WorksheetsFinal Exam Review
Total questions: 30
Worksheet time: 15mins
What is the main purpose of a budget?
To increase wages
To find your net worth
To plan how to spend and save your money
To calculate your credit score
Franklin works at a technology company in the summer and earns $4000. After federal, state, and Social Security/Medicare taxes are deducted, his take-home pay is $3,200. Which of the statements below is CORRECT?
His gross pay is $4,000 and net pay is $3,200
His gross and net pay are $4,000
His gross and net pay are $3,200
His gross pay is $3,200 and net pay is $4,000
Fill in the blanks with the correct responses. If you follow the 50-20-30 rule of budgeting, you'll be putting 50% of your monthly income toward ____________, 20% of your monthly income toward ____________, and 30% of your monthly income toward ____________.
Kent receives a $2,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?
$100
$400
$500
$1,000
Which tax form is completed when you start a new job and determines how much is withheld from your pay for taxes?
W-9
W-2
W-4
1099
Franklin works at a technology company in the summer and earns $4000. After federal, state, and Social Security/Medicare taxes are deducted, his take-home pay is $3,200. If Franklin deposits his entire paycheck into his checking account, how much money will go into his account?
$4,000.00
$3,200.00
$208,000.00
$17,333.33
Tax that both the employee pays and the employer matches:
401K
FICA
Federal Income tax
Marginal tax
What tax form am I? I am received when you start a job. You use me to prove that you are eligible to work in the U.S., and you must provide forms of identification when submitting me.
Which tax form summarizes how much income you earned and how much money was withheld for taxes?
A 1099
A W-4 form
A 1040 form
A W-2 form
Rachel gets a text alert from the bank that her checking account balance has dropped below $50 after a series of $10 debit card withdrawals. She has not used her debit card in over a week and wonders what she should do. What would you recommend?
Wait until your monthly statement arrives
Close the account and create a new one
Don't worry if you have your debit card in your wallet
Contact your bank immediately because your account has been accessed by someone other than you
Which action would INCREASE the money in Mary’s checking account?
She uses Venmo to pay her mom for her cell phone bill
She uses her debit card to buy a holiday gift
She uses her smartphone to deposit a check from her employer
She uses a prepaid card to pay for a new pair of socks
How would you write 24.20 in the written portion of a check
Twenty Four and twenty cents
Twenty-Four dollars and twenty cents
Twenty-Four and 20/100---------
24 dollars and 20 cents
Inflation is the general rise in prices over time. If your savings account interest is less than the inflation rate, your money is losing value over time.
True
False
How quickly and easily assets can be accessed and converted into cash is called...
Interest
Liquidity
Term
Wealth
What is the purpose of setting up and putting money into an emergency fund?
You use that money in case there is a true emergency expense such as a health expense
You use that money to go to concerts
You use it to pay for a house
It should never be used for any reason
A depository institution account that earns the least amount of interest but is the easiest to access of all savings tools. What is this account called?
Certificate of Deposit
Online Savings Account
Money Market Deposit Account
Traditional Savings Account
Wealth (net worth) is calculated by ...
Adding up all your savings and subtracting the interest
Adding up your income and your debt
Subtracting your total debt from your total assets
Dividing 72 by the interest rate
Using the Rule of 72, calculate how many years it will take for money to double if you earn 10% interest.
10.9 years
7.2 years
9 years
18 years
Which statement best describes the purpose of insurance?
Insurance makes you more wealthy
Insurance increases your credit score
Insurance helps budget your money
Insurance transfers financial risk from you to the insurance company
Insurance companies operate by charging individuals different prices for coverage depending on their risk levels. Then, they collect everyone's monthly premiums together and use the money to make payments when people file a claim. This concept is known as...
Comprehensive coverage
Risk pooling
Underwriting
Risk management
Which statement below correctly describes an insurance term?
A premium is an insurance career field focused on statistics
A deductible is the most the insurance company will pay if you have a claim
A policy is what you pay when you see a doctor and don't have health insurance
The coverage limit is the maximum amount an insurance company will pay on a claim
Which of the following will result in your paying no interest or fees to a credit card company?
Paying 20% of your credit card balance every month
Paying off your balance every month by the due date
Making the minimum payment every month
Paying your balance off in full two days late
If you’re using the Avalanche method of debt management, which debt do you focus on first after you’ve made all of your minimum payments?
Highest balance
Lowest interest rate
Lowest balance
Highest interest rate
Each of the following is a credit bureau in the United States EXCEPT...
Transunion
FICO
Equifax
Experian
Which correctly describes the components of an amortized loan?
TERM is the original amount borrowed and INTEREST RATE is how much total money paid each month
PRINCIPAL is how much owed per month, and TERM is how much owed overall
PRINCIPAL is the initial amount borrowed and TERM is the length of the loan
TERM is the name of the lender, and MONTHLY PAYMENT is how much interest costs each month
Which of the following statements is CORRECT about secured loans?
They are more risky to the lender
They require collateral, in the form of assets like a car or a home, to be exchanged for loan
They usually have higher interest rates
They are only offered on credit cards
Which of the following would have the most positive impact on your credit score?
Close any credit cards you're no longer using
Spend more money on each of your credit cards
Pay late only if you need to
Make all payments on time
In an amortized loan, the shorter your term length, the ____________ your monthly payments, and the ____________ total interest you will pay.
(a)
Which government-run website allows you to download your credit report for free on an annual basis?
creditkarma.com
freecreditreport.com
getcreditreportshere.com
annualcreditreport.com
A type of retirement account that is pre-tax and your employer may match what you contribute.
401K
Roth IRA
Pension
Social Security
