WorksheetsUnit 2 Test Review - Personal Finance
Total questions: 25
Worksheet time: 44mins
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?
Regular savings account
Money Market account
Checking account
Certificate of Deposit
Can access money when certificate matures.
Traditions Savings at Local Bank
Money Market
Certificate
od Deposit
Online Bank -Savings Account
Owned by members or employees of a local employer
Bank
Credit Union
Both
Offers the use of ATMs
Bank
Credit Union
Both
Caters services to businesses but also serves individual customers
Bank
Credit Union
Both
Nonprofit
Bank
Credit Union
Both
Generally lower savings rates and higher fees
Banks
Credit Cards
Both
NCUA provides deposit insurance
Bank
Credit Union
Both
The type of investment account that helps people store their money for easy access if needed is known as a...
Certificate of Deposit
Savings account
Retirement account
Mutual fund
The type of investment account that allows investors to own shares or have "partial ownership" in a particular company is known as (a)...
Certificate of Deposit
Mutual fund
Retirement account
Stocks
What is the main advantage of a Roth IRA?
Tax-free withdrawals
Guaranteed returns
Higher contribution limits
Tax-deferred withdrawals
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?
$100.00
$180.00
$70.00
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?
$150.00
$75.00
$50.00
Your credit score determines how successful you will be in obtaining a loan
True
False
A rise in the cost of goods and services is called...
inflation
discount rate
interest
deflation
The Fed influences the money supply and interest rates in the economy to keep this low and stable-
Supply
Price
Interest
Inflation
How can a cardholder avoid paying interest on a credit card?
Do not pay anything
Pay the minimum payment after its due date
Pay the balance in full every month
Pay the minimum balance every month
What is an overdraft?
The customer does not have enough money
The customer have enough money
The customer does not have enough checks
None of the above
Overdraft Protection automatically comes with the account.
True
False
What is wrong with this check?
They didn't write who they are paying.
The money amount in dollars is wrong.
The money amount written in words is wrong.
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?
Traditional Savings Account
Money Market Account
Certificate of Deposit (CD)
Roth IRA
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?
Roth IRA
Certificate of Deposit (CD)
Traditional Savings Account
Money Market Account
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?
Roth IRA
Traditional Savings Account
Certificate of Deposit (CD)
Money Market Account
