WorksheetsPractice W!SE Questions
Total questions: 52
Worksheet time: 26mins
The difference between earned and unearned income is:
Earned income is money received from working, while unearned income is money received from sources other than work.
Earned income is money received from investments, while unearned income is money received from a job.
Earned income is always higher than unearned income.
There is no difference between earned and unearned income.
The difference between gross and net income is:
Gross income is after deductions, net income is before deductions.
Gross income is before deductions, net income is after deductions.
Gross income and net income are the same.
Gross income is only for businesses, net income is only for individuals.
The effect of inflation is:
Increase in the value of money
Decrease in the value of money
No change in the value of money
Increase in production
FDIC or NCUA insurance covers:
Stocks and bonds
Mutual funds
Deposits in banks or credit unions
Life insurance policies
The difference between a checking and savings account is:
Checking accounts are mainly for daily transactions, while savings accounts are for saving money and earning interest.
Savings accounts are used for daily spending, while checking accounts are for long-term savings.
Both accounts are only for business use.
There is no difference between checking and savings accounts.
A Certificate of Deposit (CD) is:
a type of savings account with a fixed interest rate and maturity date
a form of credit card
an insurance policy
a type of loan
The components of a budget are:
Income and expenses
Only income
Only expenses
Assets and liabilities
An emergency fund is:
Money set aside for unexpected expenses or emergencies.
Money used for daily expenses.
Funds invested in the stock market.
A loan taken from a bank.
Recordkeeping is important because:
It helps maintain accurate information and supports decision-making.
It is a fun activity.
It is required only for entertainment purposes.
It is not necessary in any organization.
The difference between installment loans and revolving credit is:
Installment loans are paid in fixed payments over time, while revolving credit allows borrowing up to a limit and repaying repeatedly.
Installment loans have variable payments, while revolving credit has fixed payments.
Both are paid in one lump sum.
Installment loans and revolving credit are the same.
A credit card works by:
Allowing you to borrow money up to a certain limit to make purchases and pay back later
Directly deducting money from your bank account for every purchase
Only allowing you to withdraw cash from ATMs
Providing discounts on every purchase without any repayment
Factors that impact your credit score include:
Payment history, amounts owed, length of credit history, new credit, and types of credit used
Your favorite color and birth month
The number of pets you own
Your daily exercise routine
You can get a free credit report yearly from:
Your local bank
AnnualCreditReport.com
The IRS
Your employer
Important loan terms to know include:
Principal, interest rate, term, collateral
Brand, warranty, color, size
Calories, vitamins, minerals, fiber
Latitude, longitude, altitude, depth
The purpose of insurance is:
To provide financial protection against potential losses or risks.
To increase personal wealth quickly.
To avoid paying any taxes.
To guarantee profits in investments.
Name types of insurance.
Life insurance, health insurance, auto insurance
Only car insurance
Only travel insurance
Only pet insurance
A premium, deductible, and co-pay are all related to which of the following?
Health insurance costs
Car maintenance fees
Bank account charges
Utility bill payments
Liability coverage means:
Protection against damages you cause to others or their property.
Coverage for your own injuries and damages.
Insurance for natural disasters only.
A type of health insurance.
People invest because:
They want to lose money
They want to grow their wealth
They want to avoid all risks
They dislike financial planning
Common types of investments include:
Stocks, bonds, and real estate
Only savings accounts
Only cryptocurrencies
Only gold
Types of retirement accounts include:
401(k), IRA, Roth IRA
Checking, Savings, Money Market
Credit, Debit, Prepaid
Mortgage, Auto Loan, Student Loan
Compound interest is:
The interest calculated on the initial principal only
The interest calculated on both the initial principal and the accumulated interest
The interest paid only at the end of the investment period
The interest that decreases over time
SMART financial goals are:
Specific, Measurable, Achievable, Relevant, Time-bound
Simple, Manageable, Affordable, Realistic, Timely
Strategic, Motivational, Accountable, Responsible, Tangible
Secure, Marketable, Actionable, Reliable, Trackable
The FAFSA is:
A federal student aid application form
A type of scholarship
A student loan company
A college entrance exam
Smart consumer skills are:
The ability to make informed and wise purchasing decisions
The habit of buying products impulsively
Ignoring product information and reviews
Spending money without planning
Name important consumer protection laws.
Consumer Protection Act, 1986
Indian Penal Code, 1860
Companies Act, 2013
Income Tax Act, 1961
Preventing identity theft can be done by:
Sharing your passwords with others
Using strong, unique passwords and monitoring your accounts
Posting personal information online
Ignoring suspicious emails
Earned income comes from working (wages, salary); unearned income includes ________, interest, and government benefits.
dividends
rent
wages
tips
Gross income is before taxes; net income is after ________.
taxes
deductions
expenses
interest
Types of taxes include income tax, sales tax, and ________ tax.
property
weather
holiday
music
Examples of tax forms include W-2, W-4, and ________ forms.
1040
1099
W-8
W-3
Inflation reduces the ________ power of money.
purchasing
borrowing
printing
saving
Examples of financial institutions include commercial banks, credit unions, and ________ banks.
online
grocery
toy
clothing
The FDIC insures up to $250,000 per depositor per ________ or credit union.
bank
branch
account
state
A checking account is for daily transactions; a savings account is for storing money with ________.
interest
fees
penalties
taxes
A certificate of deposit is a savings tool with fixed interest and a fixed ________ date.
maturity
opening
withdrawal
deposit
Examples of bank fees include overdraft fees, ATM fees, and minimum ________ fees.
balance
deposit
withdrawal
transfer
A budget includes income, fixed expenses, variable expenses, and ________ spending.
discretionary
mandatory
seasonal
unexpected
An emergency fund should cover 3–6 months of expenses for ________.
emergencies
vacations
luxury items
entertainment
A budget helps track spending and manage money ________.
wisely
randomly
carelessly
rarely
Fill in the blank: Installment loans have ______ payments; revolving credit allows flexible borrowing (like credit cards).
fixed
variable
increasing
random
Fill in the blank: It allows borrowing up to a limit with interest if not paid in full ______.
monthly
yearly
weekly
daily
Fill in the blank: The website where you can get your annual credit report is ______.
AnnualCreditReport.com
FreeCreditScore.com
CreditReportOnline.net
MyCreditCheck.org
Fill in the blank: The four main components of a loan are principal, interest, term, and ______.
down payment
collateral
credit score
insurance
Fill in the blank: Insurance protects against ______ risk.
financial
physical
emotional
social
Fill in the blank: Types of insurance include health, auto, renters, homeowners, life, and ______.
disability
groceries
vacation
furniture
Fill in the blank: Premium is the monthly cost; deductible is the out-of-pocket before insurance pays; co-pay is the ______ per service.
fixed fee
percentage of bill
annual limit
insurance company
Fill in the blank: Examples of investments include stocks, bonds, mutual funds, and ______.
real estate
groceries
furniture
clothing
Fill in the blank: Higher risk usually means higher potential ______.
return
loss
interest
cost
Fill in the blank: Spreading investments across different assets is called ______ investments to reduce risk.
diversifying
concentrating
speculating
leveraging
Fill in the blank: The form used to apply for federal financial aid for college is called the ______.
FAFSA
SAT
ACT
CSS Profile
Fill in the blank: Three important consumer protection laws are the Fair Credit Reporting Act, Truth in Lending Act, and ______.
Fair Debt Collection Practices Act
Equal Pay Act
Occupational Safety and Health Act
Freedom of Information Act
