WorksheetsCareer Prep Final Exam 2024
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
Which of the following transactions will REDUCE your checking account balance immediately?
a)
Writing your monthly rent check which you will mail tomorrow
b)
Using your debit card to pay for groceries at the supermarket
c)
Using your credit card to pay for your school books
d)
Depositing a check at a local bank branch
2.
How are credit unions and banks different?
a)
Typically, deposits at a bank are insured, but deposits at a credit union are not
b)
Banks charge overdraft fees, but credit unions do not
c)
Banks are owned by shareholders, while credit unions are owned by members
d)
Banks allow customers to do online banking, while credit unions are too small to provide that service
3.
What would be a good time to spend money from your Emergency Fund?
a)
You lose your job but still have bills to pay
b)
Your friend tells you that you should buy as much Bitcoin as possible
c)
Your favorite artist releases a new album and you just have to buy it
d)
Your friends are going on an expensive trip an you would like to go with them
4.
If you used the 50-30-20 rule of budgeting, how much money would you be saving?
a)
20%
b)
30%
c)
50%
d)
100%
5.
The average American teenager is likely to spend MOST of their money on...
a)
Bills and utilities
b)
Transportation
c)
School-related items
d)
Food
6.
How is gross pay different than net pay?
a)
Gross pay is for hourly workers, while net pay is for salaried employees
b)
Gross pay is always lower, while net pay is always higher
c)
Gross pay is the total you earned, while net pay has taxes deducted
d)
Gross pay is used for spending, while net pay is used for budgeting
7.
What action corresponds to the advice "Pay yourself first?"
a)
Wait until the end of the month to determine how much you have leftover to save
b)
Set aside a fraction of your paycheck into a savings account before you start spending
c)
Spend your regular paycheck on needs and wants but funnel any extra money into saving
d)
Become self-employed so you're paying yourself instead of being paid by an employer
8.
What is a bond?
a)
A type of loan you can get from the federal government that you pay back with interest
b)
An investment in which you loan money to a corporation or government and are paid back with interest and the principal that you originally lent to them.
c)
A type of loan you can get from a bank that you pay back with interest
d)
An investment in which you loan money to another individual and are paid back with interest
9.
Which of the following is TRUE about investing?
a)
It guarantees a high rate of return over a short period of time
b)
It can help you grow your money through the power of compounding
c)
It is meant for achieving short-term financial goals
d)
It involves little risk because your returns are insured up to $250,000
10.
Ben is 24 and wants to start saving for retirement. What can he do to set himself up for success?
a)
Wait until his 30s to start investing
b)
Invest 10-15% of his monthly salary
c)
Invest primarily in low-risk investments like bonds
d)
Delay his expected retirement age by 20 years
11.
What are the two ways investors can earn money from a stock?
a)
Dividends and decreasing the stock’s market cap
b)
Dividends and selling the stock at a higher price than they bought it
c)
A fixed interest rate on the investment and selling the stock at a higher price than they bought it
d)
A fixed interest rate on the investment and decreasing the stock’s market cap
12.
Which of the following is an effective strategy for personal saving?
a)
Wait until the end of the month and save whatever is left in your checking account
b)
Save a certain percentage of each paycheck and deposit it directly into a savings account
c)
Cover all of your wants and needs and save whatever is left over
d)
Take out a payday loan so you can save before you receive your paycheck
13.
Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
a)
Needs, wants, savings
b)
Savings, needs, wants
c)
Needs, savings, wants
d)
Wants, needs, savings
14.
Which represents the BEST time to start saving for your retirement?
a)
As soon as you have your first full-time job
b)
Right after you pay off your student loans
c)
Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
d)
At age 45, so you have exactly 20 years until retirement
15.
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
a)
Days
b)
Weeks
c)
Months
d)
Years
16.
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
a)
Your credit card company covers the cost
b)
It is deducted directly from your checking account
c)
Your credit card company provides you with a cash advance to cover the cost
d)
It is deducted directly from your savings account
17.
FDIC Insurance is...
a)
Optional coverage consumers can purchase so that their bank deposits remain safe
b)
Insurance bank branches can buy to protect their business against fraud and scams
c)
Required if you want to do online or mobile banking
d)
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
18.
What is an insurance premium?
a)
Your monthly payment to your insurer, regardless of whether you use any services
b)
A list of the procedures covered by your insurance carrier
c)
An added cost you pay in order to receive higher-quality services
d)
The amount you pay out-of-pocket for a specific procedure or service
19.
Safe debt load is...
a)
The amount of credit that a person can afford and still stay within a safe budget.
b)
A safe amount of debt to go into, even if you don't have enough money to cover it.
c)
Your debt in weight.
d)
The maximum amount of debt anyone have.
20.
Each of the following financial products will help you build credit history EXCEPT:
a)
a. Secured credit card
b)
b. Debit card
c)
c. Home mortgage
d)
d. Credit card
21.
What financial product am I? I am a type of credit card that requires cardholders to make a security deposit equal to the credit limit on their account. Due to this deposit requirement, I am often a good choice for young people looking to establish their credit history.
a)
a. Standard credit card
b)
b. Secured credit card
c)
c. Overdraft credit card
d)
d. Rewards credit card
22.
Who tracks all of your credit information?
a)
a. Companies named Equifax, Experian and TransUnion
b)
b. Federal government
c)
c. Consumer Financial Protection Board (CFPB)
d)
d. Lenders
23.
What does a credit score help a lender determine?
a)
a. How much money you owe
b)
b. Your monthly income
c)
c. Your savings rate
d)
Your reliability to pay back money you owe
24.
The grace period refers to the time:
a)
a. taken to process a credit card application
b)
b. for paying an account without an interest charge
c)
c. allowed to notify a creditor of a billing error
d)
d. used for calculating interest
25.
If you are denied credit, the creditor is not legally obligated to explain why.
a)
true
b)
false
26.
To be within a safe debt load, your total credit should not exceed 20% of your net pay after subtracting rent.
a)
true
b)
false
27.
This type of bankruptcy is also known as "straight" or "liquidation"
a)
Chapter 7
b)
Chapter 11
c)
Chapter 12
d)
Chapter 13
28.
If a person needs to restructure their debt to a repayment plan, they would use:
a)
Chapter 7
b)
Chapter 11
c)
Chapter 12
d)
Chapter 13
29.
What is the purpose of Bankruptcy?
a)
To take everything a person owns to punish them for being financially irresponsible
b)
Allows a person/business to have a fresh start and a way to get out of debt
c)
Prevents a person from ever having debt again
d)
Ensures banks get all their money back
30.
A legal process to get out of debt when you can no longer make all your required payment.
a)
Liquidation
b)
Bankruptcy
c)
Mean's Test
d)
Credit Counseling
31.
How many years does bankruptcy stay on your credit?
a)
2
b)
5
c)
7
d)
10
32.
A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first
a)
Credit
b)
Credit Score
c)
Debt Snowball Method
d)
FICO Score
33.
A method of debt repayment whereby the borrower prioritizes paying down debts with the highest interest rates first
a)
Bankruptcy
b)
Credit Bureau
c)
Debt Avalance
d)
Credit History
34.
Which of the following represents a likely reason for a borrower to take out a payday loan?
a)
A payday lender offers better terms and rates than their credit card.
b)
They do not qualify for a personal loan or credit card due to poor or no credit.
c)
Their paycheck covers all of their monthly bills and they want to go on vacation.
d)
They want to build their credit score by going to store fronts for cash advances.
35.
This type of debt it not tied to a specific asset; there is no collateral that can be repossessed if the borrower does not make payments
a)
Revolving debt
b)
Secured Debt
c)
Unsecured debt
d)
Installment loans
36.
An open line of credit that can be used for any purchase as long as you are under the credit limit. Credit cards are an example.
a)
Secured debt
b)
Unsecured debt
c)
Revolving credit
d)
Installment loans
37.
Which of these debts is not dischargeable:
a)
Car Loan
b)
Student Loan
c)
Credit Card
d)
Home Loan
38.
Pre-bankruptcy credit counseling and pre-discharge debtor education are bankruptcy requirements.
a)
True
b)
False
39.
Payday lenders, auto title loan centers, and other short-term lending institutions are not regulated.
a)
True
b)
False
40.
Which is not a type of risk?
a)
Economic and Non-Economic
b)
Controllable and Uncontrollable
c)
Pure and Speculative
d)
Car Risk
41.
What are types of insurance?
a)
auto, homeowners, health, and life
b)
vehicle, home borrowers, medical
c)
car, renters, health, the game of life
42.
What are coverage limits?
a)
Full coverage on your property
b)
The amount covering you
c)
no coverage
d)
The maximum amount your insurance company will pay for a particular loss
43.
An insurance deductible refers to
a)
protecting the assets of individuals
b)
liability of protection
c)
amount consumer has to pay before insurance pays their part
d)
amount paid to the insurance company for coverage
44.
What is the relationship between premium and deductible?
a)
the higher the premium, the lower the deductible
b)
you have to pay the premium, not the deductible
c)
you have to pay the deductible not the premium
d)
the higher the premium, the higher the deductible
45.
This type of insurance pays the amount of the policy upon the death of the insured
a)
health
b)
life
c)
auto
d)
property
46.
You are having a baby and need medical care. What insurance do you need?
a)
Renters Insurance
b)
Life Insurance
c)
Liability Insurance
d)
Health Insurance
47.
Insurance can help you:
a)
minimize monthly expenses
b)
protect against unexpected accidents
c)
reduce the chances of getting into an accident
d)
cover all out of pocket costs
48.
The amount you pay before insurance starts to pay.
a)
premium
b)
lien
c)
deed
d)
deductible
49.
If your house catches fire, which insurance type will cover the damages?
a)
Auto
b)
Life
c)
Homeowners
d)
Long term disability
50.
An example of insurance fraud is leaving a driver off of the policy.
a)
True
b)
False
100 %
