WorksheetsQuiz Review : Understanding Taxes and Personal Finance
Total questions: 30
Worksheet time: 15mins
Which tax form do you fill out when you first start a job to tell your employer how much tax to withhold from your paychecks?
W-2
1040
W-4
1099
The U.S. income tax system is progressive, meaning the more income you earn, the higher the percentage of tax you pay on that higher portion of income.
True
False
Gross Pay is the amount of money you actually take home after taxes and deductions are removed.
True
False
If you buy a new video game and pay an extra 7% at the register, what type of tax are you paying?
Property Tax
Income Tax
Sales Tax
Excise Tax
What is the primary purpose of taxes?
To make goods and services more expensive.
To fund public goods and services like schools, roads, and the military.
To help people save money for retirement.
To increase government profits.
According to the 50/30/20 Rule, what percentage of your income should be allocated to "Wants"?
50%
20%
30%
10%
The Rule of 72 is a quick way to estimate:
How much interest you will earn in a year.
How long it takes for an investment to double.
The correct amount to save for retirement.
The best time to invest in stocks.
A balance sheet provides a snapshot of your financial position at a single point in time, showing your assets, liabilities, and net worth.
True
False
Which of the following is considered a liability?
The money in your savings account.
Your car.
A student loan you need to repay.
Your monthly income.
The strategy of "Paying Yourself First" is effective because it makes saving a priority before you have a chance to spend the money.
True
False
What is the main purpose of a credit score?
To show how much money you earn.
To help lenders evaluate the risk of lending you money.
To track your daily spending habits.
To determine your tax rate.
Using a debit card is an excellent way to build up your credit history.
True
False
Who typically owns a Credit Union?
Private investors
The government
The members (customers)
Large corporations
Closed-End Credit is best described as:
A revolving line of credit you can use repeatedly up to a limit (e.g., a credit card).
A one-time loan for a specific amount repaid over a set time (e.g., a car loan).
A loan with no repayment schedule.
A credit account with unlimited borrowing.
In the "5 C's of Credit," the term "Character" refers to:
The value of your assets.
Your trustworthiness and history of paying bills on time.
The amount of money you earn.
The interest rate on your loans.
An investor who wants to have voting rights in a company should purchase which type of stock?
Preferred Stock
Leveraged Stock
Common Stock
Growth Stock
When a company holds an Initial Public Offering (IPO), that event happens in the secondary market.
True
False
Which order type prioritizes getting the best possible price over the speed of the transaction?
Market Order
Stop Order
Limit Order
Day Order
Selling Short is a high-risk speculative strategy that involves borrowing shares to sell, hoping the price will drop.
True
False
Your time horizon refers to how much risk you are willing to take in your portfolio.
True
False
The fixed monthly fee you pay to keep your health insurance plan active is called the:
Deductible
Co-payment
Premium
Out-of-pocket maximum
If your health plan has a $3,000 deductible, what does that mean?
You pay $3,000 for your premium each year.
You must pay $3,000 out-of-pocket before your insurance starts to pay.
Your insurance covers the first $3,000 of your medical bills.
You pay $3,000 for each doctor visit.
The absolute most you will have to pay for covered medical services in a year is called the:
Annual Premium
Deductible
Out-of-Pocket Maximum
Medicare is primarily for the elderly (age 65+), while Medicaid is for low-income individuals/families. True or False?
True
False
An HMO plan is generally less expensive than a PPO plan, but its main trade-off is:
It has a higher out-of-pocket maximum.
It does not cover hospital stays.
It requires you to use in-network doctors and get referrals from a Primary Care Physician (PCP).
Which two credentials should a student expect to primarily earn at a 2-year community or technical college?
Bachelor of Arts and Master of Science.
Associate's Degree (A.A./A.S.) and Technical Certificates.
Ph.D. and a Law Degree.
The College Recon worksheet instructs you to look for a school's Mission & Purpose in which section of its website?
On the school's sports team schedule.
The "About Us" section or the school's official mission statement.
In the online class catalog.
The personality aspect of Nature in the MY PERSONALITY PROFILE worksheet asks you to choose between:
Extraverted / Introverted
Thinking / Feeling
Judging / Perceiving
TRUE or FALSE: A student whose Mind trait is Introverted should ideally look for a college with large class sizes and massive social events.
True
False
According to the Major Match-Up worksheet, what should a student use as the starting point to find a potential college major?
Asking their friends what they plan to major in.
The "Career Paths" section provided on their 16 Personalities results page.
Picking the major that sounds the easiest to pass.
Choosing a major based on popular trends.
