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WorksheetsPersonal Finance Final Exam
Total questions: 50
Worksheet time: 1hrs 13mins
Which definition best describes a budget?
Passing through the seven levels of the candy cane forest, through the sea of swirly-twirly gum drops, and then walking through the Lincoln
A plan of your expected income and how you will use it to meet your expected expenses over a period of time.
Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions.
Items or services you pay for such as rent, groceries, entertainment, bills, etc.
What is NOT a good example of a budgeting strategy?
Going out to eat 6 days a week.
Cooking dinner at home most nights a week.
Going to the grocery store with a list and buying only what is on the list.
Setting aside money from each paycheck to spend on yourself.
How does the 50/30/20 rule of thumb for budgeting allocate your income?
50% Needs
30% Wants
20% Savings
50% Wants
30% Needs
20% Savings
50% Savings
30% Wants
20% Needs
50% Needs
30% Savings
20% Wants
Which of the following is an example of a fixed expense?
emergency room bill
mortgage/rent
daily coffee trip
a concert ticket
What is the tendency to avoid dangerous or negative information simply by closing oneself off from the information or situation as though to bury your head in the sand?
The Endowment Effect
The Ostrich Effect
Herd Mentality
The Dunning-Krueger Effect
What is Conor Lentz's middle name?
Elizabeth
Justin
Herald
James
The tendency to conform to the behaviors and beliefs of the people around you is an example of what cognitive bias?
Herd Mentality
Endowment Effect
Loss Aversion
Sunk Cost Fallacy
How can you protect your checking account when using online and mobile banking?
Use strong and unique passwords
Avoid using public Wi-Fi networks
Regularly monitor your account activity
All of the above
Which of the following phrases best matches the definition
'the irrational ways that we process information & make decisions using our own perspective and incomplete information'.
Cognitive biases
Hedonic Adaptation
The Endowment Effect
Overprecision
Which of the following is TRUE about cognitive biases?
It is easy to recognize when cognitive biases are influencing our own decisions
There is rarely anything you can do to combat a cognitive bias’ influence
There are only a handful of cognitive biases that exist
Awareness is often the first step to overcoming the influence of a cognitive bias
Mobile or email alerts for your checking account can notify you of all of these EXCEPT ?
Low balances
Unusual activity
Deposits
Unicorns riding rainbows while cats and dogs sing in the rain
What type of account allows you to withdraw money, pay a bill, or make purchases easily?
Checking Account
Savings Account
Market Money Account
CD Account
How much does it cost to file the FAFSA each year?
$85.00
It depends on your family's income
It depends on what college you go to
It is free
What is a primary benefit of an apprenticeship program?
Receiving a traditional college degree
Automatic job placement at the end of the program
Earning a salary while gaining education and credentials
Access to extensive travel opportunities
Interpersonal or people skills, communication, team work, and adaptability are all examples of ____.
Hard Skills
Soft Skills
Vocational Training
Job Shadowing
A _________ is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting approximately four years.
Bachelor's Degree
Master's Degree
Associate's Degree
Fahrenheit Degree
Sales experience, software development, computer science, and software engineering are all examples of _____.
Soft Skills
Hard Skills
Medium Good Skills
Refrigerator Running Skills
Which of the following situations is an example of responsibly taking on debt?
Get a new credit card under an alias like Regina Phalange
Spend up to your credit limit each month
Get a credit card, make small purchases and then pay them off each month
Make only the minimum payment each month
Which of the following is a TRUE statement about Pay Day Loans?
They are a very good option and hardly charge any interest.
The interest rate fee is about 400%.
Sharks come out of the water to say hello.
They are a better option than a bank or credit union.
What is the correct credit score range?
0−1000
300−850
500−1000
0−850
All of the following are benefits of having a good credit score EXCEPT?
Better deals on Kennywood and Sandcastle Season Passes
Better interest rates on loans
Easier approval for rental apartments and houses
Better car insurance rates
Where can you get a free copy of your credit report?
annualcreditreport.com
www.mathisfun.com
credit_reports_are_a_bop.com
who_loves_credit.gov
Which adjective would best describe a BEARish investor attitude?
Optimistic/Positive
Pessimistic/Negative
Groovy/Awesome
I just like investing... investing is my favorite.
Which of the following is an example of diversification?
Putting all of your money into a savings account
Having a savings account, investing some monies, and contributing to an IRA/401K
Investing all of your money in one company
Asking a lot of different people what you should do with your money
Why is it challenging to match your investing decisions with how the stock market is performing?
It is hard to predict trends, and trends can only be identified once they’ve already happened
The stock market is typically in a BEAR market for a specific period of time
You have to invest large amounts of money to have your decisions match the performance of the stock market
The stock market is typically in a BULL market for a specific period of time
What is the purpose of insurance?
to build wealth
to transfer risk
to manage assets
to do jumping jacks
A stone hits your windshield. Which type of coverage would likely cover this expense?
Collision
Liability
Comprehensive
Depends on how big the stone is
What is the FDIC insured deposit limit?
$150,000
$200,000
$250,000
$300,000
Which insurance coverage is required by law?
Homeowners insurance
Auto insurance
Piggy Bank Insurance
Disability insurance
What can be said about traditional economics that differs from behavioral economics?
People do not always behave in a rational way when making economic decisions
People will always update their viewpoints based on new information
There is no way to predict how people will make economic decisions
People behave in a rational way when making economic decisions
Which of the following is likely a scam?
A hotel receptionist asks you to verify your name before checking in.
Your doctor's office calls and the nurse asks you for your health care information.
The IRS calls you and says you need to send money or you will be arrested.
You receive coupons in the mail through a store you regularly shop at.
All of these are ways that social media has an impact on teen spending EXCEPT?
Social media constantly nudges consumers to buy products they have viewed
Social media has made it easier than ever to buy immediately on impulse
Consumers are influenced to buy items related to appearance or experiences
Influencers typically encourage consumers to save money rather than spend
All of the following are PRACTICAL strategies to reduce the influence of advertisements EXCEPT?
Avoid using the internet completely
Why do you need to be cautious when scanning QR codes with your phone or mobile device?
QR codes automatically allow scammers to access all your photos and videos
QR codes always link to unsecured websites
What are the two red flags that Frank Abagnale tells consumers to look out for?
urgent need for money & personal information
urgent need for personal information about your cat Kevin
phishing and hunting
a background check and 14 jumping jacks
When website design features intend to trick users into doing things they might not want to do, and at the same time benefits the business, what is this called?
Dark Patterns
Data Breach
Disguised Ads
Wearing Sublime Sweatshirts without knowing one Sublime song
Which company is known for utilizing the 'roach motel'? [A dark pattern that allows you to get into a situation very easily (like signing up for a subscription or getting product emails) but then you find it is hard to cancel or get out of it]
Amazon
Kohls
Netflix
Spotify
What is a 2-Factor Authentication [2FA]?
An extra layer of security that requires a user to provide two pieces of information (such as a password and a temporary code) to access an account.
A business model companies use to charge you on a regular basis for ongoing updates to products and services you use.
Factors such as authority, liking, or scarcity that have an effect on the way we make decisions.
Factors such as missing 16 straight questions on a review game.
Where have most people had their online security compromised while using public WIFI?
School
Restaurant
Library
Target
Lucas wants to decrease the amount of money he spends on food. Which of the following would help?
Decide what she will make for dinner that same day.
Go to the grocery store with a list.
Go to the grocery store when you are hungry.
Go to the grocery store several times a week.
How do you avoid paying interest on your credit card (or any other loan for that matter)?
Always make the minimum payment over time
Pay interest 1st, then pay what you can on leftover balance
Always make the full payment on time
Pay the principal 1st, then pay what you can on interest
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
What is a key difference between saving and investing?
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 does the amount of INTEREST you owe on an amortized loan decrease over time?
The institution trusts you more, so they lower the interest
With each payment, principal increases; so interest lowers
Banks are legally required to lower interest rates over time
With each payment, principal decreases, so interest lowers
Which is NOT a typical goal for a savings account?
Saving for retirement
Saving for a down payment on a house
Saving for a vacation
Saving for a METALLICA t-shirt
When looking at your paycheck, your ___ is the amount you were paid before taxes, and your ___ is your take-home pay.
gross pay
net pay
net pay
gross pay
net pay and gross pay are the same thing
deduction
reward
What is a strategy where individuals prioritize saving by putting a portion of their income into savings before paying other expenses?
Zero-Based Budgeting Strategy
Pay Yourself First Strategy
50 - 30 - 20 Budgeting Method
Envelope Budgeting Strategy
A(n) __ can change month to month, but a(n) __ costs the same amount every month.
variable expense
fixed expense
fixed expense
variable expense
all expenses change each month
needs
wants
A degree that generally takes two years of study and is awarded by a community, junior, or business college is known as a/an ______.
Bachelor's Degree
Associate's Degree
Master's Degree
Trade School
What are the primary steps involved in enlisting in the military?
Meeting age and education requirements and passing health and fitness tests
Showing proficiency in technology and passing a writing exam
Completing a leadership seminar and learning a foreign language
Submitting a financial background check and completing a basic engineering exam
