WorksheetsRichest Student In Class : Fin Tech Quiz
Total questions: 100
Worksheet time: 3hrs 43mins
A consumer is...
Someone who sells something
Someone who buys something
Someone who eats a lot
Someone who likes the sea
Which scenario best describes sunk cost?
Buying food and not enjoying but you eat it anyway because you'd feel bad if you threw it out.
Buying a phone because the price is better.
Not being able to pay rent because prices rose.
Buying a ticket to go to a convert and the convert being not interesting.
Which is the best example of FOMO?
Ethan and Jessie finish a bucket of hummus after they bought it even though they didn't like it.
Jessie decides to go to the National Hummus Convention. Ethan goes even though he doesn't like hummus because he doesn't want to miss something exciting.
Ethan and Jessie race to the Hummus Convention to see who can get there faster.
Which is an example of Herd Mentality?
All the cool kids at school are buying Booga mics, so you decide to buy one to be cool too.
Everyone is going to see the Emoji movie, but you decide not to go because it is clearly a bad movie..
Mr. High says Hawaiian pizza is good but Mr.Dwyer heroically stands against the hierarchy.
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account
Save a certain percentage of each paycheck and deposit it directly into a savings account
Cover all of your wants and needs and save whatever is left over
Take out a payday loan so you can save before you receive your paycheck
All of the following statements about bank accounts are true EXCEPT…
If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails
Many banks pay interest on the money you deposit into your savings account
Historically, savings accounts earn higher returns than investments in the stock market
Money in a checking account is usually easy to access via ATM, debit card or check
Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
Needs, wants, savings
Savings, needs, wants
Needs, savings, wants
Wants, needs, savings
Which represents the BEST time to start saving for your retirement?
As soon as you have your first full-time job
Right after you pay off your student loans
Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
At age 45, so you have exactly 20 years until retirement
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
Days
Weeks
Months
Years
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
Your credit card company covers the cost
It is deducted directly from your checking account
Your credit card company provides you with a cash advance to cover the cost
It is deducted directly from your savings account
Which of the following statements is an advantage of online banking?
Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
Using online banking allows you to earn a higher interest rate
Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
You can only shop online if your bank account has online banking features
Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.
employer, bills
parents, paycheck
state government, taxes
All of the following are downsides of being unbanked EXCEPT:
Lack of access to credit
Lost time paying bills
Lack of fees associated with banks
Difficulty making cashless purchases
What is a traditional savings account?
A deposit account that earns interest and allows for regular deposits and withdrawals
A savings certificate issued by a bank or credit union
A type of checking/savings account that requires a minimum balance and offers limited check-writing privileges
What is the main advantage of a certificate of deposit (CD)?
Easily accessible
Relatively high interest rate
No penalty for early withdrawal
What is a money market deposit account (MMA)?
A savings certificate issued by a bank or credit union
A type of checking/savings account that requires a minimum balance and offers limited check-writing privileges
A savings option where money is left on deposit for a specific period of time to earn a specific amount of interest
The average APR for a payday loan is closest to ...
4%
14%
40%
400%
Which of the following is most likely to represent a fixed rate, secured debt?
A credit Card
A prepaid card
An auto loan
Which of these credit payback strategies would lead to the HIGHEST overall cost?
Paying off your credit card bill in full every month
Paying 20% of your credit card balance every month on time
Making the minimum payment (3% of your credit card balance) every month on time
Making the minimum payment (3% of your credit card balance) every month with an occasional late payment
A loan with a shorter term length will have _________ monthly payments, and you will pay _________ in total interest.
higher, less
higher, more
lower, more
same, less
lower, less
Home-Equity Loan
A type of loan that requires no collateral.
A consumer loan extended to a homeowner that uses the borrower's home as collateral.
A loan specifically for purchasing new homes.
A loan that is only available to first-time homebuyers.
Why is having a longer credit history beneficial?
It guarantees approval for all loans.
It shows lenders that you have experience managing credit over time.
It eliminates the need for a good payment history.
It automatically increases your credit score by 100 points.
Making the minimum payment on a credit card each month is enough to build excellent credit.
True
False
Paying off a loan early can positively impact your credit score in some cases.
True
False
What is the impact of a hard inquiry on your credit score?
It increases your credit score by 10 points.
It has no impact on your credit score.
It can lower your credit score temporarily.
It permanently decreases your credit score.
What is a benefit of maintaining a low credit utilization rate?
It eliminates the need for a credit history.
It guarantees loan approval.
It shows lenders you are not overly reliant on credit.
It automatically increases your credit limit.
What is the principal in terms of a line of credit?
The interest rate charged on the borrowed amount
The amount you owe before interest is added
The total amount paid over the term
The monthly payment amount
What are good reasons to purchase a used car over a new car? (hint: choose 2 correct answers)
New cars depreciate faster than used cars
Insurance is generally cheaper on a used car
There are typically better financing options on a new car
You can get more car for your money when buying used
A disadvantage of buying a new car is it loses value faster than a used car. This is called
Capital gain
Inflation
Depreciation
Amortization
Financing a vehicle has advantages & disadvantages. Which is a disadvantage?
You need a small amount of money upfront compared to buying the car
You pay interest and fees on borrowed money
Your credit score is not taken into consideration
You have more flexibility to pay the car off over time
A certified used car is one that...(hint: choose 2 correct answers)
Has been inspected by the manufacturer
Can be bought at a lower price than a comparable model
Has a price that cannot be negotiated
Often includes an extended warranty
What information is listed in a vehicle's Carfax report? (hint: choose 3 correct answers)
Ownership history
Title history
Repair and maintenance history
Current loan balance
This type of law provides remedy for purchases of cars that fail to meet standards of quality.
Kelley Blue Book
Lemon Law
Edmunds Law
DOT Law
True or False: Buying a new car is always better than buying a used car.
True
False
Invoice price and base price are identical.
True
Fasle
The Manufacturer's Suggested Retailed Price is...
The amount of money to pay before you can purchase a car.
The amount that a car manufacturer advises dealers to charge. It's a starting price in negotiations at a car dealership.
The price you pay to the bank when you apply for a loan.
Depreciation is....
The time span that you have to return the car and get your money back.
The length of the car loan.
The reduction in value of the car over time usually based on the wear and tear caused by driving the car.
Before buying a car, it is wise to ______________________________ the car to see how well it handles in traffic, on the open road, and when starting, stopping, turning, and parking.
test
test drive
drivers test
optional drive
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
Why is compound interest more beneficial than simple interest?
Your money grows faster when it is compounded
Your taxed on simple interest, but not compound interest
Fees for compound interest are greater than simple interest
Compound interest is hard to calculate, so fewer use it
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
The relationship between risk and return can be stated as
Higher risk indicates higher return
Higher risk indicates lower return
Lower risk indicates higher return
No relationship exists between risk and return
If Jonathan is earning 2% on an investment and inflation is increasing by 3%, what is happening to his purchasing power?
It's increasing
It's decreasing
It's not changing
Inflation and purchasing power are not related
How can you make money on stocks?
Buy them when the price is high and sell when the price is low
Interest
Dividends
Holding the stock at least 3 years
If interest rates rise, what will typically happen to bond prices?
Rise
Fall
Stay the same
Interest Rates are not related to bond prices
A _____ is a loan given to an organization while a _______ is partial ownership in the company.
bond, ETF
stock, bond
bond, stock
ETF, bond
What's the main difference between a Roth IRA and a Traditional IRA?
Roth IRAs have higher interest rates
Roth IRAs have you pay taxes upfront
Roth IRAs have higher fees
Roth IRAs are riskier investments
Andy bought 5 shares of a company for $10. Later, he sold all 5 shares for $15. What was his profit/loss on the stock?
Profit of $5
Loss of $5
Profit of $25
Loss of $25
This is a characteristic human investment managers have that robo-advisors do not
Options trading
Personal touch
Futures trading
Beating the market
What is the main appeal of an index fund?
They are always actively managed to add a human touch
They are typically low cost and diversified investments
They are always managed by a robo-advisor to remove human bias
They give you partial ownership of a single company
An account that is used to buy and sell stocks, bonds, and funds is called a
Roth IRA
ETC Account
Brokerage Account
Target Date Fund
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
What is the benefit of a target date fund (TDF)?
TDFs come with lower fees
TDFs adjust assets allocation automatically based on retirement year
TDFs are insured against loss for the first 5 years
TDFs guarantee a certain rate of return by the target date
Putting regular amounts of money into an investment account at specific time intervals is
Compound interest
Diversification
Dollar cost averaging
Inflation
Which is NOT a good reason to buy a stock fund like the S&P 500?
Have a diversified portfolio
Have an investment with low fees
Don't have to monitor as closely as an actively managed account
You want to "beat the market" with your ROI
What is Social Security?
Social Security is a private retirement fund run by your company
Social Security is another name for a 401(k)
Social Security is a government run retirement program
Social Security is a program that matches your 401(k) contributions
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
How is a bond fund different from an individual bond?
A bond fund is a group of bonds and is considered more diversified
A bond fund always gives you a higher interest rate than an individual bond
A bond is issued by the government. A bond fund is issued by a company.
A bond fund can't be sold but an individual bond can
What company has the ticker symbol DIS?
DEX Stock Industries
Diagnostic Industries & Subsidiaries
Disney
Delek US Holdings
What company has the ticker symbol F?
Ferrari N.V.
Ford Motor Company
Fortnite CO
Future Finn Tech Group Inc.
What is Snap Chat's ticker symbol?
SNPCHT
SNP
CHAT
SNAP
What is Apple's ticker symbol?
APLE
AAPL
APLE
APQ
What is: A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profit (or loss).
Stock
Dividend
Volume
P/E Ratio
What does the ticker symbol 'GOOGL' represent?
Alphabet's stock that allows voting in shareholder meetings
Google's bond offerings
A type of preferred stock in Google
Google's non-voting stock
financial gain, a return on your money
loss
profit
risk
asset
WHAT IS AN IPO?
When a company first sells shares of stock to the public
When the government creates shares on a Stock Exchange
A new Apple product
When a company gets angry at its shareholders and has a meeting
What is a ticker symbol?
A type of stock market index
A unique series of letters assigned to a publicly traded company
A financial report of a company
A type of stock market order
What is the ticker symbol for Tesla?
TSLA
T
TES
TA
What is earned income made up of?
Investments
Wages and salaries
Gifts
Interest from savings
How is money earned on an hourly basis classified?
Salary
Wage
Bonus
Commission
What is passive income?
Income that is earned from a full-time job
Income that is earned with very little effort on your part
Income that is only earned from investments in stocks
Income that is earned from performing daily tasks
Portfolio income includes all of the following EXCEPT:
Dividends
Sold Stocks
Interest earned
Salary from employment
What can be a consequence of not filing taxes or not paying the balance owed?
A warning letter from the IRS
Mandatory community service
Ending up in Federal Prison for Tax Evasion or Willful Failure to File
A reduction in future tax refunds
What is a W-2 form?
A form that states your eligibility for employment.
A form that states who you work for and how much money you made.
A form that states your tax exemption status.
A form that states your retirement plan contributions.
What is the purpose of your W-4 form?
To report your annual income
To determine your tax refund
To tell your employer how much money to withhold from your paycheck for taxes
To calculate your taxes owed
What do you need to file your 1040 or 1040EZ form?
Your W-2
Your W-4
Your prior year's tax return
Social Security Number
IRS stands for
Internal Revenge Service
International Revenue System
Internal Revenue Service
Inspection Ravioli Sauce
If you made $50,000, but your deductions were 8,950, your taxable income would be ____.
$41,050
$8,950
$50,000
$31,050
A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy
Deductible
Comprehensive Coverage
Claim
Copay
A set dollar amount you agree to pay each time you receive medical treatment, while the insurance company agrees to cover the rest
Copay
Claim
Premium
Deductable
Premium
The amount paid by a policyholder to an insurance company to obtain or maintain an insurance policy.
The cost associated with replacing property at current market prices.
The insurance company’s estimate of what they can offer you, and at what cost to your pocketbook in the event of an accident or disaster.
A contract that guarantees the insurance company pays a sum of money to named beneficiaries when the insured policyholder dies.
Required by the state in order to drive your car, it pays for injury or loss to others.
Automobile Collision Insurance
Claim
Automobile Liability Insurance
Deductible
Setting aside a portion of income for short-term
goals/emergency is:
Saving
Investing
Risk
Diversification
What is the main purpose of insurance?
to follow the law
to get weathly
For investment purposes
To reduce risk
What is an insurance premium?
Your monthly payment to your insurer, regardless of whether you use any services
A list of the procedures covered by your insurance carrier
An added cost you pay in order to receive higher-quality services
The amount you pay out-of-pocket for a specific procedure or service
Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?
$0
$200
$800
$1,000
rerre
Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?
Bodily injury liability
Property liability
Collision
Comprehensive
cc
The house you own is destroyed by a tornado and you need to rebuild.
Life
Disability
Health
Liability: Automobile
Property: Homeowners
