WorksheetsFinancial Literacy Final Exam - Modified
Total questions: 34
Worksheet time: 17mins
Name
Class
Date
1.
4. Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck, EXCEPT...
a)
Medicare
b)
Federal taxes
c)
Overdraft fees
d)
Social Security
2.
5. All of the following would show up on a credit report, EXCEPT...
a)
Salary of your current job
b)
Payment history of your car loan
c)
Credit card payment history
d)
Student loan activity
3.
Which of the following statements about the W2 is true?
a)
James had $565.01 taken out for Federal Income Tax
b)
James had $4,768.50 taken out for Federal Income Tax
c)
Total wages and tips were $42,567.85
d)
James didn't pay any state income tax
4.
7. You are a realtor and you sell a house that is $300,000. You receive $9000 for that sale. The $9000 is your ___?__
a)
Salary
b)
Benefit
c)
Commission
d)
Bonus
5.
8. Healthcare, vacation time and retirement plans are examples of __?__
a)
Wages
b)
Benefits
c)
Salary
6.
How much state income tax did James have taken out in 2023?
(a)
7.
10. Which of the following statements comparing credit and debit cards is TRUE?
a)
Far more businesses accept credit cards than debit cards
b)
Credit cards pull money directly from your bank account, while debit cards get their money from Visa and Mastercard
c)
Credit card companies provide you with a monthly statement, while debit cards do not
d)
With debit cards, you are spending your own money, but with credit cards you're getting a loan that you need to pay back later
8.
13. Select the statement below that accurately describes a characteristic of a credit card.
a)
You owe the same payment each month
b)
You must have money deposited into a checking account to use the credit card for purchases
c)
Making full payments on time every month is the only way to avoid interest charges
d)
The do not charge interest
9.
15. An excellent credit score will help in which aspect of car financing?
a)
Bargaining for a great sales price
b)
Receiving a large downpayment
c)
Qualifying for a low interest rate
d)
Having a wide selection of term lengths
10.
16. George has a credit card with a $1000 credit limit. His outstanding balance is $700. What is the maximum amount that he can now spend on the credit card?
a)
300
b)
$700
c)
$500
d)
$1700
11.
17. Which of the following is the most effective strategy for personal savings?
a)
Wait until the end of the month and save whatever is left in your checking account.
b)
Save a certain percentage of each paycheck and deposit it directly into a savings account
c)
Cover all of your wants and needs and save whatever is left
d)
Take out a payday loan so you can save before you receive your paycheck
12.
18. You are at the checkout counter of the local grocery store and use your debit card to pay. Where does the money come from?
a)
Your credit card company covers the cost
b)
It is deducted directly from your checking account
c)
Your credit card company provides you with a cash advance to cover the cost
d)
It is deducted directly from your savings account
13.
23. What is an insurance premium?
a)
Your monthly payment to your insurer, regardless of whether you use the services
b)
A list of the procedures covered by your insurance carrier
c)
An added cost you pay in order to receive higher quality service
d)
The amount you pay out of pocket for a specific procedure or service
14.
24. How do insurance companies make money?
a)
Refusing to pay out claims to policyholders
b)
Collecting money from the government
c)
Collecting more in premiums than they need to pay out each year
d)
Keeping costs low with minimal advertising
15.
26. Sam's auto policy has a coverage limit of $20,000 and a deductible of $500. He gets into an accident and the damages are $6200. Fortunately, he has collision coverage. How much will Sam pay out of pocket?
a)
$0
b)
$500
c)
$6200
d)
$20,000
16.
27. Medicaid generally provides insurance for what groups of people?
a)
The elderly or disabled
b)
Individuals in low-income households
c)
Anyone who wants to buy the coverage
d)
Employees in a government positions
17.
30. What was the net (or take-home) pay for this employee for this pay period?
a)
$335.10
b)
$400.00
c)
$2,680.80
d)
$3,200
18.
31. How much did this person pay towards Medicare in this pay period only?
a)
$5.80
b)
$24.80
c)
$44.50
d)
$52.20
19.
32. Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
a)
Social Security
b)
Medicare
c)
401(k) contribution
d)
Federal income taxes
20.
33. Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. Which of the following steps is she responsible for?
a)
Determine how much tax to withhold from her paychecks based on W-4 information
b)
Complete a W-4 form
c)
Send withholding amounts to the federal government
d)
Complete a W-2 form
21.
34. What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
a)
I-9
b)
1099
c)
1040
d)
W-4
22.
35. When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
a)
withholding
b)
direct deposit
c)
deduction
d)
refund
23.
36. Which of the following is the MOST difficult to adjust if you are looking to reduce your expenses?
a)
Dining Out
b)
Loan payment on a new car
c)
Expenses for new clothes
d)
Postponing a purchase for a big screen TV
24.
37. If you are trying to reduce the amount you spend on food, you should try
a)
Cooking your own food at home as much as possible
b)
Dining at restaurants more often to save water on dishes
c)
Eating more snacks on the go and fewer meals at home
d)
Drink more coffee and soda so you aren't as hungry for food
25.
38. You're considering moving into a 3-bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?
a)
Groceries and eating out
b)
Rent
c)
Cell phone bill
d)
Bedroom furniture
26.
39. What action corresponds to the advice "Pay yourself first?"
a)
Wait until the end of the month to determine how much you have leftover to save
b)
Set aside a fraction of your paycheck into a savings account before you start spending
c)
Spend your regular paycheck on needs and wants but funnel any extra money into saving
d)
Become self-employed so you're paying yourself instead of being paid by an employer
27.
41. Your ________________ should highlight your education and most relevant skills and experiences in a concise format.
a)
Resume
b)
Cover Letter
c)
References
d)
Thank you note
28.
42. A _____________________ allows the holder to make purchases without cash by borrowing money.
a)
Debit Card
b)
Credit Card
c)
Insurance Card
d)
Check
29.
43. _____________________ is the amount you get paid before taxes and deductions are taken out.
a)
Net Pay
b)
Gross Pay
c)
Total Pay
d)
Finish Pay
30.
44. _______________ is the original amount of money that you are borrowing on a loan.
a)
Collateral
b)
Principal
c)
Term
d)
Interest Rate
31.
45. A three digit number ranging from 300 to 850 based on an individuals credit history.
a)
Interest Rate
b)
Credit Score
c)
Credit Report
d)
Credit Utilization
32.
46.A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company
a)
Dividend
b)
Bond
c)
Stock
d)
Index Fund
33.
47. Most landlords require this insurance for the people that are renting from them.
a)
Homeowners Insurance
b)
Renters Insurance
c)
Life Insurance
d)
Health Insurance
e)
Option 4
34.
48. Why is it important to track your expenses?
a)
It's not important
b)
So you can brag to your friends
c)
To make sure you don't spend more than you have
d)
To make your parents happy
100 %
