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Math in Personal Finance - Financial Math Quiz

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

What is an annuity?

a)

A series of equal deposits or payments

b)

A type of loan

c)

A financial liability

d)

A method of budgeting

2.

Which term refers to the interest generated on previously earned interest?

a)

Budgeting

b)

Compounding

c)

Decimals

d)

Percentages

3.

What does a financial calculator do?

a)

It calculates taxes

b)

It is used for budgeting

c)

It is programmed with various financial functions such as future and present value

d)

It tracks expenses

4.

What is the definition of financial net worth?

a)

Total income minus expenses

b)

Financial assets minus financial liabilities

c)

Total savings in a bank account

d)

Value of all owned properties

5.

What does intraperiod compounding involve?

a)

Compounding once a year

b)

Compounding more than once within a calendar year

c)

Compounding every month

d)

Compounding every week

6.

What is the process of managing personal assets to achieve economic satisfaction called?

a)

Personal Financial Tools

b)

Present Value

c)

Personal Financial Planning

d)

Simple Interest

7.

Which of the following helps individuals effectively manage their personal finances?

a)

Principal

b)

Personal Financial Tools

c)

Time Value of Money Tables

d)

Spreadsheet Software

8.

What is the term for the current value of a future amount based on a certain interest rate and time period?

a)

Simple Interest

b)

Present Value

c)

Principal

d)

Time Value of Money Websites

9.

Which type of interest is computed on the principal, excluding previously earned interest?

a)

Compound Interest

b)

Simple Interest

c)

Present Value

d)

Time Value of Money Tables

10.

What is an online version of financial calculators that perform calculations for the future value of savings and loan payments?

a)

Spreadsheet Software

b)

Time Value of Money Websites

c)

Personal Financial Planning

d)

Principal

11.

Imagine Liam just got his first job! The term used to describe the money he earns before any deductions are taken out is called (a)   . Can you help him figure it out?

Choose from the below words

Gross Pay

Net Pay

Deductions

Salary

12.

The term used to describe the money you earn from a job before any deductions are taken out is called (a)   .

Choose from the below words
Net Income
Gross Income
Total Revenue
Disposable Income
13.

You don't need a plan when it comes to your money.​ (a)  

Choose from the below words
False
True
14.

A plan for spending is called a (a)  

Choose from the below words
Checking account
Economy
Scarcity
Budget
15.

Match the following Tax Forms

a)
  • I am received in January

  • There is one of me for every job you work

  • You can tell how much you earned and how much you paid in taxes by reading me

1.

W-2

b)
  • I am completed every April

  • Form used to File your taxes

2.

1040

c)
  • I am received whenever you start a job

  • You list information about yourself and your family on me

  • I determine how much money gets taken out of each paycheck

3.

W-4

d)
  • I am received whenever you start a job

  • You use me to prove that you are eligible to work in the U.S.

  • You must provide forms of identification when submitting me

  • Used in Identify Verification

4.

I-9

e)
  • I am received in January

  • You get me if you are not an employee but were paid by a company

  • You can also get me for other types of income, such as gains and losses in brokerage accounts, dividend and interest payments, and more

  • You probably didn’t get taxes withheld if you got me, so you may have a big tax bill coming up

5.

1099

16.

Which of the following expenses should be included in a typical budget?

a)

taxes

b)

charitable giving - charities

c)

savings

d)

All of the expenses should be included in a typical budget

17.

Which of the following is NOT true of a budget? [note capitalization of “NOT”]

a)

Budgets help you plan how to spend money you earn or receive

b)

Once a budget is set, it should not be revisited

c)

A budget can include charitable giving

d)

Budgets include both income and expenses

18.

What is a budget?

a)

A type of savings account

b)

A way to invest for retirement

c)

A fund for emergencies

d)

A financial plan that defines expenses for a period of time.

19.

What is an expense?

a)

Money you save

b)

Money you earn

c)

Money you spend

d)

Money you find

20.

What is a "want" in terms of budgeting?

a)

Something you need to survive

b)

Something you would like to have but don't need

c)

Money

d)

A type of expense