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1st Financial Math Voc TEST

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

What is the amount of money you have in your bank account called?

a)

Balance

b)

Interest

c)

Deposit

d)

Loan

2.

What is a bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time called?

a)

Certificate Of Deposit (CD)

b)

Savings Account

c)

Checking Account

d)

Money Market Account

3.

What is a written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee called?

a)

Check

b)

Invoice

c)

Receipt

d)

Voucher

4.

What is the process of reinvesting earned interest back into the principal, so that interest is calculated on both the initial amount and the accumulated interest called?

a)

Compound Interest

b)

Simple Interest

c)

Fixed Deposit

d)

Annual Yield

5.

What is the term for the following definition? A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check.

a)

Debit Card

b)

Credit Card

c)

Gift Card

d)

Prepaid Card

6.

What is the term for the following definition? An automatic electronic deposit of net pay to an employee's designated bank account.

a)

Direct Deposit

b)

Wire Transfer

c)

Payroll Check

d)

Cash Payment

7.

What is the term for the following definition? To sign the back of a check made out to you so it can be cashed or deposited.

a)

Endorse

b)

Void

c)

Balance

d)

Reconcile

8.

What is the term for the following definition? The rate at which the price of goods increases and consumer purchasing power decreases over time.

a)

Inflation

b)

Deflation

c)

Stagnation

d)

Depreciation

9.

What is the term for the following definition? A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card.

a)

Interest

b)

Deposit

c)

Dividend

d)

Principal

10.

A check that has been written but has not yet been cashed or deposited by the payee is called an ___________.

a)

Outstanding Check

b)

Cancelled Check

c)

Certified Check

d)

Postdated Check

11.

A deposit that has been made but not yet added to the person's bank account is called an ___________.

a)

Outstanding Deposit

b)

Cleared Check

c)

Bank Statement

d)

Canceled Check

12.

A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest, is called ___________.

a)

Overdraft Coverage

b)

Fixed Deposit

c)

Mortgage Loan

d)

Credit Card Advance

13.

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year is called a ___________.

a)

Roth IRA

b)

Traditional IRA

c)

401(k)

d)

SEP IRA

14.

Interest paid on the principal alone is called ___________.

a)

Simple Interest

b)

Compound Interest

c)

Annual Yield

d)

Accrued Interest

15.

Fill in the blank: A check with 'VOID' written across it so that it can no longer be used is called a _________

a)

Voided check

b)

Blank check

c)

Certified check

d)

Bearer check

16.

Fill in the blank: A type of loan where you borrow money from your retirement savings account, and must pay it back with interest within 5 years, is called a _________?

a)

401(k) Loan

b)

Personal Loan

c)

Auto Loan

d)

Home Equity Loan

17.

Fill in the blank: The cost you pay each year to borrow money, including fees, expressed as a percentage, is called the _________.

a)

Annual Percentage Rate (APR)

b)

Principal Balance

c)

Credit Limit

d)

Minimum Payment

18.

Fill in the blank: A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee, is called a _________.

a)

Cash Advance

b)

Balance Transfer

c)

Credit Limit Increase

d)

Reward Redemption

19.

What is the term for the following definition? Someone who legally agrees to take responsibility for a person's debt if they cannot repay it.

a)

Cosigner

b)

Beneficiary

c)

Lender

d)

Debtor

20.

What is the term for the following definition? A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan.

a)

Down Payment

b)

Installment

c)

Interest

d)

Deposit

21.

What is the term for the following definition? A loan with an interest rate that does not change over the life of the loan.

a)

Fixed-Rate Loan

b)

Adjustable-Rate Loan

c)

Balloon Loan

d)

Interest-Only Loan

22.

Fill in the blank: __________ is a bank or credit account that is shared between two or more people which allows everyone named on the account to access the funds.

a)

Joint Account

b)

Savings Account

c)

Fixed Deposit

d)

Current Account

23.

Fill in the blank: __________ is the smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender.

a)

Minimum Payment

b)

Credit Limit

c)

Annual Fee

d)

Outstanding Balance

24.

Fill in the blank: __________ is debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made.

a)

Secured Debt

b)

Unsecured Debt

c)

Revolving Credit

d)

Convertible Debt

25.

A plan of your expected income and how you will use it to meet your expected expenses over a period of time is called _______.

a)

Budget

b)

Invoice

c)

Receipt

d)

Loan

26.

A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes. This method is called _______.

a)

Cash Envelope Budget

b)

Zero-Based Budgeting

c)

50/30/20 Rule

d)

Digital Wallet Budget

27.

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another is called _______.

a)

Cost of Living

b)

Disposable Income

c)

Gross Domestic Product

d)

Net Worth

28.

Income that remains the same from week to week or month to month is called _______.

a)

Fixed Income

b)

Variable Income

c)

Disposable Income

d)

Gross Income

29.

Total earnings before any deductions are taken is called _______.

a)

Gross Pay

b)

Net Pay

c)

Taxable Income

d)

Disposable Income

30.

What is the term for the following definition? A fixed amount that you are paid over a period of time, regardless of how many hours you work.

a)

Salary

b)

Wage

c)

Commission

d)

Bonus

31.

What is the term for the following definition? When your income exceeds your expenses and you have money leftover.

a)

Surplus

b)

Deficit

c)

Debt

d)

Liability

32.

Fill in the blank: A ________ is a cost that appears irregularly or that changes in amount (e.g., utility bills).

a)

Variable Expense

b)

Fixed Expense

c)

Capital Expense

d)

Sunk Cost

33.

Fill in the blank: ________ is the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.

a)

Asset Allocation

b)

Market Timing

c)

Stock Picking

d)

Risk Hedging

34.

Fill in the blank: ________ is a market in which prices are falling, encouraging selling.

a)

Bear Market

b)

Bull Market

c)

Stagnant Market

d)

Growth Market

35.

Fill in the blank: ________ is an account that lets individual investors trade stocks, bonds, mutual funds, and other investments.

a)

Brokerage Account

b)

Savings Account

c)

Checking Account

d)

Retirement Account

36.

Fill in the blank: ________ is a market in which there is increased stock trading and rising stock prices.

a)

Bull Market

b)

Bear Market

c)

Stagnant Market

d)

Recession Market

37.

Fill in the blank: ________ is an investing tool for individuals to earmark funds specifically for their retirement.

a)

Individual Retirement Account (IRA)

b)

Certificate of Deposit (CD)

c)

Savings Bond

d)

Checking Account

38.

Fill in the blank: ________ is the process of setting money aside to increase wealth over time for long-term financial goals such as retirement.

a)

Investing

b)

Spending

c)

Borrowing

d)

Gambling

39.

What is the second largest stock exchange in the world behind the NYSE?

a)

Nasdaq

b)

London Stock Exchange

c)

Shanghai Stock Exchange

d)

Tokyo Stock Exchange

40.

What is the world's largest stock exchange, physically located in New York City?

a)

New York Stock Exchange (NYSE)

b)

London Stock Exchange (LSE)

c)

Tokyo Stock Exchange (TSE)

d)

Shanghai Stock Exchange (SSE)

41.

An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year is called a _________.

a)

Traditional IRA

b)

Roth IRA

c)

401(k)

d)

Health Savings Account

42.

Fill in the blank: The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns is called the ________.

a)

1040

b)

W-2

c)

1099

d)

4868

43.

Fill in the blank: The form used by an employer to verify an employee’s identity and to establish that the worker is eligible to accept employment in the United States is called the ________.

a)

I-9

b)

W-2

c)

1040

d)

1099

44.

Fill in the blank: Taxes paid by employees to federal and state government through a direct deduction from their paycheck are called ________.

a)

Income Tax

b)

Sales Tax

c)

Property Tax

d)

Excise Tax

45.

What is the term for the following definition? A range of income amounts that are taxed at a particular rate.

a)

Tax Bracket

b)

Tax Deduction

c)

Tax Refund

d)

Tax Credit

46.

What is the term for the following definition? A form completed by an employee to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck.

a)

W-4

b)

1099-MISC

c)

W-2

d)

I-9

47.

What is the term for the following definition? The portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state and local taxes.

a)

Withholding

b)

Gross Pay

c)

Net Pay

d)

Bonus

48.

Fill in the blank: Auto insurance that protects you against costs to repair or replace your vehicle after events out of your control such as weather, vandalism, theft, etc. is called _______.

a)

Comprehensive Coverage

b)

Liability Coverage

c)

Collision Coverage

d)

Personal Injury Protection

49.

What does FSA stand for? Fill in the blank: FSA stands for _________.

a)

Flexible Spending Account

b)

Federal Student Aid

c)

Financial Services Authority

d)

Food Standards Agency

50.

What does HSA stand for? Fill in the blank: HSA stands for _________.

a)

Health Savings Account

b)

Home Savings Account

c)

Health Spending Arrangement

d)

Hospital Services Agreement