Worksheets24/25 Honors EPF Exam Review
Total questions: 45
Worksheet time: 23mins
1. Sophia is going to finance her car purchase using an auto loan. Which statement below is accurate? EPF.MCM.3
Her principal is the cost of the car, minus any down payment she makes
Her interest rate is the total cost she’ll pay after making all of her principal and interest payments
Choosing a shorter term means it will take her longer to repay the loan
It’s likely that her monthly payment will be between 4-5% of the cost of the car
Jaime is creating a budget for the first time and doesn’t know which to use - NET PAY or GROSS PAY. What do you tell him?
“Use net pay, because it’s the total amount you’ve earned minus taxes and other deductions.”
“Use gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month.”
“Use net pay, because it’s the total amount you’ve earned for the month.”
“Use gross pay, because that is the amount that is reported to the government for taxes.”
After attending a job interview, why is it important for Charlotte to send a personalized thank you note?
It shows that you want the job even if you don’t really like the company
You can apologize for any mistakes you made in the interview
It gives you the opportunity to leave a good impression by expanding on an answer you gave or a topic you discussed
It allows you to boast about your accomplishments one last time
Liam is trying to calculate the net price of attending his chosen college. What does he need to subtract from the college’s cost of attendance to find the net price?
Student Aid Index
Application fees
Personal expenses
Your grants and scholarships
Michael is considering getting a secured credit card to help build his credit history. All of the following are characteristics of a secured credit card EXCEPT…
Your credit limit is dependent on the amount of your security deposit
They lower the risk of banks when issuing credit to users with no credit history
They help you build a credit history and improve your credit score
They don’t have a spending limit, so you have to be very mindful of how much you buy with them
6. Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
Pays with a prepaid card she loaded earlier in the month
Uses her credit card and says, "Credit" when the cashier asks, "Credit or debit?"
Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"
Pays with cash she had in her purse
7. The monthly premium for Kevin’s renters insurance is $15, and his deductible is $500. During the month of April, someone breaks into his apartment and steals or destroys $2200 worth of his possessions. How much will Kevin pay and how much will the insurance pay to replace his items? EPF.MCM.3
Kevin pays $0 // insurance company pays $2200
Kevin pays $15 // insurance company pays $2200
Kevin pays $500 // insurance company pays $2200
Kevin pays $500 // insurance company pays $1700
Aria is planning to apply for college and needs financial assistance. Which definition best describes the FAFSA?
The amount of money the federal government offers you in student loans
The paperwork your bank has you complete in order to take out a personal student loan
The paperwork you complete in order to have part of or all of your student loan debt forgiven
The application you submit in order to determine eligibility for federal student aid
Aria decides to put $1000 into a savings account that earns 1% annual compound interest for 10 years. Which of the following best describes the amount of money Aria will have at the end of this period? You can ignore the impact of inflation in this question.
Exactly $1100
Slightly more than $1100
$2000
Exactly $11,000
Mia is reviewing her credit report to understand her financial standing. All of the following can be found in her credit report EXCEPT…EPF.MCM.3
Your credit payment history
Your checking account balance history
The average age of your credit accounts
Your total number of active credit accounts
11. Arjun is considering switching banks or opening a brand new credit card. Which strategy will likely lead to the WORST long-term outcome? EPF.MCM.3
Look for sign-up bonuses or introductory offers that will make the product a good deal
Read online reviews carefully, and consider those that align most closely to what you value
Spend some time comparison shopping before finalizing your decision
Review the fine print closely, paying close attention to fee structures and interest rates
12. These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases? EPF.MCM.3
Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0
Jasmine, who had saved the $1500 previously and pays off the whole balance once her bill comes
Nelson, who makes the minimum monthly payment each month until the debt is $0
Robert, who makes $300 payments per month until the debt is $0
Avery is new to investing and is considering using Target Date Funds. Why might this be beneficial for her?
A fund manager customizes your asset allocations for you
It guarantees that you will have enough money for retirement and doesn’t require a lot of management
It will automatically adjust your assets for you over time
It minimizes risk by investing 50% in stocks and 50% in bonds
Scarlett is considering how to fund her college education. Which statement accurately describes the difference between a student loan and a scholarship or grant?
Student loans always come from the Federal government, while scholarships and grants always come from the college
Student loans need to be repaid, while scholarships and grants are both "gift aid" that don't need to be repaid
Student loans are a result of completing your FAFSA, while scholarships and grants are a result of winning contests
Student loans are only available to a select few college students each year, while scholarships and grants are plentiful and easy to get
Mia has liability coverage with her auto insurance policy. What will her insurance cover?
Her insurance will cover the payment for her broken windshield if her car gets broken into
She cannot be found liable or guilty of causing an accident
Her insurance will cover her neighbor's fence repair if she crashes into it backing out of the driveway
Her medical bills will be covered if she's in an accident, even if she is at fault
16. All of the following scenarios are examples of dark patterns EXCEPT... EPF.CC.1
Mihir makes an unintended in-app purchase due to confusing buttons in the app
Jessica books a hotel room before reading its reviews due to a countdown timer on the website
Idris has to go through a series of tedious steps to close an account for an online shopping site
Arya is able to unsubscribe from an email list using the clear "unsubscribe" link at the bottom of one of the emails
Scarlett is considering different ways to manage her money. Which person from this list is saving rather than investing?
Yvonne, who puts $750 per month into her bank account earning 1% interest
Danielle, who contributes 2% of her pay to her company's 401(k) plan
Daryl, who uses his $5000 end-of-year bonus to buy Treasury bonds
Alexis, who buys $100 worth of shares in an S&P 500 index fund every month
Aiden is preparing his resume for a job application. What information is typically included in a resume?
References and recommendations
Personal statement and career goals
Education, experience, and work skills
Introduction and personal story
19. Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck EXCEPT...
Medicare
Federal taxes
Overdraft fees
Social Security
20. Jay asks his friends for advice: "Should I start doing mobile banking now that I've got my new smart phone?" Which friend is correct in their statement on the benefits of mobile banking? EPF.MCM.2
It's so convenient, because you can deposit your check using your phone's camera and the bank's app
One major pro of mobile banking is that they typically waive all of the normal fees like overdraft fees, ATM fees, insufficient funds fees…
One inconvenience is that once you set up mobile banking on your phone, you can't use online banking on your computer any more
A con of mobile banking is that typically banks charge you a $10-15 set-up fee in addition to a small monthly fee (~$3) for mobile banking privileges
21. Mason has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is he likely to receive during his first week on the job?
A Medicaid enrollment form
A W-4 form
A 1040 form
A W-2 form
Noah has $3000 per month to cover his expenses. He estimates his monthly costs to be rent of $1200, car expenses of $700, utilities of $200, insurance of $300, food of $400, student loans of $800, and going out with friends of $200. What is the end result?
A budget deficit of $800
A budget surplus of $800
A total budget of $6800
$0
Anika is planning to buy a new smartphone. She visits several online stores to compare various factors like price, features, and customer reviews of the same smartphone model before making her purchasing decision. This practice is known as...
Comparing a product you bought a year ago to an updated version that is available now
Comparing the quality of a product you bought to the quality of a similar product your friend bought
Comparing the prices of two unrelated products you need to purchase
Comparing various factors of the same product offered by different retailers before making a purchasing decision
Luna wants to ensure her personal information is safe from identity theft. What is one step she can take to protect herself?
Check her bank statements each month to verify that all transactions are accurate
Log into her bank's mobile app using a public WiFi network
Throw away expired bank account cards and documents without shredding them
Use websites that start with "http" instead of "https"
25. Mason always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay? EPF.MCM.1
His car loan with a 6.9% interest rate
His credit card with a 19.7% interest rate
His private student loans with an 11.8% interest rate
His Federal student loans with a 3.76% interest rate
James is studying different economic systems in his class. He learns that in a ___ system, private citizens own most, if not all, of the means of production. Which system is this?
a. market
b. capitalist
c. federalized
d. socialist
Evelyn wants to start a small bakery, but she realizes she doesn't have enough ingredients to make all the pastries she wants to sell. What is this situation an example of?
wants
scarcity
marginal benefit
free enterprise
Lily was browsing an online forum when she came across a post claiming that a certain stock was about to skyrocket in value. The post was filled with exciting news and predictions, urging everyone to buy the stock quickly. What type of scam could this potentially be?
A scam that attempts to “pump” all your money from your bank accounts and “dump” it into a fraudulent account
A scam in which fraudsters rapidly make purchases through your bank account in a short period of time
A scam that involves a fraudster going through your personal mail to obtain your information before “dumping” it in the trash
A scam in which a fraudster will boost the price of a stock based on false or misleading information and then sell the stock
Isla noticed that the cost of groceries and other essentials has been steadily rising over the past year. What is this sustained increase in the general level of prices called?
inflation
recession
expansion
consumer price index
30. Janelle's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and net price of $12,000. College B has a sticker price of $60,000 and net price of $9,000. Which statement below is FALSE? EPF.IE.1
It will cost less to attend College A
College B is providing Janelle more grants and scholarships
College A has a lower sticker price than College B
It will cost less to attend College B
Emma runs a small bakery and notices that when she bakes more cupcakes than her customers want to buy, the prices of the cupcakes tend to drop. Conversely, when her cupcakes are in high demand and she can't bake enough, the prices tend to rise. What economic principle is Emma experiencing?
Elasticity
Equilibrium Price
Law of Supply and Demand
Inflation
32. Abigail wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund? EPF.MCM.1
3 months
9 months
24 months
30 months
33. Avery is a recent college graduate with a degree in marketing. She wants to expand her professional network. All of the following strategies would help her expand her network, EXCEPT…
Attend a conference
Complete a self-assessment
Set up informational interviews
Join a professional association
David's renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into his apartment and steals his $800 TV set. How much would his insurance company pay?
$0
$200
$800
$1000
Avery is considering different types of loans to purchase a new car. Which of the following is most likely to represent a fixed rate, secured debt?
A student loan
A credit card
A prepaid debit card
An auto loan
James is considering taking out a loan to buy a new car. He learns that a loan with a shorter term length will have __________ monthly payments, and he will pay __________ in total interest.
higher, less
higher, more
lower, less
lower, more
Zoe is considering taking out a payday loan because she needs some quick cash before her next paycheck. Why are payday loans so much easier for her to qualify for than traditional bank loans?
Payday loans are only used by affluent households, and the banks know they have enough money to cover them
Payday loans are just another word for direct deposit, and almost all employers offer their employees direct deposit instead of a paper paycheck
Payday loans require proof of employment or other regular income but not a credit check
Payday loans are typically for such small dollar amounts that no one cares if you repay them or not
38. Danaisha does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Danaisha is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food? EPF.MCM.1
A.Danaisha, because she is focusing on her health, which will have a guaranteed payoff in the long run
B. Charles, because he's taking efforts to save money by focusing on his needs only
C. Both, because needs vs wants are determined on an individual basis
D. Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.
39. Zoe sees an ad on social media featuring a doctor who is promoting a new type of energy drink. The doctor cites her credentials and experience saying, “I’ve been working in the industry for over 20 years. Buy this product!” Which of the six ways of influence is being used in this ad? EPF.CC.1
Authority
Social Proof
Liking
Scarcity
Ethan bought 10 shares of stock in StreamingVideoCo for $45 per share. Two months later he sold the 10 shares of stock for $80 per share. What was his profit or loss on StreamingVideoCo stock? (Assume that StreamingVideoCo didn't pay a dividend and that he didn't incur any trading fees during that period.)
Loss of $800
Profit of $350
Loss of $450
Profit of $800
41. Which of the following statements is true about the Schumer Box that Sophia is reviewing for her new credit card?
Depending on your creditworthiness, the APR for a borrower will always either be 8.99%, 10.99%, or 12.99%
There is an introductory APR that is valid only for 1 year, but then the permanent APR is lower than that at 8.99%
You will never be charged an APR higher than 14.99%
A 28.99% APR may be applied to your account for late payment
Liam is trying to improve his credit score. What are the two most important factors he should focus on?
Payment history and types of accounts
Amounts owed and length of credit history
Payment history and total debt
Length of credit history and new credit inquiries
43. Luna is trying to understand how age affects credit scores. Which of the following statements about credit scores does this bar graph support?
Credit scores tend to drop as you grow older because you are more likely to miss a payment at some point
It is more difficult for young people to borrow because they have less payment history for a lender to rely upon
When young people borrow, they are likely to have lower interest rates because their credit scores are lower
It is easier for young people to get loans at lower interest rates because they are likely to have never been late with a payment
44. Frank and Jasmere are each shopping for a new car for themselves. Each will need a $20,000 loan that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE? EPF.MCM.3
Over the five year period, Jasmere and Frank will pay the same amount for the car loan
Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment
Jasmere's monthly payment on the loan will be about $100 more than Frank's payment
Lenders are not allowed to charge people different interest rates based on their credit scores
45. Review this partial credit report for Aria, and then choose the response below that accurately depicts the information on the report. EPF.MCM.1
The borrower paid a $30 fee in February 2015
This borrower was never late with any of their credit payments
This borrower's most recent payment was $30
This borrower was 30 days late on their May 2015 payment
