WorksheetsPersonal Finance Final Exam Review
Total questions: 34
Worksheet time: 17mins
Name
Class
Date
1.
Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him?
a)
TERM is the length of the loan, and INTEREST RATE is how much total money he will pay
b)
PRINCIPAL is how much he owes per month, and TERM is how much he owes overall
c)
INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the initial amount Sylvester borrows
2.
Which should you use when creating a budget - your NET PAY or GROSS PAY?
a)
Net pay, because it’s what is reported to the government by your employer for tax purposes
b)
Gross pay, because it’s the total amount you’ve earned that month
c)
Net pay, because it’s the total amount you’ve earned minus taxes and other deductions
3.
Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?
a)
Regular Savings Account
b)
Money Market Account
c)
Certificate of Deposit
4.
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?
a)
9 months
b)
30 months
c)
24 months
d)
5.
All of the following are benefits of taking out a loan with a cosigner EXCEPT…
a)
There are no penalties for late payments
b)
You gain access to loans you might not have been approved for on your own
c)
Your interest rate might be lower
6.
Which of the following statements about credit scores does this bar graph support?
a)
When young people borrow, they are likely to have lower interest rates because their credit scores are lower
b)
It is easier for young people to get loans at lower interest rates because they are likely to have never been late with a payment
c)
It is more difficult for young people to borrow because they have less payment history for a lender to rely upon
7.
All of the following are true about prepaid cards EXCEPT…
a)
Prepaid cards are a great way to build credit
b)
Prepaid cards are a useful option for someone who is unbanked to make online purchases
c)
Prepaid cards typically include a lot of fees
8.
Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
a)
His gross pay is $3,000 and net pay is $2,500
b)
His gross and net pay are $2,500
c)
His gross pay is $2,500 and net pay is $3,000
9.
Which of the following best describes the amount of money you'll have if you put $1000 into a CD earning 2% annual compound interest for 10 years?
a)
Exactly $1200
b)
Slightly more than $1200
c)
$2000
10.
Which of the following can be found in your credit report?
a)
Your checking and savings account balances
b)
How long you’ve been a member of a bank or credit union
c)
Your credit payment history
11.
When making a decision about a financial product (loan, savings account, credit card, etc.), which of these pieces of advice is LEAST valuable?
a)
Do research to learn more about each of the options
b)
Read the fine print of any disclosures so you understand the fees and terms of your account
c)
Simply choose the option that your parents use
12.
Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
a)
Paying 20% of your credit card balance every month
b)
Making the minimum payment every month
c)
Paying off your balance every month
13.
Which description is most accurate for a Zero-Based Budget?
a)
You spend your saving account balance down to $0 every month
b)
You put every dollar of your net pay into a budget category each month
c)
You spend your checking account balance down to $0 every month
14.
Which of the following is most likely to represent a fixed rate, secured debt?
a)
A credit card
b)
A student loan
c)
An auto loan
15.
Reading through a credit card’s Schumer Box, you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?
a)
In this case, you want the highest APR in the range because you’ll earn more
b)
The APR on credit cards is usually fixed, so it won't be adjusted as long as you are a cardholder
c)
Your APR will be within that range, depending on the strength of your credit history
16.
What are the two most important factors in calculating your credit score?
a)
Types of accounts and payment history
b)
Payment history and total debt
c)
Amounts owed and length of credit history
17.
Anna receives her first paycheck and realizes that her take-home pay is substantially less than the rate she was offered when hired. Which of the following would help explain why this happened?
a)
Taxes, social security, and Medicare are being deducted from her pay
b)
Most employers charge a "payroll fee," which the company collects to offset the cost of preparing each employee's paycheck every pay period
c)
Her company is downsizing and has decided to pay her less without notice
d)
18.
Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT…
a)
Reducing spending by canceling some of her streaming subscriptions
b)
Taking extra shifts at work to increase her income
c)
Applying for another credit card to use in case she runs out of cash paying off her debt
19.
Carmen has just graduated from college and receives a bunch of paperwork from her new job's Human Resources department. Which of the following should be her first step in making sure she's paying the correct amount of taxes?
a)
Buy a copy of TurboTax and file her taxes
b)
Complete an I-9 form
c)
Complete a W-4 form
20.
Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?
a)
Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?
b)
A budget surplus of $200
c)
A budget surplus of $4800
21.
Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?
a)
Zenya compares the price of a shirt to the price of a pair of pants that she is interested in buying
b)
Anthony compares the quality of a backpack he bought to the quality of a backpack his friend bought
c)
Make on-time payments
22.
Who is taking a smart step towards protecting themselves from identity theft?
a)
Melody, who uses a website that starts with "http" instead of "https"
b)
Akshay, who checks his bank statements every month to verify all transactions are accurate
c)
Misha, who throws their expired credit card in the trash without shredding it
23.
Mandatory government spending includes which of the following?
a)
Social Security and Medicare
b)
Healthcare and military
c)
Education and agriculture
24.
Which of the statements about this W-4 is TRUE?
a)
Mr. Khan is requesting for an additional $50 to be withheld from his paycheck
b)
Mr. Khan’s paycheck will have less money withheld from his paycheck since he is claiming a dependent
c)
Mr. Khan submitted this W-4 two days after he started working at Little Company Inc.
25.
Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. Which of the following steps is she responsible for?
a)
Send withholding amounts to the federal government
b)
Complete a W-2 form
c)
Complete a W-4 form
26.
13. Which of the following statements about this W-2 form is true?
a)
James earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages
b)
James paid state income taxes of $1,189.90
c)
Avia Consulting will use this W-2 to file their 1040 form
27.
14. When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
a)
withholding
b)
deduction
c)
refund
28.
Question #1 of 3: What was the net (or take-home) pay for this employee for this pay period?
a)
$2,680.80
b)
$400.00
c)
$335.10
29.
Question #2 of 3: How much did this person pay towards Medicare in this pay period only?
a)
$24.80
b)
$44.50
c)
$5.80
30.
Question #3 of 3: How frequently is this employee paid?
a)
Bi-Weekly
b)
Weekly
c)
Monthly
31.
Name two reasons why it is important to check your bank statements on a regular basis.
4 lines
32.
Patricia knows she can request a free copy of her credit report each year, but now that she has it, she’s not sure where to start. What would you say are the two most important things that Patricia should look for in her credit report?
4 lines
33.
Give an example of a company that might check your credit report and describe why the information in it is important to them.
4 lines
34.
Jill is 16 years old and worked at her local grocery store over the summer earning $5,600. Is Jill legally required to file a tax return? If not, should she file anyway? Explain.
4 lines
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