WorksheetsPFLit
Total questions: 100
Worksheet time: 50mins
Ownership investments are ideal for investors who are
just beginning to invest.
risk-averse.
close to retirement.
risk-tolerant.
What is the main reason for treating saving money in a bank account like a fixed expense in a personal budget?
So that you save money regularly
So that money can earn more interest
To pay expenses and bills on time
To pay for financial emergencies
Which of the following is a challenge that entrepreneurs often face:
Tax breaks
Increased resources
Potential financial loss
Extra vacation time
Kia wants to buy a bike. She researches information about different models and finds the following review on a website called Ben's Bike Blog for the FreeStyle 9000: “I love this bike so much! It is the best model I have found for my needs. No need to look anywhere else for a bike you will enjoy—contact me if you would like to learn more.” After looking through the website, Kia realizes that Ben sells this model of bike. This website possibly demonstrates
bias.
liability.
fraud.
reliability.
Workers should learn to be adaptable as they move through their careers because
the marketplace tends to stabilize over time.
businesses hire employees who are set in their ways.
they show employers that they are satisfied with the status quo.
the business environment is always changing.
Many businesspeople are required to take continuing education classes to
supplement their existing income.
maintain their professional certifications.
improve their standard of living.
demonstrate their emotional intelligence.
Which of the following is a disadvantage of investing in a savings account:
The rate of return doesn't keep up with inflation.
A minimum balance is required to keep the account active.
You must pay a penalty for withdrawing your money early.
There is a high potential for loss.
Which of the following is a disadvantage of using cash as a form of financial exchange:
The risk of theft decreases.
It is easy to steal or lose.
Cash payments often incur fees.
There is a higher risk of fraud.
An advantage of using cash as a payment method is the fact that
there are no security benefits.
it is inconvenient.
there are no hidden fees.
it helps build credit.
Daniel works as a marketing strategist at a digital marketing agency, where he earns a yearly (a) in compensation for his work.
Molly and Tim have just had their first baby, Tommy. On top of their other financial considerations, such as saving for their retirement, they will now have to start saving and investing for Tommy's
life insurance.
college education.
retirement.
health insurance.
Rita is looking for an easy-access bank account that she can use to earn interest on the money she receives from her part-time job. She hopes to use the account to put money aside for her future college expenses. Which account type best fits Rita's needs?
Money market account
Checking account
Certificate of deposit (CD)
Savings account
What is a guideline to follow when completing a loan application?
Use overly large letters to make the application easy to read.
Use all uppercase letters when completing online applications.
Present yourself in a positive light but be honest.
Leave questions blank when they don't apply to you.
Eric goes to the bank for a loan for his small business. He has had three businesses in 10 years—the first two failed. Joan also goes to the bank for a loan for her small business, which has been open for 10 years and has had steady success. The banker would probably decide to charge __________ a __________ interest rate.
Joan; higher
Eric; higher
both; high
both; low
What is the key reason that credit is used so widely by consumers and businesses?
Credit allows consumers to stretch their spending beyond the actual limits of income.
Credit allows consumers and businesses to purchase major products without paying for them.
Credit allows consumers and businesses to purchase goods and services when they are needed.
Credit allows new employees and new businesses to purchase items before income levels out.
Which of the following is a tax on employment:
Excise tax
Payroll tax
Property tax
Sales tax
What do people usually take into consideration when identifying occupations that they want to pursue in life?
Natural talent
Social attitude
Mental health
Personal conduct
Kit isn't sure whether she wants to become a nurse or a teacher. What kind of information could she find in career-information guides to help her make a decision?
Her own aptitude for nursing and teaching
Networking opportunities with nurses and teachers
The expected salaries of nurses and teachers
A firsthand account from a nurse and a teacher
Whenever Lucas goes to the dentist, he is responsible for paying 25% of the total bill. His dental insurance pays for the rest of each bill. The portion that Lucas pays is a(n)
deductible.
indemnity.
copayment.
premium.
How can you protect yourself from phishing attacks trying to steal your identity?
Strengthen your passwords.
Be suspicious of unsolicited phone calls.
Monitor your credit card statements.
Keep your mail safe from thieves.
Which of the following items are most likely to impact the cost of using credit:
Paycheck and interest rate
Loan length and lender
Interest rate and loan length
Lender and paycheck
What type of skills often makes it easier for employees to move up the career ladder?
Intangible
Transferable
Compatible
Negotiable
To determine an individual’s insurance __________, an insurance company will consider a variety of factors, including age, gender, medical history, and occupation.
agent
premium
deductible
copay
Employees who want to enhance their careers and progress through the management ranks should develop their
job expectations.
leadership skills.
artistic abilities.
social contacts.
To save some money to buy a used car for college, Tim placed $1,650 in a savings account and did not add to or withdraw money from the account for a year. At the end of the 12-month period, Tim had $1,722.08 in his savings account. What was the rate of return on the savings account?
4.6%
4.4%
3.7%
3.5%
How can you easily and automatically track your bank account withdrawals and deposits?
Save your receipts and compare them to your bank statement.
Organize your financial paperwork.
Make a list of all of your bills and when they are due.
Use a mobile banking or budgeting app.
Nala, who is preparing a personal budget, is determining her fixed and variable expenses. Which of the following is most likely to represent a fixed expense:
Gasoline
Electric bill
Groceries
Car payment
When considering employment opportunities, it is important to remember that each career option varies in terms of earning potential, skills, and __________ requirements.
gender
health
educational
intensity
On his way home from work, Jason stops at the gas station to buy a magazine and a pack of gum. The magazine and gum are examples of __________ expenses.
nonessential
essential
variable
fixed
Abbie just graduated from college, moved to a new apartment, started a new job, and has no dependents. She makes enough money to cover her living expenses, but she also needs to save enough to
cover medical expenses.
invest in the stock market.
support beneficiaries.
retire within a few years.
Parker decided to create an Instagram account to share pictures of nature he takes with his new camera. To create a strong and secure online password for his account, Parker should
use his personal information.
keep it short in length.
reuse a password from another website.
make his password a nonsense phrase.
Philip needs a car to drive to his new job, but he does not have enough cash in his savings account to cover the cost yet. Philip's situation shows why
credit is a marketing-information tool.
saving money is not an effective practice.
it is a good idea to build a strong credit rating.
credit is often necessary to make large purchases.
Gabriella is writing a professional report about the trends occurring in a specific industry. What source would provide Gabriella with the most relevant, up-to-date information?
Online message boards
Archived government periodicals
Mailing lists
Trade publications
Sam's family has just had a baby. What should Sam do with his financial plan?
Continue to follow his plan as he has been
Submit a copy of the plan to be notarized
Reassess the plan and modify it as needed
Create a completely different plan from scratch
Which of the following is most likely to be an unwise purchase to make using credit:
A car
A house
A hot tub
An education
A business is transitioning all its customer records to a digital format. When it gets rid of the old paper records, it should shred the documents to prevent
identity theft.
data inaccuracy.
hacking.
loss of market share.
Rossi is buying a new computer for $363 with his credit card. The credit card has a rate of 24% and uses an adjusted balance method to calculate interest. The credit card company begins charging interest on Rossi's purchase during the first billing period. If Rossi makes a payment of $200 for the first billing period and pays the remaining amount for the second billing period, how much total interest will Rossi pay?
$12.31
$14.52
$10.67
$7.26
Which of the following institutions benefits individuals and groups by channeling funds from savers to borrowers:
Nonprofit organizations
Banks
Income-tax preparers
Property holders
Rasheed is interested in investing in a higher risk mutual fund. What type of mutual fund should he put money into?
Stock fund
Balanced fund
Money market fund
Bond fund
An individual with a higher income who pays a larger percentage of their income as taxes than an individual with a lower income is in a (a) tax system.
What behavior is exhibited when an individual recognizes the possibility of an undesirable outcome and continues to work toward a goal?
Flexibility
Self-discipline
Risk taking
Creativity
Kelly saved her money for two years to buy a car she wanted. Soon after, Kelly started saving for an expensive stereo. Kelly's desire for more illustrates the concept that people's wants are
noneconomic.
competing.
varied.
unlimited.
Why should an investor who wants to actively trade their investment choose an ETF instead of a mutual fund?
Mutual funds don't allow intraday trades or short selling.
Mutual funds are not professionally managed.
ETFs don't provide any access to small industries or niche markets.
ETFs don't allow intraday trades or short selling.
Employees should seek positions that
capitalize on their weaknesses.
minimize their strengths.
capitalize on their strengths.
minimize their experience.
Over lunch, Louise tells her new friend that she loves to write. Over the past 20 years, she has been a newspaper reporter, written a magazine column, taught writing at a local college, volunteered as a writing tutor at an elementary school, studied journalism in New York, and even had a novel published. Louise is describing her
occupation.
work environment.
job.
career.
Calculate the percentage of increase in savings-account funds for the week if ABC Community Bank started the week with $1,256,778 and ended the week with $1,482,998.
16%
20%
18%
22%
Max earned $1,500 over the summer working at a restaurant. If Max puts his money in a savings account with a 1% simple annual interest rate, how much will Max have in 5 years?
$1,515
$1,575
$1,725
$1,575
Which of the following is an example of a transfer payment?
A federal grant to attend college
A tax break for small business owners
Dividends paid to stockholders
Payments made on a car loan
When Raina's car was damaged in a hailstorm, she was glad she had automobile insurance because it reduced the cost of car repairs. This is an example of how automobile insurance protects you
legally.
medically.
financially.
culturally.
A critical aspect of financial planning involves
setting broad financial goals.
investing money in high-risk securities.
obtaining several credit cards.
saving money for unexpected situations.
William's car is damaged. To fix the car, the repairs will cost $1,789. If William's insurance deductible is $750, how much will the insurance company pay for the repairs?
$1,789
$1,039
$750
$789
Nina needs to buy her textbooks for college. Instead of getting them from the school bookstore, she finds a way to rent them online for much less money. Nina is
a victim of a scam.
investing rather than saving.
comparison shopping.
impulse buying.
To pay his student loans, Jerian elects a plan where he begins with low monthly payments that increase yearly. This is an example of a(n) (a) plan.
Which of the following is a true statement regarding an employer's tax obligations:
Employers pay a matching amount of employees' Social Security and Medicare taxes.
Employers pay the same amount in taxes for each employee.
Employers may 'opt out' of paying payroll taxes.
Employers pay taxes only for full-time employees.
On January 3, Anna mailed her credit card payment, which was due on January 5. The credit card issuer received the payment on January 7. What most likely appeared on Anna's credit card statement the following month?
Application charge
Processing charge
Over-limit fee
Late fee
Asher just earned $100 for dog sitting. How can he take advantage of the time value of money?
Invest the money so he will earn interest.
Store the money in his sock drawer for later use.
Spend the money later to avoid inflation.
Spend part of the money now and save part for later.
Transaction fees and interest rates are important considerations when you are
assessing a loan application.
preparing your bank statements.
selecting a credit card provider.
establishing your credit rating.
What do companies try to accomplish when extending credit to customers?
Reduce expenses
Reduce assets
Increase sales
Increase liabilities
Which of the following is a way in which a consumer can safeguard their information while using mobile and online banking:
Never changing their password
Using unique log-in credentials
Staying logged in at all times
Saving their password in their phone notes
Using a credit card is
like getting a free loan if you pay the balance each month.
a good way to pay for impulse purchases.
a privilege reserved for working adults.
an inexpensive way to borrow money for an extended period.
An employer might promote an employee who has seniority because the employee
has a proven record of accomplishments.
works with other people on a regular basis.
expresses an interest in technology.
completes certain projects ahead of schedule.
What is the primary reason many start-up businesses fail?
Owners do not stay current with technology and professional development.
Owners require employees to take aptitude tests when they are hired.
Owners tend to hire employees who have good references.
Owners do not have access to resources for professional development.
Which of the following investments uses a manager who is responsible for deciding which investments to pursue:
Real estate
Money market account
Bond
Mutual fund
Which of the following is an example of a payroll deduction:
Overtime hours
Health insurance
Net pay
Pay rate
Which of the following is a disadvantage of a checking account:
Online transaction options
Account balance requirement
Overdraft protection
Direct payroll deposit
Yazmin earned $5,000 from her summer job. If she invests it at a rate of 5%, how much will it be worth in two years?
$5,025.50
$5,512.50
$5,500
$10,250
One difference between stocks and bonds is that
issuing bonds helps businesses grow.
bonds must be repaid over time.
stocks include interest payments.
stocks are safer than bonds.
Individuals often are willing to take the risk of investing because of the
expected return.
financial guarantee.
unlimited insurance.
low interest.
Which of the following factors might affect a customer's application for credit:
Height
Income
Race
Gender
Calista is an investor with a high risk-tolerance seeking high growth. Which of the following represents the most diversified investment approach?
20 high-growth stocks in different industries
15 high-growth stocks within the technology sector
5 high-growth stocks in different foreign markets
5 high-growth stocks in different industries
Amira is trying to choose a financial institution. She likes to do her banking in person, and she wants to make sure she selects an institution that's customer friendly. She wants good interest rates and low fees, and she'd also prefer to invest with a not-for-profit institution. Amira should invest her money in a(n)
Internet bank
credit union
investment bank
commercial bank
Which of the following financial institutions offers checking and savings accounts and provides loans to individuals and businesses:
Brokerage houses
Investment banks
Insurance companies
Commercial banks
Entry-level positions provide employees with
basic job experience.
few advancement opportunities.
high salaries.
limited training.
You are more likely to achieve your goals if they are
short-term.
long-term.
written down.
based on needs only.
Insurance is a key element in lifelong financial planning that
protects a person from unethical salespeople.
provides protection against financial losses.
guarantees a solid financial future.
is available only to property owners.
One feature that makes bonds unique when compared to stocks is
a sensitivity to interest rates.
different purchase and sale prices.
a guaranteed return on investment.
bond holders own the corporation.
Amelia places $250 in a savings account that pays 6.25% interest compounded annually. Calculate the value of her savings account in two years.
$274.86
$290.60
$282.23
$297.77
Which of the following statements about deposit-taking financial institutions is true?
A deposit-taking institution's primary liabilities are checking accounts, savings accounts, money market accounts, and certificates of deposit.
Two types of commercial banks are mutual savings banks and savings and loan associations (S&Ls).
When a saver deposits funds, s/he receives a claim on the individual or firm to whom the depository institution lends these funds.
The Small Business Administration and the Federal Housing Administration are examples of deposit-taking financial institutions.
Viola wants to go on a vacation sometime in the next year. How should she generate the money she needs for the trip?
Put the expenses for the trip on a credit card
Put her money in a savings account
Take some money from her emergency fund
Invest her money in the stock market
By developing a personal budget, individuals will be able to review their
investment plans.
spending patterns.
insurance policy coverage.
bank statements.
While Chase was reviewing his stock performance, he saw that his commodities investment dropped .002 points from Monday's close to Tuesday's close. This drop is called the
net worth.
true value.
net change.
true yield.
An employee's net pay is the difference between their _________ and _________.
(a)
Why do many employees continue their training or education after obtaining their first jobs?
To obtain basic job information
To impress friends and coworkers
To change occupations frequently
To move up the career ladder
Knowing your strengths and weaknesses can help you
perform better in your current job.
receive a raise each year.
make the right decision every time.
obtain any job you want.
Which of the following enables you to make a purchase with money directly from a checking account:
Collateral
Debit card
Cash
Credit card
Which of the following is the most likely action that the government will take when a person misses the deadline for filing their income tax return:
Refund
Extension
Allowance
Penalty
Home-based businesses are attractive to many people because the businesses generally
require less technical training.
provide owners a steady income.
yield higher profit margins.
have lower startup costs.
Kevin is reviewing his annual credit report. Ever since he misplaced an important tax document containing his Social Security number, he is especially cautious about protecting his identity. Which of the following is most likely to be a red flag for potential identity theft:
“Soft” inquiries from the credit card companies that Kevin applied to
Negative information outside the credit reporting time limit
Incorrect or outdated address and employer information
Accounts in Kevin's name that he doesn't remember opening
Fayth is developing her personal budget. She intends to save 10% of her income, use 38% of her income for housing and utilities, spend 14% on food, devote 20% to transportation, and set aside the rest for clothing, recreation, and entertainment. She earns $958 per pay period. How much money does she plan to spend on clothing, recreation, and entertainment each pay period?
$306.56
$134.12
$288.34
$172.44
What information do you need in order to calculate the future value of money?
Present value, return on investment, credit score, and interest rate
Interest rate, return on investment, inflation rate, and credit score
Interest rate, inflation rate, number of compounding periods of interest per year, and length of time in years
Present value, interest rate, length of time in years, and number of compounding periods of interest per year
One of the reasons that businesses and consumers use credit is because it provides
reassurance.
interest.
convenience.
collateral.
Which of the following individuals is most likely to benefit from choosing a high-risk investment:
23-year-old saving and investing for retirement
60-year-old who is close to the age of retirement
16-year-old saving and investing to pay for college tuition
14-year-old saving and investing to buy their first car
Sheila pays the minimum payment shown on her credit card bill each month. For the remaining amount on the bill, she will be charged a(n)
late fee.
annual fee.
overdraft fee.
annual percentage rate.
A business purchases insurance to protect against the risk of burglary. This is an example of (a) the risk.
Taryn is choosing between two apartments. Which of the following factors is most important for her to consider in order to make a responsible financial decision:
The size of the bedroom
The appliances
The cost of rent
The location
When applying for credit, lenders will often assess __________, or the reputation of the borrower.
capital
collateral
character
capacity
Failing to pay bills on time may result in growing __________, which makes it harder to borrow money.
credit
debt
discounts
assets
Tia wants to purchase a new wardrobe using a credit card with a 0% introductory interest rate. How can she determine how much she can afford to charge to the credit card?
Determine how much she has in her savings account
Calculate how much she can afford to pay on the card each month
Find out what her credit limit is from the credit card company
Find out how much is in her emergency fund
Which of the following factors influences the time value of money:
Banks
Interest rates
World events
Financial needs
Which of the following is an expense that a typical auto insurance policy will cover:
Personal belongings stolen from your car
Damage to the stereo system you installed in your car
Injuries you cause to someone else in a car accident
Water leaking from the roof of your garage
