WorksheetsFINAL EXAM PREP
Total questions: 40
Worksheet time: 20mins
A need is...
something desired but unnecessary
the end result of something a person intends to achieve
a belief about what is important to an individual
necessity required for life
April weighs 300 lbs. and sets a goal to lose 100 lbs. by having weight loss surgery. What is this SMART goal missing?
Realistic
Time
Specific
Jennifer is creating a Zero-Based Budget to manage her finances. How should she set that up?
Spend her savings account balance down to $0 every month
Spend her checking account balance down to $0 every month
Put every dollar of her net pay into a budget category each month
Pay every one of her debts down to $0 every month
Your bank is FDIC insured. Therefore, which of the following is correct?
You can purchase optional FDIC coverage, so your bank deposits are safe
Your bank buys insurance to protect itself against fraud/scams up to $250,000
FDIC insurance protects your deposits up to $250,000
Dontae needs to reduce his expenses. Which of his expenses below would be the MOST difficult to adjust?
Expenses for groceries
Purchasing a new computer
Eating out at restaurants
Loan payment on a home
Moe's paycheck had taxes taken out of it. Is this his gross pay or net pay?
Gross pay
Net pay
What is Creditworthiness?
When lenders charge you interest because they don't trust you to pay money back
How much credit a lender will give you
When the lender calculates your credit score
When lenders trust that you will pay back the loan as agreed
You just started your first job. When should you start saving for your retirement?
When you start your first job
A year from when you start working
When you turn 40 years old
Your emergency savings should cover how many months of expenses?
1-2 months
3-6 months
4-5 months
Which one below is NOT an alternative form of credit?
Rent-to-Own
Mortgage
Pawn Shop Loan
Pay Day Loan
Derrick is creating a monthly budget. Which one of his expenses is variable each month?
Student loan payment
Electricity bill
Car insurance premium
Rent
The ability to borrow money and repay it later is...
Credit reporting
Creditworthiness
Credit
When should you expect to receive your bank statement?
Every week
Every day
Every month
Once a year
Jayden's goals are most likely to be accomplished if he:
sets clear and realistic plans
ignores his progress
waits for others to help
avoids setting deadlines
Three common types of credit are...
Installment credit, Revolving credit, Open credit
Personal credit, Business credit, Student credit
Secured credit, Unsecured credit, Flexible credit
Short-term credit, Long-term credit, Deferred credit
Tamisha's goal is to buy a new car. She started saving to buy a car on November 1, 2023, and plans to purchase it by December 24, 2024. Is this a short-term or long-term goal?
Short-term
Long-term
"Pay yourself first" means...
Spend your regular paycheck on needs and wants then put extra money into saving
Wait until the end of the month to determine how much you have left to put into savings
Set aside a portion of your paycheck into a savings account before spending anything
Own your own business so you're paying yourself instead of being paid by an employer
Which of the following is NOT a consequence of being unbanked?
No access to credit
Living on cash only
Able to get only one credit card
Able to get a bank loan
Sophia says she must buy Telfar Ugg boots. This is a...
Value
Need
Want
Which one of the following is NOT a credit reporting agency?
Equifax
Transunion
Transamerica
Experian
A brokerage account is used to:
Pay taxes
Set up 401K accounts
Buy and sell stocks, bonds, and funds
You bought 10 shares of stock for 50 per share. A month later you sold the 10 shares of stock for 80 per share. What was your profit or loss?
Loss of $500
Profit of $350
Profit of $300
A bond is:
Partial ownership in an organization
Riskier than a stock but yields a higher return
A loan to an organization
Diversifying your investment portfolio:
Ensures that you will make a profit
Guarantees lower fees
Helps reduce risk
Danny is trying to determine which of his two mutual fund investments performed better. His HeroFund20 had an average return (before fees) of 7.5% per year and an annual fee of 1%. His GuardianFund500 had an average return (before fees) of 6.6% per year and an annual fee of 0.1%. Which investment had a better return (net of fees)?
The HeroFund20
The returns were equal
The GuardianFund500
You are starting your first job, and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for taxes?
W-4
W-2
I-9
1040
Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?
$120
$500
$600
$700
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
I-9
1099
1040
W-4
Which of the following statements about this W-2 form is true?
Avia Consulting will use this W-2 to file their 1040 form
James earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages
James paid State income taxes of $1,189.90
James works in the same city that Avia Consulting is based in
What does the term "withholding" mean in reference to your paycheck?
The amount of your paycheck that you are NOT being taxed on
How much you are going to owe the government when you file your annual tax return
How much you earn and includes salary, bonus and commissions
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
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
Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?
You must pay the full premium yourself.
The employer pays part or all of the premium.
You cannot add family members to the plan.
You are not eligible for any health benefits.
Which of the following insurance coverage options would be the lowest priority for a typical single person, with no children, 1-2 years out of high school?
Health Insurance
Auto Insurance (if they have a car)
Life Insurance
Renter's Insurance (if they are renting an apartment)
Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?
$0
$1,000
$6,200
$30,000
Mandatory government spending includes which of the following?
Infrastructure and science
Social Security and Medicare
Healthcare and military
Education and agriculture
Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
Social Security
Medicare
401(k) contribution
Federal income taxes
If you overpaid your taxes and the government owes you money, that is called a _______.
withholding
direct deposit
deduction
refund
Which of the following statements is TRUE about compound interest?
Compound interest is difficult to calculate, so those who use it earn higher profits for their efforts
Compound interest means you have a fund manager who is compounding your returns without charging a fee
Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned
Compound interest directly impacts how much you will be charged in fees
An actively managed mutual fund...
Generally, has lower fees than a passively managed index fund
Is managed by a fund manager who charges a fee
Always performs better than an index fund
