WorksheetsBritt Fall Final Preview
Total questions: 40
Worksheet time: 20mins
This is the name of amount that one actually borrows for a loan.
Stock
Principal
Interest
Premium
Payment that one would make before getting a loan.
Deductible
Co-Pay
Principal
Down Payment
Information that a bank looks at to see if you might be able to get a loan is called
Dividend Report
Stock Report
Credit Report
Budget Report
What is the range on a FICO credit score?
300-850
0-800
350-850
500-1000
This is what credit card companies must tell you about the terms of the card
Unbanked
Conditions
Credit Report
Diplomacy
Which statement is true of both debit AND credit cards?
Both can trap you in an endless cycle of debt if you’re not careful
Both allow you to make purchases in a store or online
Both typically have interest rates between 10-30%
Both require you to pay a minimum monthly payment when your bill arrives
All of the following appear on your credit report EXCEPT…
Your checking account balance
Student loan payment history
Balance owed on a car loan
Number of active credit accounts
Which of the following categories make up most of your credit score? Mark only one oval.
Number of recent hard inquiries
Average length of your credit history
Number of active credit accounts
Payment history and credit utilization
It’s beneficial to use some of your available credit because…
The interest you’ll be charged goes up for every month you don’t use any credit
Banks require you to use some form of credit in order to have an account with them
It shows you can responsibly use credit and builds your credit history
Employers are less likely to hire you if you don’t have a balance on your credit card
In general, why do so many different types of companies check your credit report?
They’re legally required to do so by the Securities and Exchange Commission (SEC)
To determine the price of the product or service they’re selling you
Doing business with someone with a low credit score will also lower their credit score
They want to make sure you’re likely to make consistent and timely payments
A loan to buy a property or a home:
Rent
Sublet
Closing Costs
Mortgage
What is the primary purpose of a credit report?
To track your spending habits
To assess your creditworthiness
To calculate your net worth
rack your spending habits
Which of the following is a benefit of having a high credit score?
Higher interest rates on loans
Increased likelihood of loan approval
More frequent credit report checks
Higher monthly credit card fees
What is a deductible in an insurance policy?
The maximum amount the insurer will pay
The amount paid out of pocket before insurance kicks in
The monthly payment made to the insurance company
The total amount of coverage provided
Which of the following factors can influence insurance premiums?
Age and driving record
Type of vehicle
Location
All of the above
What does a coverage limit refer to?
The minimum amount of coverage required
The maximum amount an insurer will pay for a claim
The total premiums paid over a year
The deductible amount
What is the primary purpose of auto insurance?
To protect against financial loss from accidents
To provide free repairs for any vehicle
To ensure all drivers have the same coverage
To eliminate the need for driving safely
What is the minimum requirement for auto insurance in most states?
Comprehensive coverage
Collision coverage
Liability coverage
Uninsured motorist coverage
What is the primary difference between renters insurance and homeowners insurance?
A) Renters insurance covers personal property, while homeowners insurance covers the structure of the home.
B) Renters insurance is more expensive than homeowners insurance.
C) Homeowners insurance covers personal property, while renters insurance covers the structure of the home.
D) There is no difference; both cover the same things.
Which of the following is NOT typically covered by renters insurance?
A) Personal belongings
B) Liability for injuries
C) Damage to the building structure
D) Temporary housing costs
What is the primary purpose of having health insurance?
To cover all medical expenses
To reduce out-of-pocket costs for healthcare services
To provide access to the best doctors and hospitals
To protect against unexpected, catastrophic medical bills
A student can get a federal student loan without a credit score
True
False
State income taxes are a mandatory deduction.
True
False
Budgeting is the action of planning and knowing where your money is being spent.
True
False
I claim my allowances on my W2.
True
False
This is pay before deductions
Net Pay
Gross Pay
Principal Pay
Collateral Pay
This is pay after deductions?
Net Pay
Gross Pay
Principal Pay
Collateral Pay
Which of the following is an example of an optional deduction?
Federal Tax
State Tax
FICA
Vision Insurance
Moving money from one account to another.
Remove
Deposit
Transfer
Unload
Moving taken out of your checking account
Endorsement
Stop Payment
Withdrawl
Outstanding
Is "net pay" the money before or after taxes have been taken out?
before
after
It is important to set aside money in case of ......
A decrease in expenses
Routine Expenses
Unexpected Expenses
income increases
What is it called when someone doesn't have enough money in an account to cover a charge?
Compound Interest
Pending Charge
Insufficient Funds
Negative Balance
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 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
The possibility of losing all or part of your investment is known as
asset allocation
compounding
return
risk
Generally, how is risk related to return?
the lower the risk, the greater the possibility of a high return
the greater the risk, the greater the possibility of a high return
the greater the risk, the greater the possibility of a low return
risk and return have no relationship
A single share of ownership of a company is called a:
Bond
Mutual Fund
Annuity
Stock
Which of the following is a way to start investing?
Purchase stocks on your own
Pool money into a mutual fund managed by an advisor
Purchase part of an index fund
Hire a financial advisor to make a plan for you
All options are correct
