000 for new professional clothes
Mr. and Mrs. Johanson, both age 55, are planning what to do with the $20,000 they have in savings. Their alternatives include investments such as a money market account, stocks, a mutual fund, a bond, or a combination of these. In order to make a decision that will best suit their needs, which question is most important for them to ask themselves?
At our age, what are our most important financial goals?
Can our $20,000 be invested in a money market or mutual fund?
Which stocks and bonds can we buy low now and sell high later for a profit?
Which broker can advise us about the investments with the highest potential return?
Sixty-five-year-old Mr. Smith just retired as a mechanic. He and his wife have $10,000 in savings. In addition, each month, he expects to receive $1,000 from Social Security and $1,000 as a pension from his former employer. Mr. Smith took the money they had in savings and used it to buy stock in his former company. Was his decision economically sound?
Yes, because Mr. Smith trusts the company where he worked for so many years.
No, because another company might outperform Mr. Smith's company in the stock market.
No, because without money in the savings account, the Smiths will be unprepared for an emergency.
Yes, because people earn more money in the stock market over the long run than in savings accounts.
Which statement best describes what would happen during a period of inflation when Sam is on a fixed income?
Sam's living expenses increase.
Sam's work experience increases.
Sam's ability to save money increases.
Sam's need to follow a budget decreases.
What is an entrepreneur?
a person who is an elected official
a person who volunteers at a local food bank
a person who works in a store for someone else
a person who organizes and operates a business
Demand for registered nurses in the United States labor market is increasing. If the supply stays the same or decreases, the salary of a registered nurse is most likely to
double
increase
decrease
stay the same
In addition to wages and salaries, which of the following is a source for earning income?
consumer loan
rental property
transfer payment
child support payment
Anne works for a company that pays a 7% commission on sales over $500. She sold a total of $800. What as her commission?
$21.00
$35.00
$56.00
$91.00
Which tax, included in the price of gasoline or airline tickets, funds government programs?
excise
payroll
income
property
Alyssa attended a charity dinner for Pet Rescue. The dinner cost $100, but the tax deduction allowed was $50. Which statement best describes the reason for the amount of the deduction?
She did not like the food.
She can only deduct the cost of the cat.
Pet Rescue is not a tax-exempt organization.
She can only deduct the value of the donation.
Tom and Ann have a goal to save 15% of their combined $97,000 yearly income. What amount should they save each month?
$121.50
$1,212.50
$8,083.00
$14,550.00
Margaret ordered a party gift online. When the gift arrived, it was lower quality than described, and it looked different than the photograph shown online. What is the most effective way for Margaret to solve this problem as a consumer?
throw it away and buy another party gift
contact the company that sold her the gift
post her concern about the gift on social media
stay home from the party because she has no gift
Monique has a large unexpected expense. What is the best source for funds?
credit card
pawn shop
payday loan
rainy day fund
Which asset is most liquid?
stocks
real estate
savings account
certificate of deposit
