WorksheetsUntitled form
Total questions: 99
Worksheet time: 50mins
Name
Class
Date
1.
“Take home pay” is considered ________________.
a)
Net pay
b)
Deduction
c)
Gross pay
d)
FICA
2.
Oswald just had an emergency appendectomy. His insurance deductible is $500. The cost of the surgery was $15,500. The insurance company negotiated the cost with the hospital down to $13,000. How much will Oswald pay?
a)
400
b)
500
c)
600
d)
550
3.
A budget is an summary of the expected income and expenses for a defined period of time.
a)
itemized
b)
general
4.
Which of the following is a line of credit issued to customers to cover checks or debits which have exceeded the amount in their account?
a)
Debt restructuring
b)
Overdraft protection
c)
Cash flow budgeting
d)
ATM
5.
Which of the following is the overtime pay rate?
a)
Bonus pay
b)
Time-and-a-half
c)
Double pay
d)
Triple pay
6.
Which of the following is an example of revolving credit?
a)
Credit card
b)
Student loan
c)
Mortgage
d)
Auto loan
7.
A designer handbag or luxury cruise would be classified as which of the following?
a)
Spending want
b)
Spending need
c)
Equity
d)
Asset
8.
Which of the following refers to an income range subject to a certain income tax rate?
a)
Tax brackets
b)
Tax breaks
c)
Tax exemption
d)
Tax withholdings
9.
The right to keep the possession of property of another until a debt owed by the person is discharged is known as which of the following?
a)
Mortgage
b)
Interest
c)
Debt
d)
Lien
10.
Which of the following is a short-term, high-interest loan designed to bridge the gap from one paycheck to the next?
a)
Personal loan
b)
Student loan
c)
Mortgage
d)
Payday loan
11.
Which of the following is the bill a policyholder pays to keep their insurance coverage in effect?
a)
Deductible
b)
Beneficiary
c)
Liability
d)
Premium
12.
Christopher contributed a portion of his paycheck to a retirement savings account sponsored by his employer allowing him to make contributions pre-tax. Which of the following is most likely the type of account he is contributing to?
Responses
Social Security
Stock
Certificate of Deposit
401(K)
a)
401(K)
b)
Social Security
c)
Stock
d)
Certificate of Deposit
13.
Which of the following credit score ranges is considered fair?
a)
Below 600
b)
Above 720
c)
690 to 719
d)
630 to 689
14.
Which of the following is a portion of ownership in a single corporation?
a)
Stock
b)
Capital
c)
Mutual fund
d)
Bond
15.
Peggy wants to buy a used sedan. She is trading in her previous car, for a value of $2,500. She has saved up an additional $2,500 for a down payment for the new car. She has determined she can afford monthly payments of $200 a month and would like to have a four-year loan. The tax rate is 6.25 percent and she has been pre-approved for a loan with a 4.2 percent finance rate. What is the maximum amount she can afford to spend on the car? Round up to the closest whole number.
a)
$13,987
b)
$9,600
c)
$13,075
d)
$14,600
16.
Which of the following is a contract between an individual and an insurance company in which the company promises to make periodic payments to the individual?
a)
High-yield bank account
b)
Annuity
c)
Money market fund
d)
Certificate of deposit
17.
Which of the following is an individual who holds the legal right to receive assets from a trust account?
a)
Beneficiary
b)
Dependent
c)
Claimer
d)
Controller
18.
Which of the following correctly defines a pension plan?
a)
A wage replacement program for employees who suffer from job related injuries
b)
A monetary safety net for a beneficiary upon the death of an employee
c)
A type of disability insurance which provides employees a partial salary if they become unable to work due to illness
d)
A form of retirement plan in which employers and/or employees contribute money to a plan which provides employees a monthly income during retirement
19.
Which of the following is NOT considered a mandated deduction?
a)
Federal income tax
b)
Charitable donation
c)
Medicare taxes
d)
Social security
20.
True or False:
Total Current Assets – Total Current Liabilities =
Net Worth
a)
True
b)
False
21.
Which of the following is an example of an asset?
a)
Cash
b)
Credit card balance
c)
Rent
d)
Mortgage
22.
MSRP stands for which of the following?
a)
Manufacturer’s suggested retail price
b)
Minimum standard remote payment
c)
Most salient responsible pledge
d)
Mandated sale risk procedure
23.
Which loan should someone payoff first?
a)
Loan with the smallest balance
b)
Loan with the largest balance
c)
Loan with the highest interest rate
d)
Loan with the lowest interest rate
24.
Which of the following is a summary of a bank account’s financial transactions which have occurred over a given period of time?
a)
Liabilities report
b)
Bank statement
c)
Net worth statement
d)
Certificate of deposit
25.
Which of the following is the term used to describe when a property decreases in value or usefulness over time?
a)
Inflation
b)
Appreciation
c)
Recession
d)
Depreciation
26.
Which of the following is an education funding source in which students have to repay the funding received?
a)
Personal savings or income
b)
Student grants
c)
Scholarships
d)
Student loans
27.
Ana has three student loans and is making three different payments per month. Which of the following could Ana do, with no additional cost, in order to only make one payment per month?
a)
Apply for another loan to pay off her current loans
b)
There is no way for her only have one loan payment
c)
Consolidate her loans
d)
Have her loans forgiven
28.
Which of the following provides wage replacement and medical benefits to employees who suffer from job-related illnesses or injuries?
a)
Paid time off
b)
Retirement plans
c)
Workers compensation
d)
Disability insurance
29.
Gross pay refers to which of the following?
a)
Total income earned before deductions
b)
Total of deductions
c)
Total take-home pay after deductions
d)
Total of all taxes paid
30.
Keith and Jenna owe $135,000 on a $142,000 home they purchased. The value of the properly dropped $8,000 due to neighboring development. What situation are
Keith and Jenna in?
a)
Appreciation
b)
Interest
c)
Equity
d)
Negative equity
31.
Which of the following loan types requires the borrower to offer some type of securement to the lender, in case they do not repay the loan?
a)
Credit card
b)
Collateralized
c)
Character
d)
Paycheck
32.
Which of the following would be an excellent credit score?
a)
520
b)
630
c)
780
d)
300
33.
Which of the following allows employees to set aside money before taxes in a personal account used for qualified health care expenses?
a)
Life insurance
b)
Flexible spending account
c)
Health savings account
d)
401K
34.
Employees are required to participate in all benefits programs provided by their employer.
a)
True
b)
False
35.
Which of the following is the yearly rate charged for borrowing?
a)
Annual percentage rate
b)
Fixed interest rate
c)
Variable interest rate
d)
Summary percentage rate
36.
Which of the following is an interest-bearing deposit account held at a bank or credit union?
a)
Interest account
b)
Checking account
c)
Savings account
d)
IRA
37.
Which of the following allows customers to have their paycheck electronically deposited directly into their account?
a)
Direct deposit
b)
Deposit slip
c)
Electronic withdrawal
d)
Online payment
38.
Which of the following refers to an individual’s outstanding debts or other financial obligations?
a)
Liabilities
b)
Net worth
c)
Equity
d)
Assets
39.
Abbey is buying a used car. She wants to look up the vehicle’s title records and find out if there are any damage reports on the car. What tool would be the best for her to use?
a)
Kelley Blue Book ®
b)
Edmunds ®
c)
Carfax ®
d)
Fannie Mae ®
40.
Which of the following is NOT a step of creating a budget?
a)
Gathering bank statements
b)
Purchasing a variable expense item
c)
Determining income
d)
Determining expenses
41.
Which of the following is an expenditure which is essential for an individual to live and function?
a)
Spending want
b)
Equity
c)
Liability
d)
Spending need
42.
Which of the following is an expense which can vary in amount from month to month?
a)
Fixed expense
b)
Variable expense
c)
Estimated expense
d)
Equity expenses
43.
Which of the following is a specific goal?
a)
Save $1,000 for the Europe trip by the end of the year
b)
Exercise more often each week
c)
Save more money for traveling
d)
Volunteer a few times
44.
Which of the following is a service supplying vehicle title records and damage reports?
a)
Carfax ®
b)
CarMax®
c)
Kelley Blue Book ®
d)
Consumer Reports®
45.
Which of the following is the time gap between when a bill becomes due and when late charges and fees begin to apply?
a)
Prepayment period
b)
Grace period
c)
Late payments
d)
Cash advance
46.
Which of the following refers to an individual’s belongings, such as real estate and stocks?
a)
Variable expenses
b)
Assets
c)
Fixed expenses
d)
Liabilities
47.
Evaluate the following statement and determine the type of financial goal.
Save $40,000 for a new child’s college education.
a)
Long-term
b)
Short-term
c)
Intermediate-term
48.
Which of the following is a valuable asset the borrower offers to the lender for securement of the loan provided?
a)
Interest
b)
Collateral
c)
Principal
d)
Check
49.
Budgeting requires calculating __________ and __________.
a)
Net worth; assets
b)
Income; expenses
c)
Investments; savings
d)
Utility; opportunity cost
50.
Which of the following is an expense which stays relatively the same from month to month, such as a car payment or rent?
a)
Fixed expense
b)
Estimated expense
c)
Equity expense
d)
Variable expense
51.
Which of the following accurately describes escrow?
a)
An expert or official valuation of a home
b)
Account held by a third party to pay taxes and insurance for property
c)
When a borrower has negative home equity
d)
Loan used to finance the purchase of real estate
52.
Evaluate the scenario and determine the best option for the family. The Petersons are wanting to purchase a vehicle. Their budget is maxed out at $31,000.
Needs: Wants:
Seats at least five Silver
Good fuel economy Seat warmers
Cargo space Bluetooth connectivity
Leather interior Luggage rack
Which car should the Petersons’ purchase?
a)
1
b)
2
c)
3
d)
4
53.
Which of the following are set amounts of money rewarded to students based on merit-based criteria?
a)
Scholarships
b)
Grants
c)
Direct subsidized loans
d)
Direct unsubsidized loans
54.
The Carter family has set a goal to save for a family vacation to be taken in three months. Which of the following types of financial goals has been set?
a)
Short-term goal
b)
Long-term goal
c)
Intermediate-term goal
d)
Life goal
55.
Which of the following types of interest rates fluctuates over time as market interest rates change?
a)
Irregular
b)
Variable
c)
Fixed
d)
Annual
56.
What is included on a pre-approval letter?
a)
The neighborhood of purchasing approval
b)
The exact property purchased
c)
The specific amount of money the buyer is qualified to borrow
d)
The amount of square feet approved to purchase
57.
Which of the following types of interest rates stays the same throughout the life of the loan?
a)
Annual
b)
Fixed
c)
Variable
d)
Irregular
58.
A newly married couple is looking for a checking account they can both access. Which of the following would be the best account type for them?
a)
Premium
b)
Standard
c)
Joint
d)
Business
59.
Stephan is a 25-year-old, self-employed real estate flipper. He plans on retiring early at 45. He would like to open up a retirement account in order to help with his savings goal. Which of the following would be the best option for his situation?
a)
Social Security
b)
Roth IRA
c)
Traditional IRA
d)
401K
60.
Which of the following is considered a bad borrowing habit?
a)
Spending more than income
b)
Budgeting
c)
Reviewing credit reports
d)
Reviewing debt periodically
61.
All states withhold a state income tax.
a)
True
b)
False
62.
Which of the following is the original sum of money borrowed through a loan?
a)
Interest
b)
Principal
c)
Capital
d)
Character
63.
is a credit reducing an individuals’ tax liability and may provide a refund if the credit reduces the tax liability to less than $0.
a)
Earned Income
b)
Credit Family Adoption Credit
64.
Which of the following is the act of buying an asset to generate returns from it over a period of time while also incurring volatility?
a)
Saving
b)
Investing
c)
Evaluating
d)
Compounding
65.
Which of the following is a qualified employer-sponsored retirement plan?
a)
Roth IRA
b)
401K
c)
IRA
d)
529
66.
Which of the following is the total amount of tax owed by an individual to a taxing authority such as the IRS?
a)
Tax exemption
b)
Tax liability
c)
Tax bracket
d)
Tax break
67.
Based on the net worth statement, determine this individual’s net worth.
a)
16,700
b)
117,600
c)
116,700
d)
17,600
68.
Which of the following loan/credit types requires a lien on an asset of the borrower as a guarantee?
a)
Collateralized loan
b)
Unsecured credit
c)
Installment credit
d)
Revolving credit
69.
Which of the following is a risk management technique which places a portfolio of assets into a wide variety of investments with different risk profiles?
a)
Investment
b)
Appreciation
c)
Diversification
d)
Compounding
70.
for customers who want a reliable basic account
a)
Standard
b)
Joint
c)
Premium
71.
for customers with large sums of money
a)
Standard
b)
Joint
c)
Premium
72.
for customers who would like two or more individuals on the account
a)
Standard
b)
Joint
c)
Premium
73.
Which of the following types of tax deduction allows the taxpayer to list certain expenses for the year such as property tax, medical expenses, charitable donations and unreimbursed business expenses?
a)
Standard deduction
b)
Itemized deduction
c)
Medical deduction
d)
Charitable deduction
74.
Which of the following is a direct tax levied on the income of an individual person?
a)
Personal income tax
b)
Wage tax
c)
Corporate tax
d)
Unearned income tax
75.
Which of the following is the most common type of mortgage?
a)
Fixed-rate mortgage
b)
Adjustable-rate mortgage
c)
Reverse mortgage
d)
FHA loan
76.
Which of the following loans require collateral?
a)
Credit card
b)
Student loan
c)
Mortgage
d)
Peer-to-peer
77.
Private mortgage insurance is mandatory for which of the following?
a)
Lenders working exclusively with first-time home buyers
b)
Homeowners in flood, earthquake or tornado zones
c)
Homeowners with less than 20 percent home equity
d)
Lenders granting loans of $350,000 or more
78.
Which of the following is a type of mutual fund which invests only in low-risk short-term securities?
a)
Certificate of deposit
b)
Money market fund
c)
High-yield bank account
d)
401K plan
79.
Mariah has a net worth of $50,000 and her total assets are $200,000. What are Mariah’s total liabilities?
a)
$75,000
b)
$50,000
c)
$150,000
d)
$125,000
80.
Tom works as a salesman for a farming equipment company. He earns 20 percent of the profit made by the company on all new tractor sales. A customer’s purchases a $35,000 tractor. The company profits $5,250 off the sale. What is Tom’s commission off the tractor sale?
a)
$1,050
b)
$5,100
c)
$5,010
d)
$1,550
81.
How do lending companies determine interest rates?
a)
Cost of vehicle
b)
Option Time of year
c)
Risk of lending
d)
Ethnicity
82.
After creating his budget, John realized his expenses exceed his income. To resolve this issue he can do which of the following?
a)
Eat out less frequently
b)
Go on a shopping spree
c)
Work fewer hours
d)
Invest more in the stock market
83.
Jameela has a tax liability of $10,000. She had $12,000 of her income withheld this year. Assuming she has no other credits or deductions, how much will she owe this year?
a)
She will owe nothing and will receive a refund of $2,000
b)
$2000
c)
$0
84.
Which of the following is a legal document which outlines what to do with someone’s property after death?
a)
Durable power of attorney
b)
Trust
c)
Probate
d)
Will
85.
Robert looks for a deal on every purchase. He shops online for the best deal he can find. He does not like spending money and would rather go without instead of spending money. Which of the following best describes his money personality?
a)
Flyer
b)
Risk takers
c)
Spender
d)
Saver
86.
Which of the following is the sum of an individual’s total assets minus total liabilities?
a)
Liquid assets
b)
Budget
c)
Variable expenses
d)
Net worth
87.
Which type of mortgage allows older citizens to convert their home equity into cash without selling their homes?
a)
Fixed-rate mortgage
b)
Adjustable-rate mortgage
c)
FHA Fixed-rate mortgage
d)
Reverse mortgage
88.
Which of the following allows customers to borrow money from a financial institution up to a certain limit?
a)
Credit card
b)
Trust
c)
Certificate of deposit
d)
Debit card
89.
The Mendoza family is trying to calculate their net worth. Their current assets are $1,000,000 and their current liabilities are $750,000. What is their net worth?
a)
$250,000
b)
$1,000,000
c)
$750,000
d)
$1,750,000
90.
Which of the following are prepaid debit cards which are reloaded with employee wages?
a)
Monetary cards
b)
Debit cards
c)
Payroll cards
d)
Option Direct Cards
91.
Why might Joel want a shorter auto loan term?
a)
The total cost of the loan will be lower
b)
He will not need a down payment
c)
Monthly payments will be lower
d)
Insurance will be cheaper
92.
An individual has total assets of $120,000 and total liabilities of $80,000. What is his net worth?
a)
$40,000
b)
$30,000
c)
- $30,000
d)
- $40,000
93.
Which of the following equations calculates net pay?
a)
Gross pay - deductions = net pay
b)
Deductions + taxes paid = net pay
c)
Withholdings + tax deductions = net pay
d)
Deductions - gross pay = net pay
94.
Financial institutions are monitored through which of the following?
a)
Federal Reserve System
b)
National Banking Union Administration
c)
Federal Deposit Insurance Corporation
d)
National Financial Institution Agency
95.
Which type of auto insurance is required by law in most states?
a)
Liability
b)
Comprehensive
c)
Personal injury
d)
Collision
96.
Which of the following is the term used to describe the written proof that a lender is willing and ready to lend a specific amount of money for a mortgage?
a)
Certified lending voucher
b)
Pre-approval letter
c)
Purchase agreement
d)
Authorized financing certificate
97.
Which of the following types of life insurance only pays benefits if an individual dies during a specified period of time?
a)
Variable universal insurance
b)
Term life insurance
c)
Whole life insurance
d)
Universal life insurance
98.
Evaluate the scenario and determine the best option for the individual. James is wanting to purchase a jacket. His budget is $135.
Needs: Wants:
Water resistant Black color
High quality Name brand
Hood 4 pockets
a)
1
b)
2
c)
3
d)
4
99.
Evaluate the scenario and determine the best option for the family. The Fullers are wanting to purchase a house. Their budget is maxed out at $152,000.
Needs: Wants:
3 Bedroom Formal dining area
2 Bath One-acre lot
Garage Storage shed
Large kitchen
Which house should the Fullers purchase?
a)
1
b)
2
c)
3
d)
4
100 %
