WorksheetsMath in Personal Finance Assessments
Total questions: 20
Worksheet time: 10mins
Which of the following is the first step of the financial planning process?
Developing financial goals
Creating an action plan
Determining the current financial situation
Evaluating alternatives
Which of the following is NOT involved in developing financial goals?
Identifying feelings about money
Preparing a list of current asset and debt balances
Developing short-term and long-term goals
Differentiating needs from wants
Cindy decided to save a larger amount each month. Which of the following describes this action?
Taking new course of action
Changing the current situation
Continuing the same course of action
Expanding the current situation
Which of the following steps of the financial planning process involves considering the consequences of choice?
Identifying alternative courses of action
Developing financial goals
Revising the plan
Evaluating alternatives
Which of the following is NOT a part of reviewing and revising the financial plan?
Regularly assessing the financial decisions
Developing an action plan which identifies ways to achieve the goals
Taking a complete review of finances at least once a year
Making priority adjustments which will bring financial goals in line with current life situation
Which of the following is another name for the time value of money?
Asset
Loan
Interest
Debt
Which of the following is NOT one of the amounts which determines the time value of money?
The amount of saving
The amount of loan
The amount of time
The rate of interest
Which of the following describes interest computed on the principle, excluding previously earned interest?
Future value
Present value
Compounding
Simple interest
Which of the following describes interest generated on previously earned interest?
Present value
Future value
Simple interest
Compounding
Which of the following is the most basic method of calculating the time value of money?
Financial calculator
Formula calculation
Spreadsheet software
Time value of money websites
Financial assets only include the money in an individual’s bank account.
True
False
Which of the following choices are types of financial liabilities?
Unpaid bills
Student loan debt
Credit card debt
All of the answer choices are correct
Which of the following is the equation for net worth?
Financial assets plus financial liabilities
Financial assets minus financial liabilities
Financial assets times financial liabilities
Financial assets divided by financial liabilities
Which of the following is NOT a family necessity?
Toiletries
Sporting goods
Laundry
Groceries
Which of the following is NOT an amount needed to determine the time value of money for savings in the form of interest earned?
The amount of savings, or principal
The amount of financial assets
The rate of interest
The amount of time
Which of the following are uses of compounding interest?
Interest computed on principles, excluding previously earned interest
Interest generated on previously earned interest
Amount which a current savings will decrease based on a certain interest rate and a certain time period
None of the answer choices are correct
Future value can only compound once in a calendar year.
True
False
The Rule of 72 is used to determine _____.
the age a person is eligible for retirement
how long it takes for money to double at a given interest rate
the amount of money that should be put aside for emergencies
a person's federal income tax rate
The first step in the financial planning process involves _____.
determining your current situation
developing financial goals
paying down your debt
starting a savigns plan
