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Final Exam Financial Literacy

Total questions: 116

Worksheet time: 3hrs 51mins

Name
Class
Date
1.
What do we call the amount left over from your paycheck after taxes and deductions?
a)
balance
b)
gross balance
c)
transaction
d)
net pay
2.

The longer the money is invested the better?

a)

True

b)

False

3.
A plan for spending
a)
income
b)
expenses
c)
sales tax
d)
budget
4.
Which is an example of a variable expense?
a)
car payment
b)
mortgage
c)
electricity bill
5.
Which type of expenses are these, rent, car payment?
a)
Crazy bills
b)
Variable expense
c)
Fixed expense
6.
money earned or received
a)
Expenses
b)
Income
c)
Deductions
d)
Check
7.

What do we call the amount of money left over each month after you have paid all of your expenses?

a)

Surplus

b)

Straight cash homie

c)

Debt

d)

Diversification

8.
the total amount of personal income before taxes and deductions 
a)
Net Income
b)
Gross Income
9.

A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.

a)

Stock

b)

Share

c)

Dividend

d)

none is correct

10.
When you buy a stock, you are buying a small piece of _______ in a company.
a)
debt
b)
ownership
c)
risk
11.

Most millionaires inherited their money.

a)

True

b)

False

12.

Most millionaires are college graduates.

a)

True

b)

False

13.

What are the three rules for staying out of poverty?

a)

1. Don't graduate from high school.

2. Never have children

3. Have a side hustle.

b)

1. Graduating from high school.

2. Have many children.

3. Having a fun job.

c)

1. Graduating from college.

2. Get married as soon as you graduate high school.

3. Having a full-time job.

d)

1. Graduating from high school.

2. Waiting to get married until after 21 and do not have children till after being married.

3. Having a full-time job.

14.

What is the Microsoft Corporation stock symbol?

a)

MICRO

b)

MSFT

c)

MC

d)

MSCN

15.

Anything that is purchased with the hope that it will generate income or be more valuable at a future date.

a)

investment

b)

loan

c)

income

d)

expense

16.

The percentage at which interest is charged or paid.

a)

interest

b)

interest rate

c)

budget

d)

cost benefit analysis

17.

Who said...


"Compound interest is the eighth wonder of the world. He who understands it, earns it...he who doesn’t...pays for it.”

a)

Abraham Lincoln

b)

Bruce Wayne

c)

Andrew Carnegie

d)

Albert Einstein

18.

If you earn $65,000 per year, what income tax bracket will you be in?

a)

12%

b)

22%

c)

24%

d)

32%

19.

Which definition matches gross income?

a)

The amount of money made after deductions are taken out

b)

Money that you collect

c)

The amount of money made before deductions are taken out

d)

money that is earned as a result of work

20.

Which definition matches Net income?

a)

money that is earned as a result of working

b)

The amount of money made before deductions are taken out

c)

The amount of money made after deductions are taken out

d)

Money that you collect

21.

Which definition matches income?

a)

Money that you collect

b)

money that is earned as a result of working

c)

The amount of money made before deductions are taken out

d)

The amount of money made after deductions are taken out

22.

What is a budget?

a)

Money that I can spend on what I want

b)

Something that is hard to understand

c)

An organized plan for spending and saving money

23.

What are property taxes?

a)

Money paid to the government based on money you earn

b)

Money an employer withholds from an employee’s paycheck

c)

A portion of the value of items that is paid to a city or government

d)

Money added to the cost of items or services

24.

What is sales tax?

a)

Money added to the cost of items or services

b)

Money paid to the government based on money you earn

c)

A portion of the value of items that is paid to a city or government

d)

Money an employer withholds from an employee’s paycheck

25.

What is a payroll tax?

a)

Money paid to the government based on money you earn

b)

Money an employer withholds from an employee’s paycheck

c)

A portion of the value of items that is paid to a city or government

d)

Money added to the cost of items or services

26.

What are income taxes?

a)

Money added to the cost of items or services

b)

Money paid to the government based on money you earn

c)

A portion of the value of items that is paid to a city or government

d)

Money an employer withholds from an employee’s paycheck

27.

A deposit is money ______ your bank account

a)

taken out of

b)

put into

28.

A withdrawal is money ________ of your bank account

a)

put into

b)

taken out

29.
Which is an example of a variable expense?
a)
car payment
b)
mortgage
c)
electricity bill
30.
Which type of expenses are these, rent, car payment?
a)
Crazy bills
b)
Variable expense
c)
Fixed expense
31.
money earned or received
a)
Expenses
b)
Income
c)
Deductions
d)
Check
32.

What do we call the amount of money left over each month after you have paid all of your expenses?

a)

Surplus

b)

Straight cash homie

c)

Debt

d)

Diversification

33.
the total amount of personal income before taxes and deductions 
a)
Net Income
b)
Gross Income
34.

A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.

a)

Stock

b)

Share

c)

Dividend

d)

none is correct

35.
When you buy a stock, you are buying a small piece of _______ in a company.
a)
debt
b)
ownership
c)
risk
36.

Most millionaires inherited their money.

a)

True

b)

False

37.

Rent, insurance, car payment, and Netflix subscriptions are fixed expenses.

a)

True

b)

False

38.

The act of taking money out of a bank account is known as a ...

a)

deposit

b)

expenses

c)

withdrawal

39.

Electricity, gifts, and bike repairs are variable expenses.

a)

True

b)

False

40.

The money that you keep after all costs and expenses are paid is called ...

a)

balance

b)

profit

c)

financial institution

41.

An expense that does not change from month to month is called ...

a)

variable expense

b)

profit

c)

fixed expense

42.

The amount of money that you have in your bank account is known as a ...

a)

deposit

b)

balance

c)

withdrawal

43.

When you put money into a bank account for safe keeping, you are making a ...

a)

deposit

b)

withdrawal

c)

expenses

44.

An expense that varies over time is called...

a)

fixed expense

b)

profit

c)

variable expenses

45.

Banks, savings and loans, and credit unions are known as...

a)

withdrawal

b)

expenses

c)

financial institutions

46.
Amanda has to pay taxes on her annual salary and investments. Which type of tax is Kimberly paying? 
a)
Sales Tax
b)
Property Tax
c)
Payroll Tac
d)
Income Tax
47.

Which of the following is an advantage of using a credit card?

a)

Interest is charged for the use of a credit card.

b)

Consumers can purchase things now, and pay for them later in the event of an emergency.

c)

You could be a victim of identity theft.

48.
Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck. The total amount of money she is able to put in the bank is $75.62. What type of income does this amount describe?
a)
Gross Income
b)
Net Income
c)
Both Gross and Net Income
d)
None of the above
49.
Jonathan's new clothes cost a total of $572.50 before tax. What type of tax does Jonathan have to pay for his new clothes?
a)
Income Tax
b)
Property Tax
c)
Payroll Tax
d)
Sales Tax
50.
Amarise's salary has a net income of $235 per week. If she pays $30 in income tax and $15 in payroll tax, how could Juliette determine her gross income? Why?
a)
235 – 30 – 15 = $190 Net income minus all deductions equals gross income.
b)
235 + 15 = $250 Net income plus payroll tax deductions equals gross income.
c)
235 + 30 = $265 Net income plus income tax deductions equals gross income.
d)
235 + 30 + 15 = $280 Net income plus all deductions equals gross income.
51.
Anthony has a new job. He is paid twice a month. He wants to save $720 a year to put toward college. How much money does Anthony need to save from each paycheck
a)
Anthony should save $30 from each paycheck.
b)
Anthony should save $20 from each paycheck.
c)
Anthony should save $10 from each paycheck.
d)
Anthony should save $5 from each paycheck.
52.
Jenny just received her first paycheck. She noticed that after they deducted $30 for payroll taxes and $60 for medical insurance. Her net pay was $320. How much did Jenny make before the deductions were removed from her gross pay?
a)
$230
b)
$410
c)
$320
d)
$140
53.
If Sammy’s expenses are greater than his income, what must he do to balance his budget?
a)
Earn more money
b)
Spend less money on expenses
c)
Earn more money AND spend less
d)
None of the above
54.
Damian has $585 in his bank account. His expenses consist of a $150 cell phone payment, $75 for food, and $90 for his internet bill. He also wants to buy his favorite video game and wants to save $65 for the game. Damian wants to be sure he is within his budget because he wants to buy his mother a birthday gift. How much money will Damian have left in his bank account to buy his mother a gift? Will he have enough?
a)
$205; no he doesn't have anough
b)
$335; no he doesn't have enough
c)
$205; yes he has enough
d)
$355; yes he has enough
55.
Which of the following is considered an advantage to using a debit card to make purchases?
a)
Debit cards are convenient and easy to carry around.
b)
Purchases can be made quickly and easily.
c)
You can use many ATMs to get cash.
d)
All of the above.
56.

Going to work at a job is a way to....

a)

get fired

b)

earn money

c)

make new friends

d)

buy a motorcycle

57.

Monica has a store selling her special t shirts. Everyone wants her shirts. Because there is a great demand for the shirts, Monica can....

a)

make more shirts

b)

lower the price of the shirts

c)

raise the price of the shirts

d)

sell matching shoes

58.

What would happen if Monica has to sell her shirts for less that it cost her to make them?

a)

She would make no profit

b)

She would make great profit

c)

Nothing will happen

d)

She would have to take out a loan

59.

Monica ran out of shirts to sell. Amazon did not have them either. This is an example of

a)

supply

b)

scarcity

c)

demand

d)

overspending

60.

Scarcity is

a)

when there is too much of something

b)

when there is too many of something

c)

when there is not enough of something

d)

when you are afraid to lose all your money

61.

Supply is

a)

the things you need for school

b)

having your school materials

c)

wanting to buy more stuff

d)

having enough materials

62.

If you have to sell something for less than what you paid for it you will

a)

make no profit

b)

make a profit

c)

break even

d)

be a salesperson

63.

If you sell something for more than what you paid for it, you will

a)

make a profit

b)

make no profit

c)

have a clearance sale

d)

win a salesforce award

64.

To earn $25.00 how long do you have to save $5.00

a)

4 weeks

b)

5 weeks

c)

6 weeks

d)

1 week

65.

If you make $7.00 a week for 6 weeks, how much money will you have.

a)

$71.00

b)

$17.00

c)

$42.00

d)

$56.00

66.

If you make $7.00 a week for 5 weeks, but you spend $4.00 how much money will you have?

a)

$28.00

b)

$31.00

c)

$17.00

d)

$71.00

67.

If you make $35.00 in 5 week, this means you make $_____ a week.

a)

$17.00

b)

$71.00

c)

$7.00

d)

$700.00

68.

You are a very giving person. So, you donate $5.00 to the Special Olympics. You made $40.00. How much do you have after your donation?

a)

$7.00

b)

$37.00

c)

$35.00

d)

$117.00

69.

Eddie is the only person to sell t shirts at school. A new kid comes to school and starts to sell t shirts at the school. Eddie lowers the price of his t shirts because....

a)

His store had ordered too many t shirts

b)

The number of people who sell t shirts went up

c)

Amazon ordered too many t shirts

d)

He is afraid.

70.

The boys selling popcorn to their classmates is an example of...

a)

Habitat for Humanity building houses for people

b)

A simple business operation

c)

A complex business

d)

School spirit night

71.

Roger sold fruit from his family garden. Roger could decide how much he wanted to sell his fruit for. If he would run out of fruit for the day, he could get more fruit from his garden or close for the day. This is an example of....

a)

free market

b)

spending

c)

saving

d)

invention

72.

Free market

a)

an economic system in which prices are determined by individuals and not the government.

b)

an economic system in which prices are determined by the government.

c)

an economic system in which prices are very high.

d)

an economic system in which prices are very low.

73.

When the demand is high, the price will be...

a)

low

b)

high

c)

equal

d)

free

74.

1. Nathalia is shopping for a bank. She does not write checks or use the ATM. She pays for lunch with her debit card 25 times each month. Which bank is a better deal for Nathalia?

a)

Tex-Bank bank is the better deal for Nathalia because the fees for this bank is $3.50 per month

b)

Nation-Bank bank is the better deal for Nathalia because the fees for this bank are $2.75.

c)

Tex-Bank bank is the better deal for Nathalia because the fees for this bank is $12.25 per month

d)

Nation-Bank bank is the better deal for Nathalia because the fees for this bank are $20.754.

75.

2. Mrs. Rosalinda wants to buy a new stove and refrigerator, but she does not have enough money in her bank account to pay for one. Which of these is an option for Mr.s Rosalinda?

a)

She can use her debit card to buy her stove and refrigerator now.

b)

She can use her debit card at the ATM and withdraw money from her bank account.

c)

She can pay with a credit card and make monthly installments later.

d)

She can pay with a credit card and the money will be withdrawn from her bank account immediately.

76.

3. A portion of Mauricio's check register is shown. Before Mauricio made his utility payment on April 26, the balance of his account was $2,345.54.

Based on the information in the check register, what was the balance of Mauricio's checking account in dollars and cents after the transaction on April 30?

(just the number)

(a)  

77.

4. When you don't pay in time, owing to much or all negative information that can affect your credit report. Which of these is the most number of years that this negative information will remain on a credit report?

a)

15 to 18 years

b)

11 to 14 years

c)

3 to 6 years

d)

7 to 10 years

78.

5. Mrs. Gibbs applied for a car loan from a bank. Which statement does NOT describe the information the bank will look at on Mrs. Gibbs' credit report?

a)

The bank gives lower interest rates to people with higher credit scores.

b)

The report shows the likelihood that Mrs. Gibbs will pay back the entire loan on time.

c)

The report shows the highest level of education that Mrs. Gibbs has reached.

d)

The bank gives full loans to people with strong credit.

79.

6. Karla is researching ways to pay for her college education. Which of the following financial assistance programs will Karla have to pay back? Choose the three that apply.

a)

Bank loan

b)

Scholarship

c)

Subsidized Loan

d)

Grants

e)

Unsubsidized Federal Loan

80.

7. The table shows the approximate median annual salaries associated with two levels of education.

Based on the table, how much more money would a person with a Master's degree earn than a person with a bachelor's degree over a 20-year career?

a)

$12,948

b)

$142,740

c)

$258,960

d)

$2,854,800

81.

8. The check register shows the transaction in Mr. Gonzalez's new check account. She opened the account on November 5th.

Based on the information in the check register, what is the balance in Mr. Gonzalez's register after the ATM transaction in November 10th?

a)

$6,539.50

b)

$2,578.50

c)

$478.50

d)

$930.50

82.

The Samson family has a monthly income of $4,500.

How much does the Samson family spend on rent each month?

(a)  

83.

The Samson family has a monthly income of $4,500.

How much does the Samson family spend on food each month?

(a)  

84.

Minda's monthly pay is $3,200.

Minda pays 6% of her monthly salary for Social Security. How much does she pay?

(a)  

85.

Minda's monthly pay is $3,200.

She pays 3% of her monthly salary for Medicare. How much does she pay?

(a)  

86.

Minda's monthly pay is $3,200.


She pays 15% of her monthly income in federal withholding. How much federal withholding does she pay?

(a)  

87.

What is Angel's net worth? (Add the assets & the liabilities and subtract them from each other).

(a)  

88.

Which items are examples of liabilities?

a)

Furniture you own

b)

Mortgage

c)

Car loan

d)

Your house which you own.

89.

Which of the following is an example of a variable expense?

a)

Food

b)

Credit card bill

c)

Loan

d)

Utility bill

90.

Which of the following is an example of a fixed expense?

a)

Rent

b)

Food

c)

Credit card bill

d)

Car payment

91.

Mrs. Wilcox paid $28.00 for new beakers and clamps for $10.00. The sales tax rate is 6%. How much will Mrs. Wilcox pay in sales tax?

(a)  

92.

Debts that are owed by an individual

a)

liabilities

b)

assets

c)

net worth

93.
The value of one's assets minus one's liabilities
a)
fixed income
b)
coupon
c)
net worth
d)
gross income
94.
Which is an example of a variable expense?
a)
car payment
b)
mortgage
c)
electricity bill
95.
Which type of expenses are these, rent, car payment?
a)
Crazy bills
b)
Variable expense
c)
Fixed expense
96.
If the Moore's monthly income is $5,000 what amount of their budget is spent on miscellaneous expenses?
a)
$2,000
b)
$.08
c)
$200
d)
$4
97.
If the Talbot family's income is $3,200 what percent of their budget is spent on medical expenses?
a)
15%
b)
.15%
c)
150%
d)
100%
98.

What would be something you would want to 'budget' for? My example: I would budget for a new set of frying pans.

4 lines
99.

If you were to own your own business what would it be?

4 lines
100.

Debit cards are a convenient way to pay because you don’t have to carry cash or take time to write a check.

a)

True

b)

False

101.

You should tell everyone your PIN number.

a)

True

b)

False

102.

Debit card purchases are “buy now, pay now” so you must have enough money in your account to cover your purchase.

a)

True

b)

False

103.

When using a credit card, you will be charged interest if the balance is not paid within 30 days.

a)

True

b)

False

104.

Which of the following are financial institutions?

a)

bank

b)

museum

c)

library

d)

credit union

105.

All bank transactions should be recorded in the register.

a)

True

b)

False

106.

A direct deposit is when you take your paycheck directly to the bank after you receive it.

a)

True

b)

False

107.

What is the machine called that is used to withdraw money and that is found in shopping centers, in convenience stores, and outside financial institutions?

a)

GWB (Great Wonderful Bank)

b)

ATM (Automatic Teller Machine)

c)

EBT (Easy Bank Teller)

d)

AMM (Awesome Money Maker)

108.

When do you need to sign a deposit ticket?

a)

Always

b)

When you want cash back

c)

If the tell asks you to

d)

On Fridays

109.

Which accounts usually pay interest?

a)

checking

b)

banking

c)

savings

d)

credit

110.

What is a transaction register?

a)

a booklet that the school gives you for recording your grades

b)

a book with money in it

c)

a booklet for writing down memories

d)

A booklet for recording money deposited or withdrawn from an account.

111.

What does deposit mean?

a)

remove

b)

take away

c)

put into

d)

spilled

112.

What does withdraw mean?

a)

put into

b)

transaction

c)

write a check

d)

remove

113.

A sum of money lent or invested, on which interest is paid?

a)

Rebate

b)

Budget

c)

Principal

d)

Liabilities

114.

Property owned by a person or company that has value.

a)

Savings

b)

Budget

c)

Depreciation

d)

Assets

115.

A reduction in the value of an asset with the passage of time, due in particular to wear and tear.

a)

Liabilities

b)

Depreciation

c)

Compound Interest

d)

Principal

116.

An estimate of income and spending for a set period of time, usually by month or year.

a)

Markdown

b)

Income Tax

c)

Sales Tax

d)

Budget