WorksheetsNext Gen Personal Finance Final Exam
Total questions: 40
Worksheet time: 20mins
Name
Class
Date
1.
1A. Which of the following transactions will REDUCE your checking account balance immediately?
a)
Writing your monthly rent check which you will mail tomorrow
b)
Using your debit card to pay for groceries at the supermarket
c)
Using your credit card to pay for your school books
d)
Depositing a check at a local bank branch
2.
1B. When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
a)
Your account will be closed
b)
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn ($29) + interest
c)
Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
d)
The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed
3.
1C. What is the mathematical formula that you would use to describe the financial activity on a bank statement?
a)
Ending Balance = Previous Balance + Deposits + Withdrawals + Fees
b)
Ending Balance = Previous Balance - Deposits + Withdrawals - Fees
c)
Ending Balance = Previous Balance + Deposits - Withdrawals - Fees
d)
Ending Balance = Previous Balance - Deposits - Withdrawals + Fees
4.
1D. Which TWO of the following statements are advantages of online banking?
a)
A & B
b)
B & C
c)
B & D
d)
A & C
5.
2A. How is an online savings account different from a traditional savings account?
a)
An online savings account includes a mobile app, while a traditional savings account does not
b)
An online savings account is offered by a bank that customers can only access online rather than at a physical bank branch
c)
Online savings accounts will only offer electronic statements rather than paper copies
d)
Online savings accounts cannot be FDIC insured, whereas traditional savings accounts can
6.
2B. Fill in the blanks with the correct responses. If you follow the 50-20-30 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 20% of your monthly income toward _____________, and 30% of your monthly income toward ______________.
a)
Needs, wants, savings
b)
Savings, needs, wants
c)
Needs, savings, wants
d)
Wants, needs, savings
7.
2C. Stanley deposits $1,000 into a savings account that pays 1% interest. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off ____________. If the account has compounding interest, the 1% interest for year two would be based off ________________.(NOTE: The first choice goes in the first blank, the second choice goes in the second blank)
a)
The original deposit ($1,000); The year one account balance ($1,010)
b)
The original deposit ($1,000); The year one interest ($10)
c)
The year one account balance ($1,010); The year one interest ($10)
d)
The year one account balance ($1,010); The original deposit ($1,000)
8.
3A. Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?
a)
When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed
b)
Your APR will be within that range, depending on the strength of your credit history
c)
With credit card APRs, cardholders like higher APRs because they earn more
d)
The APR on credit cards is usually fixed so it won't be adjusted as long as you are a cardholder
9.
3B. Elizabeth is considering buying a $30,000 car. Which of these financing options will likely lead to the LOWEST MONTHLY payment?
a)
$3000 down payment, 6% interest, 84 months
b)
$3000 down payment, 6% interest, 60 months
c)
$0 down payment, 6% interest, 60 months
d)
$0 down payment, 0% interest, 36 months
10.
3C. Select the statement below that accurately describes a characteristic of a credit card.
a)
You owe the same payment every month
b)
You must have money deposited into a checking account to use the credit card for purchases
c)
Making full payments on time every month is the only way to avoid interest charges
d)
They do not charge interest
11.
3D. As a young adult, all of the following are good strategies for building credit, EXCEPT:
a)
Open a credit card, with your parent or guardian as a cosigner
b)
Open a checking account, and start using a debit card
c)
Become an authorized user on a credit card used by your parent or guardian
d)
Open and use a secured credit card
12.
4A. How can your credit score impact your financial situation?
a)
A high credit score will mean higher rates of return on your investments
b)
A low credit score will mean lower ATM and overdraft fees
c)
Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
d)
If you have no credit history, you're automatically approved for loans you may need
13.
4B. Who tracks all of your credit information?
a)
Companies named Equifax, Experian and TransUnion
b)
Federal government
c)
Consumer Financial Protection Board (CFPB)
d)
Lenders
14.
4C. Which best describes the Debt Snowball method for paying off debt?
a)
Only make payments on your smallest debt first, then move on to your second smallest debt, and so on…
b)
Once your debt "snowballs" out of control, hire a certified credit counselor to help get your finances back on track
c)
Make the monthly minimum payments on all your debts and put any extra cash toward the debt with the highest balance
d)
Make the monthly minimum payments on all your debts and put any extra cash toward the debt with the lowest balance
15.
5A. Typically, when should you first file the FAFSA?
a)
After you finish freshman year of high school
b)
October or November of your last year of high school
c)
After you receive your Student Aid Report
d)
Once you are ready to start repaying your student loans
16.
5B. Which of these options depicts the types of financial aid from MOST attractive to LEAST attractive?
a)
Private loans, Federal loans, Work-study, Grants/Scholarships
b)
Grants/Scholarships, Work-study, Federal loans, Private loans
c)
Work-study, Grants/Scholarships, Federal loans, Private loans
d)
Federal loans, Grants/Scholarships, Work-study, Private loans
17.
5C. If you don’t proactively choose a different repayment plan option, your Federal student loans will default to the Standard Plan, which has a term of __________.
a)
5%
b)
10%
c)
5 years
d)
10 years
18.
6A. Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
a)
His gross pay is $2,500 and net pay is $3,000.
b)
His gross and net pay are $3,000.
c)
His gross and net pay are $2,500.
d)
His gross pay is $3,000 and net pay is $2,500.
19.
6B. Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?
a)
A budget deficit of $200
b)
A budget deficit of $4800
c)
A budget surplus of $200
d)
A budget surplus of $4800
20.
6C. Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?
a)
Dining out at local restaurants
b)
Loan payment on a new car
c)
Expenses for new clothes
d)
Postponing a purchase for a big-screen TV
21.
7A. Which of the statements below BEST describes the difference between saving and investing?
a)
Saving requires you to put money aside on an annual basis while investing requires you to put money aside every two weeks
b)
Saving guarantees a rate of return of 7% while investing guarantees a rate of return of 2%
c)
Saving typically beats the rate of inflation while investing does not
d)
Saving is best for short-term goals and emergencies while investing is best for long-term goals like retirement
22.
7B. You purchase 100 shares of Ravioli Den for $45/share. One year later, you sell the shares for $52/share. What was your TOTAL GAIN for your investment in Ravioli Den? Assume that Ravioli Den didn't pay a dividend and that you didn't incur any trading fees during that period.
a)
$0
b)
$200
c)
$700
d)
$900
23.
7C. Which of the following are good reasons to buy a stock index fund that invests in the S&P 500?
a)
It is diversified, has low fees and will "beat" the market
b)
It has high fees, is diversified and historically has performed better than most mutual funds investing in big companies
c)
It is diversified, has low fees and historically has performed better than most mutual funds investing in big companies
d)
It is not diversified, has high fees and will "beat" the market
24.
8A. Cognitive bias can explain why...
a)
Most people make decisions based purely on logic and reason
b)
Emotions usually play a very small role in most peoples’ decision making process
c)
People can make decisions that are not always in their best interest
d)
Making a wise financial decision, such as to save more, is very easy for the majority of people
25.
8B. Ryan has been feeling a lot of FOMO (fear of missing out) lately and wants to take some steps to improve how he feels. Which of the following would be the BEST next step for him to take?
a)
Attend all of his school’s social events even though he doesn’t really want to go
b)
Buy a new pair of expensive shoes that he’s heard some of his friends raving about
c)
Spend less time on social media and spend more time doing things he enjoys
d)
Get rid of all of his social media profiles and data so that he never feels FOMO again
26.
8C. All of the following are TRUE about social media advertising today, EXCEPT...
a)
Advertisers use consumer data to create tailored advertisements and influence consumers to purchase products
b)
Cognitive biases such as FOMO and herd mentality play a very small role in influencing consumer behavior in social media advertisements
c)
Advertisements have made it extremely easy for consumers to shop on social media, oftentimes including direct links to a product on a website
d)
Social media advertising has become nearly indistinguishable from other types of content on social media platforms
27.
9A. Your friend has an interview tomorrow and is seeking his first job. Which of the following represents the WORST piece of advice you can give him?
a)
Don't ask questions during your interview, because you will come across as uninformed or unqualified
b)
Plan to arrive at least 15 minutes early
c)
Do research ahead of time to understand how your role will support the larger organization
d)
Be prepared to answer tough questions, such as your greatest weakness or a time when you were unsuccessful
28.
9B. Juanita wants to better understand what soft skills are. Which of the following statements do you tell her?
a)
Soft skills are the specific set of skills you need to complete your job responsibilities.
b)
Soft skills are often overlooked by employers so they don’t matter that much.
c)
Soft skills are the skills you need to successfully work with others.
d)
Soft skills are easy to demonstrate through a cover letter and resume.
29.
9C. Your friend Wilma created a LinkedIn profile a while back and would like to use it more often to expand her network and look for new job opportunities. Which of the following should she do?
a)
She should share a picture of her most recent family vacation on her profile.
b)
She should ask for a big favor right after she connects with someone.
c)
She should join numerous groups even if they are outside her interests.
d)
She should reach out to any contacts she has at a company she is interested in joining.
30.
10A. Which of the following is a factor that determines if you NEED to file a federal tax return?
a)
What state you live in
b)
How much money you earned last year
c)
Your age - you must be over 18
d)
Whether your job was a full-time or part-time position
31.
10B. Why should you accurately complete a W-4 form any time you start a new job or change your tax status?
a)
You need a copy of your W-4 to file your tax return annually
b)
Your W-4 determines how much income tax money your employer should withhold
c)
Your W-4 determines your total tax bill at the end of the year
d)
Completing a W-4 will guarantee you receive a large tax refund
32.
10C. 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
33.
11A. 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 in claims
d)
Keeping costs low with minimal advertising
34.
11B. Uma's renters insurance policy has a premium of $15/month, a deductible of $1000, and a personal property coverage limit of $40,000. Her apartment is burglarized and $5,600 of possessions are stolen or destroyed. How much will Uma pay in order to replace her stuff?
a)
$15
b)
$15/month for as many months as it takes her to pay back off the $5600 (approx 370 months)
c)
$1000
d)
$5600
35.
11C. Which of the following auto insurance coverages are you REQUIRED to carry in most states (49 out of 50)?
a)
Personal Injury Protection
b)
Collision
c)
Comprehensive
d)
Liability
36.
12A. Jane wants to limit how much social media impacts her spending. What is one moderate step she can take to do so?
a)
Click on advertisement links she sees in her feed to ensure she never misses a deal
b)
Limit her time on social media by checking her feeds only a few times throughout the day
c)
Delete all of her social media accounts immediately
d)
Follow influencers who promote new products on a frequent basis
37.
12B. All of the following scenarios are examples of dark patterns EXCEPT...
a)
Mihir makes an unintended in-app purchase due to confusing buttons in the app
b)
Jessica books a hotel room before reading its reviews due to a countdown timer on the website
c)
Idris has to go through a series of tedious steps to close an account for an online shopping site
d)
Arya is able to unsubscribe from an email list using the clear "unsubscribe" link at the bottom of one of the emails
38.
12C. Comparison shopping is the practice of...
a)
Comparing a product you bought a year ago to an updated version that is available now
b)
Comparing the quality of a product you bought to the quality of a similar product your friend bought
c)
Comparing the prices of two unrelated products you need to purchase
d)
Comparing various factors of the same product offered by different retailers before making a purchasing decision
39.
12D. Which of the following is LEAST likely to be a scam?
a)
You receive a phone call from the IRS demanding you pay taxes you owe within 24 hours
b)
You receive an email from a retailer asking you to share personal information such as your Social Security number
c)
You receive a call back from your doctor's office after leaving them a message
d)
You receive a text from your bank asking you call them back using a phone number you've never seen
40.
12E. What is one step you can take to protect yourself from identity theft?
a)
Check your bank statements each month to verify that all transactions are accurate
b)
Log into your bank's mobile app using a public WiFi network
c)
Throw away expired bank account cards and documents without shredding them
d)
Use websites that start with "http" instead of "https"
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