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WorksheetsFinance Final Exam 2025
Total questions: 60
Worksheet time: 45mins
Name
Class
Date
1.
All of the following are reasons to open a checking account EXCEPT…
a)
Making it easier to pay bills
b)
The ability to make purchases with a debit card
c)
Access to cash at an ATM
d)
Earn interest on your deposits
2.
Which of the following is usually a benefit of being a member at a credit union?
a)
Higher interest rates and lower fees
b)
Lower interest rates and higher fees
c)
Higher interest rates and higher fees
d)
Lower interest rates and lower fees
3.
Daisy reads her bank statement and finds an error. She should…
a)
Do nothing. The bank will correct the error at the end of the month.
b)
Call the FDIC. She is insured up to $250,000.
c)
Call the bank. The bank will investigate the transaction to see if it was an error.
d)
Assume that it’s a transaction that she made and forgot about
4.
Which of the following is typically a feature of a savings account but not a checking account?
a)
Ability to withdraw money from an ATM
b)
FDIC insured up to $250,000
c)
Your money earns interest
d)
Ease of making payments using a debit card
5.
Which of the following is TRUE when comparing savings accounts and certificates of deposit?
a)
Savings accounts are FDIC insured while certificates of deposit are not
b)
Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
c)
Savings accounts typically have a higher interest rate than certificates of deposit
d)
Both savings accounts and certificates of deposit allow you to deposit money at any time
6.
What is the most frequently charged fee on checking accounts?
a)
ATM fees
b)
Overdraft fees
c)
Monthly maintenance fees
d)
Statement fees
7.
All of the following are ways that you could potentially avoid a monthly maintenance fee on your account EXCEPT…
a)
Meeting a monthly minimum balance requirement
b)
Only banking online instead of using physical bank locations
c)
Having both a checking and savings account with the same bank
d)
Finding a bank that offers accounts with no monthly maintenance fee
8.
All of the following are ways to avoid ATM fees EXCEPT…
a)
Avoiding out of network ATMs
b)
Finding a bank that reimburses you for ATM fees
c)
Using your debit card instead of withdrawing cash to make a purchase
d)
Withdrawing money from your savings account instead of your checking account
9.
Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?
a)
$100
b)
$200
c)
$500
d)
$1,000
10.
When developing a savings plan, which is TRUE about saving and inflation?
a)
In order to avoid losing purchasing power over time, the rate of return for savings accounts should be at least as high as the rate of inflation
b)
In order to avoid losing purchasing power over time, the rate of return for savings accounts should be lower than the rate of inflation
c)
To maximize saving, the rate of return for savings accounts should be exactly equal to the rate of inflation
d)
There is no relationship between saving and inflation
11.
How much money should you try to save in your emergency fund?
a)
3-6 days worth of expenses
b)
3-6 weeks worth of expenses
c)
3-6 months worth of expenses
d)
3-6 years worth of expense
12.
How can credit cards make it more challenging to save?
a)
Many banks will not let you open a savings account when you have a credit card
b)
You will be charged a fee for every credit card transaction
c)
Retailers mark up purchases if you use a credit card
d)
Credit cards make it easier to spend money
13.
What is a major benefit of the Pay Yourself First strategy?
a)
It helps you budget all of your income for the month
b)
It encourages you to prioritize saving money
c)
It is a good way to build credit
d)
It generates additional income to cover essential expenses
14.
All of the following are accounts that would contribute to the 20% saving goal of the 50/30/20 rule EXCEPT:
a)
401k retirement account
b)
Checking account
c)
Emergency fund
d)
529 college account
15.
Which of the following transaction will REDUCE your checking account balance immediately:
a)
Using your debit card to pay for groceries at the supermarket
b)
Using your credit card to pay for your school books
c)
Depositing a check at a local bank branch
d)
Paying rent with a check from your checking account
16.
FDIC Insurance is….
a)
Optional coverage consumers can purchase so that their bank deposits remain safe
b)
Insurance bank branches can buy to protect their business against fraud and scams
c)
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
17.
All of the following are reasons to invest, EXCEPT…
a)
To minimize the impact on inflation, which causes you to lose purchasing power
b)
To earn a consistent rate of return with lower risk than typical savings accounts
c)
To build wealth by reinvesting your returns and allowing them to compound
d)
To earn higher average rates of return than you would in a typical savings account
18.
Which of the following statements BEST describes investing?
a)
Putting $100 per month into an FDIC-insured bank account for short-term goals
b)
Buying and selling stocks within the same day to take advantage of short-term price variation
c)
Reducing the purchasing power of your money over time
d)
Buying assets, like stocks, with the intention to hold them and grow your wealth over the long term
19.
An investor can best harness the power of compounding by doing all of the following, EXCEPT…
a)
Making frequent trades
b)
Starting to invest early
c)
Reinvesting earnings
d)
Minimizing risk
20.
Which of the following statements BEST describes the stock market?
a)
Businesses listing their entire company for sale
b)
Businesses selling partial ownership of their companies to raise capital
c)
Investors buying stock in hopes of being hired by companies
d)
People making donations to companies that need funding
21.
During a BULL market…
a)
Investors are pessimistic about how the stock market will perform
b)
The economy is not doing as well
c)
More investors are buying stocks, which causes stock values to increase
d)
The unemployment rate in the country increases
22.
Over time, the stock market has…
a)
Experienced highs and lows but increased in overall value
b)
Had slight ups and downs but stayed about the same in value
c)
Rarely experienced changes and has maintained the exact same value
d)
Gone through severe ups and downs with an overall decrease in value
23.
What is a stock?
a)
A measurement of a company’s profits
b)
An investment option that allows you to own a small piece of a company
c)
An annual report that includes details about a company’s leadership and earnings
d)
A low-risk savings option that can help you build an emergency fund
24.
When reading a stock quote, which of the following metrics would give you the best idea of the total value of the company?
a)
The stock ticker symbol
b)
The price change of the stock, quoted as a percentage
c)
The market cap
d)
The stock’s opening and closing price for that day
25.
Which of the following is TRUE about a stock split?
a)
Stock splits impact the overall value of a company
b)
Stock splits decrease the number of shares you own
c)
Stock splits indicate that a company is doing poorly
d)
Stock splits make a stock more accessible to a greater number of investors
26.
Which of the following most accurately describes what a bond is?
a)
A bond is a government loan made to an individual investor with the expectation that it will be paid back with interest
b)
A bond is an investment in which a corporation lends an individual investor money with the expectation that it will be paid back with interest
c)
A bond is a government loan made to a corporation with the expectation that it will be paid back with interest
d)
A bond is an investment in which an investor lends money to a corporation or government with the expectation that it will be paid back with interest
27.
One difference between bonds and bond funds is…
a)
Buying an individual bond is generally cheaper than buying a bond fund
b)
A bond fund can help you diversify your investment portfolio
c)
Bonds pay dividends to its investors
d)
You receive the principal amount you invest in a bond fund after a certain amount of time
28.
In retirement, it’s common to rely on income from all of the following sources EXCEPT...
a)
Social Security
b)
Pension Income
c)
Government loan
d)
Investment Income
29.
Which of the following statements is TRUE about the state of retirement in the U.S.?
a)
Most Americans are able to retire at their full retirement age
b)
Many retirees are able to support themselves on Social Security payments alone
c)
The majority of employers offer pension plans for workers
d)
Many people may need to invest to build wealth and to support themselves in retirement
30.
Eli is planning ahead for retirement. They should consider all of the following factors when determining how much they’ll need in retirement EXCEPT…
a)
What age they plan to retire
b)
The current balance in their checking account
c)
The lifestyle they want to lead in retirement
d)
How much money they expect to receive through Social Security
31.
401(k)s and IRAs are both…
a)
Types of investments that you can choose to have in an investment account
b)
Investment accounts that are commonly offered by employers
c)
A type of savings account that generally offers around a 1% rate of return
d)
Investment accounts that you can open to help you invest for retirement
32.
All of the following are advantages of a 401(k), EXCEPT…
a)
You don’t pay taxes on your investments’ growth each year
b)
You can invest your 401(k) into a wider variety of asset types than you can with an IRA
c)
Your employer may match some of your 401(k) contributions
d)
You can contribute more money into a 401(k) than into an IRA
33.
Which type of retirement account is an investment option for ANY young person?
a)
Traditional IRA
b)
Pension
c)
401(k)
d)
Social security
34.
Which word represents the total cost of the item you’re purchasing on credit minus any down payment you make upfront?
a)
Principal
b)
Term
c)
Interest rate
d)
APR
35.
Each of the following represents an installment loan EXCEPT…
a)
Home mortgage
b)
Auto loan
c)
Student loan
d)
Credit card
36.
Which of these actions would most likely decrease a person’s net worth for at least the next 6 months?
a)
Use a loan to buy a brand new car
b)
Work 10 hours of overtime each week and put all extra earnings into a savings account
c)
Work 10 hours of overtime each week and use all extra earnings to pay down student loan debt
d)
Open 3 new credit cards but don’t spend any money on them
37.
What causes the total amount of interest paid on a mortgage to be so much higher than on other types of debts?
a)
The APR on a mortgage is typically between 20-30%, which is higher than for other types of debt
b)
The principal on a mortgage is high and the term is long
c)
Borrowers typically delay making mortgage payments because their home cannot be repossessed for nonpayment
d)
Homeownership is not very common in the US, so mortgages are priced high because demand is so low
38.
Which of the following is a good reason to choose a 30-year, fixed-rate mortgage?
a)
You want to make high monthly payments and close your mortgage sooner
b)
You want to minimize the amount of interest you’ll pay over the life of the loan
c)
You want low, predictable monthly payments
d)
You want to take advantage of the ups and downs of the market and don’t mind risk
39.
Paying more than the minimum payment (or paying your balance in full) is beneficial because…
a)
It lowers your interest rate
b)
The lender can’t penalize you for future late payments
c)
You get a discount on future purchases made with credit
d)
You pay less interest overall
40.
If a person with multiple sources of debt has a goal of eliminating one or more of them in as little time as possible, which debt repayment strategy would be best?
a)
High interest method
b)
Snowball method
c)
Stopping payments on all debts but one so you can pay that one off faster
d)
Making the minimum payment
41.
All of the following appear on your credit report EXCEPT…
a)
Your checking account balance
b)
Student loan payment history
c)
Balance owed on a car loan
d)
Number of active credit accounts
42.
In general, why do so many different types of companies check your credit report?
a)
They’re legally required to do so by the Securities and Exchange Commission (SEC)
b)
To determine the price of the product or service they’re selling you
c)
Doing business with someone with a low credit score will also lower their credit score
d)
They want to make sure you’re likely to make consistent and timely payments
43.
What should you do if you find errors in your credit report?
a)
Close the affected credit account(s)
b)
Contact the credit reporting agency or the company that provided the information
c)
Call the police to notify them of potential fraud
d)
Report the error on your taxes
44.
Which of the following categories make up most of your credit score?
a)
Number of recent hard inquiries
b)
Average length of your credit history
c)
Number of active credit accounts
d)
Payment history and credit utilization
45.
It is best to avoid these in order to improve your payment history…
a)
Credit cards without a rewards program
b)
Late payments
c)
Banks that only offer one type of credit card
d)
Payments greater than the minimum required
46.
It’s beneficial to use some of your available credit because…
a)
The interest you’ll be charged goes up for every month you don’t use any credit
b)
Banks require you to use some form of credit in order to have an account with them
c)
It shows you can responsibly use credit and builds your credit history
d)
Employers are less likely to hire you if you don’t have a balance on your credit card
47.
Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?
a)
Military and Education
b)
Health and Veterans’ Benefits
c)
Housing and Transportation
d)
Social Security and Medicare
48.
On a pay stub, the amount of money that is left after withholdings is known as…
a)
Gross pay
b)
Net pay
c)
Annual earnings
d)
Wages and tips
49.
Which statement best describes discretionary government spending?
a)
A fixed amount of money spent on the same categories every year
b)
The money used to pay for Social Security and Medicare
c)
A changing amount of money spent on different categories each year
d)
Money that you determine how it is spent by the government when you submit your taxes
50.
You recently accepted a new job and your first day is next week. What form will you have to complete before you receive your first paycheck?
a)
W-2
b)
1040
c)
1099
d)
W-4
51.
You were unable to file your taxes before the April deadline and your application for an extension was approved. What month was your deadline extended to?
a)
May
b)
October
c)
December
d)
January
52.
Which of the following statements most accurately describes why it’s important to correctly fill out a W-4 form?
a)
It determines how much money is withheld from your paycheck and can result in under or overpayment of taxes if filled out incorrectly
b)
It is a legally binding contract between you and your employer that determines how much they pay you
c)
If you pay the exact right amount in taxes, you receive a tax credit in the following year
53.
All of the following people can be claimed as a dependent for tax purposes EXCEPT…
a)
A 23 year old college student whose parents pay all of their expenses
b)
A 20 year old college student with a paid internship who pays for all of their own expenses
c)
A 25 year old cousin with no job who has lived in your parent/guardian’s house for the last year.
d)
An 18 year old who works a part time job in the summer
54.
You are required to file a tax return in all of the following scenarios EXCEPT…
a)
You made $25,000 working a full-time job
b)
You made $3,000 from investments in the stock market
c)
You made $9,000 working a part-time job
d)
You made $450 as a freelance artist.
55.
What is the purpose of the self-employment tax (SECA)?
a)
To tax self-employed individuals a greater amount than regular employees since they’re more likely to make health insurance claims
b)
To tax self-employed individuals a lesser amount than regular employees since they generally make less money
c)
To tax self-employed individuals an equivalent amount for Social Security and Medicare since FICA taxes aren’t taken out of their paycheck
d)
To tax self-employed individuals a flat amount since they don’t pay federal or state
56.
If you’re looking to pay as little as possible to file your taxes BUT you’re worried about making mistakes, which tax preparation method would be your best option?
a)
Do-it-yourself paper filing
b)
Online tax preparation service
c)
Hiring a tax professional
d)
Requesting the IRS complete your taxes for you
57.
All of the following are found on a W-2 form EXCEPT…
a)
Wages, tips, and other compensation
b)
Federal and state taxes withheld
c)
Sales taxes paid
d)
FICA taxes withheld
58.
When should you receive your W-2 from your?
a)
January 1
b)
December 31
c)
January 31
d)
April 15
59.
All of the following options are benefits we receive as a result of government spending EXCEPT….
a)
Health and retirement benefits for seniors
b)
Credit card debt forgiveness
c)
National parks maintenance
d)
Public Schools
60.
Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck?
a)
State
b)
Federal
c)
FICA
d)
Sales
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