WorksheetsConsumer Math S1 Final Review
Total questions: 31
Worksheet time: 16mins
True or False- the longer your loan, the higher your monthly payments will be
True or False- The higher the APR, the higher your monthly payments will be.
What is the best example of a loan with a fixed rate?
auto loan
credit card
payday loan
prepaid debit card
Why are payday loans easy to get?
you do not need to have regular income to get one
they do not run a credit history
you need to have a great credit score
you do not need a job to get one
Fill in the blanks, the longer the loan term, you are more likely to have ______ monthly payments and pay ________ in total interest
higher, less
lower, less
higher, more
lower, more
Which of the following is the best advice to give to a young person wanting to open up a credit card?
look for a card that does not have a grace period
look for a card that has little or no annual fee
pay off only the minimum each month
look for a card with a HIGH APR
What do you call the amount of money you are borrowing from a lender?
APR
interest
principal
term
Every loan has three components, which of the following is NOT one of the components?
interest
down payment
term
principal
Which of these is the best example of unsecured debt?
student loans
auto loans
mortgage
What do you call the smallest amount you can pay each month to keep your credit card in good standing?
minimum payment
interest
term
principal
Which of the following is the best example of a secured loan?
payday loans
credit cards
student loans
auto loan
True or False- You cannot have both a traditional AND Roth IRA
What is the main difference between an IRA and 401(k)
Investing in an IRA is much riskier
A 401(k) is through your employer
They are the same thing
True or False- the longer your retirement is, the more money you will need saved
True or false- when budgeting for retirement, it is important to consider inflation
As a shareholder in a company, which of the following is true?
You are guranteed to make a lot of money
The company MUST pay you dividends
You own a small portion of the company
You get to decide who the CEO will be
Which of the following options is considered the riskiest investment?
passive investing
stocks
bond funds
savings accounts
Which of these investments allows for more diversification?
bonds
bond funds
In which type of investing is the goal to outperform the market?
passive investing
active investing
putting money in savings account
Which of these shows a sample of how the stock market is performing?
The NASDAQ index
S&P 700
bond funds
mutual funds
What is one way that an investor could make money by investing in the stock market?
they may get paid dividends
by selling the stock for less than they bought it for
by selling the stock for the same amount that they bought it for
by holding on to the stock forever
If you prefer a tax deduction NOW and NOT in retirement, which should you invest in?
traditional IRA
Roth IRA
In a __________ market, stock prices are rising and investors are optimistic
bear
bull
If you want to access your money frequently for daily use, which account should you use?
certificate of deposit
checking account
savings account
money market account
In the 50/30/20 rule, what percent of your income should go to savings?
50
30
20
True or False- prepaid cards improve your credit score by building credit history
What is the main difference between a checking and savings account?
checking accounts are more risky
checking is for daily use, savings is for emergencies
checking accounts earn interest
savings accounts are for daily use
All of these are ways to deposit money EXCEPT
transfer money from savings to checking account
direct deposit through work
take out cash at an ATM
bring a check to the bank
If you do NOT enroll in overdraft protection, what will most likely happen if you try to make a transaction that will put your balance below zero?
money will transfer over from your savings account
the bank will cover your purchases
Your card will get declined
You will be allowed to make the purchase but will get paid a fee
Which of these refers to interest earned on top of interest?
APR
compound interest
simple interest
principal
This is often required to keep a checking account active at certain banks.
minimum balance
compound interest
debit card
overdraft protection
