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EPF 2nd Semester Exam

Total questions: 25

Worksheet time: 4hrs 10mins

Name
Class
Date
1.

How is money earned on an hourly basis classified?

a)

Salary

b)

Wage

c)

Bonus

d)

Commission

2.

What is the purpose of the W-4 form?

a)

To report your annual income to the IRS

b)

To determine how much money your employer withholds from your paycheck for income taxes

c)

To calculate your eligibility for government benefits

d)

To record your personal identification information for employment records

3.

Which one tells you your earnings BEFORE taxes?

a)

Gross Pay

b)

Net Pay

c)

Commissions

d)

Overtime

4.

Which one is extra money you can make from working more than your scheduled or selling extra items?

a)

Gross Pay

b)

Net Pay

c)

Commissions

d)

Overtime

5.

Which one tells you your earnings AFTER taxes?

a)

Gross Pay

b)

Net Pay

c)

Commissions

d)

Overtime

6.

What is the purpose of filing income taxes?

a)

To show your disagreement about taxes to the government

b)

To avoid paying taxes altogether

c)

To increase your tax bill

d)

To determine if you owe additional taxes or if you are owed a refund

7.

When the stock market is doing well, the jargon term is

a)

Bear Market

b)

Duck Market

c)

Tiger Market

d)

Bull Market

8.

What is a Traditional IRA?

a)

A Traditional IRA is a type of individual retirement account that allows individuals to contribute pre-tax income to their retirement savings.

b)

A Traditional IRA is a type of individual retirement account that allows individuals to contribute post-tax income to their retirement savings.

c)

A Traditional IRA is a type of individual retirement account that does not offer any tax advantages.

d)

A Traditional IRA is a type of individual retirement account that is only available to individuals over the age of 70.

9.

What is a Roth IRA?

a)

A Roth IRA is a type of individual retirement account that allows individuals to contribute after-tax income but taxes are still owed on withdrawals in retirement.

b)

A Roth IRA is a type of individual retirement account that requires individuals to contribute before-tax income and pay taxes on withdrawals in retirement.

c)

A Roth IRA is a type of individual retirement account that allows individuals to contribute after-tax income and enjoy tax-free growth and withdrawals in retirement.

d)

A Roth IRA is a type of individual retirement account that does not allow individuals to contribute after-tax income and taxes are owed on both contributions and withdrawals in retirement.

10.

What is a 401(k) account?

a)

A 401(k) account is a type of credit card.

b)

A 401(k) account is a government assistance program.

c)

A 401(k) account is a type of insurance policy.

d)

A 401(k) account is a retirement savings plan sponsored by an employer.

11.

What is a fixed expense ?

a)
A fixed expense is a one-time cost that is paid only once.
b)
A fixed expense is a variable cost that changes every month.
c)
A fixed expense is a recurring cost that remains the same each month.
d)
A fixed expense is a cost that is not necessary and can be avoided.
12.

What is a variable expense ?

a)
An expense that is unexpected and not budgeted for.
b)
An expense that is paid for with cash.
c)
An expense that is incurred after the budget is finalized.
d)

A planned expense that can change each month.

13.

What is a certificate of deposit ?

a)
A certificate of deposit is a type of insurance policy that protects against losses in the stock market.
b)
A certificate of deposit is a type of loan that individuals can take out from a bank or credit union.
c)
A certificate of deposit is a type of credit card that allows individuals to make purchases and pay them off over time.
d)
A certificate of deposit is a financial product offered by banks and credit unions that allows individuals to deposit money for a fixed period of time at a fixed interest rate.
14.

What is a stock ?

a)

A stock is a type of investment that represents ownership in a company.

b)
A stock is a type of commodity that can be traded on the stock exchange.
c)
A stock is a type of currency used in the stock market.
d)
A stock is a type of bond that pays a fixed interest rate.
15.

What is diversification ?

a)
Spreading investments across different industries to increase risk.
b)
Reducing the number of investments in your portfolio.
c)
Investing all your money in a single asset or security.
d)

Not putting all your eggs in one basket.

16.

The best rating a bond can receive

a)

D

b)

AAA

c)

AA

d)

B

17.

Type of stock owned by non-voting members

a)

Income

b)

Growth

c)

Preferred

d)

Common

18.

If you sold stock for a cheaper price than you purchased it for, you experienced...

a)

Capital Loss

b)

Capital Gain

c)

Dividends

d)

Bull

19.

Why is it important to start investing as soon as possible?

a)

You take less risk when you are young, so money will be safe

b)

You have more time for your money to compound

c)

Investing is an easy way to make quick money

d)

Fees on investments are cheaper when you are younger

20.
What does APR stand for?
a)
Annual Point Ratio 
b)
Annual Percentage Rate
c)
A Percent Rate
d)
Annually Percentage Ratio
21.

How can a cardholder avoid paying interest on a credit card?

a)

Do not pay anything

b)

Pay the minimum payment after its due date

c)

Pay the balance in full every month

d)

Pay the minimum balance every month

22.

What is a credit report?

a)

A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness

b)

A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness

c)

A report which shows which credit cards are better than others

d)

A report invented by Allan Greenspan and credited to Al Gore

23.

When may a person view his/her credit report for free?

a)

At any time and an unlimited number of times

b)

Once a year, from each of the three main credit reporting agencies

c)

A person may not review his/her credit report

d)

When a person has sufficient financial resources

24.

This type of bankruptcy is also known as "straight" or "liquidation"

a)

Chapter 7

b)

Chapter 11

c)

Chapter 12

d)

Chapter 13

25.

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