WorksheetsFinal Review
Total questions: 50
Worksheet time: 2hrs 57mins
________ is the process of arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals.
values
morals
economics
personal financial planning
Getting a college education, buying a car, and starting a business are examples of _____.
short-term goals
long-term goals
What is the first step in developing a personal financial plan?
Assessing your current financial situation
Investing in stocks
Setting financial goals
Creating a budget
Your financial goals should be:
Not clear
SMART (Specific, Measurable, Achievable, Relevant, Time-bound)
________ are purchases you make often and use up quickly.
Durable goods
Consumable goods
A ______ is a person who purchases and uses goods or services
creditor
company
consumer
producer
_____ is the study of the decisions that go into making, distributing, and using goods and services.
Personal Financial Planning
Economics
Liquidity
Most successful people ____________.
work well with others
complain about their jobs.
only do the bare minimum.
change jobs frequently.
An _______is a position in which a person receives training by working with people who are experienced in a particular field.
job
career
internship
college
If you buy part of a company, this is called a:
Share
Dividend
Patent
What is the purpose of a budget?
To limit spending and track income and expenses
To obtain a high credit score
To borrow money from friends or family
Creating a ________ helps you see how much money you have and decide how much you can spend.
savings account
job
check book
budget
Real World Scenario: Sarah wants to buy a new bike. She has $50 and her mom gave her $20 as a gift. How can Sarah use her plan for spending and saving to decide if she can buy the bike?
Spend all the money now
Wait for more money as a gift
Compare the cost of the bike to her savings
Ask her friend to decide
What is the primary purpose of setting financial goals?
To avoid saving
To impress others
To guide your financial decisions and actions
To spend more money
Which of the following is considered a long-term financial goal?
Buying groceries
Purchasing a movie ticket
Saving for retirement
Paying monthly rent
What is the term for the money you earn from working or investments?
Income
Debt
Expense
Liability
A resume gives a potential employer _________.
the reason you want the job
your most recent test scores
a summary of your education, training, experience and qualifications.
credit score
Any item of value that an individual or company owns, including cash, property, personal possessions, and investments, are called_______.
exclusions
assets
direct materials
mentor
An example of a long-term liability is a _____.
car repair bill
grocery bill
car loan
dinner
fixed expense -
mortgage
insurance
When calculating interest, how do you write the percent?
a fraction
a decimal
a round number
not enough information
Principal = $10000,
Rate = 7%,
Time = 20 years
Travis
invests $25,000 in a savings account that pays 2.75% simple interest. How much interest does he earn each year?
$787.50
$625
$657.50
$687.50
In some investment accounts interest is computed on interest that has been earned in previous years. What is this method of computing interest called?
compound interest
double interest
simple interest
not enough information
What does the n stand for in this formula?
Initial amount
Final amount
Rate
Time
The number of times compounded per year
What does the r stand for in this formula?
Initial amount
Final amount
Rate, as a decimal
Time
The number of times compounded per year
Anne deposited $500 in an account that earns 6% simple annual interest.
Shelly deposited $500 in an account that earns 6% annual interest compounded annually.
They leave the money in the account for 4 years. Which
statement is true about the two investments after 4 years?
Shelly will have $131.24 more in her account
than Anne has in her account.
They will have the same
amount in their accounts.
Shelly will have $11.24 more
in her account than Anne has in her account.
Anne will have $11.24 more in
her account than Shelly has in her account.
David invests $10,000 in a savings account that pays 3.5% simple interest.
If David makes no withdrawals or deposits to the account, how much will be in the account after 7 years.
$2,450
$11,750
$12,450
Not here
Carly deposited $800 in an account that earns 6% compounded annually.
Lara deposited $800 in an account that earns 6% simple interest.
How much will each girl have in their account at the end of 10 years if they make no withdrawals or deposits?
Carly: $1432.68 Lara: $1280
Carly: $1444.89 Lara: $1280
Carly: $1444.89 Lara: $1320
Carly: $1432.68 Lara: $1320
An advantage (pro) of Certificates of Deposits (CDs) is that the money can be taken out at any time without penalty.
True
False
The amount of money in your account
Deposit
Benjamins
Balance
Dollars
What is her total deposit?
Jane takes home $3,500 every month from her job. She uses $1,800 of that money to pay for her rent and her car payment, $300 for her credit card payment and $100 for her savings account. In order to make sure that she keeps her budget balanced for her month, what is the most amount of money that she can spend for the rest of the month?
$1,100
$1,300
$800
$1,200
Morgan used the ledger below to track her income and expenses for September.
Which is a true statement about Morgan’s income and expenses for September?
Morgan spent $10 more than she earned.
Morgan’s income and expenses were equal.
Morgan earned $10 more than she spent.
Morgan’s total income was $10.
An individual has total assets of $120,000 and total liabilities of $80,000. What is his net worth?
$40,000
$50,000
$60,000
$30,000
Which of the following is NOT classified as a spending need?
Electricity bill
Rent for a home
Movie tickets
Grocery bill
What is the better buy:
Doritos $4.39 for 11.5 oz
Or
Cheetos $2.34 for 9.75 oz
Doritos
Cheetos
