WorksheetsFinancial Literacy Final Exam
Total questions: 61
Worksheet time: 31mins
Name
Class
Date
1.
Which of the following would be considered a short-term savings goal?
a)
saving for college
b)
buying a used car
c)
paying to attend the regional championships
d)
buying a house
2.
What does the "S" in SMART goals stand for?
a)
Specific
b)
Simple
c)
Significant
d)
Successful
3.
What does the M in SMART stand for?
a)
Measurable - there is some kind of number attached so you know success
b)
Memorable - a goal must be easily remembered
c)
Maximum - there are no limits for goals
d)
Mental - you have to be able to think about the goal.
4.
What does the T in SMART stand for?
a)
Time-bound - the goal must be reached within a specific length of time.
b)
Thoughtful - a goal must take into account the feelings of others.
c)
Transferable - a goal should be able to be shared with other people.
d)
Trust-worthy - a goal should be worthy.
5.
What is wrong with this SMART goal?
I will read thirty novels by the end of the day.
a)
Not specific enough
b)
Not time-bound
c)
Not attainable
d)
Not measurable
6.
Which of the following is true of college?
a)
College costs money, but community college and trade schools are free.
b)
College is the only way to get ahead in life.
c)
College may help you fulfill your personal and career goals.
d)
Attending college is a guarantee of personal happiness.
7.
What is one difference between a Bachelor's degree and an Associate's degree?
a)
an Associate's degree is usually free
b)
a Bachelor's degree requires more time and credits
c)
an Associate's degree is only offered for business subjects
d)
a Bachelor's degree is not useful for the sciences
8.
Locate 1 on Caleb’s pay stub. How much does Caleb earn when he works overtime?
a)
$12.50 per hour
b)
$18.75 per hour
c)
$22.50 per hour
d)
$25 per hour
9.
Locate 2 on Caleb’s pay stub. What is the sum of Caleb’s deductions this pay period?
a)
$329.14
b)
$264.14
c)
$6,122.63
d)
$1,858.36
10.
Locate 3 on Caleb’s pay stub. What is Caleb’s year-to-date gross pay?
a)
$20,507.81
b)
$1,093.75
c)
$1,000.00
d)
$8,262.55
11.
How much will Caleb receive on payday?
a)
$1,093.75
b)
$1,000.00
c)
$14,385.18
d)
$764.61
12.
Which of the following terms describes the amount of pay an employee receives after deductions have been subtracted?
a)
Overtime Pay
b)
Gross Pay
c)
Net Pay
d)
Regular Pay
13.
Which type of tax helps to pay for healthcare costs of adults 65 and older?
a)
Medicare Tax
b)
Social Security Tax
c)
Federal Income Tax
d)
State Income Tax
14.
Which employee benefits are voluntary (optional)? Select three.
a)
Life Insurance
b)
Medical Insurance
c)
Minimum Wage
d)
Paid Overtime
e)
Retirement
15.
Noah earns $13.50 per hour and works 20 hours per week. What is his gross pay each week?
a)
$1.48
b)
$200.00
c)
$250.00
d)
$270.00
16.
Rea earns time and a half overtime pay when she works more than 40 hours per week. Her regular wage is $16 per hour. What is her gross pay for the week if she works 43 hours?
a)
$712.00
b)
$640.00
c)
$688.00
d)
$1,032.00
17.
Mia works in a coffee shop and receives a 15% tip on an order that totaled $14.30. How much was the tip?
a)
$0.95
b)
$1.65
c)
$2.15
d)
$21.50
18.
Omar earns a salary of $65,800 per year. If he is paid biweekly, what will his gross pay be each pay period?
a)
$5,483.33
b)
$2,741.67
c)
$2,530.77
d)
$2,632.00
19.
Which of the following is NOT a benefit of using a budget?
a)
Budgets allow you to see how your money is being spent.
b)
Budgets allow you to spend more than you earn.
c)
Budgets can help keep you out of debt.
d)
Budgets keep you on track toward meeting financial goals.
20.
Kim earns $2,670 per month and would like to follow a 50/30/20 budget. How much should she save each month?
a)
$1,335.00
b)
$801.00
c)
$534.00
d)
$53.40
21.
Which budgeting strategy focuses on saving before spending money on other expenses?
a)
Zero-Based Budgeting
b)
Envelope Budgeting
c)
50/30/20 Budgeting
d)
Pay Yourself First Budgeting
22.
Would you categorize a monthly water bill as a want, a need, or savings?
a)
Want
b)
Need
c)
Savings
23.
Which of the following is true about a zero-based budget?
a)
Income – Taxes = 0
b)
Income – Expenses = 0
c)
Needs – Wants = 0
d)
Expenses – Savings = 0
24.
Ken earns a salary of $37,800 per year. How much should he budget for needs each month if he wants to follow a 50/30/20 budget?
a)
$3,150.00
b)
$630.00
c)
$945.00
d)
$1,575.00
25.
Sharla earns $4,010 per month and saves $601.50. What percentage of her income is she saving?
a)
13%
b)
15%
c)
17%
d)
20%
26.
Does Sharla’s savings follow a 50/30/20 budget? Use your answer from the previous question.
a)
Yes, she is saving the correct amount.
b)
No, she is saving too much.
c)
No, she is not saving enough.
27.
How much tax would a single taxpayer with $21,325 in taxable income pay?
a)
$2,133.00
b)
$2,333.00
c)
$2,339.00
d)
$2,345.00
28.
How much tax would a married couple filing jointly with $21,700 in taxable income pay?
a)
$2,381.00
b)
$2,168.00
c)
$2,387.00
d)
$2,173.00
29.
How much did Hunter earn this year?
a)
$229.96
b)
$983.27
c)
$1,427.32
d)
$15,859.12
30.
What is the total amount of ALL taxes Hunter paid this year?
a)
$1,427.32
b)
$2,640.55
c)
$2,109.26
d)
$3,322.49
31.
What percentage of his income did Hunter have withheld in federal income taxes this year?
a)
99%
b)
21%
c)
8%
d)
9%
32.
Which type of deduction is most commonly used when completing their 1040?
a)
Itemized Deduction
b)
Traditional Deduction
c)
Standard Deduction
d)
Individual Deduction
33.
The primary purpose of a bank is to:
a)
cash checks.
b)
print money.
c)
pay interest.
d)
take deposits and make loans.
34.
Which type of financial institution is a non-profit organization owned by its members?
a)
National Bank
b)
Online Bank
c)
Credit Union
d)
Regional Bank
35.
What is the name of the organization that provides insurance to protect bank account funds if a bank fails?
a)
FDIC
b)
APY
c)
National Bank
d)
ATM
36.
Which type of account is designed to hold money for a short time and help manage day-to-day expenses?
a)
Savings Account
b)
Checking Account
c)
Credit Cards
d)
Loans
37.
What is the name of the card that allows the user to make purchases using funds directly from their checking account?
a)
Credit Card
b)
Business Card
c)
Traditional Card
d)
Debit Card
38.
Which type of interest is calculated using the amount deposited into an account and all previously accrued interest?
a)
Compound Interest
b)
Simple Interest
c)
Credit Card Interest
d)
APY
39.
Nina is saving for a new phone. She needs $650 and wants to buy the phone in 5 months. How much should she save per week? (Assume there are four weeks in a month.)
a)
$130.00
b)
$50.00
c)
$32.50
d)
$25.50
40.
When you use a credit card to make a purchase, money is:
a)
borrowed from the provider and must be repaid.
b)
free.
c)
deducted directly from a checking account.
d)
returned in cash.
41.
Credit card companies are required to disclose all terms and conditions using a:
a)
credit card statement.
b)
fee list.
c)
Schumer box.
d)
balance transfer.
42.
The smallest payment that can be made towards a credit card balance is called a:
a)
credit limit.
b)
finance charge.
c)
grace period.
d)
minimum payment.
43.
Use the minimum payment warning to determine how much this user could save by making $75 payments instead of the minimum payment each month.
a)
$3,859.31
b)
$1,430.05
c)
$9,148.67
d)
$2,523.59
44.
What is the highest possible credit score?
a)
425
b)
625
c)
850
d)
1000
45.
Transferring debt from one credit card to another is called a:
a)
credit score.
b)
balance transfer.
c)
cash advance.
d)
debt swap.
46.
Which of the following is a disadvantage of using a credit card?
a)
the convenience of purchasing now
b)
the ability to purchase expensive items
c)
it is widely accepted for payment
d)
it is subject to interest and fees
47.
Which of the following is true about credit reports?
a)
They are prepared once every five years.
b)
They list payment history and debt levels.
c)
They are used to determine taxes owed.
d)
They are only available to financial institutions.
48.
Use the sample credit card statement below to calculate the new balance for this credit card.
a)
$2,516.12
b)
$1,966.48
c)
$2,205.76
d)
$3,065.76
49.
What does insurance protect against?
a)
Identity theft
b)
Financial loss from unexpected events
c)
Unexpected illness
d)
Bank failure
50.
Joseph is purchasing new contact lenses using his vision insurance. His vision insurance has a 20% deductible. If the contact lenses cost $249.99, how much will he pay, and how much will his insurance pay for the contact lenses?
a)
He will pay $50.00, and his insurance will pay $199.99.
b)
He will pay $5, and his insurance will pay $244.99.
c)
He will pay $199.99, and his insurance will pay $50.
d)
He will pay $40.00, and his insurance will pay $209.99.
51.
Georgia’s health insurance requires her to pay $75 each time she visits her neurologist. This amount is called a:
a)
Deductible
b)
Coinsurance
c)
Copay
d)
Premium
52.
Which word describes the amount of money you will pay before your insurance company begins to pay for a covered expense?
a)
Premium
b)
Policy
c)
Claim
d)
Deductible
53.
Which type of insurance would you recommend to someone concerned about their family's financial security if they unexpectedly pass away?
a)
Health Insurance
b)
Life Insurance
c)
Long Term Care Insurance
d)
Homeowners Insurance
54.
Avery’s health insurance policy is shown below. Calculate Avery’s medical expenses for the year, including his monthly premiums, and then calculate Avery’s total cost.
(a)
55.
Which type of coverage will pay for damage to Henry’s car if he hits a stop sign with his car?
a)
Property Damage Liability
b)
Comprehensive
c)
Collision
d)
Bodily Injury Liability
56.
Which type of coverage will pay for damage to the stop sign if he hits a stop sign with his car?
a)
Property Damage Liability
b)
Comprehensive
c)
Collision
d)
Bodily Injury Liability
57.
Which abbreviation would be used to describe this policy?
a)
200/100/7
b)
200/350/100
c)
200/100/350
d)
40/800/7
58.
How much will Henry have to pay before his collision insurance will pay for damages to his car from an accident?
a)
$7,000
b)
$100,000
c)
$0
d)
$500
59.
A loan used to buy a house is called
a)
Rent
b)
Mortgage
c)
Personal loan
d)
Student loan
60.
Which of the following best describes the term ‘equity’?
a)
The cost of moving out of a home.
b)
The difference between the value of a property and the amount owed.
c)
The amount paid monthly.
d)
The amount borrowed for a mortgage.
61.
How much would a 15% down payment on a $275,000 home cost?
a)
$41,250.00
b)
$4,125.00
c)
$1,833.33
d)
$52,300.00
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