WorksheetsPersonal Finance Test
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
1. A 12-pack of your favorite sparkling water costs $7.20. A 6-pack costs $4. Which is the
better deal and why?
a)
The 6-pack is a better deal because it costs less.
b)
The 6-pack is a better deal because you don’t drink that much.
c)
The 12-pack is a better deal because the price per can is lower.
d)
The 12-pack is a better deal because you drink sparkling water every day.
2.
2. Are sponsored reviews or verified purchaser reviews more reliable? Why?
a)
Verified purchaser reviews are more reliable because the reviewer knows more about the product
b)
Verified purchaser reviews are more reliable because the reviewer isn't being paid for a positive review.
c)
Sponsored reviewers are more reliable because the reviewer is being paid for their honest opinion of the product.
d)
Sponsored reviews are more reliable because the reviewer is an expert in the field.
3.
3. Alida works from home. Which item is a want for her?
a)
Cell phone
b)
Internet
c)
Groceries
d)
Streaming service
4.
4. Which list describes needs?
a)
Shelter, warmth, food
b)
Warmth, entertainment, shelter
c)
Entertainment, electronics, food
d)
Electronics, food, shelter
5.
5. Why is creating a budget important for achieving your financial goals?
a)
Budgeting can help you make smart investments.
b)
Budgeting reduces credit card interest rates.
c)
Budgeting helps track spending and increases savings.
d)
Budgeting allows you to earn more money over time.
6.
6. What does “pay yourself first” mean?
a)
Pay down debt before doing any spending
b)
Put money in your savings account before you pay other expenses
c)
Split your money according to how much you want to spend on each bill or expense
d)
Spend your money on your wants before you spend on your needs
7.
7. Maya is organizing her monthly budget using the 50/30/20 rule. She’s sorting her expenses into needs, wants, and savings. How should she categorize her rent payment?
a)
Needs
b)
Wants
c)
Savings
d)
Debt
8.
8. Derek just opened a new checking account. How can it help him better manage his money?
a)
He can get a greater investment return.
b)
He can earn more interest to save money.
c)
He can check her transaction history easily
d)
He can borrow money and pay it back over time.
9.
9. Using your mobile banking app, you can .
a)
write checks
b)
deposit cash
c)
withdraw cash
d)
deposit checks
10.
10. Overdraft protection helps you cover a purchase in your checking account .
a)
when you lost your debit card
b)
when you don't have enough funds
c)
only if you are investing with your money
d)
only if you are paying with a mobile payment app
11.
11. What is the benefit of a savings account?
a)
A savings account helps you track your spending.
b)
A savings account creates investment opportunities.
c)
A savings account allows you to borrow money.
d)
A savings account earns interest.
12.
12. Why do financial institutions offer you higher interest rates for Certificates of Deposit (CDs)?
a)
They are paying you back for fees and interest that you have prepaid.
b)
The interest you earn is only borrowed and must be repaid at the end of the term.
c)
You must keep your money in the account for a set amount of time.
d)
You'll be required to invest your interest funds with the same institution.
13.
13. Which of the following best describes a loan?
a)
A type of insurance coverage for unexpected losses.
b)
A borrower promises to repay money from a lender.
c)
A government grant for education
d)
A tax deduction for mortgage interest payments.
14.
14. How do loan terms affect the cost of credit?
a)
Longer loan terms have lower monthly payments and lower interest.
b)
Shorter loan terms have higher monthly payments and lower overall interest.
c)
Loan terms are based on your pay schedule and how often you get paychecks.
d)
Loan terms only apply to loans with collateral but do not apply to those without collateral.
15.
15. A positive return on investment for education happens when .
a)
your earnings potential is higher than the cost of your education
b)
you calculate earnings after working for one year after college
c)
you attend a public university and do not take out loans
d)
you use federal student loans to attend a private college
16.
16. The total cost of attending a university includes .
a)
tuition, housing, food, books, and other costs
b)
student loans and federal grants
c)
tuition, scholarships, grants, and loans
d)
scholarships, grants, and other forms of financial aid
17.
17. Marcus became a graphic designer by starting his studies at a technical school, then transferring to a bachelor’s degree program at a state university. How likely is it that he will have a positive ROI (return on investment) for his education?
a)
Very likely, because attending college guarantees a job after graduation.
b)
Not at all likely, because he did not attend a four-year college for all four years.
c)
Very likely, because he spent less money the first two years of college and is currently employed.
d)
Not at all likely, because he is not in a profitable career field.
18.
18. Which type of financial aid is considered free money?
a)
Grants
b)
Work-Study programs
c)
Federal student loans
d)
ROTC
19.
19. Which of the following is considered part of your workplace benefits?
a)
Increased work experience
b)
Life insurance
c)
Your salary
d)
A short commute
20.
20. Which of these things would be considered an advantage of gig employment?
a)
Lack of benefits
b)
Providing your own transportation
c)
Paying for your own supplies
d)
Having a flexible schedule
21.
21. What is withholding tax?
a)
Money an employer deducts from an employee’s wages to pay to the government.
b)
Money that is used to pay for an employee’s health insurance benefits
c)
Money that is used to contribute to an employee’s retirement 401(k) plan.
d)
Money that the employee receives after deductions are taken out of a paycheck.
22.
22. Maria works as a customer service representative. Her earnings before taxes are $2,100 every two weeks. What does the $2,100 represent?
a)
Her net pay earnings
b)
Her gross pay earnings
c)
The amount she pays for FICA tax
d)
Her standard deduction
23.
23. Samantha just started a new job. She earned $2,000 for two weeks of work, but her paycheck was only for $1,250. What is the most likely reason for this difference?
a)
She did not account for withholding taxes or deductions.
b)
She chose not to fill out a W-4 form when she started her job
c)
She declined to participate in the company's 401(k) plan.
d)
She declined health insurance coverage.
24.
24. Lewis accidentally broke a neighbor’s window while playing baseball. His homeowner’s insurance company told him he needed to pay $300 before they would cover the rest of the repair costs. What does the $300 most likely refer to in this insurance policy?
a)
His comprehensive insurance
b)
His homeowner’s insurance premium
c)
His health care copay
d)
His homeowner’s insurance deductible
25.
25. What is the main purpose of having auto insurance?
a)
To protect yourself against unintentional costs and financial losses
b)
To be able to legally drive a car with other passengers across the U.S.
c)
To get out of paying any money out of pocket in case you get in an accident
d)
To elect a cost saving premium so you can save the most amount on your policy
26.
26. What type of tax provides income to people after they retire and supports people with
disabilities?
a)
Income tax
b)
State and local taxes
c)
Social Security
d)
Property tax
27.
27. What is the key difference between a deduction and a credit?
a)
Deductions are used for future tax bills, and credits are used to help with past tax bills
b)
Deductions reduce the amount of income that can be taxed, and credits reduce the amount of taxes you owe.
c)
Deductions report your spending, and credits report how much you borrowed.
d)
Deductions refer to money spent on goods, and credits refer to money spent on services.
28.
28. What is the name of the marketplace where people buy and sell shares of companies?
a)
The capital market
b)
The stock exchange
c)
The trade bank
d)
The financial market floor
29.
29. Which professional regularly follows financial news to help clients make decisions about buying and selling investments?
a)
Designated Market Maker (DMM)
b)
Bank Teller
c)
Broker
d)
Reporter
30.
30. Getting $100 today is worth more than getting $100 a year from now because…
a)
time does not impact the value of money.
b)
you don’t know what might happen tomorrow.
c)
you can invest it now and it will start to grow.
d)
you don’t have to wait to spend the money.
31.
31. What are some benefits you might experience in the future if you maintain a strong credit history over time?
a)
It lets you buy the things you want like clothes or cellphones.
b)
It gives you freedom to shop around for the best deal on tech.
c)
It prevents you from spending money on things you want instead of things you need.
d)
It's easier to pay for major purchases like cars, houses, and education.
32.
32. Which is the best strategy for paying your credit card bill?
a)
Make no monthly payments at all.
b)
Pay the minimum payment every month.
c)
Pay half the balance every month.
d)
Pay the entire balance every month.
33.
33. What is the best definition of a credit report?
a)
A number that shows a snapshot of your credit at a specific moment in time
b)
A number that shows how much of your overall credit you're using
c)
A period between when you spend money and when the company charges you interest
d)
A history of how you pay back loans and credit cards
34.
34. What habit lowers your credit score?
a)
Paying your bills late
b)
Decreasing your credit card balance
c)
Scheduling automatic bill payment
d)
Checking your credit report
35.
35. In what way can gaining more education or training impact your earning potential?
a)
Education leads to higher earnings when it gives you knowledge or skills for an in-demand career path
b)
Education takes a lot of time, so your earning potential is lower when you're in school instead of working and earning money.
c)
Since education requires loans that have a lot of interest, you pay more than you're able to earn.
d)
Education always leads to higher earnings because it gives you more knowledge and skills.
36.
36. Why is it important to list and prioritize your short-, mid-, and long-term goals ahead of time?
a)
So you know where all of your money is going
b)
So that you can buy all the items you want
c)
So you give yourself time to save for them all
d)
So that you don’t spend any of your money
37.
37. Emily brings home about $2,400 each month. She spends $1,200 on rent, utilities, and groceries, $800 on entertainment and eating out, and puts the remaining $400 into savings and paying off her student loans. What money management strategy is Emily using?
a)
Pay yourself first
b)
The 50-30-20 Method
c)
The Categories Method
d)
Investing in stocks
38.
38. Why is putting even a small amount into savings from every paycheck a smart money habit?
a)
Because it allows you to pay all your bills
b)
Because even small amounts add up with interest
c)
So you will be prepared for every emergency expense
d)
Because it is a quick way to improve your credit score
39.
39. Why do some consider buying a house to be "good debt"?
a)
It increases your net worth as it builds equity
b)
It gives you a place to live for a long time.
c)
It is worth more than any other investment.
d)
It decreases in value over time.
40.
40. How can you reduce the habit of living paycheck to paycheck?
a)
Invest in retirement.
b)
Take out more credit cards.
c)
Take out a personal loan.
d)
Live within your means.
41.
41. What is interest?
a)
A reward for maintaining a certain available balance in a checking account.
b)
The money a bank pays you for allowing them to use your money.
c)
A reward for avoiding penalties on a checking account.
d)
Bonuses given for using a debit card
42.
42. Higher education typically has a positive return on investment because _____.
a)
many of the classes you will take will help you see the world in a new way
b)
you will form some long lasting friendships that will have a positive impact on your life
c)
you can earn credits over the summer and finish school early
d)
jobs and careers that require a degree or certificate generally earn higher salaries
43.
43. Keith learned about how supply and demand influence pricing and wants to apply these principles to his online jewelry making business. Which of these will cause his jewelry prices to INCREASE?
a)
Less jewelry supply when demand increases
b)
More jewelry supply when demand decreases
c)
Same supply of jewelry when demand decreases
d)
More jewelry supply when demand remains constant
44.
44. _____resources are essential, human-made items for producing goods or services.
a)
Capital
b)
Human
c)
Natural
d)
Renewable
45.
45. _____resources include labor, skills, and knowledge.
a)
Capital
b)
Human
c)
Natural
d)
Renewable
46.
46. Murielle owns a bakery in a college town and usually sells 50 loaves of bread every day. During summer break, many students leave town, but Murielle continues to bake the same amount of bread. What might happen to Murielle’s bread supply over the summer?
a)
Surplus
b)
Balance
c)
Shortage
d)
Equilibrium
47.
47. Which situation is most likely to happen in a growing economy?
a)
Marge’s Coffee, a new business, isn’t able to innovate their coffee making process because money is tight.
b)
Maxwell was able to finish a design bootcamp and interview at many companies until he finds the job he likes best.
c)
Sarah is settling for a job that she doesn’t want but she needs the money and there aren’t any other options.
d)
Thrills Park delays building the new roller coaster until they can get a bank loan.
48.
48. Which economic indicator represents all the things you buy or do with your money?
a)
Consumer price index
b)
Inflation
c)
Stock market trends
d)
Gross Domestic Product (GDP)
49.
49. A dividend is...
a)
a type of interest you earn from government bonds once the bond reaches maturity.
b)
a payment you get from a company's profit when you own stock shares.
c)
a method of measuring the time value of money over a defined period of time.
d)
a period of time that you monitor an investment's potential for growth.
50.
50. Which professional regularly follows financial news to help clients make decisions about buying and selling investments?
a)
Designated Market Maker (DMM)
b)
Bank Teller
c)
Broker
d)
Reporter
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