WorksheetsFinancial Planning Exam Preparation
Total questions: 47
Worksheet time: 31mins
Necessary for survival...
want
need
What kind of expenses do NOT occur every month?
fixed
variable
periodic
What kind of expenses are the SAME amount every month?
fixed
variable
periodic
What kind of expenses are DIFFERENT amounts but occur every month ?
fixed
variable
periodic
Your credit score can be established or maintained by
(more than 1 correct answer)
getting as many credit cards as possible
paying bills in full
paying bills on time
limiting number of lines of credit
What is true about credit reports?
(more than 1 correct answer)
they should be checked every year
your credit score can be changed by writing a letter
negative information stays for 7-10 years
free reports can be obtained at your bank
Credit score range is...
1 - 10
150 - 950
100 - 1000
300 - 850
Which is NOT a credit bureau?
Equifax
ExpertsRus
Experian
TransUnion
Places where you can get credit are...
(more than 1 correct answer)
car dealership
bank/credit union
gas station
store
What is NOT an advantage of purchasing a new car?
more features for a cheaper price
builds equity/trade-in value
lower interest rate
underwarrenty/few repair bills at beginning
What are the disadvantages of purchasing a new car?
(more than 1 correct answer)
more complicated to repair
more expensive
steep depreciation at first
the history is unknown
What are the advantages of purchasing a used car?
(more than 1 correct answer)
cheaper
more variety on car lot
you can get a loan without good credit
slower depreciation
What are the disadvantages of purchasing a used car?
(more than 1 correct answer)
more repairs
limited miles
higher interest rate
unknown history
What is NOT an advantage of leasing a car?
less money up front & lower payments
no repair bills
builds equity/trade-in value
more features for a lower price
What is NOT a disadvantage of Leasing a car?
charged for dents, dings, scratches
more expensive
limited miles
always have a payment
Ways to prevent identity theft are...
(more than 1 correct answer)
shred documents with personal information & use strong passwords
carry your social security card with you
be sure websites are secure & don't share account information
be cautious when using ATMs
A tax (a) is subtracted from taxable income.
(credit or deduction)
A tax (a) is subtracted from tax owed.
(credit or deduction)
What are the purposes of savings accounts and CDs?
(more than 1 correct answer)
improve credit score
earn interest
loan money to a company or municipality
keep money safe
What are 2 characteristics of Certificates of Deposit (CDs)
(more than 1 correct answer)
can make withdrawals anytime
is safer than a savings account
penalized for early withdrawals
higher interest rate than regular savings
Which makes your healthcare wishes known in the event you are incapacitated?
incapacitation insurance
advance medical care
will
advance healthcare directive
A (a) states what happens to a person's property after they die.
A _____ is the same as an advance healthcare directive.
will
health insurance
living will
medical report
Penny stocks, commodities, and collectables are examples of...
high risk/high yield investments
moderate risk/moderate yield investments
low risk/low yield investments
Savings accounts, checking accounts, CDs, US savings bonds are examples of...
high risk/high yield investments
moderate risk/moderate yield investments
low risk/low yield investments
Blue chip stocks and real estate are examples of...
high risk/high yield investments
moderate risk/moderate yield investments
low risk/low yield investments
Investments that represent ownership in a company are called (a) .
Investments that are like a loan to a company or municipality are called (a)
Which is generally a safer investment?
stocks
bonds
These investments are professionally managed, pools money with others, spreads your risk
stocks
bonds
mutual funds
These are factors that affect auto insurance premiums
(more than 1 correct answer)
age
type of car
price of car
driving record
These are factors that affect home insurance premiums
(more than 1 correct answer)
risk factors such as pool or trampoline
age
elimination period
cost to rebuild
These are factors that affect life insurance premiums
(more than 1 correct answer)
what job you have
health issues
driving record
age
These are factors that affect health insurance premiums
(more than 1 correct answer)
benefit limit
health issues
age
risk factors
These are factors that affect disability insurance premiums
(more than 1 correct answer)
elimination period
what job you have
benefit limit
age
The main source of funding for the federal government is...
sales tax
income tax
property tax
The main source of funding for state governments is...
property tax
sales tax
income tax
The main source of funding for local governments is...
sales tax
property tax
income tax
Firefighters, sewer/water, public transportation,and recreation department are all services provided by...
state governments
local governments
the federal government
Military, welfare, medicaid/medicare, social security are services provided by...
the federal government
local governments
state governments
Protective services, licensing service, and elections are services provided by...
local governments
state governments
the federal government
These are services provided by all 3 levels of government...
(more than 1 correct answer)
roads
parks
law enforcement/prisons
education
Baseball cards, Beanie Babies, vintage toys, coins, and stamps are all examples of (a)
(commododities or collectibles)
Gold, silver, paper, coffee, bananas, and oranges are all examples of (a)
(commodities or collectibles)
A PROGRESSIVE tax is when people with higher incomes pay a higher percent of income. An example of this is...
Local income tax
federal income tax
sales tax
A REGRESSIVE tax is when people with lower incomes pay a higher percent of income. An example of this is ...
sales tax
local income tax
federal income tax
A FLAT tax is when all people pay the same percent of income. An example of this is ...
federal income tax
local income tax
sales tax
