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Financial Literacy FINAL

Total questions: 56

Worksheet time: 31mins

Name
Class
Date
1.

A factor or disadvantage that discourages people from doing something is called?

a)

Incentive

b)

Disincentive

c)

Opportunity

d)

Disadvantage

2.

The value of the second best alternative that a person gives up when making one choice instead of another is called?

a)

Cost

b)

Value

c)

Opportunity cost

d)

Opportunity loss

3.

An ________ is any reward or benefit that motivates people to do something.

a)

Disincentive

b)

Opportunity

c)

Advantage

d)

Incentive

4.

Payments earned by households for selling or renting their productive resources are called?

a)

Salary

b)

Career

c)

Money

d)

Income

5.

The health, education, training, skills, and values of people are known as?

a)

Human capital

b)

Knowledge capital

c)

Person capital

d)

None of the above

6.

Money provided to the student and/or parents to help pay for the students education is called?

a)

Student loans

b)

Financial aid

c)

FAFSA

d)

None of the above

7.

Wages before deductions are called?

a)

Net income

b)

Gross income

c)

Before tax money

d)

After tax money

8.

Income after all deductions and exemptions are taken out is called?

a)

Net income

b)

Gross income

c)

Before tax money

d)

After tax money

9.

__________ is the belief that people should be taxed according to their ability to pay, regardless of the benefits they receive?

a)

Benefit received

b)

Progressive tax

c)

Ability to pay

d)

None of the above

10.

A (a)   is one who enjoys the benefits of a good or service without paying for it?

11.

__________ is an electronic machine that bank customers use to withdraw cash and make other financial transactions.

a)

Check

b)

Debit card

c)

Credit card

d)

ATM

12.

__________ is a plastic card that authorizes the delivery of goods and services in exchange for future payment with interest.

a)

Check

b)

Debit card

c)

Credit card

d)

None of the above

13.

__________ is the process allowing customers to make financial transactions on a secure website operated by their financial institutions, also called internet banking.

a)

Online banking

b)

In person banking

c)

Credit card

d)

Over the phone banking

14.

Inflation refers to:

a)

The level of risk associated with equity investing

b)

The amount of money earned by investing

c)

An overall increase in prices

d)

How quickly your money can double

15.

Default risk is:

a)

The potential that you will quit saving

b)

The potential that you will not get your money back once it is invested

c)

Fear that inflation will grow faster than the interest you will earn

d)

Fear that you cannot earn enough money to meet your goals

16.

______ are designed to provide higher rates of return than savings accounts as the money is invested in very short investments with a low risk.

a)

Money Market Mutual Funds

b)

Stocks

c)

Investing

d)

Mutual Funds

17.

How long will it take for your money to double using compound interest.

a)

Simple interest

b)

Rate of return

c)

Fixed interest

d)

Rule of 72

18.

Which of the following items is liquid?

a)

Money in a savings account

b)

Money invested in a CD

c)

A new car

d)

Money invested in real estate

19.

Which of the following is an employee based retirement plan that only employers contribute to?

a)

Traditional IRA

b)

Roth IRA

c)

Pension

d)

401K

20.

An action of withdrawal from one’s position of occupation or from active working life is called?

a)

Career

b)

Living trust

c)

Retirement

d)

Trustee

21.

When should you start putting money away for retirement?

a)

As soon as possible

b)

When you turn 50

c)

Whenever you feel like it

d)

Never

22.

Investment vehicle sold by life insurance companies is known as?

a)

401K

b)

Roth IRA

c)

Annuity

d)

Bond

23.

In most situations it is okay to take money out of your retirement account to buy a car or something.

a)

True

b)

False

24.

An agreement to provide goods and services or money in exchange for future payments is called?

a)

Loan

b)

Credit

c)

Debit

d)

None of above

25.

Payment for the use of someone else’s money is called?

a)

Debit

b)

Collateral

c)

Credit

d)

Interest

26.

Credit with collateral is called?

a)

Unsecured credit

b)

Secured credit

27.

The percentage costs on an annual basis is called?

a)

APR

b)

APY

c)

Interest

d)

None of the above

28.

The ______ protects consumers by requiring credit card companies to notify changes in interest rates.

a)

Card act of 2010

b)

Card act of 2013

c)

Card act of 2008

d)

Card act of 2009

29.

Using a person’s name or personal information without the person’s permission for the purchase of stealing money or to get other benefits is called?

a)

Ponzi scheme

b)

Phishing emails

c)

Insurance fraud

d)

Identity theft

30.

The federal agency that enforces consumer protection is called?

a)

CTF

b)

TCF

c)

FTC

d)

None of the above

31.

Business advertises a product at a low price, but offers a more expensive product when you go to buy it. This is called?

a)

Bankruptcy fraud

b)

Bait and switch

c)

Embezzlement

d)

None of the above

32.

Creating fake documents and signatures is called?

a)

Forgery

b)

Health fraud

c)

Marriage fraud

d)

Security Fraud

33.

Someone who knowingly deceives you for their own personal gain is called?

a)

Trick

b)

Scheme

c)

Profit

d)

Fraud

34.

A room or suite of rooms designed as a residence and generally located in a building occupied by more than one household is called an ____________.

a)

Duplex

b)

Apartment

c)

Condominium

d)

House

35.

A building or complex in which units of property are owned by individual and common parts of the property, such as the grounds and building structures, are owned jointly.

a)

Duplex

b)

Apartment

c)

Condominium

d)

House

36.

A written contract specifying the terms for the use of an asset and the legal responsibilities of both parties to the agreement is called a (a)   .

37.

Costs paid when buying a house or real estate are called ____________.

a)

Rent

b)

Money

c)

Down Payment

d)

Closing costs

38.

A periodic payment for a place to live is called?

a)

Rent

b)

Money

c)

Down payment

d)

Closing costs

39.

A ____________ is the measure of the uncertainty of an investment's rate of return.

a)

Interest

b)

Return

c)

Risk

d)

None of the above

40.

________ is a written request submitted to your insurance carrier to cover a loss.

a)

Deductible

b)

Premium

c)

Risk

d)

Claim

41.

________ is the fee paid for insurance protection.

a)

Deductible

b)

Premium

c)

Risk

d)

Claim

42.

________ is health insurance provided by the federal government for people over the ages of 65.

a)

Medicaid

b)

Medicare

c)

Insurance

d)

Retirement

43.

________ is the amount of money that the insured pays directly to a provider at the time services are rendered.

a)

Co-payment

b)

Deductible

c)

Co-insurance

d)

Probability

44.

The outcome of one event affects the outcome of another, changing the probability of the second event is known as a ____________.

a)

Independent Event

b)

Dependent Event

45.

Taking risks with personal finances or personal assets is called ____________.

a)

Taking a risk

b)

Probability

c)

Gambling

d)

None of the above

46.

The inability to resist impulses to gamble, which leads to severe personal or social consequences is called ____________.

a)

Pathological gambling

b)

Problem gambling

c)

Gambling

d)

None of the above

47.

Online gambling, sometimes called ______ gambling, is rather complex because there are differing views about whether or not it is illegal.

a)

Web gambling

b)

Online gambling

c)

Internet gambling

d)

None of the above

48.

The chance or likelihood that something will happen is called ______.

a)

Variability

b)

Probability

c)

Likelihood

d)

None of the above

49.

________ is a person or company with insufficient assets to cover their debt.

a)

Creditor

b)

Banker

c)

Bankrupt

d)

None of the above

50.

________ is a person or company to whom money is owed.

a)

Creditor

b)

Banker

c)

Taxer

d)

The Queen

51.

________ is a single loan that replaces the debt owed by multiple loans, often with a lower monthly payment and a longer repayment period.

a)

Donation

b)

Bankruptcy

c)

Debt

d)

Debt Consolidation Loan

52.

________ is the act of giving to charitable organizations or to those in need.

a)

Tax deduction

b)

Philanthropy

c)

Charitable giving

d)

Charity

53.

________ is a non-cash contribution to a charitable organization that can be given a cash value.

a)

In-Kind donation

b)

Donation

c)

Money given

d)

Cash drop off

54.

________ is a legal organization providing services or activities without commercial or monetary gain; organized for purposes other than earning a profit.

a)

For profit organizations

b)

Non profit organizations

55.

________ is an expense that a taxpayer can subtract from taxable income.

a)

Tax induction

b)

Charity

c)

Tax deduction

d)

none of the above

56.

What are three things you learned from financial literacy that you didn't know before taking this class?

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