Font size
WorksheetsFinancial Literacy FINAL Test Review
Total questions: 56
Worksheet time: 57mins
Monthly rent payments are an example of a(n) _____ expense.
fixed
variable
discretionary
emergency
Obligations to be paid over a long period of time are _____.
current assets
current liabilities
fixed assets
long-term liabilities
Eligible workers who work more than _____ hours per week must receive overtime pay at least _____ times their regular hourly rate.
30, 2
35, 1.5
40, 1.5
40, 2
The Employee's Withholding Certificate is a federal tax form that is also called the _____.
Form W-2
Form W-4
Form1040
Form I-9
A(n) _____ is a report containing information used to calculate taxes owed by the taxpayer.
tax return
Form W-2
audit
Form W-4
What is it called when the federal government spends more money than it collects?
deficit spending
mandatory spending
discretionary spending
taxable spending
Which federal program pays for certain health-care expenses for older citizens and others with disabilities?
Social Security
Medicare
Medicaid
VITA Programs
At what age do workers become eligible for full retirement benefits from Social Security?
55
59 1/2
65
67
Customer deposits in a federally insured bank are insured up to what amount?
$100,000
$200,000
$250,000
$500,000
What banking service ensures a financial institution will honor a check even if it exceeds the account balance?
stop-payment order
overdraft protection
money order
check certification
Which of the following topics should be considered when shopping for a checking account?
restrictions and penalties
fees and charges
interest rates
All of the above.
A payroll savings plan (PSP) is another application of which strategy?
time value of money
Rule of 72
compounding interest
pay yourself first
How long should the money in your emergency fund cover?
one year
eight to ten months
six months
three months
Which savings product requires a person to commit his or her money for the longest period of time?
interest-bearing savings account
high-yield savings account
passbook savings account
certificate of deposit (CD)
Which form states the total interest earned during a tax year?
Form 1040
Form 1099-INT
Form W-2
Form W-4
Credit granted to individual consumers by a retail business is _____.
retail credit
consumer credit
store credit
shopping credit
Which is the best example of closed-end credit?
vehicle loan
store credit card
signature loan
bank credit card
Which purchase is best served by the use of credit?
buying a month's worth of groceries
buying a new refrigerator
buying a new video game
buying dinner for a date
What does it mean to be creditworthy?
accepting responsibility for a loan if the borrower fails to pay
having the assets, income, and willingness to repay debt
having a poor credit score
having a credit history
Which of the following is most likely to incur a fee from a credit lender?
having a zero balance
closing the account
making an early payment
exceeding a credit limit
An item of value that is owned is a(n) (a) .
A(n) (a) is a cost that changes in both the amount and time it must be paid.
The lowest hourly wage employers can legally pay most workers by law is the (a) .
A subtraction from gross pay is called a (a) .
The Wage and Tax Statement, which shows a person's earnings and the amounts of income, is also known as the (a) .
(a) is the Employee's Withholding Certificate that helps an employer determine how much income tax to withhold from an employee's paychecks as payroll deductions.
(a) is the primary source of revenue for the federal government.
A written order for the bank to pay a specific amount to a specific person is a(n) (a) .
Using a(n) (a) has the same result as writing a check, because the amount of the purchase comes directly from the checking account.
A financial institution that receives, lends, exchanges, and safeguards money is a(n) (a) .
A strategy for using money to reach important goals and to advance a person's financial security is a(n) (a) .
A money market account typically pays a (a) interest rate than regular savings accounts.
The amount of money originally deposited is called the (a) .
To calculate the number of years in which your savings will double, divide (a) by the rate of interest.
The (a) insures deposits in financial institutions up to $250,000.
The (a) of a loan is the amount of money borrowed.
A(n) (a) agreement is an arrangement in which a consumer pays rent for the use of a product and eventually owns it.
A(n) (a) is a responsible person who signs the loan along with the person to whom the loan is granted.
A numerical measure of a loan applicant's creditworthiness is a (a) .
A(n) (a) is a record of a person's credit history.
How much should your emergency fund be?
Provide an example of an employee benefit.
When is the filing deadline for income taxes?
What are the consequences of providing inaccurate information on a tax return?
How is a credit card different from a debit card?
How does the rate of compounding impact the earnings on a savings account?
List a piece of information that should be found on a credit card statement.
What is the purpose of credit?
State the formula for calculating simple interest.
Which of the following is a disadvantage of renting a residence?
Greater financial risk
less mobility
no tax benefits
less free time
Which of the following best describes an apartment that has a bathroom and one large room serving as a living room, bedroom, and kitchen?
studio
complex
en suite
subprime
A legal document that proves ownership of a property is called a(n) (a) .
An amount a renter pays to help protect the property owner against financial losses in case the renter damages the property or fails to pay rent is a(n) (a) .
(a) is the difference between the market value of a property and the amount owed on the property.
Describe an advantage of renting over owning a home.
List factors that dictate the amount of a monthly mortgage payment.
