NEW
Font size
WorksheetsPersonal Finance Final Review
Total questions: 41
Worksheet time: 21mins
Which type of bank account typically offers the least (if any) interest?
Checking Account
Savings Account
Money Market Account
Certificate of deposit
Why is it important to reconcile your bank statements?
To avoid spending more than what is in your account
To detect any errors in your account
To determine if you were charged any fees
All of the above
Investing is best for ____.
Short-term financial goals, like building an emergency fund
Earning a little interest while keeping your money safe
Long-term financial goals, like paying for retirement
Guaranteed fast growth on your money
A stock is ____.
A type of debt investment that acts like a loan
A type of investment that invests in a mix of different types of investments
A share of ownership in a company
A type of savings account that pays interest based on current interest rates in the money market
A mutual fund is ____.
A type of debt investment that acts like a loan
A share of ownership in a company
A type of investment that invests in a mix of different types of investments
A type of savings account that pays interest based on current interest rates in the money market
For most careers, which degree will most likely result in the highest lifetime earnings?
High school degree
Associate's degree
License or certificate
Bachelor's Degree
When you start a new job, you fill out a W-4 form to ____.
Determine how much your gross pay should be
File your tax return
Avoid paying income taxes on your paychecks
To determine how much federal income tax your employer should withhold from your paychecks
What does the W-2 form tell you?
How much you've earned and how much taxes you've paid in the last year
When to file your tax return
How much federal income tax your employer will withhold from your paycheck
How often your employer will be paying you
What do you need in order to fill out your 1040?
Your W-2
Your employer benefits documentation
Your credit card statement
Your job offer
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of ____ available from your employer.
Benefits
Pensions
Gifts
Allowances
Which of the following is a benefit of using a budget?
Helps to keep track of the money you receive
Helps to prioritize your spending
Helps reach short- and long-term financial goals
All of the above
Which of the following should you consider when setting a budget
Your financial goals
Needs and wants
Savings
All of the above
The envelope method, notebook and pencil, and online software are all methods of ____.
Planning your future
Understanding your current expenses
Estimating your unexpected expenses
Tracking your spending
Which choice or choices best describes the purpose of an emergency fund?
An emergency fund prepares you for unexpected expenses
An emergency fund keeps you from borrowing money from friends and family
An emergency fund removes the worry about expenses not in the budget
All of the above are good reasons to have an emergency fund
This helps you prepare for unexpected expenses
Credit cards
Checking account
Emergency fund
None of the above
Making a good purchasing decision requires ____.
Comparing the prices of similar items
Reading reviews of the product
Waiting until the product is on sale, if possible
All of the above
What is the best reason for why someone would want to lease a house instead of buy one?
They want full responsibility of all repairs
They want to be able to hopefully make money when they sell the place
They are planning on living there for a short period of time
They want to avoid rent increases and dealing with a landlord
Which payment option takes money out of your bank immediately?
Cash
Check
Debit Card
Credit Card
Which payment option could have interest charged to you?
Cash
Check
Debit Card
Credit card
Which item is important to consider when selecting a credit card?
Annual Percentage Rate (APR)
Fees
The look of the card
Both APR and Fees
What is a benefit of having a good credit score?
Loan sharks will be less likely to bother you
You'll get accepted to better education institutions
You'll get more job offers
When you need a loan, you'll have more loan offers to pick from
To maintain a good credit score you must ____.
Manage your debt wisely
Check your credit score every week
Have credit monitoring
Have many open credit cards
Paying only the minimum balance on your credit card can lead to ...
An increase in your credit score
Paying more interest
Late fees
All of the above
Which is a positive reason for using a credit card to finance purchases?
You will get charged high interest
Paying it off on time can help build your credit history
You won't have to budget for your credit card expenses
You'll be able to spend a lot of money without paying it back
Textbooks, transportation, room and board are all...
Included in the price of attending a college or university
Additional costs for attending a college or university
Included in the school's tuition
Usually offered to students who stay on campus
Living at home could save you money while enrolled in post secondary school or training because...
It reduces the cost of tuition
It reduces the cost of room and board
It reduces the cost of transportation
It reduces the cost of books and supplies
What type of federal funding is free money, but is based on financial need only?
Federal grants
All federal scholarships
The 529 Plan
None of these are correct
Wearing a seat belt, not texting when driving, and driving carefully are examples of...
Insurance policies
Warranties
Risk management strategies
Deductibles
Why should you purchase insurance?
To prevent financial burden in the case of an accident, theft, or another event
To get a warranty on a household item
To purchase monthly premiums
To avoid committing a crime
When filing an insurance claim, the policyholder must pay a ___, which is the amount you owe before insurance will cover the rest of the bill
Deductible
Premium
Contract Fee
Commission
An insurance premium is ...
The amount of money you pay for an insurance policy
A commission paid to the agency for the purchase of a policy
An extra fee you need to pay your insurance for filing a claim out of network
The amount you must pay before insurance will cover damages
What is a consequence of not having health insurance?
You must pay all costs for health care and medical emergencies
You're not allowed to go to the hospital
You will get a lower standard of care from doctors
You can only see doctors in your home state
Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?
Her principal is the cost of the car, minus any down payment she makes
Her interest rate is the total cost she'll pay after making all of her principal and interest payments
Choosing a shorter term means it will take her longer to repay the loan
It's likely that her monthly payment will be between 4-5% of the cost of the car
Jaime is creating a budget for the first time and doesn't know which to use - NET PAY or GROSS PAY. What do you tell him?
Use net pay, because it’s the total amount you’ve earned minus taxes and other deductions.
Use gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month.
Use net pay, because it’s the total amount you’ve earned for the month.
Use gross pay, because that is the amount that is reported to the government for taxes.
The monthly premium for Kevin’s renters insurance is 15,andhisdeductibleis 500. During the month of April, someone breaks into his apartment and steals or destroys $2200 worth of his possessions. How much will Kevin pay and how much will the insurance pay to replace his items?
Kevin pays 0//insurancecompanypays 1700
Kevin pays 15//insurancecompanypays 2200
Kevin pays 500//insurancecompanypays 2200
Kevin pays 500//insurancecompanypays 1700
Which definition best describes the FAFSA?
The amount of money the federal government offers you in student loans
The paperwork your bank has you complete in order to take out a personal student loan
The paperwork you complete in order to have part or all of your student loan debt forgiven
The application you submit in order to determine eligibility for federal student aid
All of the following scenarios are examples of dark patterns EXCEPT...
Mihir makes an unintended in-app purchase due to confusing buttons in the app
Jessica books a hotel room before reading its reviews due to a countdown timer on the website
Idris has to go through a series of tedious steps to close an account for an online shopping site
Arya is able to unsubscribe from an email list using the clear “unsubscribe” link at the bottom of one of the emails
What information is typically included in a resume?
References and recommendations
Personal statement and career goals
Education, experience, and work skills
Introduction and personal story
Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck EXCEPT...
Medicare
Overdraft Fees
Federal taxes
Social Security
Maura has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is she likely to receive during her first week on the job?
Medicaid enrollment form
A W-4 form
A 1040 form
A W-2 form
FICA (Federal Insurance Contributions Act) Consists of which two social insurance programs?
Social Security and Medicare
Unemployment Insurance and Medicaid
Medicare and Medicaid
Social Security and Unemployment Insurance
