WorksheetsPersonal Finance Exam Review
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
1. Stella is going to finance her car purchase using an auto loan. Which statement below is accurate?
a)
Her principal is the cost of the car, minus any down payment she makes
b)
Her interest rate is the total cost she’ll pay after making all of her principal and interest payments
c)
Choosing a shorter term means it will take her longer to repay the loan
d)
It’s likely that her monthly payment will be between 4-5% of the cost of the car
2.
2. 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?
a)
“Use net pay, because it’s the total amount you’ve earned minus taxes and other deductions.”
b)
“Use gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month.”
c)
“Use net pay, because it’s the total amount you’ve earned for the month.”
d)
“Use gross pay, because that is the amount that is reported to the government for taxes.”
3.
3. Why is sending a personalized thank you after a job interview important?
a)
It shows that you want the job even if you don’t really like the company
b)
You can apologize for any mistakes you made in the interview
c)
It gives you the opportunity to leave a good impression by expanding on an answer you gave or a topic you discussed
d)
It allows you to boast about your accomplishments one last time
4.
4. What do you need to subtract from a college’s cost of attendance in order to find the net price?
a)
Student Aid Index
b)
Application fees
c)
Personal expenses
d)
Your grants and scholarships
5.
6. Zoe buys three new lipsticks from a store at the mall. Which payment method would take the amount of money directly out of her checking account?
a)
Pays with a prepaid card she loaded earlier in the month
b)
Uses her credit card and says, "Credit" when the cashier asks, "Credit or debit?"
c)
Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"
d)
Pays with cash she had in her purse
6.
7. The monthly premium for Kevin’s renters insurance is $15, and his deductible is $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?
a)
Kevin pays $0 // insurance company pays $2200
b)
Kevin pays $15 // insurance company pays $2200
c)
Kevin pays $500 // insurance company pays $2200
d)
Kevin pays $500 // insurance company pays $1700
7.
8. Which definition best describes the FAFSA?
a)
The amount of money the federal government offers you in student loans
b)
The paperwork your bank has you complete in order to take out a personal student loan
c)
The paperwork you complete in order to have part of or all of your student loan debt forgiven
d)
The application you submit in order to determine eligibility for federal student aid
8.
10. All of the following affect your credit score EXCEPT…
a)
Your credit payment history
b)
Your checking account balance history
c)
The average age of your credit accounts
d)
Your total number of active credit accounts
9.
14. Which statement accurately describes the difference between a student loan and a scholarship or grant?
a)
Student loans always come from the Federal government, while scholarships and grants always come from the college
b)
Student loans need to be repaid, while scholarships and grants are both "gift aid" that don't need to be repaid
c)
Student loans are a result of completing your FAFSA, while scholarships and grants are a result of winning contests
d)
Student loans are only available to a select few college students each year, while scholarships and grants are plentiful and easy to get
10.
15. When you have liability coverage with your auto insurance policy...
a)
Your insurance will cover the payment for your broken windshield if your car gets broken into
b)
You cannot be found liable or guilty of causing an accident
c)
Your insurance will cover your neighbor's fence repair if you crash into it backing out of the driveway
d)
Your medical bills will be covered if you're in an accident, even if you are at fault
11.
16. All of the following scenarios are examples of dark patterns EXCEPT...
a)
Mihir makes an unintended in-app purchase due to confusing buttons in the app
b)
Jessica books a hotel room before reading its reviews due to a countdown timer on the website
c)
Idris has to go through a series of tedious steps to close an account for an online shopping site
d)
Arya is able to unsubscribe from an email list using the clear "unsubscribe" link at the bottom of one of the emails
12.
17. Which person from this list is saving rather than investing?
a)
Yvonne, who puts $750 per month into her bank account earning 1% interest
b)
Danielle, who contributes 2% of her pay to her company's 401(k) plan
c)
Daryl, who uses his $5000 end-of-year bonus to buy Treasury bonds
d)
Alexis, who buys $100 worth of shares in an S&P 500 index fund every month
13.
18. What information is typically included in a resume?
a)
References and recommendations
b)
Personal statement and career goals
c)
Education, experience, and work skills
d)
Introduction and personal story
14.
19. 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...
a)
Medicare
b)
Federal taxes
c)
Overdraft fees
d)
Social Security
15.
20. Jay asks his friends for advice: "Should I start doing mobile banking now that I've got my new smart phone?" Which friend is correct in their statement on the benefits of mobile banking?
a)
It's so convenient, because you can deposit your check using your phone's camera and the bank's app
b)
One major pro of mobile banking is that they typically waive all of the normal fees like overdraft fees, ATM fees, insufficient funds fees…
c)
One inconvenience is that once you set up mobile banking on your phone, you can't use online banking on your computer any more
d)
A con of mobile banking is that typically banks charge you a $10-15 set-up fee in addition to a small monthly fee (~$3) for mobile banking privileges
16.
21. 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?
a)
A Medicaid enrollment form
b)
A W-4 form
c)
A 1040 form
d)
A W-2 form
17.
22. Maria earns $3,200 per month. She estimates her monthly costs to be: apartment rent of $1,000, car loan and insurance of $750, groceries of $300, utilities of $250, phone/internet of $150, and other expenses of $400. Which of the following is TRUE?
a)
Maria’s expenses are higher than her income, so she will have to reduce her spending
b)
Maria is spending exactly what she earns, leaving no money for savings
c)
Maria cannot afford her car payment with her current income
d)
Maria has $350 left over each month that could be used to build savings or pay off debt
18.
23. Comparison shopping is the practice of...
a)
Comparing a product you bought a year ago to an updated version that is available now
b)
Comparing the quality of a product you bought to the quality of a similar product your friend bought
c)
Comparing the prices of two unrelated products you need to purchase
d)
Comparing various factors of the same product offered by different retailers before making a purchasing decision
19.
24. What is one step you can take to protect yourself from identity theft?
a)
Check your bank statements each month to verify that all transactions are accurate
b)
Log into your bank's mobile app using a public WiFi network
c)
Throw away expired bank account cards and documents without shredding them
d)
Use websites that start with "http" instead of "https"
20.
25. Hudson always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay?
a)
His car loan with a 6.9% interest rate
b)
His credit card with a 19.7% interest rate
c)
His private student loans with an 11.8% interest rate
d)
His Federal student loans with a 3.76% interest rate
21.
Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?
a)
There are several public transportation routes between Greg's apartment and work
b)
The cost of public transportation is less than Greg’s monthly car payment
c)
Greg’s company covers half the cost of his monthly public transportation pass
d)
Using public transportation, Greg’s commute to work one-way is two hours
22.
Which description is most accurate for a Zero-Based Budget?
a)
You put every dollar of your net pay into a budget category each month
b)
You spend your checking account balance down to $0 every month
c)
You spend your saving account balance down to $0 every month
d)
You pay every one of your debts down to $0 every month
23.
Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. Which of the following steps is she responsible for?
a)
Determine how much tax to withhold from her paychecks based on W-4 information
b)
Complete a W-4 form
c)
Send withholding amounts to the federal government
d)
Complete a W-2 form
24.
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
a)
I-9
b)
1099
c)
1040
d)
W-4
25.
Which of the following statements about this W-2 form is true?
a)
Avia Consulting will use this W-2 to file their 1040 form
b)
James earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages
c)
James paid state income taxes of $1,189.90
d)
James works in the same city that Avia Consulting is based in
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