WorksheetsFirst Half - FINAL - Financial Literacy
Total questions: 92
Worksheet time: 46mins
Name
Class
Date
1.
A millionaire is someone with _____ of $1million or more.
a)
net worth
b)
assets
c)
income
d)
liabilities
e)
expenses
2.
Which of these are included in your net worth:
a)
Assets
b)
Liabilities
c)
Income
d)
Expenses
3.
If you like a company (like Tessla), and decide to buy part of it, then _____.
a)
You would buy some shares of Tessla stock
b)
You would buy some Tessla bonds
c)
None of these - only millionaires can own part of companies like Tessla
4.
Which of these are ways to invest money for your retirement:
a)
IRA
b)
Savings Account
c)
Emergency Fund
d)
All of these
e)
None of these
5.
True or False. You should save for your retirement.
a)
True
b)
False
6.
If you want your money to make money for you, you need to _____.
a)
Invest
b)
Save
c)
Both of these
d)
Neither of these
7.
True or False. Inflation hits everyone the same, whether you are wealthy or poor.
a)
True
b)
False
8.
Which of these is the best measurement of wealth:
a)
Income
b)
Expenses
c)
Assets
d)
Liabilities
e)
Net Worth
9.
When you borrow money, you will have to pay the lender ____.
a)
Interest
b)
Income
c)
Taxes
d)
All of these
e)
None of these
10.
The biggest reason we have so many millionaires in America is because:
a)
Millionaires put their investment money in savings accounts
b)
Millionaires inherit most of their money
c)
Millionaires put their investment money in expensive cars and boats and houses
d)
Millionaires put their investment money in Treasury Bonds
e)
Millionaires put their investment money in the stock market
11.
Most millionaires are college graduates.
a)
True
b)
False
12.
More than half of all millionaires inherited their money. True or False
a)
True
b)
False
13.
Most millionaires drive expensive new cars. True or False
a)
True
b)
False
14.
A college graduate earns almost double the annual income of a high school graduate. True or False
a)
True
b)
False
15.
Millionaires tend to be single rather than married. True or False
a)
True
b)
False
16.
True or False: If you want a degree from a four-year college, you can't start at a two year college.
a)
True
b)
False
17.
The income lost by going to college, instead of working is called :
a)
Opportunity Cost
b)
Tuition
c)
Room
d)
Board
e)
Books
18.
The cost of taking college classes is usually charged by credit hour, and is called:
a)
Opportunity Cost
b)
Tuition
c)
Room
d)
Board
e)
Books
19.
The cost of housing while going to college is called:
a)
Opportunity Cost
b)
Tuition
c)
Room
d)
Board
e)
Books
20.
The cost of food while going to college is called:
a)
Opportunity Cost
b)
Tuition
c)
Room
d)
Board
e)
Books
21.
The cost of materials you need for college is called:
a)
Opportunity Cost
b)
Tuition
c)
Room
d)
Board
e)
Books
22.
Tuition, Room, Board, and Books are all part of the:
a)
Cost of attendance
b)
Opportunity cost
23.
When you graduate from college, your student loans should not be more than 100 % of your _______ .
a)
Average lifetime earnings for graduates with your degree
b)
Average lifetime earnings for high school graduates
c)
Starting salary that you will earn the first year after earning your college degree
24.
To calculate your "Return", start with Average lifetime earnings for graduates with your degree and subtract ____ .
a)
Cost of attendance
b)
Opportunity cost
c)
Average lifetime earnings for high school graduates
25.
True or False: Student Loans can easily be discharged by declaring bankruptcy.
a)
True
b)
False
26.
Which of these statements about two-year colleges is true?
a)
If you start at a two-year college, your degree from the four year university won't even mention the two-year college.
b)
You can start at two-year college and then switch to a four-year universtiy.
c)
Two-year colleges can save you a lot of money
d)
All of these are true
27.
Your student loans when you graduate should be ____ of your starting salary, or less.
a)
100 %
b)
30 %
c)
25 %
28.
Which of these is a true statement about credit hours in college:
a)
To graduate on time, you need to take 15 hours per semester
b)
If you take 15 credit hours per semester, each week you will spend 15 hours in the classroom
c)
Both of these are true
d)
Neither of these are true
29.
Which of these student loans don't accrue interest while you are in school:
a)
Parent PLUS
b)
Subsidized
c)
Unsubsidized
d)
Private
30.
Which of the following options is the best deal when borrowing money for college?
a)
Private student loans (unsubsidized)
b)
Federal student loans (subsidized)
c)
Credit cards
d)
Personal loans
31.
For most people, the biggest cost of going to college is:
a)
Tuition
b)
Room and Board
c)
Interst on Student Loans
d)
Opportunity cost
32.
True or False. Most Americans have to borrow money to go to college.
a)
True
b)
False
33.
If you take an extra two years to graduate, you will have higher:
a)
Cost of Attendance
b)
Opportunity Cost
c)
Both of these
d)
Neither of these
34.
True or False. Starting off at a community college and then transferring to a four-year institution can be a good way to reduce costs.
a)
True
b)
False
35.
True or False. Taking high school classes for dual credit can reduce tuition costs in college.
a)
True
b)
False
36.
Full time students who work 20 or fewer hours:
a)
Get better grades
b)
Take more hours
c)
Get worse grades
d)
Take fewer hours
37.
Which of these is NOT a true statement about the Graduated Repayment Plan:
a)
You will pay more interest than under the standard plan
b)
In your first few years, your monthly payments will be more than under the standard plan
c)
In your first few years, your monthly payments will be less than under the standard plan
d)
You will be paying longer than under the standard plan
38.
The U.S. almost always runs a deficit when the _____ are in power.
a)
Republicans
b)
Democrats
c)
Either of these
d)
Neither of these
39.
____ are used to loan money to a company or to state or federal governments.
a)
Stocks
b)
Bonds
c)
Mutual funds
d)
Index funds
40.
If you buy stock and then sell it 2 years later for more than you paid for it, the money that you make when you sell it is called _____ .
a)
Long-term capital gain
b)
Short-term capital gain
c)
Both of these
d)
Neither of these
41.
If you buy stock and then sell it 2 months later for more than you paid for it, the money that you make when you sell it is called _____ .
a)
Long-term capital gain
b)
Short-term capital gain
c)
Both of these
d)
Neither of these
42.
If you work flipping burgers at Burger King, the money you are paid for working is called _____ .
a)
Ordinary income
b)
Capital gain
c)
Both of these
d)
Neither of these
43.
Tax rates on long-term capital gain are ____ taxes on ordinary income.
a)
Higher than
b)
Lower than
c)
the same as
44.
Tax rates on short-term capital gain are ____ taxes on ordinary income.
a)
Higher than
b)
Lower than
c)
the same as
45.
If your employer takes money out of your paycheck and puts it into a Roth, you will pay income taxes on that money:
a)
When you get your paycheck
b)
When you retire and take money out of your retirement account
c)
Neither of these
d)
Both of these
46.
If your employer takes money out of your paycheck and puts it into a 401(k), you will pay income taxes on that money:
a)
When you get your paycheck
b)
When you retire and take money out of your retirement account
c)
Neither of these
d)
Both of these
47.
What REQUIRED deduction do you pay that is 6.2% of your gross pay?
a)
Federal income tax
b)
State Income Tax
c)
Social Security
d)
Medical insurance
e)
Retirement (ROTH or 401(k))
48.
What REQUIRED deduction do you pay that is 1.45 % of your gross pay?
a)
Federal income tax
b)
State Income Tax
c)
Social Security
d)
Medicare
e)
Medical insurance
49.
Which of these is based on the employer's injury rate:
a)
State Income Taxes
b)
Federal Income Taxes
c)
Unemployment insurance
d)
Workers' Compensation
e)
Medicare
50.
Which of these is based on how many employees that the employer lays off?
a)
State Income Taxes
b)
Federal Income Taxes
c)
Unemployment insurance
d)
Workers' Compensation
e)
Medicare
51.
Which of these will you NOT pay sales tax on when you buy it:
a)
Food
b)
Car
c)
Motorcycle
d)
Clothing
e)
House
52.
True or False. The U.S. has one of the most complicated tax systems in the world.
a)
True
b)
False
53.
Which statement accurately describes a progressive tax system?
a)
Under a progressive tax system, Individuals all pay the same tax rate, regardless of income.
b)
Under a progressive tax system, lower-income individuals pay a higher amount of their income in taxes compared to high-income earners.
c)
Under a progressive tax system, a higher income tax rate is imposed on people with higher incomes, and a lower income tax rate on people with lower incomes.
54.
The total dollar value of all the finished goods and services produced in a year is called:
a)
GDP
b)
GAAP
c)
PDQ
d)
IPO
55.
True or False. If the debt-to-GDP ratio is growing, it will become harder and harder to pay it back.
a)
True
b)
False
56.
What is the "debt ceiling"?
a)
A ceiling on the interest rates that the government can charge when it borrows money.
b)
A ceiling on the amount of the deficit that the government can run each year.
c)
A ceiling on the amount of the national debt.
d)
A ceiling on the debt-to-equity ratio.
57.
When you own stock in a company, we call that a _____ position.
a)
long
b)
short
c)
both of these
d)
neither of these
58.
When you sell stock that you don't own, call that a _____ position.
a)
long
b)
short
c)
both of these
d)
neither of these
59.
In a limited partnership, who is liable for obligations of the partnership?
a)
Only the limited partners
b)
Only the general partners
c)
Both the general partners and the limited partners
d)
None of the partners are liable for obligations of the partnership
60.
Which of these is NOT a good place to put your money if you want to earn a good return:
a)
Stocks
b)
Bonds
c)
Savings Account
d)
Investing
61.
Returns from stocks can come from which of these:
a)
Income generated by the investment
b)
Increases in the market price of the investment
c)
Either of these
d)
Neither of these
62.
Generally, the greater the risk, the potential return:
a)
Is greater
b)
Is smaller
c)
Stays the same
63.
True or False. If you invest in an index fund, really smart people evaluate markets and decide what investments to buy and sell.
a)
True
b)
False
64.
_____ are used to buy a share of a company.
a)
Stocks
b)
Bonds
c)
Mutual funds
d)
Index funds
65.
____ are used to loan money to a company or to state or federal governments.
a)
Stocks
b)
Bonds
c)
Mutual funds
d)
Index funds
66.
____ are used when you want a fund manager to decide what stocks or bonds to buy or sell.
a)
Stocks
b)
Bonds
c)
Mutual funds
d)
Index funds
67.
____ are used when you want your investments to be based on the market caps of the S & P 500.
a)
Stocks
b)
Bonds
c)
Mutual funds
d)
Index funds
68.
True or False. Index funds have lower fees, but research shows that they earn lower returns than mutual funds.
a)
True
b)
False
69.
Income from bonds come as ______
a)
Dividends
b)
Interest
c)
Both of these
d)
Neither of these
70.
The value of a stock _____ as the market price of the stock goes up.
a)
Goes up
b)
Goes down
c)
Stays the same
71.
The value of a bond _____ as the market interest rates go up.
a)
Goes up
b)
Goes down
c)
Stays the same
72.
If you buy stocks in a company, the dividends you recieve are normally taxed at the ____ _____ rates:
a)
Long-Term Capital gain
b)
Ordinary income
73.
If you buy stocks in a company, and two years later sell the stock for more than you paid for it, the profit is taxed at the ____ _____ rates:
a)
Long-Term Capital gain
b)
Ordinary income
74.
True or False. If you employer doesn’t offer a 401(k) or Roth, there is no other way to invest for retirement.
a)
True
b)
False
75.
True or False. Alternative credit usually has lower interest rate and other terms that are good for the borrower.
a)
True
b)
False
76.
True or False. Secured loans usually have less risk for the lender than unsecured loans.
a)
True
b)
False
77.
True or False. Interest rates on student loans are low because there is collateral that secures the loan:
a)
True
b)
False
78.
True or False. If you don’t pay back a loan from a pawn shop, the shop will keep the item that you pawned.
a)
True
b)
False
79.
True or False. In general, businesses that target customers with poor credit charge high fees and interest rates.
a)
True
b)
False
80.
True or False. In general, businesses that say "gauranteed approval" charge high fees and interest rates.
a)
True
b)
False
81.
Prices at rent to own stores are ____ prices at stores where you pay cash or use a credit card.
a)
Higher than
b)
Lower than
c)
the same as
82.
Fees and interest rates at rent to own stores are ____ prices at stores where you pay cash or use a credit card.
a)
Higher than
b)
Lower than
c)
the same as
83.
True or False. The rent-to-own industry targets people with low incomes, bad credit, and little or no financial education.
a)
True
b)
False
84.
People who take financial literacy in high school are ____ likely to use alternative credit.
a)
more
b)
less
c)
just as
85.
Which of these can help you avoid using alternative credit:
a)
An emergency fund
b)
Only borrowing money for needs - not for wants
c)
Learning the disadvantages of alternative credit
d)
All of these
e)
None of these
86.
True or False. Alternative credit is a better alternative than the the traditional credit - like mortgages and car loans and credit cards.
a)
True
b)
False
87.
True or False. A loan is a legal contract.
a)
True
b)
False
88.
You should use your monthly debt payments (other than mortgage payments) when using which of these rules:
a)
10 %
b)
20 %
c)
30 %
d)
100 %
89.
You should use your total debt (other than mortgage or student loans) when using which of these rules:
a)
10 %
b)
20 %
c)
30 %
d)
100 %
90.
You should use your annual or monthly housing expenses when using which of these rules:
a)
10 %
b)
20 %
c)
30 %
d)
100 %
91.
You should use your starting annual salary when using which of these rules:
a)
10 %
b)
20 %
c)
30 %
d)
100 %
92.
True or False. If you default on your payments to a rent to own store, it will hurt your credit score.
a)
True
b)
False
100 %
