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WorksheetsPersonal Finance 2nd Period 2nd Semester - Final Exam
Total questions: 77
Worksheet time: 39mins
If income exceeds expenses, which of the following is recommended?
Go on vacation
Decrease income sources
Increase income sources
Research investment and savings options
Which of the following equations calculates net pay?
Deductions - gross pay = net pay
Deductions + taxes paid = net pay
Withholdings + tax deductions = net pay
Gross pay - deductions = net pay
Which of the following are prepaid debit cards reloaded with employee wages?
Debit cards
Direct cards
Monetary cards
Payroll cards
Mandated deductions are NOT influenced by which of the following?
Marital status
Income level
Exemptions
Age
Match the following forms of payment to their descriptions.
Commission
Salary
Salary
Wages
Incentives
Commission
Wages
Incentives
Word bank: organization, Compensation, monetary 1. __________ is a systematic method for providing __________ and non-monetary value to employees in exchange for services provided to the __________.
Compensation 2. monetary 3. organization
organization 2. Compensation 3. monetary
monetary 2. organization 3. Compensation
Compensation 2. organization 3. monetary
Which of the following is NOT information included in a W-4 form?
Credit card debt
Number of dependents
Designated additional withholding amounts
Marital status
Select all of the following which are NOT types of benefit forms provided by a company.
Life insurance
Renters insurance
Retirement plans
Health insurance
Social security
Net pay is the total amount an employee is paid before mandated and voluntary deductions.
True
False
Which of the following correctly defines withholdings?
The percentage of an employee’s yearly raise
The legal right of an employee to earn money
The amount of money an employee earns each year
Amount of wages which are not included in an employee’s paycheck
Which of the following is NOT considered a mandated deduction?
Social Security tax
Federal income tax
Medicare tax
Sales tax
1. ________ is a mandatory document to be completed upon ________ of an employee. This document informs employers how much they need to ________ from a paycheck for ________ income tax.
Form W-4 2. Hire 3. Deduct 4. Federal
Form 1099 2. Termination 3. Add 4. State
Form W-2 2. Promotion 3. Increase 4. Local
Form 1040 2. Transfer 3. Multiply 4. City
Some states do NOT collect state income tax.
True
False
Select all of the following which are advantages to salaried employees.
Better access to benefit packages and retirement plan options
May be exempt from earning overtime
Same income even when working less than 40 hours per week
Larger bonuses and more paid vacation
What is the overtime pay rate?
Double pay
Bonus pay
Triple pay
Time-and-a-half
Commission is the sum of money paid to an employee upon the completion of a task, typically selling a certain amount of goods or services.
True
False
Which of the following is meant to motivate an employee to exceed organizational expectations?
Health insurance
Paid leave
Flexible spending account
Incentives
Which of the following best describes a pension plan?
A wage replacement program for employees who suffer from job-related injuries
A type of disability insurance which provides employees a partial salary if they become unable to work due to illness
A form of retirement plan in which employers contribute money to a plan which provides employees a monthly income during retirement
A monetary safety net for a beneficiary upon the death of an employee
The electronic transfer of wages into an employee’s account refers to which of the following?
Automatic teller
Electronic funds wiring
Direct deposit
Payroll debit
Derek is paid $550 per week but only brings home due to deductions. Which of the following is Derek’s net earnings?
$925
$175
$375
$550
Which form is an employee required to turn in when filing taxes?
Form I-9
Form W-4
Form W-2
Form 1040
Mark the following statements as True or False. Employees can deny participation in benefits programs.
True
False
Mark the following statements as True or False. 25 percent of employees in the United States are paid by direct deposit.
True
False
Mark the following statements as True or False. All states withhold state tax.
True
False
Which of the following verifies the identity and eligibility of an employee to work in the United States?
Form 1040
Form I-9
Form W-2
Form W-4
If Peyton earns every other week but only brings home due to deductions, what is Peyton’s gross pay?
$1,100
$2,800
$600
$1,700
Gross pay refers to which of the following?
Total of deductions
Total of all taxes paid
Total take-home pay after deductions
Total income earned before deductions
Which of the following provides wage replacement and medical benefits to employees who suffer from job-related illnesses or injuries?
Retirement plans
Paid time off
Disability insurance
Workers’ compensation
Which of the following is a specified amount of money an insured individual must pay before an insurance company will pay a claim?
Deposits
Contributions
Tangible
Deductible
Individual designated to receive a sum of money upon the death of a policy holder correctly defines which of the following?
Beneficiary
Liable individual
Insured
Account holder
A person who is willing to take chances with their finances is called a _________
risk taker
saver
spender
accountant
A person who does not pay much attention to their finances and often ignores them is called a _________.
flyer
planner
spender
saver
A person who likes to spend money rather than save it is called a _________
spender
saver
collector
hoarder
A person who prefers to save money rather than spend it is called a _________.
saver
spender
borrower
investor
A person who prioritizes financial security and stability is called a _________.
security seeker
risk taker
spender
adventurer
The amount of a product or service that is available to consumers is called ________.
Supply
Demand
Revenue
Profit
The value of the next best alternative that is given up when making a choice is known as ________.
Opportunity Cost
Sunk Cost
Marginal Benefit
Fixed Cost
The desire of purchasers, consumers, clients, or employers for a particular commodity, service, or other item is called ________.
Demand
Supply
Production
Distribution
The degree to which the quantity demanded or supplied of a good changes in response to a change in price is called ________.
Elasticity
Utility
Scarcity
Equilibrium
Match the vocabulary word with the correct definition.
Culture
set of symbols, rules and values which are formed by a homogeneous group of people and transmitted to the next generation
Economics
study of the production, distribution and consumption of goods and services
Brand Image
subjective perception of how well a product or brand performs
Reference Groups
groups to which an individual looks as a source for personal standards
Family Life Cycle
different stages of a family experience, such as marriage, birth and retirement
Match the vocabulary word with the correct definition.
Demographic Status
quantifiable statics detailing an individual's current status, such as age, gender, ethnicity, occupation and income
Luxuries
type of good whose demand decreases with an increase in income
Inferior Good
type of good or service whose demand increases when income increases and demand decreases when price rises
Normal Good
type of good whose demand increases with an increase in income
The Cumberland family wants to move into a larger apartment. The apartment costs 1,500amonth.Theycurrentlyearntake−homepayof 4,000. Evaluate their budget. Can they afford the larger apartment on the current budget?
No
Yes
Which of the following is NOT a form typically completed upon hire?
Social Security form
Vehicle insurance form
Bank account information form
Emergency contact form
CDs are similar to savings accounts because of which of the following?
They have a fixed rate
They have a fixed term
They have high interest rates
They accrue interest
Unlike Roth IRAs, traditional IRAs have which of the following characteristics?
Restricts the amount of cash which can be contributed
Requires taxes be paid on interest
Has tax benefits
Allows individuals to save for retirement
CDs are a common way to save money and are offered by most financial institutions. In this instance, CD stands for which of the following?
Certificate of deposit
Certificate of development
Canadian dollar
Compact disc
Savings accounts are like money market accounts because of which of the following?
Check writing is authorized
They have a low rate of return
They have a high minimum balance required
They have a limited number of withdrawals
Because the family life cycle changes, goals require which of the following?
Lots of thought
Constant updating
Priorities
Long term target dates
A budget helps prevent debt by detailing which of the following?
Showing current debts
Creating new income
Identifying shortages before they happen
Listing expenses
After creating his budget, John realized his expenses exceed his income. To resolve this issue he can do which of the following?
Go on a shopping spree
Work fewer hours
Eat out less frequently
Invest more in the stock market
Budgeting finances requires calculating (a) and (b) .
Inflation; taxes
Income; expenses
Utility; opportunity cost
Investments; savings
__________ explains how a person changes financial position, earnings, consumption and savings throughout the life cycle.
Financial evolution
Portfolio growth
Money life cycle
Family life cycle
A ________ account has a higher rate of return, but a __________ account has a lower required minimum balance.
Savings; money market
Money market; savings
Common stock differs from preferred stock in which of the following ways?
Liquidity
Voting rights
Callable features
Exchange rates
Which of the following accurately describes stocks?
Employee-sponsored retirement benefit plans
Contributions for the government required of people
Savings accounts which include tax benefits
Investments providing ownership of public companies
Which of the following is a line of credit issued to customers to cover checks or debits exceeding the amount in their account?
Automated teller machine
Cash flow budgeting
Overdraft protection
Debt restructuring
Which of the following allows customers to have their paycheck electronically deposited directly into their account?
Deposit slip
Direct deposit
Online payment
Electronic withdrawal
Some checking accounts may require an individual do which of the following?
Apply for a personal loan
Make an opening deposit
Provide proof of income
Pay a fine
Which financial institution protects individuals by insuring bank deposits?
FDIC
FIS
LPM
FSA
Which of the following allows customers to borrow money from a financial institution up to a certain limit?
Debit card
Safety deposit box
Trust account
Credit card
The electronic movement of money from one account to another is known as which of the following?
Financial electronic transaction
Electronic funds transfer
Electronic movement of money
Technology funds
Which of the following institutions may be owned by shareholders OR members?
Retail banks
Savings and loan associations
Credit unions
Commercial banks
Which of the following financial institutions provides loans for prospective home buyers?
Savings and loan associations
Mortgage companies
Insurance companies
Brokerage firms
Financial institutions are monitored through which of the following?
Federal Reserve System
National Banking Union Administration
National Financial Institution Agency
Federal Deposit Insurance Corporation
Financial advisors typically recommend an individual has enough savings to cover at least ____________ months worth of bills.
Three to six
One to two
12 to 18
Six to eight
Deposits are insured by the Federal Deposit Insurance Corporation up to __________ per depositor.
$250,000
$75,000
$25,000
$50,000
Which of the following is a deposit account held at a financial institution which allows withdrawals and deposits?
Savings account
Money market account
Certificate of deposit
Checking account
Which of the following bank accounts does NOT provide money access during the term length?
Money market account
Certificate of deposit
Savings account
Checking account
Which of the following should NOT be included when interpreting a bank statement?
Information from a different account
Account summary
Statement date
Account activities
Which of the following is NOT a true statement about reconciling a bank statement?
It can help catch any mistakes or even fraud
It involves matching up records with the information on the bank statement
It can help with understanding spending pattern
It is not necessary to ensure the balance is correct
Which of the following financial documents is recommended to be stored at least three to seven years?
Mortgage contract
Supporting tax documentation
Utility bills
Passport
Which of the following is NOT correct when maintaining financial records?
Keeping unneeded paper work
Keeping documents which are difficult to obtain
Keeping financial records as long as necessary
Keeping files in a safe place
Which of the following is an example of a fixed asset?
Stocks
Patent
Cash
House
If an individual has total assets of 100,000andtotalliabilitiesof 70,000, what is this person's net worth?
$30,000
$170,000
$100,000
$70,000
Which of the following is an interest-bearing deposit account held at a bank which provides a modest interest rate?
Money market account
Certificate of deposit
Checking account
Savings account
Which of the following is a type of savings account which usually earns a higher amount of interest than a basic savings account?
Money market account
Debit card
Certificate of deposit
Checking account
Which of the following is NOT usually included in a bank statement?
Withdrawals
Fees
Social Security number
Deposits
