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WorksheetsPersonal Financial Semester Review
Total questions: 20
Worksheet time: 10mins
What is a financial goal?
A list of your current bills
A written statement of financial priorities
A loan from the bank
An estimate of your net worth
Which is an example of a fixed expense?
Utility bill
Grocery purchases
Monthly rent
Entertainment spending
Which type of account earns interest on deposits and is meant for storing money long-term?
Checking account
Savings account
Credit card
Money order
Why is it important to save money regularly?
To avoid having to work
To be able to lend to others
To prepare for future needs or emergencies
To keep up with spending trends
Which is a disadvantage of using a credit card?
Improves credit history
Allows emergency purchases
Potential for high-interest debt
Earns cashback rewards
Which type of insurance is legally required for most drivers?
Life insurance
Auto liability insurance
Health insurance
Property insurance
What is the main purpose of a 401(k) plan?
To save for medical emergencies
To fund a child’s education
To save for retirement
To create a vacation fund
Why do investors diversify their portfolios?
To avoid taxes
To maximize volatility
To reduce investment risk
To increase banking fees
What does APR stand for?
Average Percentage Rate
Annual Percentage Rate
Annual Personal Reserve
Applicable Payment Requirement
How can consumers avoid paying interest on credit card balances?
By using debit instead
By paying the balance in full each month
By using the card only on weekends
By applying for multiple cards
What is a benefit of having good credit?
Easier loan approval with better terms
Less need to track expenses
Access to higher taxes
Higher monthly payments
What is the purpose of a checking account?
To make investments
To hold retirement savings
To conduct daily transactions
To store money long-term
What does inflation do to the value of money over time?
Increases it
Decreases it
Has no impact
Doubles it
What role does the FDIC play in personal finance?
Regulates stock markets
Insures bank deposits
Provides home loans
Manages retirement accounts
What is net income?
Total income before taxes
Amount earned from selling a car
Income after taxes and deductions
Salary offered before accepting a job
What is the benefit of comparing prices before a major purchase?
Increases spending
Avoids needing a warranty
Helps find the best value
Improves credit score
Why might someone choose a Roth IRA over a traditional IRA?
Roth IRAs have higher penalties
Roth IRAs allow tax-free withdrawals in retirement
Roth IRAs charge monthly fees
Roth IRAs require employer sponsorship
What is phishing?
A type of investment strategy
The act of creating a fraudulent website
Attempting to obtain sensitive information by pretending to be trustworthy
A method of budgeting for groceries
Which is an example of human capital?
A bank account
A college degree
A credit card
A car loan
Which of these is considered a variable expense?
Car payment
Internet bill
Grocery bill
Rent
