WorksheetsPersonal Finance Practice Final Exam
Total questions: 45
Worksheet time: 23mins
Which of the following is an example of a fixed expense in a monthly budget?
Groceries
Rent
Entertainment
Clothing
What does the term "credit score" primarily measure?
Your annual income
Your creditworthiness
Your total assets
Your monthly expenses
Which factor is most likely to lower your credit score?
Paying bills on time
High credit card balances
Having a savings account
Earning a high income
Fill in the blank: Creating and following a (a) can help you achieve generational wealth.
Which government program is designed to help individuals save for retirement?
Social Security
Medicaid
SNAP
Pell Grant
What is the purpose of monitoring your financial plan regularly?
To increase your expenses
To ensure you are meeting your goals
To avoid paying taxes
To close your bank account
Which of the following is NOT a component of a typical budget?
Income
Expenses
Credit score
Savings
Which investment is generally considered the least risky?
Stocks
Bonds
Mutual funds
Savings account
Which type of retirement account is often offered by employers and may include matching contributions?
401(k)
Certificate of Deposit
Savings bond
Money market account
Which of the following is a variable expense?
Mortgage payment
Car insurance
Utility bill
Student loan payment
What does the "S" in SMART goals stand for in financial planning?
Simple
Specific
Secure
Short-term
Which of the following is a type of investment?
Savings account
Checking account
Credit card
Utility bill
Which credit score range is generally considered "good"?
300-499
500-599
600-699
700-850
Which action can help improve your credit score?
Making late payments
Maxing out credit cards
Paying bills on time
Closing old credit accounts
Which of the following is a benefit of starting to save for retirement early?
Lower interest rates
More time for investments to grow
Higher taxes
Less need for budgeting
Identify one necessary document needed to complete forms like the FAFSA or scholarship applications:
Federal income tax returns, W-2s
Letter of recommendation
High school yearbook
List of extracurricular activities
What does the "T" in SMART goals stand for?
Tangible
Timely
Taxable
Trustworthy
Which of the following is an example of discretionary spending?
Rent
Groceries
Movie tickets
Car payment
Which type of investment pools money from many investors to purchase a diversified portfolio?
Mutual fund
Certificate of Deposit
Savings account
Credit union
Which of the following is most likely to negatively impact your credit score?
Paying off loans
Applying for multiple new credit cards at once
Keeping credit card balances low
Having a long credit history
Fill in the blank: One way to achieve generational wealth is through (a) planning and literacy.
According to the rational decision-making model, which of the following is NOT a factor to consider when evaluating employment opportunities?
Pay
Upward mobility
Color of the office walls
Work-life balance
Which of the following is a characteristic of stocks?
Fixed interest rate
Ownership in a company
Guaranteed return
Insured by the government
Fill in the blank: Successful workers practice key behaviors known as (a) skills.
Which of the following is a feature of a bond?
Ownership in a company
Fixed interest payments
No maturity date
Variable dividends
What is the first step in the financial planning process?
Implementing the plan
Setting financial goals
Monitoring the plan
Evaluating alternatives
Which soft skill involves working well with others to achieve a common goal?
Teamwork
Time management
Public speaking
Critical thinking
According to the chart, what is the actual probability of moving from the bottom to the top quintile of earnings in Sweden?
About 10%
About 5%
About 15%
About 7.5%
Which of the following is a common employer-sponsored retirement plan?
401(k)
Roth IRA
Health Savings Account
Certificate of Deposit
Describe how individual financial decisions can help create generational wealth.
Making wise investments and saving consistently
Spending all income immediately
Avoiding all forms of saving and investment
Ignoring financial planning
Communication skills are an example of a soft skill.
True
False
According to the chart, which country has the lowest actual probability of remaining in the bottom quintile of earnings?
United States
Britain
France
Sweden
Which of the following is considered a soft skill every worker needs?
Work ethic
Punctuality
Time management
All of the above
Which of the following is a general employability skill required to be successful in the workplace?
Time management
Advanced calculus
Rocket science
Painting landscapes
What is the main purpose of creating a budget?
To increase debt
To track income and expenses
To avoid paying taxes
To close bank accounts
Which step comes last in the financial planning process?
Setting goals
Implementing the plan
Monitoring and revising the plan
Evaluating alternatives
Which type of investment is typically insured by the FDIC up to a certain limit?
Savings account
Stocks
Mutual funds
Corporate bonds
Which of the following is an example of an asset?
Credit card debt
Car loan
Savings account balance
Utility bill
What is the actual probability of remaining in the bottom quintile of earnings in the United States according to the chart?
About 30%
About 35%
About 20%
About 40%
What does the "Movin' on up" chart show about perceived vs actual probability of social mobility?
Perceived probability is generally higher than actual
Perceived probability is generally lower than actual
Perceived and actual are about the same
No clear pattern
According to the "Movin' on up" chart, which country has the highest perceived probability of moving from the bottom to the top quintile of earnings?
United States
Britain
France
Italy
Fill in the blank: WORK ETHIC refers to how seriously one pursues the (a) associated with employment.
For the item 'EMPLOYMENT', fill in the Cost, Benefit, and answer if it is for you.
Answers will vary depending on the student
The cost is always higher than the benefit
Employment has no benefits for students
Only full-time employment is considered
Which soft skill involves completing tasks on time and efficiently?
Time management
Teamwork
Public speaking
Critical thinking
Fill in the blank: (a) is an important method to achieve generational wealth.
