WorksheetsUnit 7 Personal Finance Study Guide
Total questions: 42
Worksheet time: 21mins
Name
Class
Date
1.
Complete this sentence: A checking account statement...
a)
is the receipt you get from a store when you purchase something using a check
b)
tells you the bank's policies on fees
c)
lists all the purchases and deposits you've made in the previous month
d)
allows you to take out a student loan for college
2.
Which of the following transactions will REDUCE the amount of money in your checking account?
a)
Deposit a check your uncle gives you for your birthday
b)
Use your debit card to get money from an ATM
c)
Buy an expensive new bike using cash
d)
Transfer funds from your saving account to your checking account
3.
What do you need in order to open a checking account?
a)
A form of ID and proof of address
b)
At least $50 saved up
c)
A report card showing you've passed all your classes
d)
Two letters of recommendation
4.
Damaris is shopping online for a new laptop for school. He finds one he likes and wants to purchase it. How does he know if the website he is shopping on is secure?
a)
A secure website will always require a username and a password.
b)
The word SECURE will appear in the upper righthand corner.
c)
The URL will change to https://
d)
Secure websites always have a large lock at the bottom of the webpage.
5.
Which of these is the strongest password?
a)
football - It is easy to remember so you will never forget your password.
b)
123456 - It contains all numbers instead of letters, making it more secure.
c)
daniel1 - It contains both the person's name and a number.
d)
t1pwtsb! - It contains letters, numbers, & symbols and is a memorable sentence turned into a password.
6.
What is the key difference between a credit card and a debit card?
a)
Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking account
b)
Wealthy people use credit cards, while people with lower incomes use debit cards
c)
Credit cards come from credit unions, while debit cards come from banks
d)
You can only use credit cards if you are over 25, but you can use debit cards as long as you are over 18
7.
Craig isn't sure if he should open up a credit card account or get a bank loan. What question is MOST useful in helping him decide which financial product he should get?
a)
Are you responsible with your money?
b)
Are you trying to make a bunch of small purchases over time or one large purchase?
c)
Are you using the money to purchase an item that is a need or a want?
d)
How much money do you have in your bank account?
8.
Kervin really wants to buy a new bike because his old one is too small now. He's trying to decide if he should use his debit card or credit card. What's one reason he should be careful about using credit?
a)
Credit will take the money straight from his checking account, lowering his bank balance
b)
Credit will force him to pay taxes on his bike purchase
c)
Credit will charge him interest every month until he repays his full balance
d)
Credit will force him to buy a cheaper bike than he could with debit
9.
Which statement about credit card interest rates is TRUE?
a)
The more money you spend on purchases, the higher your interest rate will be
b)
A high interest rate means you'll pay MORE money total
c)
A high interst rate means you'll pay LESS money total
d)
Most credit cards do not charge any interest rate
10.
Which age group tends to have the most credit card debt?
a)
Young adults
b)
Middle-aged people
c)
Senior citizens
d)
Credit card debt is evenly distributed among all age groups
11.
What is the best way to avoid going into large debt on your credit card?
a)
Avoid paying the bill every month so your bank account stays high
b)
Pay the minimum monthly payment on time every month
c)
Pay half your balance every month
d)
Pay your full balance every month
12.
Using this portion of a credit card statement, how much did the credit card owner pay toward their bill last month?
a)
$167.49
b)
$267.49
c)
$400
d)
$2,425
13.
According to this portion of a credit card statement, how much did the cardholder pay in total interest this billing cycle?
a)
$1.60
b)
$31.50
c)
$33.10
d)
$2,458.10
14.
What is the minimum amount this cardholder must pay on this month's statement?
a)
$167.49
b)
$400
c)
$2,590.61
d)
You can't tell from this portion of the statement
15.
Each of the following factors impacts your credit score EXCEPT...
a)
Payment history
b)
Bank account balance
c)
Mix of credit types
d)
Length of credit history
16.
Katherine has been using her credit card very responsibly in hopes of raising her credit score. Which score would indicate that Katherine now has a prime score?
a)
350
b)
550
c)
750
d)
950
17.
Miguel's parents keep telling him he should worry about his credit score. He says, "Why bother?" Why should Miguel care?
a)
A high credit score will make it easier for him to get loans or credit cards with better interest rates
b)
A low credit score will make it easier for him to get loans or credit cards with better interest rates
c)
If his credit score is positive, lenders will allow him to pay back only a portion of his loan instead of the whole balance
d)
Miguel will not be able to apply for colleges if he doesn't have a strong credit score
18.
When discussing a loan, such as a college loan or auto loan, what does the word "principal" mean?
a)
The total amount you borrowed
b)
The amount of interest you pay over the whole length of the loan
c)
The total amount of money you owe
d)
The total number of months you will have to repay the loan
19.
What is the purpose of insurance?
a)
To manage risk
b)
To build wealth
c)
To build relationships
d)
To manage liabilities
20.
Reed pays $112 per month for his auto insurance. This amount is called his...
a)
deductible
b)
risk
c)
premium
d)
contribution
21.
Which type of auto insurance coverage is used when another person is injured during an accident?
a)
Collision
b)
Liability
c)
Comprehensive
d)
Underinsured Motorist
22.
Select the best definition of an insurance premium.
a)
Your insurance premium is the amount you pay out-of-pocket if a loss occurs.
b)
Your insurance premium is the amount you pay only when you need to use your insurance.
c)
Your insurance premium is the amount of money you pay for the insurance policy.
d)
Your insurance premium is the level of insurance coverage you have.
23.
Which type of insurance covers your necessary medical costs, from doctor’s appointments to surgeries?
a)
Auto Insurance
b)
Disability Insurance
c)
Health Insurance
d)
Liability Insurance
24.
Choose the correct words to finish this sentence: When choosing your insurance plan, you typically have the option of paying a ________ premium in exchange for ________ coverage or a ________ premium with less coverage.
a)
lower; more; higher
b)
higher; less; lower
c)
higher; more; lower
d)
lower; less; higher
25.
What is a budget primarily used for?
a)
To track expenses only
b)
To plan for spending, saving, and investing
c)
To keep money in a bank
d)
To avoid paying bills
26.
Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...
a)
Cell phone plan
b)
Rent
c)
Clothing
d)
Renters insurance
27.
The two main portions of a budget are...
a)
the money coming in (income) and the money you're spending (expenses)
b)
the money coming in (expenses) and the money you're spending (income)
c)
the cash you are spending in stores and the bills you are paying online
d)
the items you want to buy and the money you need to save for retirement
28.
Ethan is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Ethan?
a)
He loves watching movies, and he's already paid for all the streaming services, so now he needs the data
b)
Unlimited data will allow him to play video games with his friends even when he's not at home, and he LOVES video games
c)
He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school
d)
He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online
29.
Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?
a)
50% needs, 30% wants, 20% savings
b)
50% budget, 30% needs, 20% wants
c)
50% saving, 30% needs, 20% wants
d)
$50 needs, $30 wants, $20 savings
30.
How much money has this employee paid in deductions during this pay period?
a)
$0
b)
$50.00
c)
$692.24
d)
$15,921.52
31.
What does a check register help you keep track of?
a)
Only deposits
b)
Only withdrawals
c)
Deposits and withdrawals
d)
Bank fees
32.
Which of the following is an example of fixed expenses?
a)
Groceries
b)
Rent
c)
Utilities
d)
Entertainment
33.
What is identity theft?
a)
Using someone else's credit card with permission
b)
The illegal use of someone else's personal information
c)
A type of fraud that is legal
d)
A method of saving money
34.
What does insurance provide?
a)
A guarantee of profit
b)
Protection against financial loss
c)
A way to avoid paying taxes
d)
A method to increase income
35.
What are flexible expenses?
a)
Costs that remain the same each month
b)
Costs that vary each month
c)
Costs that are always paid in cash
d)
Costs that are fixed by law
36.
What does a credit rating indicate?
a)
How much money you have
b)
Your ability to pay bills on time
c)
Your income level
d)
Your spending habits
37.
What is an expense?
a)
A type of income
b)
The cost of goods and services
c)
A form of savings
d)
A method of investing
38.
What does fraud involve?
a)
Honest transactions
b)
Deceiving or misrepresentation
c)
Accurate financial reporting
d)
Legal agreements
39.
How can a person improve their credit rating?
a)
By spending more money
b)
By paying bills on time
c)
By avoiding all credit
d)
By taking out multiple loans
40.
What is the definition of a budget?
a)
A record of deposits to and withdrawals from a checking account
b)
An orderly program for spending, saving, and investing the money you earn to achieve desired goals
c)
A check that is stamped to show it has been paid
d)
A card entitling the holder to goods and services which are charged to his account
41.
What is the definition of a cancelled check?
a)
A check that is stamped to show it has been paid
b)
A record of deposits to and withdrawals from a checking account
c)
Those checks issued by a depositor but not yet reported on a bank statement
d)
A card entitling the holder to goods and services which are charged to his account
42.
What is the definition of credit?
a)
An arrangement that allows consumers to buy goods or services now and pay for them later
b)
The illegal use of someone else's personal information
c)
The act of deceiving or misrepresentation
d)
The price a borrower pays a creditor for the use of money over a period of time
100 %
