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Financial Literacy WebXam Study Guide

Total questions: 42

Worksheet time: 21mins

Name
Class
Date
1.

What is the difference between your GROSS pay and your NET pay?

a)

Gross pay is after taxes and deductions

b)

Net pay is after taxes and deductions

c)

Gross and net pay are the same thing

2.

If you wanted to save more money per month, which expense would be the easiest to change?

a)

Utilities

b)

Mortgage

c)

Car Payment

d)

Entertainment

3.

What is the purpose of a labor union?

a)

Collective bargaining

b)

Avoiding taxes

c)

scheduling

4.

What agency should you contact to file a complaint about a company's failure to fulfill a warranty?

a)

Police

b)

Food and Drug Administration

c)

Better Business Bureau

5.

Which labor law protects individuals with physical and mental disabilities from discrimination?

a)

Fair Credit Reporting Act

b)

Americans with Disabilities Act

c)

BBB

6.

If your grades were publicly posted on a bulletin board around FHS, which consumer advocate agency will help you?

a)

Family and Educational Rights & Privacy Act

b)

Equal Employment Opportunity Act

c)

Family and Medical Leave Act

7.

If you had an error on your credit report, which consumer advocate agency will help you?

a)

Equal Opportunity Act

b)

Better Business Bureau

c)

Fair Credit Reporting Act

8.

If you just had a baby, which consumer advocate agency will help you?

a)

Family and Medical Leave Act

b)

Equal Employment Opportunity Act

c)

Family Educational Rights and Privacy Act

9.

What is a common employer-offered type of retirement plan?

a)

529

b)

501(k)

c)

401(k)

d)

IRA

10.

Which form must you complete to have your employer withhold federal income taxes?

a)

W-2

b)

W-4

c)

I-9

d)

WD-40

11.

Having good attendance at a job is an example of

a)

empathy

b)

Initiative

c)

Work ethic

12.

What is one way to meet financial goals?

a)

Set up automatic deposits to savings accounts

b)

Upgrade to a more expensive car

c)

Purchase a more expensive cable package

13.

Which of the following are all examples of income sources?

a)

a. Rental income, local taxes, and association dues

b)

b. Sales commissions, federal taxes, birthday money

c)

c. Tips, wages, and salary

14.

What factor has the most influence on your earning potential?

a)

Retirement plan

b)

Size of family

c)

Education

d)

Health

15.

What is FICA tax?

a)

Similar to sales tax

b)

Used to file taxes

c)

Social security and Medicare

16.

What is the job of a certified financial planner when working for a customer as a fiduciary?

a)

To make financial decisions in their best interest

b)

To report all earnings and losses to the customer in a timely manner

c)

To act in the best interest of the client

17.

What happens to prices when the workers in an industry strike?

a)

Prices decrease

b)

Prices increase

c)

Prices stay the same

18.

Is gross pay calculated before deductions or after?

a)

Before

b)

After

19.

An investor can reduce risk when investing by making sure they have this type of portfolio

a)

High yield

b)

Diverse

c)

401k

20.

A tenant is someone who....

a)

Rents a house or apartment

b)

Owns a house or apartment

c)

Is selling a house or apartment

21.

Using public WiFi puts you at risk for identity theft.

a)

True

b)

False

22.

What is the term used to describe when someone is trying to scam people via email?

a)

Embezzlement

b)

Money laundering

c)

Phishing

23.

While you are on your weekly shopping trip, you realize the cost of toilet paper has decreased substantially over the last 6 months. Which basic economic principle is likely responsible for this price decrease?

a)

Demand is outpacing supply

b)

Supply is outpacing demand

c)

Scarcity- resources are limited

24.

From whom do you obtain your credit report?

a)

Credit Reporting Agencies

b)

Better Business Bureau

c)

FDIC

25.

What is a high-yield alternative retirement strategy you can choose besides the 401K?

a)

Bonds

b)

Mutual Funds

c)

IRA

d)

Saving account

26.

Taking your personal finance course has increased your interest in accounting, which of the following is the best way to learn more about the requirements to become an accountant?

a)

Google

b)

ChatGPT

c)

Occupational Outlook Handbook

27.

You have purchased a vehicle with a loan of $12,000. Researching four different fixed loan options, which loan option will afford you the lowest total cost of the vehicle?

a)

7.2% for 72 months

b)

7.2% for 36 months

c)

7.2% for 48 months

28.

Which of the following is a conflict of interest in the workplace?

a)

Answering emails for your side business during work hours

b)

Placing a phone call during your lunch break

c)

Addressing a problem with a coworker with human resources

29.

The relationship between risk and return is:

a)

Higher risk is associated with higher potential return.

b)

Lower risk always leads to higher return.

c)

Risk and return are unrelated.

d)

Return is guaranteed regardless of risk.

30.

A new release of a cell phone is planned for September. The manufacturer cannot promise delivery until mid-October. This demonstrates which economic principle?

a)

Supply and demand

b)

Opportunity cost

c)

Product availability

31.

A computer you have chosen to finance costs $1,500. Which APR at 24 months yields the lowest monthly payment?

a)

12%

b)

8%

c)

7%

32.

Which characteristic best indicates a reputable depository institution?

a)

FDIC membership

b)

A fancy building

33.

What is an easy, inexpensive tool that can help you track spending?

a)

An accountant

b)

Bookkeeping software

c)

A spreadsheet

34.

If you stay with the same company but move to a new city with increased taxes what should you do?

a)

Buy a new car

b)

Find a new job

c)

Have payroll set aside more money for city taxes

35.

What is APR on a credit card?

a)

Average Price Records

b)

Annual Percentage Rate

c)

Accidental Purchase Relief

36.

What is the first step in establishing a credit score?

a)

Ask your parents for permission

b)

Open a bank account

c)

Obtain a secure credit card

37.

A hairdresser works five days a week and earns roughly 8,000 per month. At the end of the year she made 95,678. What form will she use to file her taxes?

a)

1099

b)

W-2

c)

1040

38.

What is the best way to increase your credit score?

a)

Open a new credit card account

b)

Close all of your credit card accounts

c)

Getting a job and paying off the full balance of all your credit cards

39.

What is the most economical choice at the grocery store?

a)

Buying name brand items

b)

Purchasing in bulk

c)

Buying generic/store brands

40.

What is a way to stand out amongst applicants for a job in a specific field?

a)

Dress in bright colors

b)

Make lots of noise

c)

Job shadow in that field

d)

Lie on your resume

41.

When comparing credit cards what information will you find in a Schumer box?

a)

Your name, address, phone number and email address

b)

Your credit score and report

c)

APR, fees, and other expenses

42.

Which of the following can you use to help develop your personal career inventory?

a)

Talk to your friends and family about their careers

b)

See what jobs are trending and available in your area

c)

Review top paying careers, take a career aptitude test, ask a teacher for advice, know your likes and dislikes