WorksheetsReview for Final Exam Intro to business
Total questions: 45
Worksheet time: 23mins
Name
Class
Date
1.
What is the benefit of a checking account?
a)
It helps you spend money without carrying cash
b)
It allows you to save money and earn interest
c)
It allows you to spend money and pay the bill later
2.
Camilla just opened a new checking account. How can it help her better manage her money?
a)
She can get a greater investment return
b)
She can earn more interest to save money
c)
She can check her transaction history easily.
3.
Using your mobile banking app, you can __________________
a)
write checks
b)
deposit cash
c)
deposit checks
4.
To deposit a check using a mobile banking app, you have to _______________________.
a)
check your interest rate
b)
upload pictures of your signed check
c)
have more than one account
5.
Your favorite cousin Briar's birthday is coming up, and you'd like to gift her some money from your checking account. What is the benefit of gifting money via check?
a)
It is safer because you can trace the transaction
b)
It is better because you get to earn interest
c)
It is faster because money will be available instantly.
6.
Alejandro realized that he forgot his wallet when he was about to pay at a store. He only has his smartphone with him. How can he make a payment with money from his checking account?
a)
He can write a check with his mobile banking app.
b)
He can use a mobile payment app with his phone
c)
He can send his checking account number via text
7.
Overdraft protection helps you cover a purchase in your checking account
a)
when you lost your debit card
b)
when you don't have enough funds
c)
only if you are investing with your money
d)
only if you are paying with a mobile payment app
8.
What is the benefit of a savings account?
a)
A savings account helps you track your spending.
b)
A savings account allows you to borrow money.
c)
A savings account earns interest
9.
Lilly wants to save money for unexpected situations like emergencies. Which savings feature would benefit her the most?
a)
earning the highest interest rate
b)
easy access to her money
c)
mobile banking alerts
10.
Keira is new to earning money and saving. She doesn't have a lot of money to open an account. Which savings option would be best for her?
a)
Savings Account
b)
Money Market Account (MMA)
c)
Certificate of Deposit (CD)
11.
Louie just opened his first savings account. What is one way that it can it help him manage his money?
a)
It can give him access to a debit card
b)
It can help him spend money more easily.
c)
It will keep his money safe.
12.
Why do financial institutions offer you higher interest rates for Certificates of Deposit (CDs)?
a)
They are paying you back for fees and interest that you have prepaid.
b)
The interest you earn is only borrowed and must be repaid at the end of the term.
c)
You must keep your money in the account for a set amount of time.
13.
Sawyer just got his learner's permit and can't wait to buy his first car. He received a large sum of money for his birthday and put it in an account to help it grow. He opened an account that required a large initial deposit, but that pays a high interest rate and allows him easy access to his money. What kind of account did Sawyer open?
a)
Savings Account
b)
Money Market Account (MMA)
c)
Certificate of Deposit (CD)
14.
Which best describes the difference between secured and unsecured loans?
a)
Secured loans require collateral, while unsecured loans do not
b)
Secured loans usually have higher interest rates than unsecured loans
c)
Secured loans do not appear on your credit report, while unsecured are reported
d)
Secured loans have more flexible payment plans than unsecured loans
15.
How do loan terms affect the cost of credit?
a)
Longer loan terms have lower monthly payments and lower interest
b)
Shorter loan terms have higher monthly payments and lower overall interest
c)
Loan terms are based on your pay schedule and how often you get paychecks
16.
A lender offers Frank a high-interest loan based on the amount of his next paycheck. He'll have to pay it back quickly, within the next month. Which type of predatory loan offer did Frank experience?
a)
Payday loan
b)
Hidden fees
c)
Phishing scam
17.
Which of the following best describes a loan?
a)
A type of insurance coverage for unexpected losses
b)
A borrower promises to repay money from a lender
c)
A government grant for education
d)
A tax deduction for mortgage interest payments
18.
Margo wants to purchase a new car. She doesn’t have enough in savings to cover the cost. She decides to look into loans from her bank. How can taking out a loan help Margo with her car purchase?
a)
It can help by reducing her total amount of debt
b)
It can help by not requiring any immediate down payment
c)
It can help by spreading out the expense over time
19.
Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?
a)
Education loan
b)
Interest-free loan
c)
Secured loan
20.
Aisha needs a loan to finance her latest startup. She wants a loan with the lowest overall interest costs. She’s considering a 3-year loan with an 8% fixed interest rate or a 5-year loan with a 6% fixed interest rate. Why would Aisha pick the 3-year loan?
a)
It has a lower total cost.
b)
It has a smaller monthly payment.
c)
It has a lower interest rate
21.
Emery applies for a loan online to help cover living costs while in college. Later, she notices her payments aren’t impacting the balance much. Looking closer, she finds extra fees in the agreement. Which type of predatory loan offer did Emery experience?
a)
Payday loan
b)
Hidden fees
c)
Phishing scam
22.
Which one of these expenses most likely represents a VARIABLE cost in someone's budget?
a)
Entertainment costs
b)
Rent
c)
Car insurance
d)
Student loan payment
23.
Which one of these expenses most likely represents a FIXED cost in someone's budget?
a)
Rent
b)
Entertainment
c)
Going out to Eat
24.
You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:
a)
A budget can help you identify any bad spending habits
b)
Having a budget is a requirement for obtaining a mortgage
c)
Using a budget can allow you to work towards your financial goals
d)
Having a budget can help you create an emergency fund
25.
Which of the following accurately describes the envelope budgeting strategy?
a)
Putting cash for different spending categories into separate envelopes and only spending what's in each envelope
b)
Saving a small part of your income every week to buy something big at the end of the year
c)
Keeping a written record of all of the money you receive and spend in a notebook to see where your money goes
26.
Why is it important to start investing for retirement at an early age?
a)
The younger you are when you start, the lower your fees
b)
Many investment firms will increase the rate of return you get by 1%
c)
As you get older, firms offer you fewer funds to invest in
d)
Your money has more time to grow
27.
Which of the following statements best describes the difference between gross pay and net pay?
a)
Gross pay is the amount you make for the entire year, and net pay is the amount you make on each paycheck
b)
Gross pay includes salary, tips, commission, and bonus, while net pay is just your salary
c)
Gross pay is the amount your employer pays you, and net pay is the amount of taxes you pay the government
d)
Gross pay is the entire amount you earn that pay period, and net pay is the amount you take home after taxes and other deductions are paid
28.
What do taxes pay for?
a)
Privately owned businesses
b)
financial institutions
c)
schools, government departments, roads and emergency services
29.
FICA deductions from your paycheck are optional
a)
True
b)
False
30.
Gross pay is a larger amount than your net pay
a)
true
b)
false
31.
Having unlimited wants and limited resources. This is the…
a)
Basic Economic Problem
b)
Scarcity
c)
Cost Benefit Analysis
32.
Not having enough resources to satisfy all your wants and needs….
a)
Recession
b)
Scarcity
c)
Debt
d)
Bankruptcy
33.
Resources are owned and controlled by the government
a)
Command Economy
b)
Market Economy
c)
Traditional Economy
d)
Mixed Economy
34.
Resources are owned and controlled by the people of the country
a)
Command Economy
b)
Market Economy
c)
Traditional Economy
d)
Mixed Economy
35.
Goods and services are produced the way it has always been done
a)
Command Economy
b)
Traditional Economy
c)
Mixed Economy
d)
Market Economy
36.
Which principle of Capitalism best represents this image?
a)
Profit
b)
Freedom of choice
c)
Competition
d)
Private Property
37.
Service businesses make up the majority of businesses.
a)
True
b)
False
38.
Business can make products or provide services
a)
True
b)
False
39.
Business activities start with ____________________, which create the products and services used by individuals and other businesses.
a)
service businesses
b)
producers
c)
intermediaries
d)
marketers
40.
Which of the following type of business is NOT a producer?
a)
pharmacy
b)
appliance factory
c)
coal mine
d)
chicken farm
41.
Goods and services sold to other countries
a)
Exports
b)
Imports
42.
Trade barriers can slow down global trade. A tax put on goods from other countries is a called a
a)
embargo
b)
tariff
c)
quota
43.
A restriction on the amount of good that can be imported
a)
embargo
b)
tariff
c)
quota
44.
The harshest type of trade barrier-which forbids trade with another country
a)
embargo
b)
tariff
c)
quota
45.
Purchasing goods or services from another country
a)
import
b)
export
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