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Financial Management Midterm Review

Total questions: 49

Worksheet time: 26mins

Name
Class
Date
1.

An example of a short-term goal is:

a)

Saving for 2 months for an $80 outfit

b)

Saving for 5 years for a $3000 dream vacation to Italy

c)

Saving for 3 years for a $1500 car down payment

2.

Sandy wants to save $200 over the next 4 months for a lift ticket to go skiing. How much should she save each month in order to meet her goal?

a)

$800 a month

b)

$100 a month

c)

$50 a month

3.

The amount Travis spends on gas every month changes based on gas prices and how much he drives. This would make gas an example of a:

a)

Fixed expense

b)

Variable expense

c)

Periodic expense

4.

Which of the following is one of the steps in creating a budget?

a)

Use percentages to see how much of the total income should be set aside for each expense.

b)

Create a spending chart for special events like birthdays and holidays.

c)

Create a table for cash gifts and gift cards you receive.

5.

Isabella earns $2,400 a month. Her rent should be 35% of her paycheck. How much should she be paying in rent?

a)

$840.00

b)

$84.00

c)

$8.40

6.

A financial institution that requires you to belong to a certain group (e.g. state or federal employees) in order to join their cooperative and use their services as a member is called a:

a)

Commercial bank

b)

Credit Union

c)

Pay Day Loan

7.

Dean has a basic account that allows him to deposit and withdraw money, write checks, and receive a monthly statement with no service charge if he maintains a minimum balance of $500. What type of account is this?

a)

Retirement Plan Account

b)

Savings Account

c)

Checking Account

8.

Based on the check register, Sara’s current balance after getting lunch at Sam’s Cafe is:

a)

402.90

b)

379.34

c)

391.12

9.

A fixed amount of money paid to a worker for each item produced or action completed is a/an _______________.

a)

piece rate pay

b)

hourly wage

c)

production rate

10.

Nellie earns $12.00 per hour. During this pay period, she worked 37 hours. How much was her gross pay?

a)

$44.40

b)

$444.00

c)

$4,440.00

11.

Pay for work beyond 40 hours in a work week is called ______ _____.

a)

Net Pay

b)

Gross Pay

c)

Overtime Pay

12.

Christina is paid weekly. During the last pay period, a co-worker was sick and she had to work 48 hours. Notice she worked overtime because she worked more than 40 hours. Her hourly rate is $8.50. What is Christina’s gross pay for this pay period?

a)

$442.00

b)

$340.00

c)

$102.00

13.

John assembles widgets at a factory. He makes $.10 for each widget that he correctly assembles. The production rate is 75 widgets an hour. What is John’s gross pay for an 8-hour shift if he meets this production rate?

a)

$600.00

b)

$7.50

c)

$60.00

14.

Using the paycheck stub below, how much did Grady pay in State Income Taxes during this pay period?

a)

$31.15

b)

$66.75

c)

$34.43

15.

Todd earns 10.00anhour.Heworked40hoursduringthispayperiod.Hisgrosspaywas10.00 an hour. He worked 40 hours during this pay period. His gross pay was 400.00. He had the following deductions taken from his pay stub $60.00 in Federal Income Tax $28.00 in State Income Tax $30.60 in FICA $10.00 Food Expense $5.00 Uniform Expense What is Todd’s net pay?

a)

$163.60

b)

$563.60

c)

$266.40

16.

The federal program that assists older Americans with insurance and income is called _______.

a)

FICA (Federal Insurance Contribution Act)

b)

Federal Income Tax

c)

State Income Tax

17.

Taxes are fees that the government __________ people to pay in order to live and work in their state and the USA.

a)

requires

b)

does not require

18.

A _______________ is a person who relies on another person, usually a family member, for financial support.

a)

taxpayer

b)

dependent

c)

community

19.

Which answer below is an example of earned income?

a)

Interest earned on a savings account.

b)

Money earned from working at the mall.

c)

Money received from Social Security.

20.

Which item listed below is not funded by taxes in your community?

a)

Public library

b)

Community center

c)

Fast food restaurant

21.

When you get a job, you will be required to complete a ________ form. This form is usually completed on your first day of work or at an employee training before starting work.

a)

W-4

b)

W-2

c)

1040

22.

One way to prepare and file your federal income tax return is online. Filing your taxes online is called ___________.

a)

E-File

b)

Manual file

c)

Government file

23.

One benefit of using E-file to prepare and file federal and state income taxes is __________.

a)

it takes longer to complete

b)

increased math errors

c)

increased accuracy in calculations

24.

John lives in North Carolina, is single, and earns more than $5,500 per year. He should use the ______ form to file his state income taxes.

a)

D-400

b)

1040

c)

W-4

25.

What is the amount of the coin and bill combination below?

a)

$32.50

b)

$33.30

c)

$32.30

26.

Eric buys a copy of his favorite video game for 25.70.Yougivetheclerk25.70. You give the clerk 30. How much change will you receive?

a)

$4.20

b)

$4.30

c)

$4.40

27.

Alexis bought a new skirt and blouse with a purchase price of $100.00. Calculate 6.75% sales tax for her purchase.

a)

$6.75

b)

$10

c)

$13

28.

Alondra really likes the manicure she got at Aaliyah’s Nail Salon. It cost $35. She wants to give her nail tech a 20% gratuity. How much is the gratuity?

a)

$3.50

b)

$7.00

c)

$10.50

29.

Which one of the following would not be a wise online shopping practice?

a)

Make purchases using public WiFi

b)

Create strong passwords

c)

Use an encrypted payment service

30.

Books are on sale for $30 for 3 books. Calculate the unit price.

a)

$10

b)

$30

c)

$90

31.

Angelina has a 20% off coupon to use on a shirt that cost $10.00. Calculate the sale price.

a)

$12.00

b)

$2.00

c)

$8.00

32.

Lewis has a 25% off coupon for a tuxedo rental that costs $75. Calculate the sale price.

a)

$18.75

b)

$50.00

c)

$56.25

33.

What is the only payment method that does not charge interest or fees?

a)

Currency (Cash)

b)

Credit Card

c)

Debit Card

34.

What is the payment method that lets you buy now and make payments later?

a)

Currency

b)

Credit card

c)

Debit card

35-36.

Use the following electric bill to answer the next two questions.

35.

When is the electrical bill payment due?

a)

11/15/2024

b)

12/14/2024

c)

1/03/2025

36.

What is the total amount due for this electrical bill?

a)

$89.54

b)

$97.20

c)

$6.06

37.

Your paycheck will be smaller this month due to an accident that kept you out of work for a week. As soon as you realize your bill payment will be late, you should contact your lender by ______ immediately.

a)

phone

b)

letter

c)

fax

38.

Which method of bill payment is programmed to pay the same amount to your lender each month on the same date?

a)

Cash (in person)

b)

Automatic Draft

c)

Debit Card

39.

If a customer pays all of her bills on time, then she will have ____________.

a)

a higher credit score

b)

a lower credit score

c)

the same credit score

40.

Which factor would make your credit score go up?

a)

Long credit history

b)

Using most or all of your available credit

c)

Excessive number of credit inquiries

41.

Which of the following is not one of the five major types of insurance?

a)

Health

b)

Earthquake

c)

Auto

42.

True or False: Auto insurance is required by law if you drive.

a)

True

b)

False

43.

Insurance is a financial agreement between a person and an insurance company to financially protect the person from (a)   events.

44.

Which of the following is not an example of an unexpected event?

a)

Car Accident

b)

Fire

c)

Trip to Florida

45.

True or False: A deductible is the amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs.

a)

True

b)

False

46.

Medicaid is a _______ health insurance program to help people who cannot afford health care costs.

a)

Private

b)

Government

c)

Military

47.

True or False: Life insurance will help cover funeral costs when a person dies.

a)

True

b)

False

48.

Bob was in a car accident. The damages to his car totaled 6,000,butheonlyhadtopay6,000, but he only had to pay 1,500 because his insurance company covered the rest. How much money did Bob not have to pay because he had auto insurance?

a)

$7,500

b)

$2,000

c)

$4,500

49.

Karen has determined that her apartment’s property is worth $28,500. Which insurance option below should she choose?

a)

$30,000 personal property

b)

$20,000 personal property

c)

$10,000 personal property

50.

Bill is a construction worker who has to have back surgery. He will be out of work for 3 months. His disability insurance policy will pay him 60% of his salary for the entire time he is out of work. If his salary is $3000 per month how much money will he receive from his insurance company for the three months he will be out of work?

a)

$1,800

b)

$5,400

c)

$9,000