WorksheetsPersonal Finance Unit Exam
Total questions: 40
Worksheet time: 20mins
Zion created a budget to help manage his allowance. What is the main purpose of this financial tool?
To track interest on loans
To avoid spending money on needs
To plan income and expenses
To earn faster credit increases
Quentin wants to build his credit history. Which of the following actions would most likely help improve his credit score?
Maxing out his credit card monthly
Making late payments
Always paying the minimum due
Paying bills on time consistently
Aaron placed $2,000 into a savings account earning 3% simple interest annually. After one year, how much interest will he have earned?
$60
$6
$600
$20
Jackson took out a student loan. What makes this type of debt generally acceptable?
It has no consequences
It helps improve a social life
It’s an investment in future earning potential
It’s used for non-essentials
Jake is deciding between a checking and savings account. He wants to pay bills easily and have frequent access to his money. What should he choose?
Savings account
Certificate of deposit
Checking account
Retirement account
Devin pays his car insurance premium monthly. What type of expense is this considered?
Irregular
Fixed
Variable
Discretionary
Kirsten was injured and can’t work for several months. Which insurance policy would help replace her income during this time?
Auto
Disability
Life
Renters
Kennedy is applying for her first credit card. What will the credit card company most likely consider before approval?
Her grocery list
Her attendance record
Her credit history and income
Her career goals
Lennox wants to retire at age 65. Which type of account should he begin contributing to now to prepare financially?
Checking account
Roth IRA
Car loan
Student loan
When Hayden makes a purchase using her debit card, what is actually happening?
She’s borrowing money from the bank
The money is being withdrawn directly from her checking account
Her account balance is increased
She’s earning interest on the purchase
Kingston wants to avoid high-interest debt. What’s the most responsible way for him to manage his credit card?
Only pay the minimum due
Ignore monthly statements
Always pay off the balance in full
Skip months to save money
Which of the following situations involves a liability rather than an asset?
Jackson owns a paid-off car
Devin owes money on his student loan
Kennedy has a savings account
Zion receives a tax refund
Which of these investments is typically considered to have the lowest risk?
Stocks
Mutual funds
Government bonds
Cryptocurrency
When you take out a mortgage, the collateral is usually:
A car
Your home
Your credit card
A retirement account
What does the term principal refer to when taking out a loan?
The interest owed over time
The total amount repaid
The original amount borrowed
The late fees added
Why is it smart to build an emergency fund?
For vacations
For buying clothes
To cover unplanned costs like car repairs
To pay off your mortgage
Which of the following best describes APR?
Annual Payment Return
The yearly cost of borrowing money including fees
The total investment return over time
The total you owe in taxes
Zion notices that money is withheld from each paycheck to help fund programs like Social Security and Medicare. This deduction is called:
Investments
Rent
Taxes
Insurance
If Kennedy spends more than she earns in a month, she is operating with a:
Surplus
Budget
Debt consolidation
Deficit
Why is having a high credit score beneficial when buying a car or house?
It helps you avoid paying any interest
You can skip payments
It can qualify you for lower interest rates and better loan terms
It increases your salary
Quentin set aside $500 each month to invest in his future; this is part of his (a) plan.
Jake’s (a) score dropped after he missed two loan payments.
Hayden pays her (a) expenses like rent and car insurance on time every month.
Kingston used a (a) card to withdraw money from his checking account.
Devin's budget showed he was spending more than he earned, which created a (a) .
Lennox decided to grow his money by making an (a) in a mutual fund.
Zion reviewed his (a) to prepare for holiday spending.
Jackson is saving money in case of a sudden job loss; this is his (a) fund.
Kirsten pays a (a) if her loan payment is late.
Kennedy contributes to her (a) fund every month for retirement.
Aaron received his (a) from work after taxes were withheld.
A (a) is a formal agreement to borrow money and pay it back over time.
Jake wants to buy a house and is considering applying for a (a) .
Interest is often charged on the (a) amount borrowed.
The (a) protects deposits in member banks up to $250,000.
(a) is withheld from paychecks to fund federal programs.
If Jackson invests in government bonds, he is choosing a (a) -risk strategy.
Kennedy is shopping for (a) to protect her health and car.
Kirsten is planning to use her (a) account for everyday purchases and direct deposit.
Quentin used his (a) income to save and invest wisely.
