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WorksheetsEconomics of Personal Finance
Total questions: 50
Worksheet time: 1hrs 9mins
Name
Class
Date
1.
Outstanding amount of money that is owed on a credit card bill
a)
Balance
b)
Down Payment
c)
Installment Loan
d)
Credit Limit
2.
Your identification documents are taken or online personal files are hacked without your permission
a)
Credit History
b)
Cosigner
c)
Creditor
d)
Identity Theft
3.
Shows every credit card ever taken out; a report on a persons creditworthiness.
a)
Credit Score
b)
Credit Report
c)
Credit History
d)
Credit Score
4.
Character, Capital, Capacity
a)
The 3 C's Of Money
b)
The 3 C's of Credit
c)
The 3 C's Of Investing
d)
The 3 C's Of Banking
5.
The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
a)
Return
b)
Preferred Stock
c)
APR
d)
Liability
6.
A rise in the general level of prices
a)
Inflation
b)
Investment
c)
Personal Debt
d)
Premium
7.
Certificate of ownership in a company which entitles the shareholder to vote for the board of directors of the corporation.
a)
Credit Bureau
b)
Credit Rating
c)
Stock
d)
Sales Tax
8.
A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks
a)
NYSE
b)
Dow
c)
NASDAQ
d)
none of these
9.
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
a)
interest
b)
dividend
c)
profit
d)
none of these
10.
The ________ is designed to make sure you have all of the information you need to make a healthy decision about borrowing money.
a)
Predatory Lending
b)
Truth In Lending Act
11.
Annual percentage rate (APR) is...
a)
The true cost of credit that must be disclosed on a loan agreement
b)
Always expressed in dollars
c)
Required by the Securities and Exchange Commission
d)
Required by the Comptroller of the Currency
12.
The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that money deposited in savings accounts are ____________________. insured.
a)
government
b)
SIPC
c)
FDIC
d)
not
13.
Money earned for working for pay
a)
earned income
b)
taxes
c)
sales tax
d)
property tax
14.
Where can you get a free copy of your credit report?
a)
annualcreditreport.com
b)
freecreditreport.com
c)
getmycreditreport.com
d)
creditreport.gov
15.
When a person brings an item to a pawnshop to obtain cash, the transaction is considered
a)
a collateralized loan
b)
a custodial payment.
c)
an unsecured loan
d)
a sales agreement
16.
Josh is shopping for a car loan. A friend told him to compare the actual cost of the loan for one year expressed as a percentage from three banks. He needs to ask for the:
a)
Finance charge percentage
b)
Annual percentage rate (APR)
c)
Credit insurance percentage
d)
Finance percentage
17.
Collateral is:
a)
A. Something of value that secures a loan to protect the lender
b)
B. Something that explains your net worth
c)
C. A form of credit
d)
D. Required for all loans
18.
How can you avoid becoming a victim of identity theft?
a)
A. Avoid giving your Social Security number on a phone call you did not initiate
b)
B. Leave your wallet containing personal information where it can be stolen
c)
C. Keep your PIN on your ATM card
d)
D. Avoid using your credit card to charge purchases on the phone
19.
How much of your money is protected if a bank is FDIC insured?
a)
$100,000
b)
$250,000
c)
$500,000
d)
$200,000
20.
Amount charged if your payment is received after the billing date
a)
late payment fee
b)
overdue fee
c)
withdrawal fee
d)
loser fee
21.
when your employer automatically deposits your paycheck into your bank account
a)
DEPOSIT
b)
PAYROLL CHECK
c)
ATM
d)
DIRECT DEPOSIT
22.
The total amount of earnings made over a one-year period after all deductions have been taken is known as:
a)
Gross annual income
b)
Gross monthly income
c)
Net annual income
d)
Net monthly income
23.
Investing in Stocks are considered high risk.
a)
True
b)
False
24.
Lenders use credit agencies to determine:
a)
An applicant's credit score.
b)
An applicant's credit history.
c)
Whether an applicant has any outstanding debt or defaults.
d)
All of the above
25.
Which is a goal of the Federal Reserve?
a)
Create a high level of inflation
b)
Create price stability in the economy
c)
Print currency for American citizens
d)
Develop fiscal policy for the United States
26.
If the Fed wanted to contract or tighten the economy to help fight inflation, they might
a)
Increase reserves to limit what banks can loan out
b)
Lower the interest rate
c)
Decrease reserves allowing banks to loan more
d)
Decrease government spending
27.
What are the two tools the FOMC will use to determine monetary policy?
a)
Taxing and spending
b)
Interest rates and reserve requirements
c)
legislation and enforcement
d)
interest rate and tax rates
28.
If the Fed wanted to expand or ease monetary policy, which might they do?
a)
Increase reserves, limiting what banks can loan
b)
Increase the interest rate
c)
Decrease the interest rate
d)
Lower taxes
29.
Which does NOT describe a role of the Federal Reserve Banks?
a)
provide services to commerical banks in US
b)
process gov't checks & maintain US Treasury account
c)
reserach regional and international economies & distribute information
d)
determining whether to raise or lower the reserve rate and/or interest rate
30.
My credit history does not affect my chances for renting my first apartment.
a)
True
b)
False
31.
Can car insurance companies use your credit report to determine how much you will pay?
a)
yes
b)
no
32.
Which statement is true of mutual funds?
a)
Mututal funds are speculative investments.
b)
Mutual funds are diversified investments.
c)
Mutual funds are a form of real estate investment.
d)
Mutual funds are superior purchasing to a single stock.
33.
The cost of borrowing money is referred to as
a)
Interest
b)
Annual Percentage Rate
c)
Credit
d)
Credit Line
34.
The federal body that regulates the stock and bond markets is the
a)
New York Stock Exchange
b)
Securities and Exchange Commission
c)
NASDAQ
d)
Institutional Investors Forum
35.
Which type of insurance does a person need if they wish to continue to receive a paycheck while they are out of work due to injury?
a)
property
b)
life
c)
disability
d)
health
36.
The NYSE and the NASDAQ are both considered to be...
a)
Listings
b)
Exchanges
c)
Banks
d)
Credit unions
37.
What agency performs central banking functions in the United States?
a)
Federal Reserve
b)
Securities and Exchange Commission
c)
US Treasury Department
d)
First National Bank
38.
The Federal Reserve uses ____________ to regulate the nation’s money supply?
a)
monetary policy
b)
fiscal policy
c)
proposed legislation
d)
regulations
39.
The financial calculation where interest is earned on both the principle and previously earned interest is known as _______.
a)
simple interest
b)
true interest
c)
compounding
d)
variable interest
40.
Who insures bank deposits?
a)
U.S. Treasury Department
b)
FDIC
c)
Federal Reserve
d)
NCUA
41.
The Federal Deposit Insurance Corporation (FDIC) insures depositors against losing their money in the case of a ____.
a)
lost debit card
b)
stolen paycheck
c)
bank failure
d)
death in the family
42.
The major difference in banks and credit unions is ____________.
a)
credit unions are member owned
b)
banks charge higher fees
c)
credit unions pay higher interest rates on loans
d)
credit unions offer lower rate loans.
43.
Which law requires that you be told the cost of a credit purchase in writing prior to signing/agreeing to the credit agreement?
a)
Fair Credit Reporting Act
b)
Fair Billing Act
c)
Truth in Lending Law
d)
Equal Credit Opportunity Act
44.
Security for a loan is called ______________.
a)
Debtor
b)
Collateral
c)
Finance Charge
d)
Net worth
45.
Security for a loan is called ______________.
a)
Debtor
b)
Collateral
c)
Finance Charge
d)
Net worth
46.
Which type of numbers will NOT appear on the bottom of a check?
a)
Account Number
b)
Social Security Number
c)
Check Number
d)
Routing Number
47.
Things that are not necessary for survival
a)
Needs
b)
Wants
48.
the process of spreading one's assets among several different types of investments to lessen risk.
a)
Investments
b)
Rule of 72
c)
Diversification
d)
Stock
49.
Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy.
a)
Truth In Lending Act
b)
Identity Theft
c)
Fair Debt Collection Act
d)
Type of insurance
50.
This insurance protects the consumer against possible financial loss
a)
Insurance Policy
b)
Premium
c)
Risk
d)
Savings Account
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