WorksheetsEHS HSB Personal Finance Quiz
Total questions: 65
Worksheet time: 2hrs 49mins
What is the importance of income in financial literacy?
How does insurance play a role in financial planning?
Explain the concept of risk in financial decision-making.
What are the different types of taxes individuals need to be aware of?
How does the time value of money affect financial planning?
Explain the importance of credit in personal finance.
What are the key aspects of retirement planning?
Describe the different types of investments individuals can make.
What are the common personal banking products available for individuals?
Which of the following statements best explains why income alone does not determine wealth?
Investing is the only way to contribute to wealth building.
Only people who are natural savers can become wealthy.
Income alone does determine a person's wealth.
A person's salary does not dictate his/her spending behavior
Starting amount: $500 Years to invest: 40 Additional contributions: $100 per month Average annual rate of return: 7.6% compounded annually Total amount invested:48,500 Ending investment balance: $289,279.40 This demonstrates why it's important to______.
start with a large amount of savings
save as much as you can every single month
avoid retirement until you're 75
let your savings grow over time
Money earned or received
expense
profit
income
credit
The amount of money earned over a period of time.
Income
Fixed Expense
Variable Expense
Budget
What is income?
The amount of bills a person pays monthly.
The amount of loans a person borrows from a bank yearly.
The amount a money an employer pays to an employee on a fixed basis.
The number of hours an employee works per week.
Which of the following BEST describes income?
Money received from a parent to pay for ice cream at lunch.
Money spent on a pair of new Nike Shoes.
Money donated to a charity.
Money received for completing your weekly chores.
Earning money by mowing the lawn is considered a what?
expense
income
payroll tax
property tax
You work 20 hours per week in the library at your college.
A scholarship
A grant
Work Study
Loan
Before taxes and deductions, Mrs. Allen's pay was $1,600. This is considered her -
net income
gross income
deposits
income tax
Jan pays federal taxes every year based off her yearly income. Which type of tax is calculated by the amount of your income?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Which definition matches income?
Money that you collect
money that is earned as a result of working
The amount of money made before deductions are taken out
The amount of money made after deductions are taken out
The difference between expenses and receipts. The money you make after paying for your expenses.
withdrawal
balance
receipts
profit
Surplus
Expenses are greater than income
Income is greater than expenses
Income is equal to expenses
Expenses are equal to income
Payments for labor or services
Gross pay
wages
Taxable Income
Income tax
What are income taxes?
Money added to the cost of items or services
Money paid to the government based on money you earn
A portion of the value of items that is paid to a city or government
Money an employer withholds from an employee’s paycheck
The replacement value of the home is estimated at $140,000. You have insured the home for 80 percent of the replacement value. According to the figures below, what is the amount of coverage on the personal property?
Insurance Coverage
Garage and Other Structures: 10% of Coverage
Loss of Use: 30% of Coverage
Personal Property: 70% of coverage
Formula
Amount of Coverage = Amount of Coverage on Home x Percent
(a)
What does FDIC stand for?
Federal Deposit Insurance Corporation
Financial Department of Investment and Credit
Fiscal Deposit and Insurance Company
Federal Department of Interest and Credit
If your health insurance plan has a $500 deductible, how much will you have to pay out-of-pocket before your insurance starts to cover your medical expenses?
$0
$250
$500
$1000
In claim processing, what is the purpose of an "explanation of benefits" (EOB)?
To detail the services provided by the insurance company
To explain why a claim was denied
To outline the costs covered and not covered by the insurance
To provide a summary of the insurance policy
If your auto insurance has a deductible of 1,000 and you get into an accident that causes $5,000 in damage to your car, how much will the insurance company pay?
$1,000
$4,000
$5,000
$0
In health insurance, what is a co-payment?
A fixed amount paid for a covered service, after you have paid your deductible
The total amount you must pay before your insurance covers any expenses
A percentage of the total cost that you pay for covered health care services
The maximum amount you will have to pay in a policy period
What does financial literacy enable an individual to do?
Make informed financial decisions
None of the above
Improve their cooking skills
Increase their physical fitness
An establishment that focuses on dealing with financial transactions such as investments, loans, and deposits
financial institution
credit
profit
expense
When money is taken out of a checking account it decreases the account balance and is called a:
Withdrawal
Deposit
Learning about money is not that important because you can depend on your parents to manager your money.
True
False
Credit cards, when used responsibly, can provide benefits for its consumers. Which statement below describes a benefit for a consumer using a credit card?
Using a credit card responsibly and paying the balance off each month can lower your credit score.
A credit card doesn't cost you any more money than using a debit card as long as you make regular payments.
Using a credit card responsibly and paying the balance off each month can help improve your credit score.
People that use credit cards become wealthy more quickly.
1) People with good credit history have more financial options.
2) People with good credit history can get better interest rates on loans.
3) People with good credit history have better credit scores.
4) People with good credit history can borrow any amount of money.
Mr. Irons is planning to take out a loan to buy a car. At the car dealership, he must sign a statement giving
permission to check his credit report. Which statement best describes why the car dealership wants to check
his credit?
to determine if Mr. Irons is a safe driver
to decide how much money Mr. Irons earns
to determine if Mr. Irons can afford the car
to determine the likelihood of Mr. Irons paying back the loan on the car
The ability to borrow money
term
credit
interest
monthly payment
What does a credit score represent?
Your income level
The amount of money in your bank account
A measure of your financial responsibility and risk to lenders
The interest rate on your mortgage
Credit history and credit scores are beneficial to both lenders and borrowers. Which statement below describes a benefit to a lender?
Lenders use your credit history to determine if you have attended college.
Lenders use your credit history and score to determine their risk in lending you money.
Lenders use your credit number to conduct weekly reports on your spending habits.
Lenders use your credit score to finance other loans.
The sum of all payments plus the interest is called the...
Principal
Present Value
Future Value
Interest
Which statement does NOT describe a withdrawal from a bank account?
Using $30 from your savings account to pay for a sweater
Putting money from your paycheck into your checking account
Getting money from your account using an ATM
Which of these services is not provided by a financial institution such as a bank or credit union?
Informing customers of the amount of money in their accounts
Informing customers of how the money in their accounts must be spent
Providing cash when customers make withdrawals from their accounts
Providing loans to customers that can be paid back over time with interest
Which is required when depositing money into an account?
include your account number
thank the teller
swipe your credit card
sign your deposit ticket
Week 1: $5.00
Week 2: $10.00
Week 3: $10.00
How much more will Mr. Man need to save to buy a new video game that cost $50.00?
Why is making a budget important?
It is required by law
It is only useful for adults
It helps in planning purchases only
It helps in tracking expenses and saving money
Reginald wants to attend Ohio State. Tuition is $25,500/year. Reginald will receive a football scholarship that will pay for 75% of the cost. Reginald is starting is senior year and has one year to save the money. How much does he need to save each month in order to attend Ohio State?
$520.50
$531.25
$500.00
$525.00
Shelly wants to buy some new shoes, but she doesn't have enough money saved. Which statement describes that best way for Shelly to save enough money to buy the shoes?
Spend all of her allowance each week on toys and games
Give her allowance to her brother so he can buy candy
Save the money her mom gives her for doing her chores each week
What is the interest rate of a bond based on?
The current market rate
The company's performance
The issue price of the bond
The stock market index
Why are bonds considered a conservative investment?
They have a variable interest rate
They are high-risk investments
They offer a fixed interest rate
They are only issued by governments
