WorksheetsFinal Review
Total questions: 40
Worksheet time: 35mins
1. Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?
Her principal is the cost of the car, minus any down payment she makes
Her interest rate is the total cost she’ll pay after making all of her principal and interest payments
Choosing a shorter term means it will take her longer to repay the loan
It’s likely that her monthly payment will be between 4-5% of the cost of the car
2. Jaime is creating a budget for the first time and doesn’t know which to use - NET PAY or GROSS PAY. What do you tell him?
“Use net pay, because it’s the total amount you’ve earned minus taxes and other deductions.”
“Use gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month.”
“Use net pay, because it’s the total amount you’ve earned for the month.”
“Use gross pay, because that is the amount that is reported to the government for taxes.”
3. Why is sending a personalized thank you after a job interview important?
It shows that you want the job even if you don’t really like the company
You can apologize for any mistakes you made in the interview
It gives you the opportunity to leave a good impression by expanding on an answer you gave or a topic you discussed
It allows you to boast about your accomplishments one last time
4. As ___________________________ increases, the purchasing power of the dollar decreases, which impacts how much you can buy in goods and services.
Student Aid Index
Application fees
Personal expenses
Inflation
5. Mike uses the strategy of ___________________________ to minimize the impact of the market’s ups and downs. He invests the same amount of money at regular intervals over time.
Inflation
50/20/30
Snowball Method
Dollar Cost Averaging
6. To reduce risk in her investment portfolio, Emily uses the strategy of ___________________________, making sure she invests in a variety of assets like stocks, bonds, funds, and more.
Rule of 72
Roboadvisor
Diversification
Buy only apple stock
7. The monthly premium for Kevin’s renters insurance is $15, and his deductible is $500. During the month of April, someone breaks into his apartment and steals or destroys $2200 worth of his possessions. How much will Kevin pay and how much will the insurance pay to replace his items?
Kevin pays $0 // insurance company pays $2200
Kevin pays $15 // insurance company pays $2200
Kevin pays $500 // insurance company pays $2200
Kevin pays $500 // insurance company pays $1700
8. Which definition best describes the FAFSA?
The amount of money the federal government offers you in student loans
The paperwork your bank has you complete in order to take out a personal student loan
The paperwork you complete in order to have part of or all of your student loan debt forgiven
The application you submit in order to determine eligibility for federal student aid
9. Which of the following best describes the amount of money you'll have if you put $1000 into a savings account earning 1% annual compound interest for 10 years? You can ignore the impact of inflation in this question.
Exactly $1100
Slightly more than $1100
$2000
Exactly $11,000
10. All of the following can be found in your credit report EXCEPT…
Your credit payment history
Your checking account balance history
The average age of your credit accounts
Your total number of active credit accounts
11. In a(n) ___________________________, employees can contribute a portion of their salary on a pre-tax basis, which is then invested for retirement savings.
401K
Apple Stock
Roth
Credit card
12. These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?
Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0
Jasmine, who had saved the $1500 previously and pays off the whole balance once her bill comes
Nelson, who makes the minimum monthly payment each month until the debt is $0
Robert, who makes $300 payments per month until the debt is $0
13. Using Target Date Funds can be beneficial for beginner investors, because...
A fund manager customizes your asset allocations for you
It guarantees that you will have enough money for retirement and doesn’t require a lot of management
It will automatically adjust your assets for you over time
It minimizes risk by investing 50% in stocks and 50% in bonds
14. As an investor, when you purchase a(n) ___________________________ from a company, you are lending the company money which it promises to repay with interest by a certain date.
Stock
Bond
Credit Card
Student Loan
15. When you have liability coverage with your auto insurance policy...
Your insurance will cover the payment for your broken windshield if your car gets broken into
You cannot be found liable or guilty of causing an accident
Your insurance will cover your neighbor's fence repair if you crash into it backing out of the driveway
Your medical bills will be covered if you're in an accident, even if you are at fault
16. A(n) ___________________________ is linked directly to your checking account and can be used to withdraw money or make purchases.
Roth IRA
401 k
credit card
debit card
17. Which person from this list is saving rather than investing?
Yvonne, who puts $750 per month into her bank account earning 1% interest
Danielle, who contributes 2% of her pay to her company's 401(k) plan
Daryl, who uses his $5000 end-of-year bonus to buy Treasury bonds
Alexis, who buys $100 worth of shares in an S&P 500 index fund every month
18. Many employers offer ___________________________, which electronically transfers your paycheck directly into your bank account.
credit counseling
Credit cards
Direct Deposit
check cashing
19. Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck EXCEPT...
Medicare
Federal taxes
Overdraft fees
Social Security
20. ___________________________ protects your deposits in the bank up to $250,000 in case the bank fails.
FDIC
Jake from State Farm
Keanu Reeves
Your employer
21. Maura has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is she likely to receive during her first week on the job?
A Medicaid enrollment form
A W-4 form
A 1040 form
A W-2 form
22. You have $3000 per month to cover your expenses. You estimate your monthly costs to be rent of $1200, car expenses of $700, utilities of $200, insurance of $300, food of $400, student loans of $800, and going out with friends of $200. What is the end result?
A budget deficit of $800
A budget surplus of $800
A total budget of $6800
$0
23. Comparison shopping is the practice of...
Comparing a product you bought a year ago to an updated version that is available now
Comparing the quality of a product you bought to the quality of a similar product your friend bought
Comparing the prices of two unrelated products you need to purchase
Comparing various factors of the same product offered by different retailers before making a purchasing decision
24. What is one step you can take to protect yourself from identity theft?
Check your bank statements each month to verify that all transactions are accurate
Log into your bank's mobile app using a public WiFi network
Throw away expired bank account cards and documents without shredding them
Use websites that start with "http" instead of "https"
25. Hudson always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay?
His car loan with a 6.9% interest rate
His credit card with a 19.7% interest rate
His private student loans with an 11.8% interest rate
His Federal student loans with a 3.76% interest rate
26. To avoid a(n) ___________________________, ensure you have enough funds in your account to cover all transactions.
Overdraft fee
credit card
interest rate
stock option
27. How is the 50/20/30 Rule allocated to each category?
50% Wants 20% Needs 30% Savings
50% Needs 20% Savings 30% Wants
50% Savings 20% Wants 30% Needs
50% Savings 20%Needs 30% Wants
28. True or False: The majority of Americans do not have $400 to cover an emergency expense
True
False
29. True or False: When looking at your paycheck, your net pay is the amount you were paid before taxes, and your gross pay is your take-home pay.
True
False
30. ___________________________ is a strategy where individuals prioritize saving by putting a portion of their income into savings before paying other expenses.
Pay Yourself First
Zero based budget
Rule of 72
Snowball Method
31. Find the percentage. Round to the nearest tenth.
8% of 70
6
5.6
6.5
70
32. Find the percentage 70% of 80.
70
65
56
50
33. Find the percentage. 30% of 500
300
150
30
200
34. Fisher motors conducted a survey of it's dealer service. The people surveyed were asked to choose one answer for this question: "If you DO NOT usually to the dealer from whom you bought your vehicle for service, why not?" The choices and number of response were the following: 40 moved away, 20 disliked the service, 100 service charges were too high, 100 said crowded service department and 40 said location not convenient. What was the total number of customers surveyed?
280
200
300
400
35. Based on the above total what percentage said that the service charges was too high?
50%
33%
25%
75%
36. Based on question 34 what percentage moved away?
13%
50%
20%
75%
37. Based on question 34 What percentage of customers stated crowded service department.
23%
33%
44%
66%
38. According to the Rule of 72 how many years will it take to double $10,000 if the investment earns 8%?
8 years
9 years
10 years
12 years
39. If you deposit $100 at 10% simple interest for two years, how much interest will you have after two years?
$12.00
$10.00
$20.00
$30.00
40. If you deposit $100 at 10% compound interest for two years, how much interest will you earn?
$10.00
$20.00
$21.00
$30.00
