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WorksheetsPersonal Finance
Total questions: 84
Worksheet time: 56mins
Social Security Tax
Money withheld from the government & paid out at retirement age
Net Pay
The money you bring home each pay period
Gross Pay
The money you earn before taxes & deductions are subtracted
Medicare
Money withheld to help pay for your medical benefits at retirement age
Taxes
State Income & Federal Income taxes
Which shoes the correct order of investments going from LEAST risky to MOST risky?
Savings Accounts, Certificate of Deposits, Bonds, Stocks
Bonds, Certificate of Deposits , Savings Accounts, Stocks
Bonds, stocks, mutual funds, savings accounts
Stocks, Certificate of Deposits, Savings Accounts, Bonds
Which of the following effects Jamie’s credit score the MOST?
His education level
Being married
How much he charges his customers
His payments always being on time
Mr. and Mrs. Jacobs obtained a $20,000 bank loan to make improvements on their house. Which of the following was the bank’s MOST important consideration in giving them the loan?
the total value of their house and other assets they own.
the estimate of how much the improvements would cost.
the reliability of the company they hired to make the improvements.
the type of improvements they were planning to make.
The Federal Deposit Insurance Company (FDIC) is a government agency that
protects the savings of people who deposit their money in banks
provides mortgage insurance for homeowners
protects banks from the risks of bankruptcy
provides health insurance for low-income people
Net pay is ...
income before deductions
taxes paid to the state
income you pay your employer
income after deductions
Consumers have a number of options when obtaining a loan. Financial institutions range from banks to payday lenders, and loans range from long to short term. One type of short-term loan is called a title pawn loan. Which statement BEST describes why these types of loans should be avoided if possible?
A person is unable to apply for a new car title for up to three years after paying back the total balance of a title pawn loan.
A vehicle title must be provided in exchange for a loan, and people can potentially lose their vehicles if loans are not paid back.
A person applying for a title loan must be approved by his or her employer, which is information some may want to keep private
After receiving a title loan, people are not allowed to open savings or checking accounts at any banks for up to six months.
What is the primary purpose of insurance?
To protect you against a financial loss
To pay for your mistakes
To allow you to do things you couldn't do
To take money away from you
Which type of insurance does a person need if they wish to continue to receive a paycheck if they are out of work due to an injury or accident?
disability
life
health
property
Which of the following IS NOT one of the "Three C's" of credit?
Compensation
Collateral
Capacity
Character
Bill is choosing between two different savings accounts. One has simple interest and the other has compound interest. If Bill is planning on saving money for a long period of time, and he wants the most return on his money, he should choose the account with
Compound interest because it will pay an increased interest rate over time
Simple interest because that will pay interest on the total balance on the account on all times.
Compound interest because it will pay interest on the original deposit plus interest that has been earned over time
Simple interest because it’s easier to calculate
Investments in stocks have the potential for very high returns. This also means that stocks have which other characteristic?
They have a high risk of losses
They pay low interest rates
They are very difficult to purchase
They have guaranteed payments
What is an example of a tax that is progressive in nature?
Sin Tax
excise tax
individual income tax
sales tax
The U.S. income tax charges higher rates for those with higher incomes. Wealthy individuals are said to be in a higher tax bracket while poorer people are in a lower tax bracket. This is an example of
a proportional tax
a user fee
a progressive tax
a regressive tax
Local governments generally receive their highest amounts of revenue from
excise tax
property tax
federal government grants
driver license fees
Explain the relationship between risk and return as it relates to investments. Give an example of an investment option and explain its risk and reward lesson.
An increase in sales tax has a larger negative effect on
workers getting paid in foreign wages
people with incomes that can change according to prices
low income groups that buy only essential items each month
higher income groups that have larger discretionary spending
This table shows the balance in an account if monthly deposits of $10 were compounded monthly.
(LOOK AT IMAGE)
Suppose you deposited $10 into your savings account each month, as indicated in the table. Your account pays 4%, compounded monthly. How much will you have in your account at the end of 15 years?
$2,461
$3,668
$2,908
$1,800
Katherine borrowed $6000 at 8% simple interest for 3 years.
What is the finance charge/interest?
$480
$860
$14400
$1440
Which type of tax does the image represent?
Progressive
Recessive
Proportional
Property
The higher education level a person has, the more likely they are to make a higher income.
True
False
Which of the following financial institutions only serves its members?
Savings and loan associations
Commercial banks
Credit Unions
Payday lenders
On which of the following do people pay a regressive tax?
interest earned on their savings accounts
their earned income
stocks purchased for investments
goods purchased for their personal use
Your creditworthiness, or ability to get a loan, depends on
your income, debt, assets, and credit history.
only the assets you can use as collateral.
only your income and current debts.
only your history of paying bills and repaying loans.
Many companies offer credit cards with compounding interest. Usually this is called the annual percentage rate, or APR. When the interest is compounded frequently,
the APR will increase steadily over time.
balances on the credit card grows faster.
he company receives less profit from the credit card balance.
cash advance limits on the credit card decrease over time.
Based on the information in the chart above, which lender provided the best rates for the listed products?
Lender C for mortgage, Lender A for credit card, and Lender B for auto and home equity
Lender B for all loans
Lender A for mortgage, Lender B for auto and home equity, and Lender C for credit card
Lender A for mortgage, and Lender B for auto, home equity, and credit card
Who would be most negatively affected by rising property taxes?
the person with a fixed income who wishes to remain on the property
the person trying to sell the property
Most economists believe that a sales tax increase affects which group the MOST?
salaried workers
people with low incomes
hourly workers
people with the highest range incomes
Sylvia is seriously injured when a tornado strikes, damaging her home, car, and leaving her unable to work for six months. Which insurance policy is she LEAST LIKELY to use in this situation?
life
disability
Property
health
The fee paid to the insurer, usually monthly, in exchange for insurance coverage is called____________
interest
premium
deductible
beneficiary
Frank plans to move to a large city after graduation. What financial factors does he need to consider about his new residence when creating a cost of living budget?
Rent, cost of local health-care, cost of cable, gifts for friends
Rent, grocery prices, public transportation costs, typical fees for local doctors
Rent, travel expenses back to his hometown, cost of cable, gas money
Rent, week-long vacation rentals when he’s tired of city-life, gas money
Blue Financial is a financial institution owned by its members. It offers lower loan rates and easier application processes for it’s members. Based SOLELY on this information, Blue Financial is MOST LIKELY a(n)
bank
title pawn
credit union
online transfer facility
Spencer is trying to decide whether to invest in bonds or stocks. Which sentence BEST describes his options?
Stocks offer fewer risks and higher potential rewards
Stocks offer fewer risks, but bonds offer higher potential rewards
Bonds offer fewer risks, but stocks offer the highest potential rewards
Bonds offer fewer risks and the highest rewards
Investment in education, training, and skill development has been linked to
growing financial instability.
declining job satisfaction.
increasing earnings for workers.
decreasing political participation.
The cost of borrowing money (using credit) is called
credit report
capacity
interest
collateral
Which type of tax does the image represent?
Progressive
Regressive
Proportional
Rosa deposited $500 in a savings account with a simple interest rate of 3% a year. If she made no deposits or withdrawals from the account, how much interest will she have earned at the end of 2 years?
$1.50
$3.00
$30.00
$15.00
If you are looking for a credit card and you are someone who may NOT be able to pay off the full amount every month, what is the most important aspect you should consider?
Highest limits offered
The highest annual fee
The lowest interest rate
The best rewards program
Which of the following is the greatest source of income for local governments?
property tax
income tax
sales tax
excise tax
A sales tax is usually regarded as
progressive
FICO
Proportional
Regressive
Darrell wants to buy a used car for $3,000. If he doesn’t have $3,000 in savings, which would be his least expensive option for purchasing the car?
Two variable rate cash advances from two different credit cards
A variable rate cash advance from his credit card
A 3 year bank loan with a fixed simple interest rate
A 3 year loan with a fixed compound interest rate from a finance company
Define deductible and premium as they relate to payments for insurance policies. Identify the relationship between the two and explain why this relationship exists.
To arrive at a rational economic decision, a decision-making grid may be used to
determine what goods to produce.
the profit motive of a decision.
choose where costs outweigh the benefits of an action
choose where benefits outweigh the costs of an action.
a place to store earnings, with direct deposits, credit and debit cards, and loans, but only provide these services to their members, who also own the institution.
credit union
provide short-term, very high interest loans to borrowers based on being repaid from a portion of the future earnings from the borrower’s job
payday lender
a place to store earnings that also offers direct deposit and check-writing, credit and debit cards, and loans and other services
bank
provide short-term, high-interest loans to borrowers based on the value of the borrower’s collateral, such as a car
title pawn lender
Define property tax and explain how a rise in property taxes in an area will benefit some groups but harm others. Be sure to include examples of the groups who benefit and are harmed.
Explain the purpose of insurance and list 2-3 specific types of insurance you may need as an adult. Explain how insurance companies use shared liability in the way they charge for policies and pay out benefits.
individuals can contribute money to accounts, either individually or through their employers, investing in different funds, and withdrawing it once they are no longer working
retirement account
money that is accessible by the depositor at any time and insured by the FDIC, but earns a relatively low rate of interest.
savings account
money that is insured by the FDIC and earns interest, but is usually promised for a specific time period and isn’t immediately accessible by the depositor without paying a penalty.
certificate of depost
investing in a single company by purchasing a share of the ownership
stocks
a loan made, often to the government or a company, in exchange for earning a guaranteed interest rate over time.
bonds
An example of a REGRESSIVE TAX is .....
Property Tax
Sales Tax
Income Tax
An example of a PROGRESSIVE TAX is a .....
Property Tax
Sales Tax
Income Tax
When you need to use your insurance, the amount you are expected to "Chip in" before insurance goes into effect is called a
Contribution
Deductible
Payout
Premium
Having a college degree often results in
Higher worker earnings
Compound interest
A lower discount rate
A lower credit score
A person that wishes to invest and is looking for the LEAST risk possible should choose which option?
mutual funds
progressive taxes
stocks
savings accounts
A credit union...
is a financial institution that focuses on taking deposits and using them to fund mortgages.
is a non-profit institution owned by its members and provides financial services to its members.
offers a broad range of deposit account and gives loans to individuals and businesses.
is a financial institution for students only
What is the price paid for the use of borrowed money?
Principal
Interest
Default
FDIC
Certificates of Deposits are ......
issued by financial institutions and are the most common form of investments.
issued by the federal government and are very attractive forms of investments
issued by state and local governments and are regarded as a safe, tax exempt investment.
issued by corporations and are usually used for long term investments.
Compound interest is ...
interest on the principal amount
interest on the principal plus any earned interest
interest on all the money
interest on your home
SSEPF2
SSEPF5
This type of financial aid is available only if you are a legal resident of Georgia.
FAFSA
HOPE
Scholarship
PELL GRANTS
GAfutures
This type of money for college does not have to be repaid if awarded.
Loans
Scholarship
FAFSA
Mortgage
Financial assets passed by one generation of a family to another.
Millionaire status
NET Worth
Mortgage
Generational Wealth
Fees that are charged by a financial institution as a result of a negative balance in a checking account.
Over-draft
Service charge
Automated Clearing House (ACH)
Checking Maintenance Charge
Income pay before taxes are deducted is referred to as....
Net Pay
Gross Pay
Savings
401 K
Income on a pay stub indicating "take home pay".
NET PAY
GROSS PAY
MEDICARE
SOCIAL SECURITY
The calculation of assets, income, liabilities, and expenses for an individual can determine __________.
Monthly budget
Spending habits
Retirement savings
Net Worth
Federal Insurance Contributions Act (FICA) is the law that requires deductions from a pay check to assist with ____________ and __________ benefits for citizens in the U.S. for retirement.
Taxes and Insurance
Social Security and Medicare
Health Insurance from employer
401 K and Roth IRA
A mortgage is an agreement with a lender to __________.
Rent property
Lease property
Buy property
All of the above
A tax levied on the sale of property or investments is referred to as....
Dividends taxes
Property tax
Capital gains tax
Sales tax
A reward paid to shareholders for their investment in the company's equity, is referred to as..
Interest
Net Worth
Stocks
Dividends
The tax form provided by the Federal government for citizens to report their income each year is referred to as the _____________.
1099
1040
1050 form
State of Georgia tax form
The part of a loan that consists of the original amount of money borrowed
Principal
Credit History
Annual Percentage Rate (APR)
Interest
One of the 3 C's of credit that refers to property that secures the loan is
capital
collateral
character
capacity
What is another way to describe CAPACITY with respect to credit worthiness?
Debt to income ratio
Number of years of credit history
Number of family members
How old someone is
Sasha bought a townhouse last year. She just got a tax bill from the county showing a value of her house and the amount of tax she owes.
Who owns a credit union?
its members
investment bankers
the government
commercial banks
Money or other substance generally accepted as payment for goods and services.
Measure of value
Medium of exchange
Scarcity
Store of Value
What are the 3 functions of money?
Measure of Gold
Store of Value
Medium of Exchange
Store of Bank Notes
Measure of Value
A student records her income and spending for past month, she uses the function of money
Medium of exchange
Standard of deferred payments
Unit of account
Store of value
A saving account in a bank represents the function of money:
Store of value
A medium of exchange
A standard for deferred payments
A measure of value
