WorksheetsEarning, Saving, and Investing Review
Total questions: 38
Worksheet time: 2hrs 54mins
Which of the following is NOT true?
Most people have several careers throughout their lifetime
Jobs are paid positions and people only have one job at a time
People can develop human capital in a variety of ways
Transferable skills can be applied to many professional roles
Which of the following is the LEAST effective way to “develop some human capital”?
Spend additional time playing video games
Volunteer to pick up trash along the roadsides
Attend a workshop on a topic you are interested in
Ask your employer for new tasks at work
Miranda is working to develop a broad base of transferable skills. This means that she:
Needs to maintain at least a part-time job during the school year
Use her available hours outside of school for paid employment rather than volunteering
Will not have as much time to develop her human capital
Will have a set of versatile skills that she can apply to many personal and professional roles
A transferable skill is:
A skill that can be used in many jobs and professional roles gained from experiences
A skill that can only be used in an individual’s career or job
A skill that an employer requires you to learn
A skill that is learned at one job and may be required at other jobs as well
Laura is a computer teacher. She enrolls in a computer class at least twice a year to stay current on recent technology changes and updates. By continuing her education, Laura is investing in her:
Salary
Human capital
Family
Interest Inventory
Individuals with more formal educational training usually have:
Higher estimated lifetime earnings
Lower personal satisfaction
Greater amounts of leisure time
More comfortable work environments
In order to make an informed career decision, a high school student will want to:
Commit to a profession that requires a college degree
Choose a career that offers the amount of money desired
Develop personal goals, complete a career assessment, and research careers
Choose a training program that will guarantee employment after the course work is completed
Which of the following most accurately describes Cost of Living?
How much it costs to re-locate to a new city for a new job
The average cost of basic necessities, such as housing and food, in a city
The total value of the benefit package offered by a job
The total amount of college costs compared to the salary offered by a job
The average cost of basic necessities, such as housing and food, for a particular city is called:
Standard of Living
Life Style
Cost of Living
Economy of Living
Components of a job such as gym memberships, flexible hours, repayment of student loans and education costs, and childcare are all examples of:
Employee Benefits
Job Perks
Work Incentives
Competitive Hiring Practices
Which of the following will NOT maintain your employability at a job?
Maintaining high standards in honesty, reliability, and punctuality
Adjust your actions to be appropriate for different work situations you find yourself in, because what is appropriate in a social situation may not be appropriate for work
Continue to learn by taking classes and striving for continual improvement on the job
Use a personal social media site for professional interactions online
If you are considering a job offer in a new city that has a lower cost-of-living index than where you live, which of the following can you expect?
You will need to make more money in order to maintain your lifestyle
You will need to make less money in order to maintain your lifestyle
You will need to make the same money in order to maintain your lifestyle
Your lifestyle will get noticeably worse
Jamie has chosen to be paid by direct deposit at her new job. What does this mean?
She will receive her paycheck mailed directly to her each pay period
She will receive her pay directly into her checking account for each pay period
She will receive her pay automatically loaded onto a payroll card at the end of each pay period
She will receive her paycheck directly at her workplace at the end of each pay period
Gross income minus paycheck deductions equals
Social Security
Medicare
Net Income
Employee Benefits
The amount of money made in a pay period before deductions are applied is called:
Net Income
Hours and Earnings
Employer Contributions
Gross Income
The regular schedule that employers pay their employees is called the
Worker’s compensation
Pay period
Employee benefits
Employer contributions
Which of the following lists paycheck deductions that are REQUIRED?
Federal Income Tax, State Income Tax, Social Security, Medicare
Federal Income Tax, State Income Tax, Worker’s compensation, Life Insurance
Social Security, Medicare, Life Insurance, Health Insurance
Social Security, Medicare, Federal Income Tax, Flexible Spending Accounts
Which of the following best describes liquidity?
How quickly and easily an asset can be converted into cash
The amount of savings available
A measurement of how much a person or household owns once all debts have been paid
The amount of money needed to pay for the necessities and comforts currently enjoyed
Which of the following is likely to result in the largest return?
Invest a large principal amount then make no additional investments
Invest as long as possible and at the highest interest rate possible
Invest a small amount of money for a short period of time at the highest interest rate possible
Invest at a high interest rate because it is the only factor that affects return
Simple interest is best defined as
Interest earned on the principal investment
Any form of interest earned from saving or investing
Earning interest on interest
The effect interest has on the total return on investment
Which of the following best describes compound interest?
Interest earned on the principal investment
Any form of interest earned from saving or investing
Earning interest on interest
The effect interest has on the total return on investment
Which of the following best reflects the philosophy of “pay yourself first”?
Save whatever money is left over after paying monthly bills
Pay all fixed expenses before paying flexible ones
Set aside a predetermined amount of money for saving before using any money for spending
Spend money on the items and activities you enjoy in life before paying any other expenses
In relation to other options, how liquid is a savings account?
More liquid than cash
Less liquid than mutual funds
More liquid than a Certificate of Deposit
More liquid than a checking account
Hannah needs a savings tool account that will help her keep track of her daily purchases and store all her money from work. Which of the following should she choose?
Certificate of Deposit
Checking Account
Money Market Account
Any of the above would be fine
Which of the following statements correctly describes the security level of savings tools?
They are not secure because they have a high risk of losing money
They are secure because they are protected by the U.S. government against loss
They are very secure because there are no risks involved with savings or investing
None of the above is true. It would be safer to keep your money in a safe at home.
Which of the following describes a tiered interest rate?
The amount of interest earned depends on the balance – more money in the account means earning a higher interest rate
The amount of money earned depends on the number of accounts you have with a bank or credit union
Tiered interest rates are only promoted by scam artists who trick people into investing hoping to earn higher interest rates over time
The interest rate increases over time – money left in an account for 3 months will have less interest than money left in an account of 12 months
Which of the following is true about Certificates of Deposit?
Funds deposited in a CD are held for a certain length of time
Funds deposited in a CD have tiered interest rates
Funds deposited in a CD are very liquid
Funds deposited in a CD can be accessed via check or debit card
Which of the following is true about Money Market Accounts?
No minimum balance requirements
Unlimited transactions every month
Tiered interest rates
The money must remain in the account for a specific period of time
Which of the following best describes inflation?
The rise in the general level of prices
The uncertainty about the return on an investment
The number of times something happens to money
The projected value of an investment at the end of a specified time frame
The most common relationship between risk and return in investing can be stated as
Higher risk indicates lower return
Higher risk indicates higher return
Lower risk indicates higher return
There is no relationship between risk and return
Elliot’s stock broker suggests that Elliot consider investing in a diversified portfolio. A diversified portfolio is desirable because it
Increase the risk and return ratio
Limits investors choices to only one or two investment tools
Indicates an investor is a good predictor of the return an investment will have
Decreases risk by investing money in a variety of investment tools
Which of the following is NOT true about investing in stock?
A stockholder owns a part of a company
Depending upon the current market price, stockholders may pay different prices for the same stock
A stockholder may or may not receive a dividend
A stockholder will always receive a profit from a stock that is sold
Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?
A brokerage firm
The New York Stock Exchange
A real estate agent
Conner should complete the transaction on his own
Which statement is TRUE of mutual funds?
Mutual Funds are speculative investments
Mutual Funds are diversified investments
Mutual Funds are a form of real estate investment
Mutual Funds are superior to purchases a large amount of a single stock
A bond is:
A type of loan that is given to a company or government for a specified period of time
A share of ownership in a company
A type of investment that is only offered by a depository institution
A type of investment that has the potential for significant fluctuations over a short period of time
Alisa is looking for an investment that is structured to have tax benefits. She should look for information on:
Tax rated bonds
Speculative investments
Index Funds
Tax-advantaged investments
It is best to have the rate of return on an investment be __________ than the rate of inflation
Lower, in order to minimize risk
Higher, in order to decrease risk
Lower, in order to minimize taxes
Which of the following statements is true in regards to paying taxes on investments?
Since investments are considered unearned income, taxes do not have to be paid on earnings
Taxes are often owed on profits generated from investments
Taxes only have to be paid on employer-sponsored investment accounts
Taxes are always paid on investments either when the money is placed in the investment or removed from the investment
