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WorksheetsSemester 1 Review (Business Math)
Total questions: 75
Worksheet time: 52mins
Which type of loan is backed by the Federal Housing Administration and is easier to qualify for, especially for first-time home buyers?
Conventional Loan
FHA Loan
VA Loan
Fill in the blank: The only mortgage that allows a 0% down payment is the _____.
Conventional Loan
FHA Loan
VA Loan
What is the minimum credit score typically required to lease a car?
500
600
650
700
Leasing a car means you will always have a ______ payment.
yearly
monthly
weekly
daily
Which of the following factors can affect the interest rate on a car loan?
Credit score
Car age
Down payment
All of the above.
Fill in the blank: A higher _______ lowers the loan amount, which in turn lowers your interest rate.
Credit score
Down payment
Car age
What is the first step in estimating your monthly payment?
Calculate the interest rate
Figure out the Principal
Add interest to the principal
Divide Total Cost by number of months.
Fill in the blank: To calculate interest, use the formula Interest = Principal * Rate * ______.
Time in years
Total Cost
Down Payment
Monthly Payment
Which debt repayment strategy prioritizes interest rates?
Debt Avalanche
Debt Snowball
Both
Neither
In the Debt Snowball method, you pay off the ______ debt first.
largest
smallest
highest interest
lowest interest
What information is typically included in the 'Account Summary' section of a credit card statement?
Previous Balance, Payments, Purchases
Credit Line Access, Available Credit
Rewards Earned This Month, Total Rewards Available
Minimum Payment Due Date.
In the 'Rewards Summary' section, what does 'Total Rewards Available' refer to?
The total rewards earned this month
The previous rewards balance
The sum of previous rewards balance and rewards earned this month
The available credit line.
Fill in the blank: The 'Payment' section of a credit card statement includes the ________ and the Minimum Payment Due Date.
A) New Balance
B) Available Credit
C) Cash Advances
D) Interest Charged
What does a credit card statement summarize?
Your credit score
How you have used your credit card during one billing period
Your bank account balance
Your annual income.
What is a balance transfer?
Moving debt from one credit card to another
Paying off a credit card balance
Transferring money to a savings account
Closing a credit card account.
Fill in the blank: A person might use a credit card to withdraw cash instead of a debit card because ______.
it offers rewards
it has a higher limit
it is more convenient
it is safer
Potential fees you could be charged on a credit card include:
Late fees
Over-the-limit fees
Balance transfer fees
All of the above.
Fill in the blank: You can avoid credit card interest by paying off your full credit card balance ______.
every year
every month
every week
every day
What is the formula to calculate the new balance?
New Balance = Previous Balance + Payments - Purchases, Transfers, Cash, Fees, and Interest
New Balance = Previous Balance - Payments + Purchases, Transfers, Cash, Fees, and Interest
New Balance = Previous Balance - Payments - Purchases, Transfers, Cash, Fees, and Interest
New Balance = Previous Balance + Payments + Purchases, Transfers, Cash, Fees, and Interest
What is the formula to calculate Available Credit?
Available Credit = Credit Line Access + New Balance
Available Credit = Credit Line Access - New Balance
Available Credit = New Balance - Credit Line Access
Available Credit = Credit Line Access / New Balance
Fill in the blank: Available for Cash is calculated as Cash Access Line minus ________.
A) Purchases
B) Cash Advances
C) Fees Charged
D) Interest Charged
Fill in the blank: If the previous rewards balance is 53,156 and rewards earned this month are 354, what is the total rewards available?
53,510
53,000
53,600
53,200
A loan to buy a property or a home:
Rent
Sublet
Closing Costs
Mortgage
If an expense can NOT be removed from your budget to save money, it is considered a _____.
Income
Want
Need
Savings
Fixed or variable expense: Groceries
Fixed
Variable
Fixed or variable expense: Rent?
Fixed
Variable
A paycheck consists which of the following? (Select two)
Check
Paystub
Permission slip form
Waiver form
Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?
50% needs, 30% wants, 20% savings
50% budget, 30% needs, 20% wants
50% saving, 30% needs, 20% wants
$50 needs, $30 wants, $20 savings
Who has to pay taxes to the US government?
Every citizen, regardless of their age or working status
Every person or company that earns income in the US
Anyone who owns a home or attends a public school
No one has to - taxes are a voluntary program
What is a budget?
A calendar used to plan out your activities for the month
A plan for spending and saving your money
A plan to manage your time for the day
A type of savings account
Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...
Cell phone plan
Rent
Clothing
Electricity bill
What is income?
The money that you earn
The money that you spend
Making a withdrawal
Making a phone call
Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?
Will something bad happen if I don't have this?
Do any of my friends have this item?
How happy will this item make me?
Will my teachers be excited if I buy this item, or will they be disappointed?
What is gross pay?
The money that you earn before taking out deductions
The money that you earn after taking out deductions
What is net pay?
The money that you earn before taking out deductions
The money that you earn after taking out deductions
Why should you use your NET pay when creating a budget?
Your net pay will always be higher, so you'll have more money to spend
Your net pay is a more accurate picture of how much money you have available to spend or save
Your employer knows what your gross pay is, but you only know what your net pay is
Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget
amounts removed from gross income to pay for taxes and other expenses
invest
balanced budget
withholdings
discretionary
_____ income is the amount earned before deductions.
Gross
Net
Insurance
Deductions
_____income is the amount received after deductions.
Gross
Net
Insurance
Deductions
Which bank account is best to use for everyday spending, paying of bills and depositing money
Savings Account
Checking Account
IRA
If you do not pay your credit card off in full, when will the interest fees start?
after 1 week has past
after 1 month has past
There are no interest fees with credit cards
after 1 year has past
What can you use an ATM for?
check all that apply
Depositing your paycheck
Withdrawing monney
Paying a bill
Checking you account balance
What is considered a withdrawal?
(Check all that apply)
Putting money into the bank.
paying for items at a store
Getting cash from the ATM
Direct Deposit of your paycheck
This type of account offers the following features:
-Save your money in a safe spot
-LOW interest earned here
-Kepp $ separate from your normal, everyday spending account
Checking account
Savings account
Retirement account
Loan
This type of account offers the following features:
-Safe place to keep your money w/ low-medium interest
-Lock your money away for 6 months, 9 months, 12 months, 18 months, etc.
-Fee to withraw money before time is up
-Can use this as a security / collateral for 1st credit card to start building credit
Savings account
Retirement account
Certificate of Deposit (CD)
Credit card
This type of account offers the following features:
-Borrow $$$ in order to purchase something
-Pay interest on top of the original amount of $ you borrow
Loan
Certificate of Deposit (CD)
Retirement account
Debit card
This type of account offers the following features:
- Check account balances
- Transfer money from one account to another
- Make virtual deposits with checks
- Set up automatic bill payments
- Make loan payments
Mobile or online banking
Checking accounts
Loans
Retirement accounts
This type of account offers the following features:
- Set up your stock market portfolio
- Purchase and track bond investments
- Purchase and track fund investments (ex: Mutual funds, Exchange traded funds, etc.)
Retirement account
Checking account
Savings account
Loan account
This type of card offers the following features:
- Borrow money to make purchases
- Build a credit score by making payments on time
- Late payments = Late fees = Credit score drop
ATM card
Debit card
Credit card
This type of card offers the following features:
-Connected to your checking account for direct purchases
-Connected to your savings account (optional) for transfers via mobile app or ATM
-Use for everyday spending at stores or online
Credit card
Checking account
Debit card
ATM card
Which of the below is an employer based retirement plan that both employees and employers contribute to?
Traditional IRA
Roth IRA
401K
Pension
Which of these accounts do you set up at a brokerage firm or other financial institution?
401K
Pension
Individual Retirement Account
What is the difference between a Traditional and Roth IRA?
A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.
A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.
Which type of account will your employer often "match" your contributions?
Traditional IRA
401K
Roth IRA
Pension
The money put into this type of account has already had taxes taken out.
Pension
401K
Roth IRA
Traditional IRA
What does tax deferred mean?
You pay taxes when you put the money into the account and when you withdraw it.
You pay taxes now when you contribute to your account.
You pay taxes at a later date when the money is withdrawn.
You should start saving for retirement
When you get married
When you get your first job
When you reach age 50
When you reach age 65
Which of the following is a supplemental retirement plan for government workers?
401k
403b
Roth IRA
Trad IRA
This represents a piece of ownership in a company.
Certicate
Option
Share of stock
Mutual fund
The practice of dividing the money a person invests between several different types of investments in order to lower risk; Spread around
Day Trading
Diversification
Globalization
Investing
Structured and maintained to match the investment objectives stated in its prospectus
Corporation
Partnership
Mutual Fund
Stock Exchange
