WorksheetsFinal
Total questions: 80
Worksheet time: 40mins
Name
Class
Date
1.
1. Mandatory government spending includes which of the following?
a)
Infrastructure and science
b)
Social Security and Medicare
c)
Healthcare and military
d)
Education and agriculture
2.
2. What does the term "withholding" mean in reference to your paycheck?
a)
The amount of your paycheck that you are NOT being taxed on
b)
How much you are going to owe the government when you file your annual tax return
c)
How much you earn and includes salary, bonus and commissions
d)
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
3.
3. When do you start paying income taxes?
a)
When you turn 18
b)
When you get a full-time job (part-time does not count)
c)
When you make more than the minimum income requirement
d)
When you are notified by the IRS that you are required to pay federal income taxes
4.
4. Why is it important to be extremely careful when completing your 1040 form?
a)
Making a mistake will disqualify you from receiving future refunds
b)
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
c)
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward
d)
Mistakes on your 1040 form make you ineligible for employment during the next year
5.
Our tax money is spent on all of the following EXCEPT:
a)
Social Security
b)
The Military
c)
Private School Education
d)
National Parks
6.
The W-4 form lets...
a)
the government know how much you paid in taxes last year
b)
your employer know how much to withhold from your paycheck
c)
the 3 major credit bureaus know how many dependents you have
d)
you know how much you paid in taxes last year
7.
What item would you DEFINITELY see on a paystub?
a)
Retirement
b)
Gross Pay
c)
Healthcare
d)
Your occupation/role
8.
By claiming "exempt" on the W-4 form...
a)
You are paying all income taxes upfront at the START of the year.
b)
You are requesting an extension to file your taxes
c)
You will NOT have income taxes withheld from your paycheck.
d)
You are paying all income taxes at the END of the calendar year.
9.
True or False: All wages, tips, and bonuses are taxable unless specifically excluded.
a)
True
b)
False
10.
Which is TRUE if you do not pay your taxes?
a)
You owe twice as much the following year
b)
You're more likely to be approved for low interest loans
c)
You cannot go to jail (but you will be heavily fined)
d)
Your credit score may be impacted
11.
What is the deadline for filing your federal income tax return?
a)
April 15
b)
May 1st
c)
June 15
d)
July 4th
12.
I am received in January
There is one of me for every job you work
You can tell how much you earned and how much you paid in taxes by reading me
a)
I am W-2
b)
I am 1099
c)
I am a 1040
d)
I am w-4
13.
I am received in January
You get me if you are not an employee but were paid by a company
You can also get me for other types of income, such as gains and losses in brokerage accounts, dividend and interest payments, and more
You probably didn’t get taxes withheld if you got me, so you may have a big tax bill coming up
a)
I am W-2
b)
I am 1099
c)
I am a 1040
d)
I am w-4
14.
I am completed every Apri
lAnyone can use me
Beware, there is a LOT to fill out
a)
I am W-2
b)
I am 1099
c)
I am a 1040
d)
I am w-4
e)
I am I-9
15.
I am received whenever you start a job
You list information about yourself and your family on me
I determine how much money gets taken out of each paycheck
a)
I am W-2
b)
I am 1099
c)
I am a 1040
d)
I am w-4
e)
I am I-9
16.
I am received whenever you start a job
You use me to prove that you are eligible to work in the U.S.
You must provide forms of identification when submitting me
a)
I am W-2
b)
I am 1099
c)
I am a 1040
d)
I am w-4
e)
I am I-9
17.
Which of the following is a possible consequence of not filing your taxes?
a)
Receiving a tax refund automatically
b)
Being awarded a tax compliance certificate
c)
facing penalties or legal action
d)
Earning interest on unpaid taxes
18.
Which of the following things is TRUE about the W-2 form EXCEPT...
a)
You get 1 W-2 form every year, even if you had multiple jobs
b)
It contains information you'll need to fill out a 1040It contains information you'll need to fill out a 1040
c)
It lets you know how much you earned last year
d)
It lets you know how much was withheld from your paychecks
19.
Jason is 15 and earned $1450 at his job last summer. Should he file a tax return?
a)
No, because he didn't earn enough.
b)
No, because you have to be 16 and older to file taxes.
c)
Yes, because he may get a refund.
d)
Yes. You must file taxes even if you didn't earn enough.
20.
What do you need to file your 1040 form?
a)
Your w-2
b)
your w-4
c)
Your prior year's tax return
d)
Income of $50,000 or more
21.
Which of the following is NOT a way you can file your taxes?
a)
Through a tax professional
b)
Mailing in a paper tax return to the Federal government
c)
Using tax software like TurboTax
d)
Through your employer's HR departmen
22.
6. You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for taxes?
a)
W-4
b)
W-2
c)
I-9
d)
1040
23.
7. Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
a)
Social Security
b)
Medicare
c)
401(k) contribution
d)
Federal income taxes
24.
8. When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…
a)
How much income did you earn this year?
b)
What type of income did you earn this year?
c)
What state do you live in?
d)
Are you claimed as a dependent on anyone else's tax return?
25.
12. What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
a)
I-9
b)
1099
c)
1040
d)
W-4
26.
14. When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
a)
withholding
b)
direct deposit
c)
deduction
d)
refund
27.
20. Which of the following describes what a "dependent" is for tax purposes?
a)
A child or adult that you support financially
b)
Someone who is temporarily disabled
c)
An adult who financially supports you
d)
Someone who is a full-time student under the age of 30
28.
21. If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
a)
They will receive a refund
b)
They will owe a payment to the IRS
c)
They will be audited
d)
They will be charged with tax evasion
29.
22. Which of the following statements about the W-2 form is TRUE?
a)
A W-2 lists all the money you earned in cash over the last year
b)
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
c)
You need a separate W-2 form from EACH of your employers in order to file your taxes
d)
The W-2 includes information about the interest you earned from your investments
30.
17. A disadvantage of using a robo-adviser might be that…
a)
You are charged higher fees than if a human fund manager adjusted your portfolio
b)
You may not be able to get advice from a human financial advisor when you want it
c)
You don’t have any input as to how your portfolio is invested
d)
You’ll be put on a waitlist to use the robo-adviser since there are only a handful of them to choose from
31.
19. What is one question an investor should ask when deciding whether or not they would like to open a Roth IRA or a Traditional IRA?
a)
Do I want to make a guaranteed return of 6% or 8%?
b)
Do I want to pay taxes now or later?
c)
Do I want to take advantage of my employer’s matching contribution?
d)
Do I want to take on more or less risk?
32.
1. How does investing in the stock market differ from putting money in a savings account at a bank?
a)
Investing is always a less risky option than saving
b)
Investing is best for short-term situations like emergency funds; saving is best for the long-term
c)
Investing typically earns between 1-2% while saving generally earns between 5-7%
d)
Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies
33.
2. Which of the following statements is TRUE about compound interest?
a)
Compound interest is difficult to calculate, so those who use it earn higher profits for their efforts
b)
Compound interest means you have a fund manager who is compounding your returns without charging a fee
c)
Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned
d)
Compound interest directly impacts how much you will be charged in fees
34.
3. What kinds of behaviors can PREVENT people from making smart investing decisions?
a)
Staying calm when the market is experiencing a downturn
b)
Buying stocks when prices are low and selling them when they’re high
c)
Exiting the market because that’s what everyone else is doing
d)
Investing in a diversified portfolio instead of trying to beat the market
35.
5. Which of the following accurately describes a difference between an individual bond compared to a bond fund?
a)
A bond pays you dividends while a bond fund pays you regular interest
b)
A bond guarantees you a higher rate of return than a bond fund
c)
A bond is issued by a company while bond funds only invest in government bonds
d)
A bond is considered to be a less diversified investment than a bond fund
36.
6. Which of the following statements about Exchange Traded Funds (ETFs) is TRUE?
a)
ETFs are traded once a day after the market closes
b)
An ETF is a single stock that you can buy in the stock market
c)
Actively managed ETFs have very low fees
d)
ETF prices can change throughout the day as they are exchanged on the market
37.
9. Why is diversification a recommended investment strategy?
a)
Investing in a diversified portfolio guarantees that you won’t lose money with your investments
b)
If you tell your fund manager to use diversification, they’ll charge you lower fees
c)
Diversifying your portfolio helps reduce risk
d)
If you diversify your portfolio, you will definitely earn a high return
38.
10. Which of the following is a characteristic of dollar-cost averaging?
a)
Dollar-cost averaging is a way to decrease your risk
b)
Dollar-cost averaging is a strategy that only expert investors use
c)
Dollar-cost averaging is advantageous because earnings are untaxed
d)
Dollar-cost averaging is offered exclusively through robo-advisors
39.
11. How is a bond different from a stock?
a)
A bond is a loan you give to an organization while a stock is partial ownership in a company
b)
Bonds are typically riskier than stocks but have the potential to earn higher returns
c)
Bonds are usually issued by smaller startup companies while stocks are issued by well established organizations
d)
Bonds are best for earning high returns while stocks are best for providing a stable source of income
40.
12. Which of the following is TRUE about capital gains tax?
a)
Capital gains tax is only applied to the sale of personal items, such as cars and jewelry
b)
Capital gains tax is applied at a uniform rate across all types of investments, regardless of the holding period
c)
Capital gains tax is charged on the profit made from the sale of an investment or real estate
d)
Capital gains tax is something you can opt-out of if you do not want to pay it for a specific year
41.
13. How can someone make money from investing in a stock?
a)
They sell the stock for a lower price than what they bought it for
b)
They receive dividends or they sell the stock at a higher price than what they bought it for
c)
The stock loses value but the overall market experiences a positive return
d)
They sell the stock for the same price they bought it for
42.
14. What is a brokerage account used for?
a)
It’s an online portal that allows you to set up appointments with a fund manager
b)
It’s the account you use to pay any taxes you owe on money you earned on your investments
c)
It’s a type of account used to buy and sell stocks, bonds, and funds
d)
It’s a special type of 401(k) plan that only some employers offer
43.
22. Which of the following is an example of insider trading?
a)
Purchasing stocks based on the general trend in the stock market
b)
Buying or selling stocks based on information that is not available to the public
c)
Investing in a diversified portfolio to spread out the risk of investment
d)
Selling stocks because of publicly released financial news and company earnings
44.
23. Why are Index Funds such a popular investing option?
a)
They are a mix of 2-3 individual stocks that can help you diversify your portfolio
b)
They provide a low-cost, diversified investment option that closely matches the overall return of a given index, such as the S&P 500
c)
They are actively managed by a fund manager
d)
They are managed by robo-advisors that guarantee higher returns than the overall stock market
45.
Which would be considered the highest risk investment type?
a)
Stock
b)
Mutual fund
c)
Bond
d)
Money Market Account
46.
The relationship between risk and return can be stated as
a)
Higher risk indicates higher return
b)
Higher risk indicates lower return
c)
Lower risk indicates higher return
d)
No relationship exists between risk and return
47.
How can you make money on stocks?
a)
Buy them when the price is high and sell when the price is low
b)
Interest
c)
Dividends
d)
Holding the stock at least 3 years
48.
A _____ is a loan given to an organization while a _______ is partial ownership in the company.
a)
stock, bond
b)
bond, ETF
c)
bond, stock
d)
ETF, bond
49.
If interest rates rise, what will typically happen to bond prices?
a)
rise
b)
fall
c)
stay the same
d)
interest rates are not related to bond prices
50.
What's the main difference between a Roth IRA and a Traditional IRA?
a)
Roth IRAs have higher interest rates
b)
Roth IRAs have you pay taxes upfront
c)
Roth IRAs have higher fees
d)
Roth IRAs are riskier investments
51.
What is the main appeal of an index fund?
a)
They are always actively managed to add a human touch
b)
They are typically low cost and diversified investments
c)
They are always managed by a robo-advisor to remove human bias
d)
They give you partial ownership of a single company
52.
An account that is used to buy and sell stocks, bonds, and funds is called a
a)
Roth IRA
b)
ETC Account
c)
Brokerage Account
d)
Target Date Fund
53.
Funds in this type of IRA will grow tax free because taxes have already been paid on the money invested.
a)
Roth
b)
Traditional
54.
Which Index uses the most companies?
a)
Dow Jones
b)
NASDAQ
c)
S&P 500
55.
A bond's interest rate
a)
Coupon Rate
b)
Per Value
c)
Maturity
d)
Yield
56.
1. 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
57.
2. Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?
a)
Deductible limit
b)
Premium
c)
Out-of-network fees
d)
Co-insurance
58.
3. When setting your premium, your car insurance company may consider each of the following EXCEPT...
a)
How many miles you drive per year
b)
Your age
c)
Your driving record
d)
Your height
59.
4. Insurance companies make money by...
a)
Refusing to pay out claims to policyholders
b)
Collecting money from the government
c)
Collecting more in premiums than they need to pay out each year
d)
Keeping costs low with minimal advertising
60.
5. Which of the following statements is TRUE about auto insurance premiums?
a)
If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company
b)
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease
c)
Auto insurance premiums are a fixed price across all insurance companies
d)
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase
61.
7. Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?
a)
Bodily injury liability
b)
Property liability
c)
Collision
d)
Comprehensive
62.
11. Each of these is considered an "out-of-pocket" expense EXCEPT…
a)
Your monthly premium
b)
A copay of $15 to fill a prescription
c)
A $1000 deductible if you're in an auto accident
d)
Excess bills from a car accident once you've gone over your maximum coverage limit
63.
12. Medicaid generally provides insurance for which of the following groups of people?
a)
The elderly or disabled
b)
Individuals in low-income households
c)
Anyone who wants to buy coverage from the Marketplace
d)
Employees who have a government position
64.
13. Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?
a)
You can only see doctors who are also employees of the same company
b)
Your health insurance premiums will be paid directly from your paycheck, pre-tax
c)
Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care
d)
You can remain on that health insurance plan even if you switch jobs
65.
14. Which person will probably have the MOST expensive health insurance premiums?
a)
Julian, who has 3 children and is eligible for Medicaid
b)
Samantha, a widow who is eligible for Medicare
c)
Patty, who works as an administrative assistant for an employer with a group plan
d)
Robin, a high earning business owner who buys a plan for their whole family on the Marketplace
66.
15. What type of auto insurance are you required to carry in almost every state (49 out of 50)?
a)
Insurance if you damage your own property
b)
Insurance if you cause injury to another person
c)
Insurance in case you get into an accident with someone who does not have insurance
d)
Insurance if you cause injury to yourself
67.
20. In general, how do insurance companies decide how much to charge an individual for their monthly premiums?
a)
The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals
b)
The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay
c)
The company charges the same premium for every individual eligible for coverage
d)
The company increases or decreases premium rates based on the stock market
68.
21. Which of the following insurance coverage options would be the lowest priority for a typical single person, with no children, 1-2 years out of high school?
a)
Health Insurance
b)
Auto Insurance (if they have a car)
c)
Life Insurance
d)
Renter's Insurance (if they are renting an apartment)
69.
23. A standard renters insurance policy would cover each of the following EXCEPT…
a)
A small TV and some sneakers, stolen in a robbery
b)
A new window when a baseball breaks the original one
c)
A lawsuit brought when a visitor hits their head on a low hanging light fixture
d)
A week of hotel reservations when the tenant has to move out due to fire damage
70.
25. Which BEST describes what is meant by a health insurance marketplace?
a)
An online directory that lists doctor and hospital contact information
b)
The portal you use to register for employer-sponsored group plans
c)
A federal- or state-run website with the individual health insurance plans available in a given state
d)
Any doctor’s office or hospital that shares a physical location with other medical providers
71.
Which type of insurance is likely to be the lowest priority for a single, working, 24-year-old?
a)
health Insurance
b)
Disability insurance
c)
Auto Insurance
d)
Life insurance
72.
The federal agency that oversees insurance companies is
a)
The Federal Trade Commission
b)
The Consumers Union
c)
The Department of Transportation
d)
Insurance companies are regulated on a state-by-state basis
73.
What role does insurance play in financial planning?
a)
It guarantees that income and assets are protected
b)
It helps build and maintain one's credit score
c)
It grows in value and appreciates over time
d)
It helps cover day-to-day expenses
74.
The out of pocket cost to the insured when a loss occurs is called.
a)
Premium
b)
Deductible
75.
This professional analyzes statistics and uses them to calculate risks and premiums
a)
Agent
b)
Actuary
c)
Claims Clerk
d)
Underwriter
76.
A stone hits your windshield. Which type of coverage would likely cover this expense?
a)
Collision
b)
Comprehensive
c)
Liability
d)
none
77.
Each of these factors impacts your insurance premium EXCEPT...
a)
Deductible amount
b)
Your credit score
c)
The vehicle you are insuring
d)
Your income
78.
Which of the following wouldn't save you money on your auto insurance premium?
a)
Decrease your deductible
b)
Reduce or eliminate optional insurance on an older vehicle
c)
Maintain a good credit history
d)
Bundle your insurance with other policies
79.
A policy is a contract between the
a)
Policyholder and the injured person
b)
Driver and the government
c)
Consumer and the insurance company
d)
Consumer and the insurance agent
80.
Under current law, until what age can a child stay on their parents' health insurance?
a)
26
b)
18
c)
21
d)
3
e)
4
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