WorksheetsFinancial Literacy Semester 1 Review
Total questions: 43
Worksheet time: 22mins
What are the two big categories we split income into?
Earned income and unearned income
Gross income and net income
Activity income and passing income
Fixed income and variable income
If someone is paid wages, a salary, tips, commissions, or bonuses — what type of income is that?
Earned income
Passive income
Investment income
Gift income
What’s an example of passive income that grows on its own?
Interest (also: dividends, capital gains, rent, retirement income)
Salary from a full-time job
Wages from part-time work
Income from selling handmade crafts
Income Basics: What do we call government payments like Social Security or unemployment?
Transfer payments
Wages
Dividends
Interest
Besides income tax and FICA, what’s another common payroll deduction?
401(k)
Lottery winnings
Inheritance
Grocery bills
Vacation expenses
Deductions taken out before taxes are called what? And after taxes...?
Pre-tax; post-tax
Gross; net
Taxable; non-taxable
Mandatory; voluntary
In a progressive system, do tax rates go up or down as income rises?
They go up
They go down
They stay the same
They disappear
FICA covers Social Security and what other tax?
Medicare
Unemployment
Property
Sales
A W-4 tells your employer how much of what tax to withhold?
Federal income tax
State sales tax
Property tax
Social Security tax
What do we call totals on a pay stub that show everything you've earned so far this year?
Year-to-date totals
Gross pay totals
Net pay totals
Monthly pay totals
Why is personal finance considered 'personal'?
Because it’s shaped by our values
Because it only involves large corporations
Because it is the same for everyone
Because it does not require any planning
Values, Money Personalities & Saving: Our values have the biggest impact on what type of decisions?
Financial decisions
Dietary decisions
Travel decisions
Fashion decisions
What are the two missing money personalities besides Saver, Spender, and Investor?
Balancer and Avoider
Planner and Hoarder
Giver and Collector
Risk-taker and Protector
One big reason to save is to reach what type of goals?
Financial goals
Health goals
Travel goals
Educational goals
Saving early helps because of what powerful force?
Compound interest
Inflation
Taxation
Depreciation
When you 'pay yourself first,' where does your money usually go?
A savings account
A shopping website
A restaurant
A movie theater
Before money, people traded using what system?
The barter system
The credit system
The banking system
The lottery system
Money is a medium of exchange, a store of value, and a what?
Unit of account
Source of energy
Form of entertainment
Type of metal
Means of transportation
For money to work, it needs to be durable, portable, divisible, and what?
Recognizable
Inflammable
Edible
Invisible
Fiat currency has value because who says it does?
The government
Banks
Merchants
Citizens
Under the gold standard, dollars could be traded in for what?
Gold
Silver
Oil
Stocks
Most U.S. money today exists in what form?
Digital
Paper bills
Coins
Gold
A financial exchange is where people buy and sell what kinds of assets?
Financial assets
Physical goods
Real estate
Vehicles
We know about stock exchanges — what other major exchange exists?
Bond exchanges
Commodity exchanges
Currency exchanges
Real estate exchanges
What risk increases when exchanges are entirely digital?
Cybersecurity (fraud) risk
Liquidity risk
Market risk
Operational risk
A short-term goal is done within how long? And long-term goals take how long?
One year; five+ years
Six months; two years
Two years; ten years
Three months; one year
In SMART goals, the R stands for what?
Relevant
Reliable
Resourceful
Resilient
A budget helps you do what with your financial goals?
Achieve them
Ignore them
Delay them
Forget them
Complicate them
Expenses that change monthly are called what?
Variable expenses
Fixed expenses
Capital expenses
Discretionary expenses
What completes the equation: Assets = Liabilities + ...?
Equity
Revenue
Expenses
Cash
How do we calculate net worth?
Assets minus liabilities
Liabilities minus assets
Assets plus liabilities
Liabilities divided by assets
A net worth statement shows what you what — and what you what?
What you own and what you owe
What you earn and what you spend
What you save and what you invest
What you buy and what you sell
Banks make most of their money from what?
Loans
Deposits
Service Charges
Selling Bonds
How much does FDIC insurance cover per depositor?
$250,000
$100,000
$500,000
$1,000,000
Checking accounts offer high liquidity but very little what?
Interest
Security
Access
Flexibility
A deposit slip records what?
Money deposited
Money withdrawn
Account balance
Interest earned
A restrictive endorsement limits how a check can be what?
Cashed or deposited
Signed
Issued
Transferred
What's the third major financial statement besides the income statement and balance sheet?
The cash flow statement
The equity statement
The revenue statement
The profit and loss statement
Vertical analysis shows each item as a percentage of what?
Total revenue (or total assets)
Net income
Gross profit
Operating expenses
Horizontal analysis looks at how numbers do what over time?
Change
Stay the same
Disappear
Increase only
Working capital equals current assets minus what?
Current liabilities
Fixed assets
Shareholder equity
Long-term debt
Liquidity measures how well a business can meet what kind of obligations?
Short-term obligations
Long-term obligations
Legal obligations
Environmental obligations
Profitability ratios measure a company’s ability to generate what?
Profit
Revenue
Assets
Liabilities
