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Personal Finance Unit 1 Test Review

Total questions: 63

Worksheet time: 3hrs 18mins

Name
Class
Date
1.

What are you total deductions if your gross wage is $5000 a month and your net income is $3600?

a)

$8,600

b)

-$1,400

c)

$2000

d)

$1,400

2.

What strategy can help you reach your financial goals?

a)

Obtain a job

b)

Live paycheck to paycheck

c)

Borrow money for all you can

d)

Spend all your money

3.

What strategies can help you reach your financial goals?

a)

Plan your finances

b)

Spend Wisely

c)

Save

d)

Never plan for life events

4.

Financial planning in high school is not important?

a)

True

b)

False

5.

The main reason that people have money problems is

a)

that they didn't go to college

b)

that they have too many mouths to feed

c)

that they don't get minimum wage

d)

that they do not plan ahead how they will use their money

6.

Spending, saving, and investing to have the kind of life that you want and financial security can be achieved by

a)

personal financial planning

b)

paying interest

c)

buying stock

d)

regulating inflation

7.

Guides monetary policy

a)

Federal Reserve (FED)

b)

Securities and Exchange Commission (SEC)

c)

Federal Deposit Insurance Corporation (FDIC)

d)

National Credit Union Administration

8.

Needs are the things that all people must have to __________.

a)

stay alive

b)

not need

c)

play everywhere

d)

throw away

9.

Wants are things that make our life _____________.

a)

more difficult

b)

not fun

c)

expensive

d)

easier

10.

Is this brand of clothing a need or want?

a)

Need

b)

Want

11.

Tom decided to buy $200 worth of new clothes. Which of the following would be good reasons for the clothes being a need and not a want. (Pick 2)

a)

Tom needed to look more stylish. His other clothes were too ugly.

b)

Tom needed to fit in with his friends. All of his other friends wear the type of new clothes he bought.

c)

Tom needed to buy new clothes for his new job. His job has a certain dress code.

d)

Tom needed to wear name brand clothes. His other clothes were from stores that no one shops at anymore.

e)

Tom needed to buy new clothes because he lost all of his other clothes. Unfortunately, Tom’s house was flooded.

12.

NEED OR WANT?

a)

NEED

b)

WANT

13.

An engineering student who bought a high end scientific calculator

a)

Need

b)

Want

14.

An FEU student who wants to have his own car for transportation even though his house is just 10 meters away from the school

a)

Need

b)

Want

15.

Inflation happened to this burger. How did inflation affect it?

a)

The cheeseburger got cheaper.

b)

The Cheeseburger got more expensive.

c)

The cheeseburger got smaller.

16.

Inflation has (slowly) over time affected this coffee. What happened?

a)

The coffee got less expensive.

b)

There is more coffee now.

c)

There is less coffee now.

d)

The price of coffee has gone up.

17.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
18.

What does the M in SMART stand for?

a)

Maximum - there are no limits for goals

b)

Memorable - a goal must be easily remembered

c)

Measurable - a goal must have some kind of number attached so you have a way to know if you are reaching the goal.

d)

Mental - you have to be able to think about the goal.

19.

What does the A in SMART stand for?

a)

Attainable - a goal must be reachable; you CAN do it.

b)

Admirable - a goal must impress people.

c)

Artistic - a goal must be creative.

d)

Academic - a goal must be scholarly and oriented towards learning.

20.
What part of SMART is missing from this goal? I will improve my grade in science by the end of the semester.
a)
Not time-bound
b)
Not attainable
c)
Not specific enough
d)
Not measurable
21.

Give an example of a non-measurable goal.

a)

Increasing sales by 15% in the next quarter

b)

Being happier

c)

Reducing production cost by 10% in the next month

d)

Completing a project within the set deadline

22.

What is the importance of setting SMART goals?

a)

They are easy to achieve

b)

They provide a clear direction and deadline

c)

They are trendy

d)

They are not necessary for success

23.

What does a realistic goal in SMART goals mean?

a)

A goal that is easy to achieve

b)

A goal that is achievable with the available resources and time

c)

A goal that is too challenging

d)

A goal that is not related to the overall objective

24.

What does the 'R' in SMART goals stand for?

a)

Rapid

b)

Realistic

c)

Ridiculous

d)

Rough

25.

If INFLATION is rising, what would be the appropriate FISCAL policy?

a)

expansionary policies such as lower taxes and increasing govt. spending

b)

contractionary policies such as raising taxes and decreasing govt. spending

26.

This is controlling the amount of money in circulation

a)

monetary policy

b)

fiscal policy

27.

Who is in control of monetary policy?

a)

The Federal Reserve

b)

The President and Congress

28.

A tax on imported or exported goods.

a)

Inflation

b)

Monetary Policy

c)

Reserves

d)

Tariff

29.

The lower the interest rate, the more banks will do what?

a)

borrow money

b)

print money

c)

increase the interest rate

d)

fire the bankers

30.
When the government raises taxes, what does it take out of circulation?
a)
Money
b)
Credit
c)
People
d)
Jobs
31.

What makes up the largest area of government spending?

a)

Food Stamps

b)

Medicare

c)

Social Security

d)

Interest payments

32.

The total amount of personal income prior to taxes and deductions

a)

Property taxes

b)

Payroll taxes

c)

Gross income

d)

Sales Taxes

33.

the income that remains after taxes and other deductions are taken from an individual’s gross income

a)

Sales taxes

b)

Gross income

c)

Net income

d)

Property taxes

34.

the amount of money collected by a store (retailer), in addition to a good or service that was purchased, for the local government as required by law

a)

property tax

b)

sales tax

c)

net income

d)

income taxes

35.

the amount of money collected from a property owner based on the value of a property for the local government as required by law

a)

sales tax

b)

property tax

c)

income tax

d)

payroll tax

36.

Jose's monthly salary is $1,200. His check only shows $1,098. What kind of taxes is he paying?

a)

Sales tax

b)

Property tax

c)

income tax

d)

There is a mistake on his check

37.

Some of the money Juan got deducted on his check is for social security and Medicare. What kind of taxes are these?

a)

payroll taxes

b)

sales taxes

c)

income taxes

d)

property taxes

38.

Jose purchased a car for $3,000. What kind of taxes is he paying?

a)

sales tax

b)

property tax

c)

payroll tax

d)

income tax

39.

Wages, salary and commission are examples of what type of income?

a)

Earned

b)

Portfolio

c)

Passive

40.
Compute the sales commission:
Amount $1,600.00
Rate 3%
a)
$45.00
b)
$48.00
c)
$53.00
d)
$40.00
41.

A document that provides information about you to a potential employer.

a)

References

b)

Resume

42.

Which selection would you list in "Work Experience"?

a)

Babysitter

b)

Honor Roll

c)

Bilingual

d)

Energetic

43.

If you don't have any work experience, what could you list in your resume?

a)

activities

b)

awards

c)

skills

d)

ALL of them

44.

There are 6 sections on a resume: name, contact info, skills and what else?

a)

relevant info, birthdate, phone

b)
references
c)

intro, experience, education

d)

intro, blood type, height

45.

Is this an example of a good resume?

a)

YES

b)

NO

46.

Choose the best objective for a Sally's resume:

a)

Awesome graduate of life seeking any fun position requiring a cool girl with a great sense of humor and style.

b)

Graduate seeking a position that I could take professional pictures of people.

47.

A "key word" is:

a)

Something relevant to your family

b)

The answer to a popular riddle

c)

Words that are found in the job description you are applying for

d)

Words the are found on the companies website

48.

When you are a high school student with little or no work experience you should ideally format your resume so that:

a)

Your objective begins with a joke

b)

Your work experience is placed above your education

c)

Your education is placed above your work experience

d)

You have a catchy email address

49.

The objective statement in your resume should be placed:

a)

In the Education section

b)

At the beginning

c)

At the end

d)

With your extracurricular activities

50.

Overtime is calculated at 1.5 times an employee's regular rate of pay.

a)

True

b)

False

51.

What percent of FICA taxable income are Social Security + Medicare Taxes?

a)
it varies
b)
1.45%
c)
6.2%
d)
7.65%
52.

Amorelle earned $384 in gross income. Her payroll taxes + insurance premiums total $122. Calculate her net income.

a)

$506

b)

$406

c)

$262

d)

$266

53.

FICA (Federal Insurance Contributions Act) taxes include...

a)

Health Insurance

b)

Social Security

c)

Worker's Compensation

d)

Medicare

54.

David's gross income: $127.25

David's deductions: $25.20

David's net pay: ?

a)

$102.05

b)

$102.45

c)

$112.05

d)

$152.45

55.

Melinda’s gross pay is $570. If the Social Security tax is 6.2%, how much will she pay in Social Security?

a)

$4

b)

$3.53

c)

$35.34

d)

$23

56.

FICA taxes include:

a)

social security tax

b)

withholding allowances

c)

local tax

d)

commission

57.

Which is generally collected when people by clothes from a store?

a)

Corporate taxes

b)

General sales taxes

c)

Individual income taxes

d)

Property taxes

58.

Who is Medicare designed to help?

a)

Single Parents

b)

Senior Citizens

c)

Low income families

59.

Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called which kind of taxes?

a)

Sales

b)

Property

c)

Excise

60.
A W-4 is…
a)
A document that you receive from the federal government detailing total taxes owed for the year
b)
A form you fill out so that your employer can calculate how much to withhold in taxes from your paycheck
c)
A summary of your gross vs net pay including current pay periods and year to date withholdings
d)
A document used to calculate retirement and health insurance withholding
61.

Eli earns an 8% commission on his sales of $75,680. What is his commission?

a)

$6,054.40

b)

$60,544

c)

$605,440

d)

$75,688

62.

Dash works as a corporate lawyer and makes $150,000 per year. How much will he have withheld for Social Security this year?

a)

$9300

b)

$8239.80

c)

$10414.80

d)

Cannot be calculated, do not have enough information.

63.

Daria works as a corporate consultant making $210,000 a year. Calculate the Medicare withholding for the year.

a)

$3045.00

b)

$2940.00

c)

$1927.05

d)

$1860.60