WorksheetsFinal Exam Review
Total questions: 50
Worksheet time: 38mins
Which of the following is not a credit bureau?
Experian
Equifactor
Transunion
Equifax
What is a finance charge?
The cost of borrowing money, including interest and fees
The amount of money a company spends on advertising
The price of a stock or bond at a given time
The fee charged for using a credit card at an ATM
What is Experian Boost?
A credit score improvement tool that allows consumers to include utility and cell phone bill payments in their credit history
A financial service that provides investment advice
A method for calculating the interest earned on a savings account
A type of bond that pays a fixed interest rate
What is diversification?
The act of repaying a loan in full before due date
Concentrating investments in a single asset for maximum return
The process of buying and selling stocks on the stock market
Spreading investments across different assets to reduce risk.
Self-employed individuals pay a self-employment tax. What are the two taxes that are included in it?
Social Security and Federal Tax
Federal and State Tax
Federal and Medicaid
Social Security and Medicare
What type of risk would it be to invest in a mutual fund?
High Risk
Medium Risk
Low Risk
Systematic Risk
What is the largest factor in determining your credit score?
Credit Utilization
Employment History
Payment History
Level of Education
Amy gets paid $20/hour and last week she worked 40 hours plus an additional 5 hours in overtime. Including overtime pay, what was her total gross pay for the week?
Formula: Pay per hour X number of hours worked (including overtime)
$800
$950
$900
$625
Gentry just took out a $5,000 loan that has a 24 month term. His payment is $300/month. What is the total amount of interest that he will pay on this loan?
Formula: monthly payment X monthly term–loan amt.
$2,200
$10,000
$3,600
$5,000
Ava has a credit card balance of $4,000 and is charged 25% interest. What is annual dollar amount of interest does that translate to?
Formula: Credit card balance X interest rate
$1,000
$800
$1,500
$400
The total amount earned before any deductions are subtracted
Net Pay
Incentive Pay
Gross Pay
Overtime Rate
Investment choices that will be reevaluated in the short term
Temporary Investment
Permanent Investment
Rule of 72
Tax Roll Call
Summary of a corporation's financial results for the year and future prospects
Stock Option
Stock Short
Futures Contract
Annual Report
Penny Stocks are a low-priced stock of small companies that have no track record. Generally, what type of risk is it?
Low Risk
Medium Risk
High Risk
No Risk
Who is a debtor?
A person who owes money
A person who lends money
A person manages investments
A person who collects debts
This is a popular government sponsored loan that allows 3.5% minimum down payment and carries mortgage insurance
VA Loan
FHA Loan
Conventional Loan
Adjustable Rate Mortgage
A prepaid interest charge that is used to lower the interest on a mortgage loan
Loan Origination Fee
Title Fees
Discount Points
Trust Deed
What is collective bargaining?
A negotiation process between labor unions and employers
A strategy used by investors to maximize profits
A method for calculating compound interest
A form of credit used to purchase goods or services
What is the speculative investment stage?
A period of time when investments are low-risk and low-return
A stage where investors take on high-risk investments for potential high returns
The process of diversifying investments across different asset classes
A method for calculating the present value of an investment
What does the rule of 72 represent?
The formula for calculating the number of years it takes for an investment to double.
The maximum interest rate allowed on a loan
The percentage of income that should be saved for retirement
The formula for calculating the future interest rate of an investment
What is an annuity?
A type of loan with a fixed interest rate
A savings account with a high-interest rate
A series of equal payments received or made over a period of time
A financial statement that shows the assets and liabilities of a company
What is a discount bond?
A bond that is sold at a price below its face value
A bond that pays a higher interest rate than other bonds
A bond that is considered high-risk and low-return
A bond that is sold at a price above its face value
What is a loan origination fee?
A fee charged by lenders for processing a loan application
A fee charged by banks for opening a new account
A fee charged by investment advisors for managing a portfolio
A fee charged by insurance companies for issuing a policy
What is a service credit?
A service for which you will pay later
The time an employee spends working for a company
A service which you pay now
The fee charged for using a credit card
What is a grace period?
The time period when a loan payment is overdue
The time period which you may pay your current balance in full and incur no interest charges
The time it takes for an investment to reach its full potential
The time period when a payment can be skipped
What is installment debt?
A type of loan that can be used repeatedly up to a certain limit
A loan that must be repaid in full by a specific date
A credit card with a high credit limit
A loan that doesn't have a defined term
What does the term "vested" mean?
Owning a car
Having a job
The point at which employees have full rights to their retirement accounts
Having a health insurance with employer
What does "political investment risk" refer to?
The risk of losing money in the stock market due to high inflation
The risk associated with investing in political campaigns
The risk of the government enacting laws/regulations
The risk of investing in political parties
What is job rotation?
Employee trained to do more than one job within company
The act of quitting a job
The process of moving jobs to an outside employer
The practice of hiring new employees
What is lobbying?
The act of advocating for a cause or issue to lawmakers
The act of promoting an event
The process of moving jobs to an outside employer
The practice of hiring new employees
What does inflation refer to?
The rise in the general level or prices for goods and services
The decrease in the general level of prices for goods and services
The stability of prices for goods and services
The fluctuation of interest rates for goods and services
What is a stock?
A type of bond
A type of loan
A share of ownership in a company
A type of insurance
What does equity mean in the context of real estate property?
The difference between income and expenses
The total value of a of a company's assets
The amount of money owed on a loan
The difference between the amount owed and the value of the property
What is assessed value?
The value of a property determined for tax purposes
The market value of a property
The value of a property after deducting liabilities
The value of a property after deducting expenses
What does APR stand for?
Average Price Rate
Annual Percentage Rate
Associated Property Return
Average Payment Ratio
What is revolving debt?
Credit that can be used repeatedly
A one-time loan that cannot be reused
Credit that has a defined term
Credit with monthly payment that never changes
Who is a creditor?
A person who owes money
A person who lends money
A person who manages investments
A person who forgets debt
What is collateral?
A type of insurance
A property or asset used to secure a loan
A type of investment
A legal document showcasing the amount owed on loan
What is the most common type of collection?
Child Support
Medical
Vehicle
Home
What are payroll deductions?
The amount of money deducted from an employee's paycheck for taxes and other purposes
The amount of money added to an employee's paycheck as a bonus
The amount of money deducted from an employer's budget for employee benefits
The amount of money added to an employer's budget for employee salaries
What is net pay?
The total amount of money earned by an employee before deductions
The amount of money an employee receives after deductions are made
The amount of money an employer receives after paying employee benefits
The total amount of taxes that are paid by the employee
What is a compressed work schedule?
A work schedule that allows employees to work 40 hours in fewer than five days
A work schedule that requires employees to work overtime
A work schedule that allows employees to work whenever they want to
A work schedule that requires employees to work night shifts
What type of credit card requires a cash deposit as collateral?
Credit Card
Authorized user
Installment loan
Secured credit card
Ryker has a gross monthly income amount of $4,500/month. His monthly debt is $1,150 for rent, $425 for car loan, and $200 student loan. What is Ryker's debt to income ratio?
Formula: Total debt payments/income
25.56%
39.44%
52.17%
35%
Which type of stock typically does well when the economy is growing and performing well, as these companies often reinvest their profits for expansion?
Growth Stock
Emerging Stock
Blue Chips Stock
Defensive Stock
What is a recession?
A period of temporary economic decline during which trade and industrial activity are reduced
A sustained period of economic growth and prosperity
The total value of goods and services produced withhin a country in a given year
The act of buying and selling shares of a company
What does FDIC stand for in the context of financial security?
Federal Disclosure and Insurance Company
Financial Department of International Commerce
Fund for Depository Institutions and Credit
Federal Deposit Insurance Corporation
What is a zero based budget?
A budgeting method that is income minus all expenses equal zero
A budget that relies on flexible spending without tracking expenses
A budgeting method focused solely on long-term financial goals
A budget that prioritizes fixed expenses over variable expenses
What is a routing number?
A number used to identify a specific bank or credit union
A number used to identify a specific checking account
A number used to calculate inflation
A number used to calculate interest on a checkin account
What are dividends?
Portion of a company's profit that is distributed to shareholders
A type of debt security
Taxes levied on investments
Interest payment on bonds
