WorksheetsFinancial Literacy FINAL
Total questions: 56
Worksheet time: 31mins
A factor or disadvantage that discourages people from doing something is called?
Incentive
Disincentive
Opportunity
Disadvantage
The value of the second best alternative that a person gives up when making one choice instead of another is called?
Cost
Value
Opportunity cost
Opportunity loss
An ________ is any reward or benefit that motivates people to do something.
Disincentive
Opportunity
Advantage
Incentive
Payments earned by households for selling or renting their productive resources are called?
Salary
Career
Money
Income
The health, education, training, skills, and values of people are known as?
Human capital
Knowledge capital
Person capital
None of the above
Money provided to the student and/or parents to help pay for the students education is called?
Student loans
Financial aid
FAFSA
None of the above
Wages before deductions are called?
Net income
Gross income
Before tax money
After tax money
Income after all deductions and exemptions are taken out is called?
Net income
Gross income
Before tax money
After tax money
__________ is the belief that people should be taxed according to their ability to pay, regardless of the benefits they receive?
Benefit received
Progressive tax
Ability to pay
None of the above
A (a) is one who enjoys the benefits of a good or service without paying for it?
__________ is an electronic machine that bank customers use to withdraw cash and make other financial transactions.
Check
Debit card
Credit card
ATM
__________ is a plastic card that authorizes the delivery of goods and services in exchange for future payment with interest.
Check
Debit card
Credit card
None of the above
__________ is the process allowing customers to make financial transactions on a secure website operated by their financial institutions, also called internet banking.
Online banking
In person banking
Credit card
Over the phone banking
Inflation refers to:
The level of risk associated with equity investing
The amount of money earned by investing
An overall increase in prices
How quickly your money can double
Default risk is:
The potential that you will quit saving
The potential that you will not get your money back once it is invested
Fear that inflation will grow faster than the interest you will earn
Fear that you cannot earn enough money to meet your goals
______ are designed to provide higher rates of return than savings accounts as the money is invested in very short investments with a low risk.
Money Market Mutual Funds
Stocks
Investing
Mutual Funds
How long will it take for your money to double using compound interest.
Simple interest
Rate of return
Fixed interest
Rule of 72
Which of the following items is liquid?
Money in a savings account
Money invested in a CD
A new car
Money invested in real estate
Which of the following is an employee based retirement plan that only employers contribute to?
Traditional IRA
Roth IRA
Pension
401K
An action of withdrawal from one’s position of occupation or from active working life is called?
Career
Living trust
Retirement
Trustee
When should you start putting money away for retirement?
As soon as possible
When you turn 50
Whenever you feel like it
Never
Investment vehicle sold by life insurance companies is known as?
401K
Roth IRA
Annuity
Bond
In most situations it is okay to take money out of your retirement account to buy a car or something.
True
False
An agreement to provide goods and services or money in exchange for future payments is called?
Loan
Credit
Debit
None of above
Payment for the use of someone else’s money is called?
Debit
Collateral
Credit
Interest
Credit with collateral is called?
Unsecured credit
Secured credit
The percentage costs on an annual basis is called?
APR
APY
Interest
None of the above
The ______ protects consumers by requiring credit card companies to notify changes in interest rates.
Card act of 2010
Card act of 2013
Card act of 2008
Card act of 2009
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?
Ponzi scheme
Phishing emails
Insurance fraud
Identity theft
The federal agency that enforces consumer protection is called?
CTF
TCF
FTC
None of the above
Business advertises a product at a low price, but offers a more expensive product when you go to buy it. This is called?
Bankruptcy fraud
Bait and switch
Embezzlement
None of the above
Creating fake documents and signatures is called?
Forgery
Health fraud
Marriage fraud
Security Fraud
Someone who knowingly deceives you for their own personal gain is called?
Trick
Scheme
Profit
Fraud
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 ____________.
Duplex
Apartment
Condominium
House
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.
Duplex
Apartment
Condominium
House
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) .
Costs paid when buying a house or real estate are called ____________.
Rent
Money
Down Payment
Closing costs
A periodic payment for a place to live is called?
Rent
Money
Down payment
Closing costs
A ____________ is the measure of the uncertainty of an investment's rate of return.
Interest
Return
Risk
None of the above
________ is a written request submitted to your insurance carrier to cover a loss.
Deductible
Premium
Risk
Claim
________ is the fee paid for insurance protection.
Deductible
Premium
Risk
Claim
________ is health insurance provided by the federal government for people over the ages of 65.
Medicaid
Medicare
Insurance
Retirement
________ is the amount of money that the insured pays directly to a provider at the time services are rendered.
Co-payment
Deductible
Co-insurance
Probability
The outcome of one event affects the outcome of another, changing the probability of the second event is known as a ____________.
Independent Event
Dependent Event
Taking risks with personal finances or personal assets is called ____________.
Taking a risk
Probability
Gambling
None of the above
The inability to resist impulses to gamble, which leads to severe personal or social consequences is called ____________.
Pathological gambling
Problem gambling
Gambling
None of the above
Online gambling, sometimes called ______ gambling, is rather complex because there are differing views about whether or not it is illegal.
Web gambling
Online gambling
Internet gambling
None of the above
The chance or likelihood that something will happen is called ______.
Variability
Probability
Likelihood
None of the above
________ is a person or company with insufficient assets to cover their debt.
Creditor
Banker
Bankrupt
None of the above
________ is a person or company to whom money is owed.
Creditor
Banker
Taxer
The Queen
________ is a single loan that replaces the debt owed by multiple loans, often with a lower monthly payment and a longer repayment period.
Donation
Bankruptcy
Debt
Debt Consolidation Loan
________ is the act of giving to charitable organizations or to those in need.
Tax deduction
Philanthropy
Charitable giving
Charity
________ is a non-cash contribution to a charitable organization that can be given a cash value.
In-Kind donation
Donation
Money given
Cash drop off
________ is a legal organization providing services or activities without commercial or monetary gain; organized for purposes other than earning a profit.
For profit organizations
Non profit organizations
________ is an expense that a taxpayer can subtract from taxable income.
Tax induction
Charity
Tax deduction
none of the above
What are three things you learned from financial literacy that you didn't know before taking this class?
