WorksheetsFinancial Pretest Units 1-4
Total questions: 33
Worksheet time: 17mins
These are a collection of personal attributes, behavior, and social attitudes that help interact effectively with each other.
hard skills
academic skills
technical skills
soft skills
The following are considered direct costs of college Except
meal plans
textbooks
tuition
housing (dorms)
What is a sunk cost fallacy?
belief that a future investments should be based on pasts costs
strategy of cutting losses and moving on from unprofitable investments
tendency to continue an endeavor once an investment in money, effort, or time has been made even if no longer beneficial
practice of only investing in ventures with guaranteed returns
What is the primary concept behind envelop budgeting method?
Allocating a fixed percetage of income to a different investment account
using physical envelopes to separate and manage cash for different spending accounts
tracking expenses digitally through a budgeting app
Which of the following is considered a soft skill?
knowledge of Calculus
Empathy
Proficiency in Java Programming
Understanding of Physics Principles
What is herd mentality in personal finance?
making financial decisions based on your own research
following what most ppl are doing with their money, without thinking of yourself
seeking financial advice from an advisor before making any decisions
In reference to personal finance, what is a budget?
list of all debts and loans a person ows
record of past financial bank statements
plan for how to spend and save money over a specific period
What is the Endowment effect?
tendency to save more money
tendency to value something more once you own it
tendency to spend more on luxury items
Which of the following is a fixed expense?
Groceries
Rent
Entertainment
Car expenses
What does the term "Pay Yourself First" mean in personal finance?
paying your bills before anything else
setting aside money for savings before spending on other expenses
using your income to buy personal items first
paying off all debts before saving
Why is it important to track your spending?
to see where your money goes
to increase your income
to avoid paying taxes
This is the value of the next best alternative that you give up when making a choice
Endowment Effect
Scarcity
Opportunity Cost
This refers to the tendency of people living in a capitalist economy to engage in a lifestyle of excessive materialism that revolves around wasteful overconsumption (Behavioral Economics Unit)
Minimalism
Frugality
Consumerism
Sustainability
These are non-essentials items that enhance quality of life
Needs
gross pay
Wants
Budget
The amount of money left after all deductions have been taken out
Gross pay
Net Pay
Wants
Budget
What is the scarcity principle?
Offering products at a low price
Making products available in limited quantities
Providing free samples to consumers
Using celebrity endorsements in ads
In reference to SMART goals, what did the "A" represent?
Accountability
Achievable
Appropriate
Attainable
The Hedonic Treadmill is a metaphor for
Constant pursuit of new experiences to maintain happiness
Cyclical nature of human emotions
difficulty of achieving long-term goals.
negative effects of excessive exercise
This is a temporary postponement or reduction of loan payments usually granted during financial hardship, where interest still accrues.
Default
IDR
Forbearance
Fixed Expenses
Emotional spending is most closely associated with
Carefully planned purchases
Purchases driven by feelings
Purchases to acquire assets
Purchases using a strict budget
Defaulting on a student loan means
Temporarily postponing payments due to financial hardship
Failing to repay a student loan according to the agreed-upon terms
Transferring your student loan to another person
Having your student loan balance forgiven after a set period
Income-based repayment (IBR) plans for student loans are designed to
Have the same monthly payment, regardless of income
Set monthly payments based on a borrower's income and family size.
Forgive the entire loan balance after a short period
Charge a fixed interest rate, regardless of income
Work-study programs are
High-paying jobs offered to recent college graduates
A type of student loan that is repaid through community service
Federally funded programs that provide part-time jobs for students with financial need
Internships offered exclusively to graduate students
Which of the following is considered a liability?
2024 car
mortgage
stocks
cash
Expenses is money going (a) ?
Which of the following is the correct formula for calculating net worth?
assets + liabilities=NetWorth
assets x liabilities=NetWorth
assets - liabilities=net worth
Liabilities - Assets=net worth
Why is it important to understand the difference between assets and liabilities?
to avoid paying taxes
to get better credit card offers
to calculate your income
determine financial health and net worth
Which of the following is a benefit of compound interest?
It provides a fixed return on investment
It allows savings to grow faster over time
It decreases the amount of interest paid on loans
It reduces the risk of investment
What is the main advantage of having a diversified investment portfolio?
It eliminates the need for financial planning
It guarantees high returns
It minimizes risk by spreading investments across various assets
It focuses on a single high-performing asset
A high credit utilization rate can negatively impact your credit score because it suggests to lenders that you are?
Using credit responsibly and paying it back on time
Over-reliant on credit and at a higher risk of default
Actively managing multiple credit accounts
Making frequent purchases with your credit cards
Opportunity cost is best defined as
The total cost of a financial decision, including all explicit expenses
The amount of money you save by making a particular financial choice
The value of the next best alternative forgone when making a decision
The potential profit you could earn from an investment over time
Ideally, what range should your credit utilization rate be to maintain a good credit score?
above 50%
Between 30% and 50%
Below 30%
0%
If you choose to spend $100 on a new video game, the opportunity cost could be
The enjoyment you get from playing the game
The potential resale value of the video game in the future
The original price of the video game.
The $100 you could have saved or used for something else
