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WorksheetsFinance Final Exam
Total questions: 69
Worksheet time: 35mins
Name
Class
Date
1.
Some of the services banks offer include . . .
a)
Paying off your student loan debt and saving for your future
b)
Creating a personalized budget for you and managing your schedule
c)
Teaching you how to handle your finances and encouraging you to cut up your credit cards
d)
Mortgages, check writing, and debit cards
2.
What is the maximum amount The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money insured up to per account.
a)
$250
b)
$2,500
c)
$25,000
d)
$250,000
3.
Distrust, unemployment, and bank fees are a few excuses people give for . .
a)
Not making and sticking to a budget
b)
Not looking for work when their checking account is getting low
c)
Not having a savings or checking account
d)
Not filing their taxes
4.
Verifying your bank's online account statements for accuracy is called .
a)
Reconciling your account
b)
Adjusting your budget
c)
Debit card fraud
d)
Direct deposit
5.
Liquidity is . . .
a)
How quickly and easily you can access your money
b)
A great way to find a financial service that's right for you
c)
When you deposit silver or gold and they liquify it for you
d)
How money flows from bank to bank
6.
Something that all of the predatory financial services have in common is . . .
a)
They all require you to take out a loan
b)
They all require you to be a college graduate
c)
You end up losing money with all of them
d)
People can earn money with all of them
7.
The first step you should take when you want to make a large purchase is . . .
a)
Ask your parents to loan you the money with low interest
b)
Get a new credit card
c)
Decide how much you'll need to save and the time frame you want to save it in
d)
Sell something and use the proceeds
8.
The best way to build wealth is to start investing early. You should start investing money . . .
a)
Once you have a fully funded emergency fund
b)
Once you're out of college, living debt-free, and have 3–6 months of living expenses saved
c)
When the stock market is performing really well
d)
As soon as you have extra cash
9.
The only place you should keep your emergency fund money is...
a)
A savings account or money market account.
b)
A safe in your bedroom
c)
A Roth IRA
d)
An envelope in a safe place
10.
Which two habits are the most important for building wealth and becoming a millionaire?
a)
Working a high-paying job and relying on a trust fund
b)
Always paying off your credit card on time and putting extra money into a retirement account
c)
Investing into the right stocks and using a private CPA
d)
Consistently investing money and giving it time to grow
11.
The interest rate on a savings account determines . . .
a)
How much money you need to have to open the account
b)
How much you will pay the bank to manage the account
c)
The amount of time your money will be in the account
d)
How quickly your money will grow over time
12.
is a millionaire's best friend.
a)
Accrued interest
b)
Compound growth
c)
High returns
d)
Profit sharing
13.
Compound interest is earned at a fixed rate, while ______is an average based on an investment's past performance.
a)
The principal
b)
Interest rate
c)
The Fifth Foundation
d)
expected return
14.
What is the goal of an emergency fund?
a)
To pay for large purchases
b)
To save for your children's college expenses
c)
To have cash on hand for unexpected events
d)
To pay for health insurance
15.
What is the Third Foundation?
a)
Pay cash for your car.
b)
Pay cash for college.
c)
Save for retirement.
d)
Create a monthly budget.
16.
Banks and lenders use credit scores to determine . . .
a)
The likelihood that someone is able to repay debt
b)
A person's financial responsibility
c)
How much collateral someone has available to put up for a loan
d)
How successful someone is
17.
Which of the following is part of the formula that determines a person's FICO score?
a)
Their income level during a one year period
b)
The dollar amount in their savings funds
c)
The percent of income that they invest into mutual funds
d)
Their history of payments made to lenders
18.
What is The Second Foundation?
a)
Get out and stay out of debt
b)
Save a $500 emergency fund.
c)
Pay cash for your car.
d)
Build wealth and give.
19.
Credit card companies make the most profit from _____.
a)
Incentive programs with banks
b)
Partnering with companies to offer rewards to customers
c)
Government tax breaks
d)
Charging interest to customers who only pay part of their monthly debt
20.
Which is an example of an appreciating asset?
a)
A computer used for business purposes
b)
A new car purchased within the past 6 months
c)
A piece of farming equipment
d)
A home
21.
Credit cards that offer flashy rewards like airline miles often . . .
a)
Charge a high annual fee
b)
Don't include protection against fraud
c)
Can't be used for personal expenses
d)
Have no interest fees
22.
The smartest way to buy a car is to .
a)
Lease it
b)
Finance it but pay the debt as quickly as you can
c)
Pay for it in cash
d)
Take out a personal loan for it
23.
What is the best way to avoid falling into debt?
a)
Use credit to pay for large expenses now so that you have plenty of time to pay it off.
b)
Only buy things that you can purchase with cash.
c)
Use airline miles earned through a credit card to help pay for a vacation.
d)
Take out a small loan for any purchases over $1,000.
24.
An example of discretionary spending is ________.
a)
Utilities and food
b)
Transportation
c)
Monthly rent
d)
Going to a concert
25.
When you decide to spend $50 on a concert ticket instead of saving it or using it for gas, what is the opportunity cost of your decision?
a)
The price of the concert ticket
b)
The enjoyment you get from the concert
c)
The next best thing you could have done with the $50
d)
The total amount of money you have in your bank account
26.
Why should you never buy the extended warranty?
a)
Retail items and products rarely break or malfunction.
b)
You should buy the extended warranty. It is a smart financial decision.
c)
Most retailers will replace or repair the product if it stops working within the first year.
d)
The retailers never keep their promises.
27.
If you're a victim of card fraud . . .
a)
Contact your bank immediately
b)
Wait until the next week to contact your bank
c)
Wait for your bank to contact you
d)
Call 911 before making any other purchases
28.
You can fund your education by finding the right mix of , , and .
a)
Cash; loans; grants
b)
Grants; scholarships; work
c)
Work; loans; cash
d)
Scholarships; trust funds; federal aid
29.
It takes the average person to pay off their student loan debt.
a)
20 years
b)
10 years
c)
5 years
d)
2 years
30.
FAFSA is the federal application required to . . .
a)
Receive financial aid
b)
Get a part-time job your first semester
c)
Do a work-study program
d)
Get into college
31.
What is The Fourth Foundation?
a)
Pay cash for college.
b)
Pay cash for your car.
c)
Save a $500 emergency fund.
d)
Build wealth and give.
32.
Insurance helps you transfer the ______from your bank account to the insurance company.
a)
Risk
b)
Money
c)
Insurance
d)
Health
33.
Why do you need automobile liability insurance?
a)
To pay for damage or injuries you cause to others in a car accident
b)
To cover the cost of repairs to your own vehicle in all situations
c)
To guarantee lower gas prices and vehicle maintenance costs
d)
To protect against losing value when you sell your car
34.
Comprehensive coverage pays for loss or damage to your car caused by .
a)
Anything other than a collision
b)
Accidents that happen on the road
c)
A collision
d)
Personal injuries
35.
Through the Affordable Care Act, you can stay on your parents' health insurance until . . .
a)
You turn 26 years old
b)
You turn 18 years old
c)
You get married
d)
You move out of the house
36.
The purpose of life insurance is to replace your ________when you die.
a)
Legacy
b)
Health care
c)
Income
d)
Life
37.
The amount of money the insurance company agrees to pay for an incident is called .
a)
Co-pay
b)
Deductible
c)
Claim
d)
Coverage
38.
A high-deductible health plan with lower monthly premiums is a good option for .
a)
The elderly
b)
People who tend to get sick often
c)
Young, healthy people
d)
College students
39.
Umbrella insurance is coverage for . . .
a)
Damage to your home in a severe thunderstorm
b)
Your wardrobe and accessories
c)
Things that fall outside of your home and auto insurance policies
d)
Homeowners who cannot afford insurance
40.
The cap on the total amount of benefits you can get from your insurance company is called .
a)
The deductible
b)
A Health Savings Account
c)
The lifetime limit
d)
Your premium
41.
Explain the difference between a premium and a deductible.
a)
The premium is the regular amount you pay for insurance, while the deductible is the amount you pay out of pocket before insurance coverage begins
b)
The premium is only paid after an accident, while the deductible is paid every month
c)
The premium covers damage to your car, while the deductible covers damage to other people’s property
d)
The premium is optional, while the deductible is required by law
42.
Making smart choices with your money means understanding how...
a)
Earning, budgeting, saving, spending, and giving all affect your money
b)
Planning, saving, spending, and investing shape your financial future
c)
Buying things can change your account balance
d)
To fill out bank deposit slips with the right transactions
43.
One thing you should always have when managing your money is a...
a)
Credit card
b)
Credit line
c)
Direct deposit
d)
Budget
44.
What is the First Foundation?
a)
Pay cash for college
b)
Build wealth and give
c)
Save $500 for emergencies
d)
Open a checking account
45.
To find your net worth, subtract what you owe (liabilities) from your...
a)
Other liabilities
b)
Past savings
c)
Net income
d)
Assets
46.
What does financial literacy mean?
a)
Information in bank statements
b)
Knowing how to manage your money wisely
c)
College financial classes
d)
Being able to read financial paperwork
47.
What does "living paycheck to paycheck" mean?
a)
Planning your spending each month
b)
Not being able to plan beyond your next paycheck
c)
Spending all your income and saving nothing
d)
Not depositing your paycheck
48.
Personal finance is 20% ______ and 80% ______.
a)
Knowledge; behavior
b)
Cause; effect
c)
Reaction; behavior
d)
Behavior; knowledge
49.
What is the Fifth Foundation?
a)
Pay cash for your car
b)
Stay out of debt
c)
Find a financial expert
d)
Build wealth and give
50.
Which of the following is NOT a component of a budget?
a)
Credit score
b)
Saving
c)
Income
d)
Giving
51.
How often should you create a budget?
a)
Daily
b)
Weekly
c)
Monthly
d)
Biannually
52.
What does a budget show you?
a)
How much you need to save
b)
How much money you plan to come in and go out during the month
c)
How much money you need to earn
d)
How much money you spent last month
53.
What does net income mean?
a)
The total amount of money earned before any expenses or taxes are subtracted
b)
The total revenue generated from sales only
c)
The amount of money remaining after all expenses and taxes are subtracted
d)
The total amount of money spent on business operations
54.
What should you do if you overspend in one category of your budget?
a)
Adjust your budget by removing money from other spending categories.
b)
Just leave it. It will probably work out fine.
c)
Take money from the Giving category. You're giving to yourself!
d)
Ask a friend for the money you overspent.
55.
Your monthly rent payment is an example of a variable expense.
a)
True
b)
False
56.
What is the envelope system?
a)
It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash.
b)
It's a systematic approach to budgeting with a digital app that organizes categories based on qualitative amounts.
c)
It's a way to budget that involves putting a credit card in each envelope to use for that category.
d)
It's a system that involves writing your entire budget on an envelope.
57.
What does the Form W-4 estimate?
a)
How much tax you'll owe based on your personal situation.
b)
How much income you should be making.
c)
How much money you'll spend in that fiscal year.
d)
How many tax returns you need to submit.
58.
When someone says they need to file their taxes, they're talking about filling out a_________ .
a)
Federal tax return
b)
Form W-4
c)
Tax liability
d)
Tax bracket
59.
The deadline for filing your income tax return usually falls on
a)
April 15
b)
October 13
c)
August 15
d)
July 4
60.
Why is getting a big tax refund not necessarily a good thing?
a)
It could have been invested instead of giving the government an interest free loan
b)
It guarantees you will owe more taxes the following year
c)
It increases your overall annual income automatically
d)
It reduces your ability to claim deductions in the future
61.
Your rent payment should total no more than _____% of your take-home pay
a)
25%
b)
75
c)
15
d)
50
62.
When you're ready to buy a house, the best option is a _______.
a)
20-year VA loan
b)
15-year fixed-rate conventional mortgage
c)
30-year equity loan
d)
30-year fixed rate mortgage
63.
What is your mortgage principal?
a)
The largest amount of money you are legally allowed to borrow
b)
The down payment needed to get a mortgage
c)
The amount borrowed (that must be repaid) to purchase a home
d)
The first payment you make on your new home
64.
What is a mortgage?
a)
A type of insurance that protects your home from damage
b)
A loan used to purchase a home, usually paid back over many years
c)
A fee paid to a real estate agent when selling a house
d)
A savings account specifically for buying a house
65.
A security that represents part ownership of a company is called a(n)
a)
stock
b)
annuity
c)
mutual fund
d)
bond
66.
When you invest in a mutual fund, you are contributing to a pool of money that will be . . .
a)
Given to hundreds of local charities in your area
b)
Invested in a mix of stocks, bonds and money market accounts
c)
Taxed based on each individual investor's annual salary
d)
Put into a separate savings account for your children to inherit someday
67.
Roth IRA, 401(k), 403(b), and Simplified Employee Pension are all examples of
a)
Tax forms
b)
Mutual funds
c)
Retirement plans
d)
Investment bankers
68.
The three components of compound growth are money, time and
a)
A large paycheck
b)
Investments
c)
Retirement
d)
Rate of return
69.
What does "bull and bear" reference?
a)
The stock market
b)
Mutual funds
c)
Your investments
d)
The real estate market
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