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Unit 2 Test Review - Personal Finance

Total questions: 25

Worksheet time: 44mins

Name
Class
Date
1.

Juan saved $1,000 from his summer job cleaning pools. Which of these savings vehicles would work best for him if he doesn't need access to the money for a number of years AND wanted to earn the highest interest rate?

a)

Regular savings account

b)

Money Market account

c)

Checking account

d)

Certificate of Deposit

2.

Can access money when certificate matures.

a)

Traditions Savings at Local Bank

b)

Money Market

c)

Certificate

od Deposit

d)

Online Bank -Savings Account

3.

Owned by members or employees of a local employer

a)

Bank

b)

Credit Union

c)

Both

4.

Offers the use of ATMs

a)

Bank

b)

Credit Union

c)

Both

5.

Caters services to businesses but also serves individual customers

a)

Bank

b)

Credit Union

c)

Both

6.

Nonprofit

a)

Bank

b)

Credit Union

c)

Both

7.

Generally lower savings rates and higher fees

a)

Banks

b)

Credit Cards

c)

Both

8.

NCUA provides deposit insurance

a)

Bank

b)

Credit Union

c)

Both

9.

The type of investment account that helps people store their money for easy access if needed is known as a...

a)

Certificate of Deposit

b)

Savings account

c)

Retirement account

d)

Mutual fund

10.

The type of investment account that allows investors to own shares or have "partial ownership" in a particular company is known as (a)...

a)

Certificate of Deposit

b)

Mutual fund

c)

Retirement account

d)

Stocks

11.

What is the main advantage of a Roth IRA?

a)

Tax-free withdrawals

b)

Guaranteed returns

c)

Higher contribution limits

d)

Tax-deferred withdrawals

12.

John has $125 in his bank account. On Saturday, he made a deposit for $55.00. How much money does he have in his account now?

a)

$100.00

b)

$180.00

c)

$70.00

13.

Daniel has $100.00 in his bank account. He would like to buy a new pair of sneakers. Before he goes to the store, he withdraws $50.00 from his account. How much money is left in his account?

a)

$150.00

b)

$75.00

c)

$50.00

14.

Your credit score determines how successful you will be in obtaining a loan

a)

True

b)

False

15.

A rise in the cost of goods and services is called...

a)

inflation

b)

discount rate

c)

interest

d)

deflation

16.

The Fed influences the money supply and interest rates in the economy to keep this low and stable-

a)

Supply

b)

Price

c)

Interest

d)

Inflation

17.

How can a cardholder avoid paying interest on a credit card?

a)

Do not pay anything

b)

Pay the minimum payment after its due date

c)

Pay the balance in full every month

d)

Pay the minimum balance every month

18.

What is an overdraft?

a)

The customer does not have enough money

b)

The customer have enough money

c)

The customer does not have enough checks

d)

None of the above

19.

Overdraft Protection automatically comes with the account.

a)

True

b)

False

20.
What should be written on line 2?
a)
the date
b)
the amount of the check
c)
who the check is going to
d)
your signature
21.

What is wrong with this check?

a)

They didn't write who they are paying.

b)

The money amount in dollars is wrong.

c)

The money amount written in words is wrong.

22.
Less Accessible 
a)
Credit Union
b)
Bank
23.

Maria is a 17-year-old high school student who just got her first part-time job at a bookstore. She wants to start saving for retirement early but doesn’t want to pay taxes on her withdrawals when she retires. Which account would be the best option for her?

a)

Traditional Savings Account

b)

Money Market Account

c)

Certificate of Deposit (CD)

d)

Roth IRA

24.

Emma is 16 and has been saving money from babysitting. She wants to keep her savings safe and earn some interest but may need access to her money in the next couple of years for college expenses. What would be the best option for her?

a)

Roth IRA

b)

Certificate of Deposit (CD)

c)

Traditional Savings Account

d)

Money Market Account

25.

Sarah has $10,000 that she doesn’t need to use for at least three years. She wants to earn a higher interest rate but doesn’t need frequent access to her money. Which option would be the best choice?

a)

Roth IRA

b)

Traditional Savings Account

c)

Certificate of Deposit (CD)

d)

Money Market Account