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WorksheetsWISE Midterm Review
Total questions: 53
Worksheet time: 2hrs 44mins
______ refers to the processes of budgeting, saving, investing, spending or otherwise overseeing of all finances.
Savings
Money Management
Banking
Expenses
How can you best manage your money? (select all that apply)
Take inventory of your finances
Only spend money on wants
Build a money management blueprint
Make the most of your savings
Be persistent
_______ is a spending plan based on income and expenses.
Budget
Money Management
Savings
Investment
What are the three types of expenses?
Fixed
Federal
Occasional
Flexible
A source of income for a retiree can include the person's
mortgage loan
401(k) Account
loan from a commercial bank
credit card cash advance
The money that you receive for mowing the lawn, babysitting or getting an allowance is called__________.
Income
Credit
Debt
Interest
Paying yourself first simply involves building up a retirement account, creating an emergency fund or saving for other long-term goals.
True
False
______ is an independent agency created by Congress to maintain stability and public confidence in the nation's financial system.
Federal Reserve
Federal Deposit Insurance Corporation
Banks
Coach Dent's Class
What does the FDIC do?
Insures deposits
makes large and complex financial institutions resolvable
examines and supervises financial institutions for safety
consumer protection
Banks make profits by charging higher interest rates on their loans than they pay for deposits.
True
False
Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid while giving creditors a chance to obtain some measure of repayment.
True
False
Chapter 13
Liquidation
Chapter 11
Reorganization
Chapter 7
Business Reorganization
_____ is a debt that a person incurs when purchasing a good or service with someone else’s money.
Credit
Consumer Credit
Debit
Investing
What are the two types of Consumer Credit?
Credit Cards
Installment Credit
Consumer Credit
Revolving Credit
Consumer Credit
made on a continuous basis for purchases until the consumer reaches his credit limit.
Installment Credit
is used for a specific purpose, for a defined amount and for a specific period.
Revolving Credit
includes purchases obtained with credit cards, lines of credit and some loans.
Capital
refers to how a person has handled past debt obligations
Character
refers to how much debt a borrower can comfortably handle
Capacity
refers to current available assets of the borrower
What are ways to build a good credit history?
Pay bills regularly
Establish a steady work record
Open a checking/savings account
Apply for a consumer credit card and make monthly payments
Apply for a loan that requires a co-signer
What are the three credit reporting agencies?
TransUnion
Experian
Equifax
Expedia
What are ways you can protect yourself from fraud? (select all that apply)
Keep your pin on your person
Shop online ONLY on secure websites
Never give card info over the phone
Report lost or stolen cards immediately
Protect your card number
You are able to pull one free credit report from TransUnion, Equifax, and Experian once a year.
True
False
(a) are the companies that collect and maintain consumer credit information from the lenders we use for credit cards, mortgages, and other types of loans.
What are reasons to check your credit report once a year?
It's Free
Helps you find errors
You can identify fraud against you
Your credit report can not be impacted by other's mistakes
_____ is a legal proceeding initiated when a person or business is unable to repay outstanding debts or obligations.
Consumer Credit
Credit Fraud
Liquidation
Bankruptcy
Fair Debt Collection Practices Act
regulates how credit bureaus can and must operate
Truth in Lending Act
implements that information must be disclosed to a borrower before extending credit
Fair Credit Reporting Act
restricts the ways that collectors can contact debtors
The main disadvantage of using consumer credit is the cost of using the line of credit (borrowing money) THE INTEREST PAID.
True
False
Policy Owner
Responsibility to another person for one's own negligence
Liability
the amount paid by a policyholder to an insurance company to obtain or maintain an insurance policy
Premium
A person who sells insurance policies
Insurance Agent
The person or party who owns an individual insurance policy. (policyholder)
Deductible
the amount the insured must pay in a loss before any payment is due from the company
Insurer
The contract issued by the insurance company to the policyholder
Policy
a person who investigates and settles insurance claims
Replacement Cost
the cost associated with replacing property at current market prices
Claimant
Another word for an insurance company
Adjuster
A person who makes an insurance claim
What are the three things insurance protects?
Your job
Your belongings
Your liabilities
Your family
Which type of auto insurance pays for your repairs if you are in a car accident?
Personal Injury Protection
Liability
Collision
Comprehensive
Which type of auto insurance covers your windshield if a rock hits it and cracks it?
Comprehensive
Liability
Collision
Uninsured
Your home is flooded due to a hurricane. What coverage will cover the damages to your home?
Homeowners
Auto
Disability
Life
Heatlh
Scenario: You are currently working at Target warehouse. While carrying boxes to the truck, you slip on a puddle and tear your MCL. You are unable to work for the next six months. What insurance would this be covered under to protect your job?
Auto
Life
Health
Disability
Homeowners
What can be considered an investment?
Using money to start a business
Purchasing real estate
Purchasing stocks
Making good grades
Investing is the act of allocating resources with the expectation of generating an income, profit, or gains.
True
False
What are cash examples of Investing?
Savings Account
Certificate of Deposit
Money Market Account
Checking Account
What are bond examples of investing?
Treasury
Domestic Corporations
U.S. Government
U.S. Corporate
_______ is a security that represents the ownership of a fraction of the issuing corporation. You are considered a shareholder if you have this in a company.
Bond
Stock
Cash Equivalent
Broker
Stocks are also known as _______.
Capital
Bond
Shareholder
Equity
_____ is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
Bond
Stock
Investment
Savings Account
The coupon rate attached to a bond is also known as the interest rate.
True
False
Stocks are more of a stable investment compared to bonds because they provide a steady flow of income.
True
False
What is the difference between a Certificate of Deposit and a Money Market Account?
You must leave money in for a fixed time with a CD
You must leave money in for a fixed time with a Money Market Account
Higher interest than savings accounts
Available at banks and credit unions and are insured
A person or firm in the business of buying and selling securities for its own account or on behalf of its customers
Brokerage
Automated investment advisory platforms and digital advisors
Full-service brokerage
Online platforms that allow do it yourself investors to make their own trading decisions
Discount brokerages
act as a middleman that connects buyers and sellers to facilitate a transaction
Robo-advisors
provides a professional financial advisor who manages all investment decisions and ongoing advice and support
Broker/Dealer
______ the primary federal regulatory agency for the security industry. They are responsible for protecting investors against fraudulent and manipulative practices in the security market.
FBI
South Eastern Conference (SEC)
Federal Deposit Insurance Corporation (FDIC)
Securities and Exchange Commission (SEC)
_____ an individual retirement account that allows you to save money for retirement in a tax-advantaged way.
Individual Retirement Account (IRA)
401(k)
403(b)
Roth IRA
Make contributions with money you may be able to deduct on your tax return
Traditional IRA
Make contributions with after tax income
Roth IRA
Money rolled over from a qualified retirement plan
Rollover IRA
Match the following
employer-sponsored and salary-deferral retirement plan for state, local, or employees of a non-profit organization (no penalty for early withdrawal)
401(k)
employer-sponsored and salary-deferral retirement plan for for-profit organizations
403(b)
employer-sponsored and salary-deferral retirement plan for non-profit organizations
457(b or f)
______ is an amount of money that a government requires people to pay according to their income and the value of their homes.
Rent
Taxes
Retirement
After Tax Income
Earned Income is money you earn from working.
True
False
Match the following
used to verify the identity and legal authorization to work of all paid employees in the U.S.
W-2
form that calculated the total taxable income of the taxpayer and determines how much is to be paid or refunded by the government
1099
used to report wages paid to employees and the taxes withheld from them
I-9
used to prepare and file an information return to report various types of income other than wages, salaries, and tips
W-4
completed by an employee to tell the employer the correct amount of federal tax to withhold from an employee's paycheck
1040
Money you earn but you didn't have to work for it is considered.....
Income
Earned Income
Tax Refund
Unearned Income
______ are specific types of expenses the taxpayer incurred that may reduce taxable income.
Unearned Income
Itemized deductions
Itemized additions
Earned Income
Who can be considered as a dependent? (select all that apply)
A child you adopted
Your children
Your younger cousin
An uncle living under your care
