WorksheetsLifeSmarts Quest: Personal Finance
Total questions: 100
Worksheet time: 50mins
Credit bureaus create these written reports that detail your creditworthiness:
Credit reports
Bank statements
Tax returns
Loan agreements
You earn this fixed amount in return for work performed. What is the term for money you earn working at a job?
Salary
Loan
Tax
Debt
This is money you owe to someone else:
Loan; debt; outstanding credit
Savings; investments; assets
Income; salary; wages
Gift; inheritance; windfall
When you save money in a bank account, you earn what in return?
Interest
Rent
Wages
Dividends
Which of these is not a way to save for retirement?
529
401(k)
IRA
Roth IRA
Expect to pay this fee when you spend more money using your debit card than you have in your checking account:
Overdraft fee
Monthly maintenance fee
ATM withdrawal fee
Foreign transaction fee
What does the acronym ESOP stand for?
Employee Stock Ownership Plan
Executive Salary Option Program
Equity Share Offering Plan
Employee Savings Opportunity Program
What does the acronym MSRP stand for?
Manufacturer's Suggested Retail Price
Market Standard Retail Price
Maximum Sales Retail Price
Merchandise Sales Recommended Price
When writing your budget, you include bills that are the same amount each month. Name two:
Rent; mortgage; car payment; student loan; child care; spousal support; cell phone; insurance; health care premiums
Groceries; entertainment; clothing; dining out
Vacation expenses; gifts; donations; hobbies
Lottery tickets; one-time purchases; emergency repairs; travel
Name two ways to pay for college:
Loans; grants; scholarships; work study; 529 account; savings; financial aid
Buying a car; renting an apartment
Taking a vacation; going to concerts
Shopping for clothes; eating out
What is the purpose of a budget?
Plan how you will spend your money; plan how to save and spend your money
To increase your expenses
To avoid saving money
To spend all your money quickly
To ignore your financial goals
When speaking about credit, what is a grace period?
The period of time when you can pay in full without being charged interest
The time when your credit score is calculated
The period when you must pay a late fee
The time when your credit limit increases automatically
You are shopping for a new TV set. What type of tax are you most likely to pay?
Sales tax
Property tax
Income tax
Estate tax
A person who rents and lives in an apartment is called the:
tenant
landlord
owner
manager
The examination of tax records by the Internal Revenue Service is called a(n):
audit
assessment
deduction
withholding
The insurance term 'bodily injury liability' is coverage you buy when you purchase one of these: Is it?
health insurance
auto insurance
home insurance
An account held by two people is called:
a joint account
a savings account
a fixed deposit account
a recurring deposit account
The most widely used credit scoring model in the U.S. is:
FICO Score
VantageScore
Equifax Score
TransUnion Score
What does the acronym NAV stand for?
Net Asset Value
National Asset Value
Nominal Account Value
Net Annual Value
What does the acronym PIN stand for?
Personal Identification Number
Public Internet Network
Private Information Node
Personal Internet Name
Two ways to begin to build your credit history are:
Apply for a secured credit card and become an authorized user on someone else's credit card.
Avoid using any credit products and pay only with cash.
Open multiple credit cards at once and max them out.
Wait until you are offered a credit card without applying.
Select two advantages of a 401(k) plan:
Tax-deferred growth and employer matching contributions
Immediate penalty-free withdrawals and no contribution limits
Guaranteed high returns and no investment risk
No need to save for retirement and government-funded contributions
When checking into a hotel, your credit or debit card may be 'blocked' or put on 'hold' for several hundred dollars. This is done to:
Ensure payment for potential damages or extra charges during your stay.
Increase your credit card limit temporarily.
Verify your identity for security reasons only.
Reserve a room for future visits.
Workers go on strike. What does that mean?
It means workers stop working to demand better conditions or pay.
It means workers are promoted to higher positions.
It means workers receive bonuses for good performance.
It means workers are given extra vacation days.
The lowest wage permitted by law is called what?
Minimum wage
Living wage
Base salary
Overtime pay
What is a credit report?
A record of an individual's credit history, including credit accounts, payment history, credit inquiries, and public records
A document that lists an individual's annual income and expenses
A summary of an individual's educational background and work experience
A report showing an individual's medical history and insurance claims
When banking electronically, you are asked to enter a number only you know. What is the term for this number?
PIN; Personal Identification Number
Account Number
Routing Number
CVV; Card Verification Value
A student applying for college as a dependent will include whose information when completing the FAFSA?
Theirs and their parents
Only their own
Only their parents'
Their friends'
What does a credit bureau do?
Collects and maintains consumer credit information and compiles credit reports
Issues loans to consumers directly
Sets interest rates for all banks
Provides insurance policies to individuals
This is the money you pay in order to attend a postsecondary institution:
Tuition
Salary
Deposit
Rent
What does the acronym PIP stand for?
Personal Injury Protection
Public Insurance Policy
Private Investment Plan
Professional Indemnity Program
What does the acronym REIT stand for?
Real Estate Investment Trust
Regional Economic Integration Treaty
Retail Equity Investment Tool
Resource Extraction and Investment Trust
Select two types of transactions you can do at an ATM:
Withdraw cash and check balance
Buy groceries and book tickets
Order food and pay bills
Send emails and browse internet
Compound interest is interest calculated on two things. What are they?
Principal and previously earned interest
Principal and loan term
Principal and rate of interest
Principal and time period
Scarcity in economics refers to:
The limited availability of resources to meet unlimited wants
The unlimited supply of goods and services
The absence of any demand for products
The surplus of resources in the economy
The difference between direct and indirect costs when attending college is:
Direct costs are expenses paid directly to the college, such as tuition and fees, while indirect costs are additional expenses like books and transportation.
Direct costs include only living expenses, while indirect costs are tuition and fees.
Direct costs are optional expenses, while indirect costs are mandatory.
Direct costs are related to extracurricular activities, while indirect costs are related to academic fees.
About 80% of all federal tax revenue comes from this source:
Individuals; payroll taxes; paychecks of Americans
Corporate income taxes
Excise taxes on goods and services
Tariffs on imported goods
There are various options to deal with debt problems, including budgeting, bankruptcy, and credit counseling. Which of these is considered a last-resort solution?
Bankruptcy
Debt consolidation
Negotiating lower interest rates
Creating a savings plan
You complete a 1040EZ Form. What federal agency will you submit this to?
IRS; Internal Revenue Service
FBI; Federal Bureau of Investigation
EPA; Environmental Protection Agency
SSA; Social Security Administration
The pay received by an employee after taxes and other deductions are taken out of gross pay is called:
Take-home pay; net pay
Gross pay
Bonus pay
Deferred pay
What is the term that describes a person who organizes and operates a business, taking on the financial risk to do so?
Entrepreneur
Employee
Investor
Manager
Putting money into an asset (such as a stock, bond, or mutual fund) with the expectation that it will grow over time, but with the risk that it will not, defines this activity:
Investing
Spending
Saving
Gambling
T-bill
Treasury Bill
Tax Bill
Trade Bill
Travel Bill
TIN
Taxpayer Identification Number
Total Income Number
Tax Identification Note
Transaction Identification Number
Select two places where you may purchase T-bills:
Banks and the U.S. Treasury
Supermarkets and gas stations
Bookstores and coffee shops
Movie theaters and gyms
Two of the five factors that make up your FICO credit score are:
Payment history and amounts owed
Age and occupation
Marital status and zip code
Favorite color and hobbies
When speaking about credit, payment history signifies:
A record of how consistently you have paid your debts on time.
The total amount of credit you have available.
The number of credit cards you own.
Your current income level.
The term “subprime borrower” refers to:
A borrower with a poor credit history who is considered to be at higher risk of default.
A borrower who always pays loans on time and has an excellent credit score.
A borrower who only borrows small amounts of money.
A borrower who is guaranteed to be approved for any loan.
A financial gain, especially the difference between what was earned selling an item and the cost to produce it, is called:
Profit
Loss
Revenue
Expense
What term defines the amount of money needed to cover basic living expenses?
Living wage
Disposable income
Gross income
Net worth
Some credit cards charge membership dues once a year. What is the more well-known term for this?
Annual fee
Late payment fee
Cash advance fee
Balance transfer fee
You have two credit cards, and both cards are near their credit limit. Will this likely help or hurt your credit score?
Hurt your score
Help your score
Have no effect on your score
Increase your credit limit automatically
This investment vehicle typically has the highest return on investment but also the highest risk:
Stock
Savings Account
Certificate of Deposit (CD)
Government Bond
You're buying a used car. What is the best way to learn about the car’s condition?
Have it inspected; hire an independent mechanic
Ask the seller for their opinion
Rely on the car’s appearance
Check the car’s mileage only
What does the acronym CEO stand for?
Chief Executive Officer
Central Executive Officer
Corporate Executive Organizer
Chief Engineering Officer
Certified Executive Operator
What does the acronym FSBO stand for?
For Sale By Owner
Federal Savings Bank Organization
Financial Services Brokerage Office
First State Bank of Oregon
Two reasons to regularly rotate the tires on your vehicle are:
To ensure even tire wear and extend tire life.
To improve fuel efficiency and reduce engine noise.
To increase the speed of the vehicle and improve braking.
To enhance the color of the tires and make them shine.
The Cost of Attendance estimate from colleges includes various expenses. Two examples are:
Tuition and room & board
Library fines and parking tickets
Gym membership and club fees
Graduation gown and diploma frame
You own 100 shares of ABC stock worth $20 each. The company orders a 2-for-1 stock split, so you now own 200 shares. What are the 200 shares worth?
$2,000
$4,000
$1,000
$400
What does “depreciation” mean?
An item loses value over time (due to wear and tear)
An item gains value over time
An item remains the same value forever
An item is replaced with a new one every year
You work in a shoe store over the summer. You get paid 10% in addition to wages on each pair of shoes you sell. This is your: ________
Commission
Salary
Bonus
Allowance
When you purchase this investment vehicle, you become an “owner” of the company. What investment does this describe?
Stocks
Bonds
Mutual Funds
Certificates of Deposit
This is the amount you owe on your home mortgage loan minus the interest: ________
Principal
Equity
Amortization
Escrow
This person leases an apartment to you: ________
Landlord
Tenant
Neighbor
Agent
Name the device on a gasoline engine that mixes the correct proportion of gasoline vapor and air and passes it to the cylinders for ignition: ________
Carburetor
Fuel injection system
Radiator
Alternator
Name two things that might make up your gross income: ________
Wages; tips; salaries; commission; interest; dividends; unemployment compensation; alimony
Groceries; rent; utilities; transportation
Pets; hobbies; vacations; entertainment
Furniture; electronics; clothing; shoes
What does the acronym AMT stand for?
Alternative Minimum Tax
Automated Machine Technology
Advanced Medical Treatment
American Monetary Trust
What does the acronym EBT stand for?
Electronic Benefits Transfer
Emergency Banking Transaction
Employee Benefit Trust
Electronic Banking Terminal
Name two factors that can affect the interest rate on a student loan: ________
Credit score; loan type; repayment term; loan amount; fixed or variable interest; repayment plan; cosigner’s credit; loan term; market conditions
Student’s favorite color; school mascot
Type of cafeteria food; number of roommates
Preferred study time; dormitory location
Provide the numbers of two IRS forms you might use or receive: ________
1040; W-2; W-4; 1095-A; 1099
1234; 5678; 9101; 1121; 3141
2020; 3030; 4040; 5050; 6060
8888; 7777; 6666; 5555; 4444
Name one reason you might choose to put your money in a savings account, rather than investing it in the stock market: ________
Easy accessibility; liquidity; safety; less risk; FDIC guarantee; principal that’s maintained; low account minimums
Higher potential for rapid wealth accumulation
Guaranteed high returns regardless of market conditions
Tax-free growth on all deposits
Regarding your credit report, what is a credit freeze?
This security measure restricts potential creditors’ access to an individual’s credit report
A process that increases your credit score automatically
A method to erase negative information from your credit report
A type of loan offered by credit bureaus
What date are personal income tax returns due?
April 15
January 31
June 1
December 31
Employers must send out W-2 forms by the end of what month?
January
February
March
December
You receive a quarterly stock dividend in March. In what month will you receive the next dividend?
June
April
May
July
The rate of return earned by an investor who holds a security, such as a bond or stock, for a stated period of time, is known as the:
Yield
Dividend
Principal
Coupon
Everyone pays income tax to this level of government:
Federal
State
Municipal
Provincial
What should you use instead?
Credit card
Cash
Gift card
Check
What does PITI stand for?
Principal, Interest, Taxes, Insurance
Principal, Investment, Taxes, Insurance
Payment, Interest, Taxes, Insurance
Principal, Interest, Taxes, Income
YTD
Year To Date
Yesterday To Date
Yearly Total Data
Yield To Dividend
Two of the three questions you should ask yourself to ensure you will have enough money when you retire are:
How much money will I need in retirement? and How much do I need to save each month?
What is my favorite color? and How many vacations can I take?
Where will I travel after retirement? and What hobbies will I pursue?
How many friends will I have? and What car will I drive?
Name the two main types of stock a company may issue:
Common and preferred
Ordinary and extraordinary
Primary and secondary
Major and minor
Sales tax is considered a regressive tax because:
it takes a larger percentage of income from low-income earners than from high-income earners.
it increases as income increases.
it only applies to luxury goods.
it is paid only by businesses.
The main difference between a credit card and a debit card is:
A credit card allows you to borrow money up to a certain limit, while a debit card uses funds directly from your bank account.
A debit card allows you to borrow money up to a certain limit, while a credit card uses funds directly from your bank account.
Both cards always require a PIN for every transaction.
Credit cards can only be used online, while debit cards can only be used in stores.
How long does it take Treasury bonds to mature?
20 years; 30 years
1 year; 2 years
5 years; 10 years
3 months; 6 months
Which federal agency insures bank deposits?
FDIC; Federal Deposit Insurance Corporation
SEC; Securities and Exchange Commission
FBI; Federal Bureau of Investigation
EPA; Environmental Protection Agency
What is the main purpose of taxation?
Finance the government
Increase population growth
Reduce literacy rates
Promote sports events
Encourage tourism
Getting an appraisal is most commonly a part of the process to buy what?
House
Car
Bicycle
Computer
When is the best time to read the prospectus for a mutual fund?
Before you invest
After you invest
When you receive your first statement
Only if the fund performs poorly
This is a comprehensive report on a company's activities for the preceding year:
Annual report
Balance sheet
Invoice
Memorandum
What does COO stand for?
Chief Operating Officer
Chief Organization Officer
Chief Operations Organizer
Corporate Operations Officer
What does CPA stand for?
Certified Public Accountant
Certified Professional Advisor
Chartered Public Analyst
Certified Payroll Associate
Permanent life insurance policies remain in effect unless one of three things happens. Name two:
The insured dies; the policy is surrendered; premium payments lapse
The insured retires; the policy matures; dividends are paid
The beneficiary changes; the policy is upgraded; interest rates fall
The insured moves; the policy is reviewed; premiums decrease
Teens spend the most money on three spending categories. Name two:
Food; clothing; entertainment
Electronics; books; transportation
Healthcare; insurance; savings
Toys; furniture; jewelry
What is the main benefit of a Roth IRA over a traditional IRA?
It grows tax free; you don't pay tax when you withdraw the money
You can contribute unlimited amounts each year
You are required to withdraw funds at age 59½
It offers higher interest rates than a traditional IRA
Investors who use traditional brokers tend to have higher returns than those who do their own trading online. What is the main reason?
They trade less often
They have access to insider information
They use more advanced trading algorithms
They invest only in blue-chip stocks
You didn’t make your credit card payment on time, so your credit card company charged you this fee:
Late fee
Annual fee
Balance transfer fee
Cash advance fee
In an investment market, a buyer and seller agree on a price today for a product to be delivered and paid for at a later date. They are trading in what type of market?
Futures
Spot
Auction
Over-the-counter
What is a FICO score?
A three-digit number that represents an individual's creditworthiness
A type of bank account
A government-issued identification number
A type of investment fund
You pledge assets to secure a home loan. These assets are called:
Collateral
Dividends
Equity
Revenue
