WorksheetsREVIEW ASSESSMENT A – PERSONAL FINANCE
Total questions: 20
Worksheet time: 10mins
Which of the following statements is true?
If you missed a payment more than 2 years ago, it cannot be considered in a loan decision.
People have so many loans; it is very unlikely that one bank will know your history with another bank.
Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed.
Your bad loan payment record with one bank will not be considered if you apply to another bank for a loan.
Federal income tax is an example of which type of tax?
Progressive
Regressive
Proportional
Flat
Which of the following is a key service provided to member banks by the Federal Reserve?
Mortgage brokering
Fiscal Policy
Signature verification
Check clearing
Which of the following statements is false?
Bankruptcy can offer a fresh start for some people
Future credit will be easy to obtain for a person who has filed for bankruptcy
The costs of filing for bankruptcy are relatively low
Bankruptcy will not affect certain types of income a debtor may have
A subprime mortgage can best be defined as
A personal loan which is made to someone with a poor credit rating
A real estate loan which is made to someone with a poor credit rating
A personal loan which carries an interest rate which is lower than the prime rate
A real estate loan made to a creditor's most credit worthy customers
A person who is unable to meet their financial obligations is said to be
solvent
soluble
insolvent
insoluble
Which of the following lowers the cost of home ownership?
Tax deductions
Homeowner insurance
Utility costs
Fixed mortgage rates
When you apply for a mortgage, which of the following will be checked?
Employment
Credit history
Income level
All of these
An individual whose income falls between 27,000and 65,000 per year is taxed at the rate of 28%. This income range is known as a
Tax bracket
Tax deficit
Filing status
Standard deduction
An amount you may subtract from your income for each person who depends on your income to live is known as a(an)
Tax credit
Tax exemption
Filing status
Standard deduction
If an individual does not have enough deductions to claim against adjusted gross income, they will most likely take advantage of the
Earned income credit
Zero bracket amount
Standard deduction
Taxable credits
To compute your tax liability, turn to the tax tables and look up the amount called
Take-home pay
Gross income
Adjusted gross income
Taxable income
If your federal income tax liability is greater than what was withheld by your employer during the 2014 tax year, you must file a return and remit payment by this date to avoid penalty.
June 1
January 31
April 15
October 1
The interest or money that is charged a borrower for the use of credit is the
collateral
face value
finance charge
principal
This rate of interest is charged by banks to its most credit worthy customers, and it serves as a gauge for establishing market rates.
Money market rate
Finance charge rate
Variable rate
Prime lending rate
Personal budgetary items such as lunches, medical bills, personal care items, and clothing are all examples of:
Discretionary income
Fixed expenses
Disposable income
Variable expenses
Each year the IRS calls for the examination of thousands of tax returns. This procedure is known as a:
Tax audit
Tax exemption
Tax return
Tax deferral
A legal document that establishes ownership of a home is known as a
Contract
Prospectus
Lien
Deed
A business which issues credit reports to potential creditors is known as a:
credit union
subscriber
banking institution
credit bureau
Which of these is considered income protection insurance?
long term care
liability
term
disability
