WorksheetsSemester Exam Financial Lit
Total questions: 24
Worksheet time: 12mins
The total money one gets to “take home” from a paycheck after taxes and deductions are taken out is known as what?
Gross pay
Federal income tax
State income tax
Net pay
Which of the following is the form employers use to determine how much tax to deduct from a paycheck?
W-2
W-4
I-9
W-9
Which of the following is the form an employer provides to an employee to inform them of how much money was deducted from paychecks in a given year?
W-4
I-9
W-2
W-9
Which of the following statements best describes gross pay?
Amount of money one receives from insurance after an illness or accident
Amount of money one receives from their job before taxes or other deductions are taken out
Amount of money one receives from their job after taxes or other deductions are taken out
Amount of money one earns from their job by overtime, bonuses, and reimbursements
When seeking to open a bank account, which of the following is needed?
Blank checks
Government-issued identification
Recommendation letter
School transcript
When one is seeking to purchase a product at a store, what additional cost must be paid in addition to the listed price of the product?
Insurance
Interest
Purchasing fee
Sales tax
Which of the following best describes the concept of APR?
Summary of all credit card transactions in one month
The maximum amount one can charge on their credit card
The fee charged if a credit card payment is late
The credit card interest rate, calculated on a yearly basis
Which of the following is a financial institution that handles money, including keeping it safe for saving or commercial purposes?
Payday lender
Bank
Check cashing service
Pawn shop
When one receives a product or service now, but pays for it later, it is known as what?
Credit
Debit
Deduction
Interest
Which of the following purchasing cards removes funds from one’s checking account almost instantly after one makes a purchase?
Credit card
Debit card
Payroll card
Withdrawal card
When choosing between using a bank or a credit union, which of the following is an advantage that credit unions generally have in comparison to banks?
Advanced online banking technology
Greater variety in services offered
Owned by members, who may vote and elect board of directors
More branches/locations
Which of the following is the term for a person who relies on someone else financially?
Beneficiary
Dependent
Insurer
Policyholder
When planning one’s personal budget, a variable expense is what?
An expense that one does not have to make
An expense in which there are many options to choose from
An expense that may change in amount from month to month
An expense that does not have to be paid immediately
When one party to a contract does not do what the contract requires, the individual has committed a what of the contract?
Breach
Consideration
Ratification
Treaty
Which of the following is an advantage of maintaining a good credit score?
Credit card companies offer more points in their rewards system
Greater chance of receiving a loan with a low interest rate
Receive higher interest rates on money in a savings account
Stocks can be purchased at a lower price
Which of the following practices could negatively affect one’s credit score?
Reaching the spending limit on one’s credit account
Paying bills on time
Monitoring one’s credit report
Protecting against fraud and identity theft
The phrase “balancing a checkbook” refers to which practice?
Deciding if one has enough money to make a large purchase
Operating a checking account that multiple people use
Comparing bank statements to withdrawal records (checks, ATM, ETF) to track spending
Opening a checking account for the first time
If one spends more money than they have in their bank account, they are charged a what?
Debt fee
Maintenance fee
Overdraft fee
Reserve fee
When one is inspecting a banking or credit statement and discovers several charges they did not make, the individual is most likely a victim of what?
High service fees
Identity theft
Preemptive payments
Unethical sales practices
Which of the following allows a customer to pay a deposit on an item, and then not receive the item until the balance is paid in full?
Credit card
Increment investing
Layaway plan
Portion payment
Which of the following financial institutions may an individual visit to get money from a check if they do not have a traditional bank account?
Credit union
Mortgage company
Check cashing service
Payday lender
Which of the following financial institutions receives criticism for targeting people in poverty and other vulnerable populations through charging extremely high interest rates?
Pawn shops
Check cashing services
Credit unions
Payday lenders
Banks offer the service of a safety deposit box, which can be used for what?
Guarantee high interest on money deposits
Reduce the amount owed on late fees
Prevent the bank’s money from being burned in a fire
Protect personal documents from potential loss
When eating at a restaurant, one must consider which of the following additional costs to the price of their meal and sales tax?
Interest fee
Reservation cost
Service fee
Tip
