Worksheets(ML) Test Review Chap 4-6
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
In the short-run, fixed costs are easier to change than variable costs
a)
True
b)
False
2.
In a balanced budget,
a)
expenses = savings.
b)
expenses + savings = earnings + borrowing
3.
Most financial experts recommend that a family have fixed expenses of no more than
a)
50 to 60 percent of net pay.
b)
50 to 60 percent of variable expenses.
4.
The IRS has the legal right to audit your tax returns and supporting records for ___ years from the date of filing.
a)
2
b)
5
c)
10
d)
3
5.
Assets - Liabilities = _____________
a)
Discretionary income
b)
Net Worth
c)
Variable expenses
6.
Darren writes a check to the phone company for $45.60. He should record this amount in his checkbook register in the
a)
Deposit/Credit column.
b)
Payment/Withdrawal/Debit column.
c)
Balance column.
7.
The best reason to save money is to provide for future needs.
a)
True
b)
False
8.
A typical down payment for a house is about ___ percent of the purchase price.
a)
10 to 20
b)
20 to 30
c)
30 to 40
d)
5 to 10
9.
Financial experts say you should save _______ of your income.
a)
10%
b)
15%
c)
20%
d)
25%
10.
Interest paid on the original principal plus accumulated interest is called
a)
compound interest.
b)
yield.
c)
adjustable interest.
d)
value-added interest.
11.
The two elements to consider in budgeting and planning are your income and your expenses.
a)
True
b)
False
12.
The biggest advantage of scholarships is that they do not have to be repaid if you complete your education.
a)
True
b)
False
13.
One disadvantage of using direct deposit is that your paycheck can only be deposited into a savings account, not a checking account.
a)
True
b)
False
14.
An interest-bearing checking account that pays a higher rate of interest than a usual account, but typically has more restrictions, is called a
a)
share account.
b)
money market account.
15.
Why is it important to regularly reconcile a bank account statement with a personal account register?
a)
To identify any discrepancies, such as unauthorized transactions, errors, or unrecorded automatic payments.
b)
To avoid overdraft fees by ensuring the bank account always has a minimum balance.
16.
Savings accounts protected by the FDIC are protected from loss for up to
a)
$250,000.
b)
$500,000.
c)
$100,000.
d)
$1,000,000.
17.
The more liquid an investment, the less earning potential it is likely to have.
a)
True
b)
False
18.
People often choose their financial institution because of convenience of location and the services offered.
a)
True
b)
False
19.
A computer program that organizes data in columns and rows and can perform calculations using the data is called a
a)
spreadsheet.
b)
database.
20.
You should never sign a contract until you read and understand all its terms.
a)
True
b)
False
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