WorksheetsUnit 3 test
Total questions: 20
Worksheet time: 10mins
What is one way to protect private information online?
Switch between different internet browsers frequently.
Only share personal details with friends and family members.
Use strong passwords and change them regularly.
Always delete emails and other communications after six months.
How can a credit report help you identify suspicious activity related to your finances?
A credit report will name identity thieves who have targeted you.
A credit report will show fraudulent credit accounts opened in your name.
A credit report will indicate how you accidentally shared your private information.
A credit report will reverse unwanted or illegal charges made by others.
What is one risk involved with sharing finances with another person?
When bank accounts are jointly held, banks charge account holders higher fees and interest when it comes to borrowing money.
When bank accounts are jointly held, the names and private personal information of each account holder is shared online, which increases the risk of identity theft.
When bank accounts are jointly held, one account holder can access, spend, or transfer funds without the other account holder(s) knowledge.
When bank accounts are jointly held, one account holder can save more of his or her income than the other account holder(s).
Ronaldo's mother sent him to the grocery store to buy olive oil. What should he do to ensure that he makes the smartest purchase decision?
Look for—and buy—the olive oil whose price is marked down the most.
Instead of buying olive oil, determine whether butter is a cheaper option and, if so, buy butter instead.
Compare the price (and price per volume) of several different brands of olive oil to make sure he gets the most for his money.
Select and buy the smallest bottle of olive oil that is on the shelf.
At the grocery store, Ursula decides to buy a 64-ounce carton of orange juice for 4ratherthana32−ouncecartonfor 3.20. On a cost-per-ounce basis, how much money does Ursula save?
She saves $.80 per ounce.
She saves $.06 per ounce.
She saves $.32 per ounce.
She does not save any money per ounce because the larger carton costs more.
Nico owns a large restaurant, and he is looking to buy several dozen lightbulbs. What is one way that he can maximize his buying power?
He can purchase lightbulbs that are lower in brightness from various sellers in order to limit the amount he must buy.
He can conduct research and purchase lightbulbs from a vendor that gives him a favorable price for buying in bulk.
He can find out where different vendors make their lightbulbs and move his restaurant to be closer to their factories.
He can determine which lightbulbs will look nicest with the decor of his restaurant and only work with vendors who carry that particular style of bulb.
Which of the following is an unhealthy behavior related to purchasing a good or service?
buying something to meet a want rather than a need
buying something due to peer pressure or to keep up appearances
buying something based on the recommendation or the review of another person
buying something that does not work well or that breaks quickly
Eric and Melissa are married, and they are looking to buy their first home. Eric wants to live in the suburbs because he wants their children to have a yard where they can play. Melissa wants to live in the city, where they both work, to make their commutes shorter and easier. How might Eric and Melissa handle their differences in a healthy way?
Compromise by buying a home in the city that is close to a large public park where their children can play
Do what Eric wants since the needs of children should trump the wants of adults
Do what Melissa wants since shorter commutes will allow both her and Eric to have more time with their kids
Compromise by buying a home in a distant rural area so that neither Eric nor Melissa gets his or her way
What is one way to help ensure that the financial decisions you make are informed ones?
Save enough money to be able to afford any of the options available.
Focus on how products and services are portrayed in advertisements and commercials.
Gather as much information as possible via research.
Buy goods and services based on what you want rather than what you need.
Arianna wanted to buy a $500 prom dress, but didn't have the money. She decided to buy the dress anyway, using a credit card. She told a friend, "I'll just pay it off a little at a time." Her friend, who knew more about credit cards than Arianna, gave her a warning. Select the warning that is most accurate.
You shouldn't buy clothing on credit because clothing companies prefer cash.
If you pay off the debt over time you'll wind up spending much more than $500 because of the interest you'll owe.
If you use a credit card to buy a prom dress your credit rating will drop.
Once you use a credit card to buy a prom dress you won't be able to stop buying things.
How much should you pay on your credit card?
You should pay only the minimum payment.
You should pay as much as you can, striving to pay more than the minimum payment.
You are legally required to pay the balance in full before your grace period ends.
You should pay interest and fees plus 10% of the principle.
Which of the following is a type of credit card to avoid?
a regular or "plain vanilla" card
a rewards card
a low-interest card
a subprime card
Money given with the understanding that it will be paid back, typically with interest, is
gift
windfall
debt
loan
The following is true about loans except .
sometimes you'll pay in installments
you are required to pay the money back as agreed
some lenders allow you to default on a loan without penalty
you can get into legal trouble if you fail to pay
Which of the following is an example of desirable debt?
Nidia used a credit card to buy herself a brand name purse that she always wanted.
Leslie took out a payday loan so she could pay bills that were overdue.
Ninoska borrowed $500 from her parents to take a cruise with her girlfriends.
Silvia took out a loan to pay for tuition at her local technical college.
Net worth can be increased by .
solely selling assets
solely a positive contribution to savings
an increase in debt
contributing to savings and/or an increase in asset values
Guadalupe owns a car that is worth 14,700. She has a savings account of 4,750 and a credit card balance of $825. What is her net worth?
$19450
-$16320
$18625
$1825
Oona has a great job that pays her 110,000 per year. She'd love to stop renting an apartment and buy a house. She calculates that she'll need 40,000 for a down payment, and she already has $20,000 in her savings account. What is a SMART financial goal that Oona might set for herself?
Save another $20,000.
Borrow $20,000 so she can put a downpayment on a house that's on the market right away.
Save $500 each month to help her save enough for a downpayment in less than two years.
Save money to buy a home.
What allows money invested over the long term to grow at a faster rate than simply stashing an equal sum of money in a safe?
compound interest
tax deductions
annual fees
savers' rewards
What is one "pro" of a shared investment?
Investors can pool their resources and expertise to potentially generate greater returns.
Investors may have differing risk tolerances or long-term goals.
Investors can guarantee that their investment goals will be met.
Investors may be forced to put their money into investments that they would have otherwise avoided
