WorksheetsFinal Exam Review
Total questions: 30
Worksheet time: 30mins
Gina is getting an auto loan for her car. Which statement is correct?
Her principal is the cost of the car minus any down payment
Her interest rate is the total cost she’ll pay after all payments
A shorter term means it takes longer to repay the loan
Her monthly payment will likely be 4-5% of the car’s cost
What does it mean to “pay yourself first” when budgeting?
Keep all savings in a checking account
Automate monthly transfers to a savings account
Take more risk in investments for higher returns
Pay only the minimum due on credit card bills
Which of the following is NOT a feature of a secured credit card?
Your credit limit depends on your security deposit
They reduce banks' risk for users with no credit history
They help build your credit history and score
They have no spending limit, so you must watch your purchases
Which payment method would reduce the amount of money in Angie's checking account?
Pays with a prepaid card
Uses her credit card and says, "Credit"
Uses her debit card and says, "Credit"
Pays with cash
Mitch’s renters insurance premium is $15/month with a $500 deductible. In April, $2200 worth of his possessions are stolen. How much does Mitch pay and how much does the insurance pay?
Mitch pays $0 // insurance company pays $2200
Mitch pays $15 // insurance company pays $2200
Mitch pays $500 // insurance company pays $2200
Mitch pays $500 // insurance company pays $1700
Which of the following is NOT included in your credit report?
Your credit payment history
Your checking account balance history
The average age of your credit accounts
Your total number of active credit accounts
Which strategy is likely to lead to the WORST long-term outcome when choosing a bank or credit card?
Look for sign-up bonuses or introductory offers
Read online reviews that match your values
Spend time comparison shopping
Review the fine print for fees and interest rates
Four students each bought $1500 of items for college using a credit card with similar terms.
Who will pay the least interest?
Dwayne pays $1000 upfront, then $250 per month until paid off.
Clifford pays the full $1500 when the bill arrives.
Calvin makes only the minimum monthly payment until paid off.
Shawn pays $300 per month until paid off.
With liability coverage in your auto insurance policy…
Your insurance pays for a broken windshield if your car is broken into
You can't be found liable for causing an accident
Your insurance pays for your neighbor's fence if you crash into it
Your medical bills are covered if you're in an accident, even if at fault
Who is saving rather than investing?
LaTavia, who puts money into her bank account earning 1% interest
Michelle, who contributes to her company's 401(k) plan
Kelly, who buys Treasury bonds
Beyonce, who buys shares in an S&P 500 index fund
Which of the following will NOT be deducted from Sheena's paycheck?
Medicare
Federal taxes
Overdraft fees
Social Security
Symere asks: "Should I start mobile banking with my new smartphone?" Which friend correctly describes a benefit of mobile banking?
It's convenient because you can deposit checks using your phone's camera and the bank's app.
Mobile banking usually waives all normal fees like overdraft and ATM fees.
Once you set up mobile banking, you can't use online banking on your computer anymore.
Banks charge a $10-15 set-up fee and a monthly fee for mobile banking.
Which tax form is Alyssa likely to receive when starting a new job?
A Medicaid enrollment form
A W-4 form
A 1040 form
A W-2 form
Which of the following is NOT a common budgeting strategy?
Holistic wealth budgeting
Envelope budgeting
50/30/20 budgeting
Zero-based budgeting
What is one way to protect yourself from identity theft?
Check your bank statements each month
Log into your bank app on public WiFi
Throw away expired cards without shredding
Use websites that start with "http"
Carl gets an extra $250 per month. To minimize interest paid, which debt should he pay off first?
Car loan at 6.9% interest
Private student loans at 11.8% interest
Credit card at 19.7% interest
Federal student loans at 3.76% interest
All of the following about bank accounts are true, EXCEPT….
If the bank is FDIC-insured, your money up to the FDIC limit is safe even if the bank fails.
Savings accounts usually earn higher returns than the stock market.
Banks often pay interest on savings accounts.
Money in a checking account is easy to access by ATM, debit card, or check.
Which of the following is an advantage of online banking?
Your bank will waive all fees if you use online banking.
You can transfer money, pay bills, and save automatically without going to the bank.
Online banking gives you a higher interest rate.
You need online banking to shop online.
Which paycheck withholding puts money into a retirement fund you manage?
Social Security
401(k) contribution
Medicare
Federal income taxes
If you paid too much tax and the government owes you money, what is this called?
withholding
deduction
direct deposit
refund
An excellent credit score helps with which part of car financing?
Bargaining for a great sales price
Qualifying for a low interest rate
Receiving a large down payment
Having a wide selection of term lengths
Which statement correctly describes a credit card?
You owe the same payment every month.
Paying your full balance on time is the only way to avoid interest.
You must have money in a checking account to use a credit card.
Credit cards do not charge interest.
What are the benefits of having a cosigner on a loan?
You won’t be penalized for late payments.
You get a discount on future loans.
You’re more likely to be approved and get a lower interest rate if the cosigner has good credit.
You get the same credit score as the cosigner after paying off the loan.
How does your credit score affect your finances?
Only people with high scores get credit.
People with low scores get lower interest rates than those with high scores.
It does not affect your finances.
Your credit score can affect loan approval and interest rates.
How do insurance companies make money?
By collecting money from the government.
By refusing to pay claims.
By spending less on advertising.
By collecting more in premiums than they pay out.
Which type of auto insurance covers damage from someone breaking your car window?
Comprehensive
Collision
Bodily injury liability
Property liability
Which of the following is an example of diversification?
Putting most of your money in a savings account and investing the rest.
Investing different amounts each month.
Using multiple investment managers for advice.
Buying stocks in different companies and industries.
Which statement BEST describes the relationship between risk and return in investing?
Investors expect lower returns from high risk assets.
Investors expect higher returns from low risk assets.
Investors expect higher returns from high risk assets.
Investors expect zero return from low risk assets.
If you want to spend less on food, you should try...
Cooking your own food at home.
Dining at restaurants more often.
Drinking more coffee and soda to feel less hungry.
Eating more snacks and fewer meals at home.
When signing a lease for an apartment, all of the following may be required EXCEPT
Proof of employment
A bank account
First and last month's rent
A security deposit
