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WorksheetsEcon Test 8
Total questions: 40
Worksheet time: 20mins
When interest is earned not only on principal but also earned on interest, it is referred to as
Returned interest
Duplicated interest
Simple interest
Compound interest
Net worth is calculated by
Substracting liabilities from assets
Substracting assets from liabilities
Adding liabilities to assets
Dividing assets by liabilities
Which of the following are strategies that help in saving for an emergency fund?
Start small
Focus on Benefits
Treat savings like a bill
All of the above
Are fixed costs considered to be anticipated or unanticipated costs? Are variable costs considered to be anticipated or unanticipated costs?
Fixed costs are anticipated costs and variable costs are unanticipated costs.
Both are anticipated costs.
Both are unanticipated
Fixed costs are unanticipated costs and variable costs are anticipated costs.
Examples of unanticipated income include
Gifts, bonuses, inheritance
Gifts, bonuses, allowances
Gifts, scholarships, inheritances
Wages, bonuses, inheritances
A budget is a plan for spending money based on income, expenses and
Assets
Liabilities
Financial goals
Net worth
Which of the following is not included in a net worth statement?
$300 in a checking account.
$50 per month for a gym membership
400permonthforschoolloans;thecurrentbalanceis 25,000.
Balances on credit cards that total $15,000.
At the end of the month Corrine's budget has money left over. She can either
Spend more or save less.
Spend less or save more.
Spend less or save less.
Spend more or save more.
In making a decision about the costs of postsecondary education, these costs should be compared to
Potential number of years in postsecondary education
Potential number of years working in a career.
Future potential earnings.
The length of time to pay off private loans.
In repaying direct subsidized federal student loans, interest payments begin
As soon as the money is borrowed
Six months after graduation
When the borrower has a job for one year
At graduation
The types of student aid that typically do not need to be repaid include scholarships and
Federal student loans
Grants
Private loans
Loans on an extended repayment plan
When inflation occurs, the impact on savings is
Positive then negative
Positive
No effect
Negative
When deflation occurs, the impact on savings is
Positive then negative
Positive
No effect
Negative
Generally speaking, a car is what type of asset?
Appreciating
Wealth building
Depreciating
Business asset
Life insurance that offers both death benefit protection and a cash value component with no specified period of coverage is called [type] life insurance.
Whole term
Basic
Permanent
Major
The FAFSA application identifies for students which of the following?
The estimated family contribution and the amount of financial aid available to the student
The estimated family contribution and the amount of private loans available to the student
The estimated family contribution and the colleges to which the student will be admitted
The estimated family tax deductions and the amount of financial aid available to the student
How much is spent on savings and investing in a 50/30/20 plan?
50% of income
30% of income
20% of income
None of these
The first step of making a budget is what?
Set Financial Goals
Track expenses
List assets and liabilities
Get a Credit Report
How do you find equity of a house:
It the the same as the house’s value
Add the houses value and homeowner debt
Subtract the houses value and homeowner debt
It is the same of homeowner debt
What is discretionary income?
Money that must be spent on needs
Money that is owed on debt
Money you are paid at a job
Extra money in a budget that is yours to spend how you want
What type of student aid has to be repaid?
A loan
A grant
A scholarship
A work study
What type of Insurance is required by law?
Home
Auto
Life
Pet
What is a home loan called?
A grant
A mortgage
A lease
A scholarship
A monthly bill such as electricity that varies in cost is called this?
A variable expense
A variable income
A fixed expense
A fixed variable
Who needs to fill out the FAFSA?
Only low income students
Only high income students
Only middle class students
All students going to college
What type of loan doesn't build interest while in school?
Subsidized
Unsubsized
Interest-Free
None of these
Which of the following is a source of unearned income?
Gifts
Interest
Bonuses
All of these
What is the process of checking spending against a budget?
Reconciling
Checking
Budgeting
Planning
What months are electricity bills the highest?
Fall
Winter
Summer
Spring
How much is spent on wants in a 50/30/20 plan?
50% of income
30% of income
20% of income
None of these
What month are gas bills the highest?
Winter
Summer
Fall
Spring
This makes the value of money go down.
Deflation
Saving
Inflation
Spending
A CD is what type of asset?
Liquid
Depreciating
Fixed
Restricted
What is an example of a restricted asset?
A Retirement Account
Cash
A stock
Land
What is an example of a liquid asset?
A Bond
A retirement account
Cash
Land
What is an example of a fixed asset?
A CD
A saving account
Stocks
Land
How much is spent on needs in a 50/30/20 plan?
50% of income
30% of income
20% of income
None of these
When would a bank check your net worth?
When opening a checking account
When depositing a check
When applying for a loan
When receiving interest on a account
What type of financial goals should you set?
Short Term
Medium Term
Long Term
All of these
What two things do you need to know for a budget?
Net worth and Income
Income and Expenses
Equity and Expenses
Equity and Debt
