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Personal Finance Semester Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Frank and Jasmere are each shopping for a new car for themselves. Each will need a $20,000 loan that they will pay back over a five-year period. Frank has a credit score of 730, and Jasmere has a score of 600. Refer to the table showing FICO Score, APR, and Monthly Payment. Which of the following statements is TRUE?

a)

Over the five-year period, Jasmere and Frank will pay the same amount for the car loan.

b)

Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment.

2.

Your friend Nabila has a virtual interview tomorrow and is extremely nervous. Nabila should do all of the following to prepare for her virtual interview EXCEPT...

a)

Test all of her technology, including internet connection and audio

b)

Dress as comfortably as possible; since this is a virtual interview, professional dress is not necessary

c)

Ensure she has a clutter-free background

d)

Maintain positive body language during her interview, such as good posture and eye contact with the camera

3.

Janelle's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and a net price of $12,000. College B has a sticker price of $60,000 and a net price of $9,000. Which statement below is FALSE?

a)

College A has a lower net price than College B.

b)

College B offers more financial aid than College A.

c)

Janelle would pay less to attend College B than College A.

d)

College A has a lower sticker price than College B.

4.

What is an advantage of using a credit card?

a)

It will not affect your credit score or credit history.

b)

Since it is tied directly to your checking account, it prevents you from spending money you do not have.

c)

If you need to carry a balance, the interest rates are generally quite low (less than 5%).

d)

You can make an emergency purchase that you otherwise don’t have the money to pay for right now.

5.

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

a)

6 months

b)

1 year

c)

2 years

d)

3 years

6.

What is the purpose of a resume?

a)

To list all your interests

b)

To highlight your work experience and qualifications

c)

To provide a list of references

d)

To show your social media profiles

7.

To qualify for financial aid, which application must you submit?

a)

FAFSA

b)

PLUS

c)

SAVE

d)

SAI

8.

Which free credit report service is authorized by federal law and only accessible once per year?

a)

AnnualCreditReport.com

b)

Credit Karma

c)

Credit Wise

d)

Wallet Hub

9.

Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

a)

$0

b)

$200

c)

$800

d)

$1,000

10.

Grayson has a job interview tomorrow. Which of the following would be the BEST advice to give him?

a)

Avoid asking questions during the interview, as it may show that he does not know something about the company.

b)

Be sure to ask about things like vacation and sick leave, since he will want to know how many days he can take off.

c)

Plan to arrive at least 60 minutes early for the interview.

d)

Conduct research on the company ahead of time to understand how his values and beliefs align with the company's mission.

11.

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

a)

Insurance for damage to your own property

b)

Insurance for causing injury to another person

c)

Insurance in case you get into an accident with someone who does not have insurance

d)

Insurance for causing injury to yourself

12.

Which description is most accurate for a zero-based budget?

a)

You put every dollar of your net pay into a budget category each month.

b)

You spend your checking account balance down to $0 every month.

c)

You spend your savings account balance down to $0 every month.

13.

When riding the highs and lows of the stock market, remember...

a)

You can't go wrong when investing money in stocks.

b)

The S&P isn't a reliable source when it comes to navigating the growth and decline of stocks.

c)

It's unpredictable and risky. You should pull your money out and steer clear.

d)

It will level out, so stick with it!

14.

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would be best for him if he does not need access to the money for several years and wants to earn the highest interest rate?

a)

Regular savings account

b)

Money Market account

c)

Checking account

d)

Certificate of Deposit

15.

Which of the formulas below correctly calculates the net price?

a)

Sticker price - student loans = net price

b)

Grants and scholarships + student loans = net price

c)

Sticker price - grants and scholarships = net price

d)

Sticker price + grants and scholarships = net price

16.

You are considering moving into a 3-bedroom apartment with 2 roommates, instead of living on your own after college. Which of your expenses would likely decrease by having roommates?

a)

Groceries and eating out

b)

Rent

c)

Cell phone bill

d)

Bedroom furniture

17.

Which of the following is a good strategy to use when paying for college?

a)

Only report your own earnings and savings, not those of your parents, even if you live with them full-time.

b)

See how much you can borrow in loans before applying for scholarships.

c)

Spend the money that you earn from your summer job so you can get more financial advice.

d)

Save your earnings from your summer job so that you can reduce the amount of loans you need to take.

18.

Which of these credit payback strategies would result in the HIGHEST overall cost?

a)

Paying off your credit card bill in full every month

b)

Paying 20% of your credit card balance every month on time

19.

Refer to the account statement and payment history guide below:

a)

The borrower paid a $30 fee in February 2015.

b)

This borrower was never late with any of their credit payments.

c)

This borrower's most recent payment was $30.

d)

This borrower was 30 days late on their May 2015 payment.

20.

When setting your premium, your car insurance company may consider all of the following EXCEPT...

a)

How many miles you drive per year

b)

Your age

c)

Your driving record

d)

Your height