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Day Seven: Finance and Employment Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is an example of a mandatory federal payroll deduction?

a)

Health insurance

b)

Medicare

c)

401(k) contribution

d)

Vacation time

2.

What is the term for the amount of money an employee receives after taxes and deductions?

a)

Gross pay

b)

Net pay

c)

Take-home pay

d)

Fringe benefit

3.

Which of the following is considered an asset?

a)

A home mortgage

b)

Shares of corporate stock

c)

Credit card debt

d)

Student loans

4.

What is the formula for calculating net worth?

a)

Net worth = Liabilities - Assets

b)

Net worth = Assets - Liabilities

c)

Net worth = Income - Expenses

d)

Net worth = Assets + Liabilities

5.

Which of the following is the most liquid asset?

a)

Savings account

b)

Real estate

c)

Stock mutual funds

d)

Certificate of deposit (CD)

6.

What is the unit cost of 3 pounds of coffee priced at $9.00?

a)

$5/lb

b)

$4/lb

c)

$3/lb

d)

$2/lb

7.

What is the term for the price of using someone else's money for a period of time?

a)

Principal

b)

Net income

c)

Gross pay

d)

Interest rate

8.

Which type of interest is calculated on the principal and accumulated interest of previous periods?

a)

Simple interest

b)

Compound interest

c)

Fixed interest

d)

Variable interest

9.

What is the advantage of making a high down payment when buying a home?

a)

Longer loan term

b)

Higher interest rates

c)

Lower property taxes

d)

Lower monthly payments

10.

What is one factor that could influence the salary given for jobs in a specific profession?

a)

The number of job opportunities

b)

The need for new employees

c)

The benefits offered

d)

The location of the job

11.

Which of the following is an example of a career based on commission?

a)

Software engineer

b)

Nurse

c)

Real estate agent

d)

Teacher

12.

What should a person consider when deciding between two job offers with similar salaries?

a)

Company location

b)

Company benefits and retirement plan

c)

Job title

d)

Work hours

13.

What is the best way for high school students to gather information about careers in finance?

a)

Taking a finance course

b)

Interviewing professionals in the field

c)

Reading books about finance

d)

Watching financial news

14.

What is the term for the annual percentage rate charged on a credit card?

a)

Net interest rate

b)

APR

c)

Compound interest rate

d)

Simple interest rate

15.

What is one major advantage of taking a 15-year mortgage instead of a 30-year mortgage?

a)

Higher property taxes

b)

Longer loan term

c)

Paying less interest

d)

Lower monthly payments

16.

What should a person consider when applying for a variable interest rate mortgage?

a)

The possibility of interest rates decreasing

b)

The possibility of interest rates increasing

c)

The length of the loan term

d)

The type of property being purchased

17.

What is the best strategy to use when buying a new car?

a)

Negotiate the price

b)

Pay the sticker price

c)

Buy the first car you see

d)

Avoid comparison shopping

18.

Why is renting furniture generally not a smart financial decision?

a)

It is difficult to find furniture to rent

b)

Rental furniture is often of poor quality

c)

Interest rates and fees are extremely high

d)

It is illegal in most states

19.

What is the advantage of renting a home when moving to a new state for a job?

a)

Allows learning about the area before buying

b)

Lower property taxes

c)

No need for a down payment

d)

Higher monthly payments

20.

What is the best time to buy a home to save money on a mortgage loan?

a)

When property taxes are low

b)

When the housing market is competitive

c)

When interest rates are low

d)

When interest rates are high