WorksheetsPersonal Finance Midyear Study Guide — Mixed Practice (1–50)
Total questions: 50
Worksheet time: 25mins
What is one benefit of reviewing your credit report?
It instantly raises your score
It guarantees loan approval
It helps you spot errors or fraud
It lowers all interest rates
Which financial product usually has the highest interest rate?
Mortgage
Federal student loan
Credit card
Auto loan
You swipe your debit card at a restaurant. Where does the money come from?
A short-term bank loan
Your checking account
Your savings account
Your credit card company
Which action is most likely to increase your credit score?
Closing old accounts
Paying bills on time
Avoiding all credit
Maxing out credit cards
A loan with a shorter term usually has _____ monthly payments and _____ total interest.
Lower, higher
Higher, lower
Higher, higher
Lower, lower
Which of the following would NOT appear on a credit report?
Credit card payment history
Auto loan activity
Salary from your job
Student loan information
Which person is MOST at risk for identity theft?
Someone who checks bank accounts on public Wi‑Fi
Someone who uses strong, unique passwords
Someone who shreds documents
Someone who avoids sharing personal info online
Why do lenders look at credit scores before approving loans?
To determine your age
To decide how much money you have saved
To predict how likely you are to repay
To calculate your taxes
What is the principal of a loan?
The interest charged
The monthly payment
The original amount borrowed
The total amount repaid
What does a low-balance alert do?
Freezes your account
Prevents overdrafts automatically
Transfers money from savings
Notifies you when your balance drops
Which statement best explains saving vs. investing?
They are the same
Investing is safer than saving
Saving is lower risk with predictable returns
The difference depends on account balance
What is the most effective saving strategy?
Saving whatever is left at the end of the month
Automatically saving part of each paycheck
Using a payday loan to save early
Saving only after wants are paid
To qualify for federal financial aid, students must complete the:
Financial aid award letter
College application
FAFSA
Credit report
Why is making only the minimum credit card payment risky?
The account will close
You will pay more interest over time
Your credit limit disappears
The card becomes inactive
Which is an example of financial aid you do NOT repay?
Private loan
Federal loan
Credit card
Scholarship
What does “net price” mean when comparing colleges?
Tuition before aid
Total housing cost
Cost after grants and scholarships
Monthly loan payment
What does it mean if your credit utilization is high?
You have many bank accounts
You are using most of your credit limit
You paid off all debt
You have no credit history
Which loan type may change interest rates after a few years?
Fixed-rate loan
Adjustable-rate loan
Federal loan
Short-term loan
Which expense is considered a need?
Concert tickets
Streaming subscriptions
Housing costs
Dining out
Which budgeting breakdown matches the 50–30–20 rule?
Wants, needs, savings
Needs, wants, savings
Savings, needs, wants
Wants, savings, needs
Why do credit card companies prefer minimum payments?
It’s required by law
It helps customers close accounts
It increases interest earned
It lowers company risk
Which behavior shows smart financial decision‑making?
Ignoring fees
Borrowing without reading terms
Comparing financial options
Spending before checking balance
Emma wants the lowest possible monthly car payment. What should she do?
No down payment, short loan
Larger down payment, longer loan
Smaller down payment, short loan
No down payment, longer loan
What is one advantage of using a debit card?
You can overspend
Interest is charged
You spend money you already have
It builds credit automatically
What is the main purpose of an emergency fund?
To invest aggressively
To improve credit
To cover unexpected expenses
To pay for luxury items
Why is college often considered a good financial investment?
Graduates never have debt
Graduates earn more over a lifetime
Tuition buys school ownership
College guarantees a job
Which online banking feature is NOT guaranteed?
Balance checks
Electronic transfers
Elimination of overdraft fees
Transaction history
A credit card has a 1,200limitanda 900 balance. How much is available?
$300
$900
$1,200
$2,100
Which factor most impacts a credit score?
Income
Payment history
Age
Number of accounts
Which situation best protects against identity theft?
Reusing passwords
Ignoring alerts
Monitoring accounts
Sharing login info
What happens when interest is charged on a loan?
You pay less overall
The lender loses money
Total repayment increases
The loan shortens
Olivia’s paycheck is smaller than expected. Why?
Employer lowered her wage
Payroll processing fees
Taxes and required deductions
Student wages are lower
Which account is best for everyday spending?
Savings
Investment
Checking
Retirement
Which action could LOWER your credit score?
Paying early
Missing a payment
Keeping balances low
Checking your report
Why is investing riskier than saving?
It’s illegal
Returns are not guaranteed
Banks don’t allow it
Savings lose money
What does a fixed-rate loan mean?
The rate changes monthly
The rate stays the same
Payments increase yearly
No interest is charged
Which debt payoff strategy minimizes interest?
Snowball
Minimum payments
Avalanche (highest rate first)
Consolidation
What should you do if you see an unfamiliar charge?
Ignore it
Cancel your card without calling
Contact the bank immediately
Wait for next month
What does the interest rate represent?
Length of the loan
Total amount repaid
Cost of borrowing per year
Monthly payment amount
Which expense category includes car insurance?
Wants
Needs
Savings
Entertainment
What is one downside of public Wi-Fi banking?
Slower speed
Data theft risk
Higher fees
Forced overdrafts
What is the best option for paying for college if available?
Private loans
Federal loans
Work-study
Grants and scholarships
Which advice is LEAST helpful when choosing a financial product?
Comparing features
Researching options
Reading fine print
Copying your parents
What is the term of a loan?
Total interest paid
Monthly payment
Length of time to repay
Lender name
What is one benefit of debit over credit?
Builds credit
Charges interest
Uses existing funds
Extends spending power
Which situation explains why adjustable-rate loans are risky?
Rates never change
Payments may increase later
No interest is charged
They have shorter terms
Who is incorrect about credit?
“Closed accounts stay on reports for years”
“Paying cards off helps your score”
“Longer credit history helps”
“Turning 18 guarantees high-limit approval”
What happens when credit utilization stays low?
Score usually improves
Credit disappears
Accounts close
Interest increases
Why might someone choose a longer loan term?
To pay less interest
To increase payments
To lower monthly payments
To avoid interest
Which statement about checking accounts is true?
They earn high interest
They are best for long-term investing
They are used for regular transactions
They eliminate overdrafts
