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WorksheetsPersonal Finance EOC Review
Total questions: 20
Worksheet time: 10mins
Meredith writes a check for $500 to a lender who gives her $450 in cash and keeps $50 in fees. The lender keeps the check until an agreed upon date, then cashes the check.
title loan
pawn loan
rent-to-own
payday loan
Which tax, included in the price of gasoline or airline tickets, funds government programs?
excise
payroll
income
property
Tom and Ann have a goal to save 15% of their combined $97,000 yearly income. What amount should they save each month?
$121.50
$1,212.50
$8,083.00
$14,550.00
Tony received his monthly credit card statement in the mail. Although he did use his card several times during the month, the large balance due surprised him. When he examined the statement, he did not think that some of the charges were correct.
How should Tony deal with this situation?
He should not pay any of the bill until he figures it out; if he pays too much, he will not get a refund.
He should pay the whole bill; it is probably correct since all of the transactions are tracked by computer.
He should pay the minimum payment and call the credit card company to ask for a higher credit limit because the incorrect charges will make it difficult to make future purchases.
He should review his purchase receipts and then contact the credit card company to discuss the questionable charges, cancel the credit card, and continue to make payments while waiting for the disputed charges to be resolved.
Which investment option has the lowest risk when saving for retirement?
penny stocks
money market fund
antique collectibles
income and growth stocks
Which payment method is most often used when purchasing a home?
cash
check
mortgage
credit card
Alyssa attended a charity dinner for Pet Rescue. The dinner cost $100, but the tax deduction allowed was $50.
Which statement best describes the reason for the amount of the deduction?
She did not like the food.
She can only deduct the cost of the cat.
Pet Rescue is not a tax-exempt organization.
She can only deduct the value of the donation.
Margaret ordered a party gift online. When the gift arrived, it was lower quality than described, and it looked different than the photograph shown online.
What is the most effective way for Margaret to solve this problem as a consumer?
throw it away and buy another party gift
contact the company that sold her the gift
post her concern about the gift on social media
stay home from the party because she has no gift
Daniel applied for this type of financial aid because it did not have to be repaid and he excelled in academics and athletics.
grant
stipend
scholarship
student loan
What is an interest-bearing account that provides limited check writing and requires higher minimum balances?
dividend
money market
checking account
certificate of deposit
Jasmine, a recent college graduate, is starting her first full-time job. She does not have much savings, but she wants to make several purchases, including a car to drive to work, a vacation to celebrate graduation, some new professional clothes for her job, and new furniture to upgrade from the furniture she used in college.
For which item would a credit card be most appropriate if Jasmine is unable to pay cash at the time of purchase?
$12,000 for a car
$4,000 for a vacation
$2,000 for new furniture
$1,000 for new professional clothes
Demand for registered nurses in the United States labor market is increasing. If the supply stays the same or decreases, the salary of a registered nurse is most likely to ?
double
increase
decrease
stay the same
Which instrument, issued by financial institutions and insured by the FDIC, limits access to money?
stocks
mutual funds
checking account
certificate of deposit
Which statement best describes what would happen during a period of inflation when Sam is on a fixed income?
Sam’s living expenses increase.
Sam’s work experience increases.
Sam’s ability to save money increases.
Sam’s need to follow a budget decreases.
Which asset is most liquid?
stocks
real estate
savings account
certificate of deposit
Jackson could not find his debit card but assumed he had misplaced it and would eventually find it. He did not look at his next bank statement when it arrived because he was too busy. When he did reconcile his account, he discovered that someone had used his debit card. Jackson contacted his bank and was told that he would be responsible for $500 of the unauthorized transactions.
Which statement BEST explains the bank's response?
Debit cardholders must be able to prove they did not authorize transactions.
Debit cardholders must contact a bank within 48 hours of discovering a card is missing to avoid liability.
Debit cardholders are responsible for a specified amount of unauthorized charges if they do not report a missing card within 60 days.
Debit cardholders are responsible for a specified amount of unauthorized charges if they report a missing card between 48 hours and 60 days.
Joe is taking a high school personal finance class where he is learning about investing. He and his dad find a penny stock in which to invest a small amount of money. What could be said about predicting the rate of return?
The rate of return will be zero
The rate of return is uncertain
The rate of return is likely to be low
The rate of return is likely to be high
Mr. and Mrs. Johanson, both age 55, are planning what to do with the $20,000 they have in savings. Their alternatives include investments such as a money market account, stocks, a mutual fund, a bond, or a combination of these.
In order to make a decision that will best suit their needs, which question is most important for them to ask themselves?
At our age, what are our most important financial goals?
Can our $20,000 be invested in a money market or mutual fund?
Which stocks and bonds can we buy low now and sell high later for a profit?
Which broker can advise us about the investments with the highest potential return?
What is subject to federal taxes?
529 earnings
Roth IRA earnings
Health Savings Account contributions
interest earned on United States Savings Bonds
What two forms must an employee complete when beginning a new job?
Form W-4 and Form I-9
Driver's License and Social Security Card
Form W-2 and Form I-9
Form W-4 and Form W-2
