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WorksheetsW!SE review 3
Total questions: 45
Worksheet time: 45mins
This allows you to use a car for a specific period of time for a specified monthly payment:
Loan
Contract
Lease
Gift
This will allow you to borrow the money to buy a car. You will have to pay it back, with interest, over time:
Gift
Lease
Loan
Lend-lease
A landlord can refuse to rent you an apartment if which of the following is true:
You are married.
You own a cat and a dog.
Your ancestors were immigrants
You are a member of a particular faith group.
Which of the following information would not be found in a typical lease?
The amount of the monthly rent, and the day of the month it is due.
The name of the previous tenant.
The address of the unit being rented.
The beginning and ending dates of the rental agreement.
The most important thing to consider when choosing an apartment is:
Whether or not pets are allowed
How many bedrooms there are
Whether or not the apartment is located on a bus line
If you can afford to pay your rent and other costs on an ongoing basis
Tax deductions and tax credits can _______ tax liability.
increase
reduce
not affect
none of the above
A budget can help you reach a financial goal by:
Showing you how you can earn more income
Allowing you to see where you can cut back on spending
Giving you the tools to change more fixed expenses
All of the above
Consumers have:
Rights
Responsibilities
Remedies
All of the above
A credit union:
requires membership, but in other respects, is like a bank.
never has interest rates as good as a bank.
can't offer savings accounts.
is only open to college students.
A deductible is:
the discount you deduct from your premium.
The amount of loss you pay before your insurance pays.
The amount that is deducted when you buy a policy.
The discount received by the health care provider.
Diversification is good because:
it focuses investments on a single stock to take advantage of growth potential
mutual funds have higher fees than individual stocks
interest rates rise and fall
it spreads out the risk of the investment
If you get your first credit card while you're a full-time student, what can you expect about the card's APR on outstanding balances?
It will probably be about the same as the APR on your parents' cards.
It will probably be low until you graduate, and then it will rise.
It will probably be low.
It will probably be high.
If you have a long-term horizon for investing, you should:
Lean toward high-risk investments, with high-return potential.
Keep at least 75% cash or money market funds for immediate availability.
Own only one stock
Diversify into savings accounts and US Savings Bonds
If your MP3 Player is stolen form the apartment you are leasing, what time of insurance would it be covered under?
Auto
Homeowners
Renters
Life
Improving your credit score will let you get:
Lower interest rates on loans
Higher interest rates on savings accounts
Neither of the above
Both of the above
Inflation is:
Always exactly 5% per year
The reason most people get ahead by saving money in their mattress
The rise in the cost of purchasing everyday goods.
The annual rate of return on a savings account
Investing in a global stock fund is a good idea to:
focus all risk on the US economy
keep your portfolio dependent solely on the US dollar
Diversify into municipal and corporate bonds
diversify holdings to spread risk outside of the US
Long term investors:
sit tight through bull markets and bear markets
buy and sell on a daily basis
may adjust their holdings to sell when others are selling and markets are falling
always lose money in the long run
Money in your emergency fund could be wisely used:
to buy a new pair of shoes that went on sale
to lend money to a friend to pay off credit card debt
To pay for an unexpected health expense
to put money down on a new car
Net pay is:
equal to gross pay
greater than gross pay
what remains after deductions are subtracted from gross pay
none of the above
Online bill payment:
can happen automatically every month, even if you set it up just once.
will definitely cause an overdraft charge.
can only be set up by making an appointment with a bank branch manager
cannot be set up online
An overdraft fee:
is a fee charged by a business when a check you write them bounces
is the minimum balance required to be held in a bank account
is a fee paid to a payday loan company
is the fee charged by a bank when your checking account balance goes below zero.
A paycheck has withholding tax taken out:
if a person earns more than $600 a year.
that is paid to state and federal taxing authorities
that is automatically refunded to workers even without filing a 1040EZ form
that is always equal to $9.54
A regular paycheck helps your credit score because:
It can be cashed and spent quickly
It has taxes pulled out
It shows you will not pay your bills on time
It indicates you are likely a good credit risk
Tax refunds:
occur when a taxpayer's income tax withholding exceeds what they owe
come from extra money the federal government has left over at the end of the year, and are distributed around February 15
Come to taxpayers regardless of whether they file an income tax return or not
include interest paid to the taxpayer by the federal government based on holding that money throughout the tax year
This type of insurance pays to fix damages that you cause, bu does not cover your own car.
No-fault
Collision
Liability
None of the above
To file your taxes, you need:
every pay stub from the entire year
every deposit slip from your savings account
W2 and 1099INT reports, and charitable deduction receipts
a computer
The W4 form:
lists the number of people who claim the worker as a dependent on their tax returns.
is filled out by each employee, stating the number of withholding allowances claimed.
is a report sent from the employer to both the IRS and the employee showing gross wages.
should be attached to the tax return with a staple when filing.
A wage and tax statement, known commonly as the W2 form provides information for completing:
state tax forms
Federal tax forms
both A and B
none of the above
When should you start saving for retirement?
As soon as you enter the workforce.
Before age 50 and not after
After age 50.
Which factor is most important in securing well-paying jobs throughout your career?
Having a car
Having a good education
Have a clean driving record
Having established credit
Which of the following best describes a lease?
A legal document that contains all the details of the agreement between the landlord and renter which is signed by both parties.
An informal agreement between the renter and the landlord which the renter signs if s/he is thinking about renting an apartment.
A document that describes, in detail, the apartment for rent.
An agreement between someone searching for an apartment to rent and his or her real estate agent.
Which is NOT a step in researching your purchase?
Comparing prices
Getting your friends' approval
Looking at customer reviews
Trying on apparel
Which of the following is a benefit of an employer-sponsored retirement plan?
Contributions are not taxed
Employers often match contributions
All of the above
None of the above
Which of the following is the best definition of a minimum payment on a credit card?
A fee that must be paid whether the card is in use, or not
The smallest payment that will keep a credit card holder in good standing with the lender
The interest on a purchases that were made on the credit card
A low, introductory payment offered by the lender for a few months until the card holder has established good credit.
Which of the following is the best example of irregular income?
full-time job
part-time job
graduation gift
all of the above
Which of the following utilities may be billed separately from your rent?
Water
Electricity
Phone/Internet Service
All of the above
Why is it not a good idea to make early withdrawals from your 401(k)?
You usually have to pay a strict penalty
You cannot put the money back in once you take it out
You will lose your tax-deferred status on the entire account
With online banking, you can:
Access accounts that are not your own and transfer money into your own account.
Use a telephone to talk to a bank teller.
Pay bills, check your balance, and see if checks have cleared on your bank's online website.
Put a check through a scanner to pay bills.
Without health insurance, a routine checkup at the doctor's office can cost you:
Nothing because doctors don't charge if you don't have insurance.
Several hundred dollars.
Almost as much as a car.
Nothing, because you can't get treated without insurance.
You can order a copy of your credit report:
Free, online from www.annualcreditreport.com, once a year from each of the credit reporting companies.
Free, online from the Fair Isaac Corportation
Only if you have good credit because this service isn't available if you are a poor credit risk.
Only if you are applying for a credit card or loan.
You forgot to pay last month's credit card bill. Your creditor will probably:
Cancel your account.
Send you a reminder to pay the bill.
Add finance charges and late fees to your bill.
Reduce your minimum payment.
You ran short of cash and borrowed $50 from your rich cousin. When you paid her back, she insisted that you owed $60. What is the extra $10 called?
Bribery
Interest
Principal
Credit
Your credit history tells:
the history of your saving, borrowing, and repayment performance.
the history of your report cards.
the history of formation of the Experian and Equifax companies.
the history of your parents' saving, borrowing, and repayment performance.
Your return with a diversified portfolio will:
be exactly 11.3% each year
rise and fall, but has less risk than a smaller number of stocks and a smaller number of sectors and asset classes
fall if a single company goes out of business
beat absolutely every other investor.
