WorksheetsResource Management 2ND 9WKS EXAM
Total questions: 52
Worksheet time: 17mins
What is a primary source of income?
Inheritance
Lottery winnings
Employment salary
Investment returns
Which of the following is considered a passive income?
A one-time gift
Salary from a job
Money earned from a rental property
Income from a day's work
What is the main purpose of creating a budget?
To manage income and expenses
To calculate taxes
To spend more money
To track investments
Which of the following is a characteristic of a progressive tax system?
Lower-income earners pay a higher percentage of their income in taxes
Taxes are optional for high-income earners
Everyone pays the same tax rate
Higher-income earners pay a higher percentage of their income in taxes
What is gross income?
Income after taxes
Income before any deductions
Income from investments only
Only income from employment
Which of the following would be considered a variable expense in a budget?
Rent
Car insurance
Mortgage
How can managing multiple income streams benefit financial stability?
Reduces overall income
Complicates budgeting
Provides financial security through diversification
Increases dependency on a single income source
What is net income?
Income after taxes and deductions
Total earnings from all sources
Only income from investments
Income before taxes
Which of the following is not a source of income?
Dividends from stocks
Rental income
Salary
What is the purpose of income tax?
To invest in the stock market
To redistribute wealth equally among citizens
To pay for public services and infrastructure
To fund private corporations
Which of the following is an example of earned income?
Interest from a savings account
Dividends from stocks
Capital gains from selling assets
Wages from a job
Why is it important to understand the difference between gross and net income?
Gross income is always larger than net income
Net income is what you need to report on your taxes
What is a secondary source of income?
Income from hobbies
Investments and rental properties
Both B and C
The main job that pays the most
How does budgeting help with managing multiple income streams?
It helps in tracking where every income stream is going
It increases taxes
It is only useful for single income streams
It ensures all money is spent immediately
What is a fixed expense?
Why is it important to differentiate between types of income?
To understand tax obligations
To reduce overall income
To make budgeting impossible
To focus solely on earned income
What role does budgeting play in financial planning?
It is only useful for businesses
Assists in setting financial goals and tracking progress
Helps in spending all income as soon as it is received
Decreases financial stability
What is meant by discretionary income?
How can income taxes affect an individual's net income?
They reduce net income
They have no effect on net income
They increase net income
They only affect gross income
What is the benefit of having a diversified income stream?
Reduces financial risk by not relying on a single source of income
It simplifies tax filing
Makes budgeting unnecessary
Increases dependency on employment
Keira wants a safe investment, and she thinks (a) will be her low risk option.
In your own words, explain why it is important to diversify your investments.
The _____ ______ is where investments are exchanged.
(a)
When you create an investment portfolio that has many different types of investments you are using (a) to lower your overall risk of losing money.
Johnny knows that (a) are a high risk investment, but he is willing to risk it for potentially high returns.
Tell me 2 questions you will have about anything investments related.
Which description would describe diversification?
using a financial advisor to manage different investments
taking a large sum of money and purchases many shares in just one company
the spreading of your investments both among and within different asset classes.
Dividing your investments among different assets, such as stocks, bonds, and cash
Single share of the _____ means fractional ownership of the corporation
stock
bond
dividend
funds
A collection of financial investments like stocks, bonds, commodities, and cash
stock market
diversification
investment portfolio
asset allocation
A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt
index fund
stock exchange
investment portfolio
Mutual fund
Which step is the most important step in the decision making process?
Identifying the decision that needs to be made
Analyzing the situation
Making the decision
Reviewing the decision which was made
Compliance is a decision making strategy in which a person (a) .
Procrastination is a decision making strategy in which a person does which of the following?
Consider every possible option
Let someone else make the decision
When making decisions, a person should try to avoid which of the following:
Making diagrams
Listening to impulses
Getting help from a colleague
Identifying relevance
Which of the following is a strategy for responsible decision making?
Impulse decisions
Listing alternative decisions
Procrastination
Doing it on your own
Which of the following is NOT a part of critical thinking?
Consider logical connections between ideas
Consider every possible option
Delay making a decision
Identify relevance
How many steps are in the decision making process?
Which of the following is NOT a step in the decision making process?
Defining the problem
Seeking help every time
Gathering information
Taking action
Which of the following is NOT an emotional block which hinders decision making?
Fear of failure
Activation
Stagnation
Fear of success
Which of the following is NOT an important factor on decision making?
Weather
Time
Environment
Family
To stop developing, growing, progressing or advancing
agony
impulse
stagnation
Compliance
Strategy in which a person goes with their first reaction
impulse
play it safe
agony
Escape
Strategy in which a person avoids a decision or makes up an answer to deflect an injury
compliance
escape
impulse
play it safe
Strategy in which a person chooses the alternative with the lowest level of risk
play it safe
agony
Strategy in which a person considers every detail of every option over and over again
escape
agony
impulse
Compliance
Strategy in which a person hands over control or lets someone else decide
impulse
escape
play it safe
Compliance
A person's principles of standards of behavior; one’s judgment of what is important in life
values
escape
priorities
Expectations
A thing which is regarded as more important than others
values
escape
priorities
Expectations
Combination of surroundings, conditions or influences
impulse
spatial reference
environment
value
Which of the following is not a source of income?
Salary
Dividends from stocks
Loans
Rental income
Income
Money earned from working
Putting money in a bank account
Tracking where you spend money
