WorksheetsSSPFL1 AND SSPFL2 Review
Total questions: 40
Worksheet time: 20mins
What is the primary purpose of setting savings goals?
To make spending decisions easier
To increase motivation and provide direction for budgeting
To impress financial advisors
To qualify for bank loans
Which of the following best describes a budget?
A list of monthly expenses
A record of past spending
A plan for allocating scarce income among competing uses
A document showing only savings goals
In financial terms, what is net worth?
Total income minus taxes
Assets plus liabilities
Monthly savings minus expenses
Assets minus liabilities
What is the primary distinction between needs and wants?
Needs are required for survival while wants are desirable but not essential
Needs are luxuries while wants are basics
Needs change monthly while wants remain constant
Needs are always more expensive than wants
Which type of expenses remain constant over an extended period?
Variable Expenses
Unplanned Expenses
Fixed Expenses
Seasonal Expenses
What is an overdraft?
Using more money than is available in your checking account
A type of savings account
A method of earning interest
A way to increase credit score
Which of the following is considered a liability?
Savings account balance
Personal property
Investment portfolio
Credit card debt
Why do banks charge overdraft fees?
To encourage savings
To process deposits faster
As both a penalty and to cover processing costs
To increase account balances
How can unposted transactions affect your account balance?
They have no effect on the balance
They make the online balance appear higher than the true balance
They always process immediately
They only affect savings accounts
What is a disadvantage of using debit cards?
PIN or card numbers can be stolen via fraud
They don't work for online purchases
They require a credit check
They always charge interest
Guaranteed pay for every hour worked
Salary
Dividend
Hourly Wage
Tips
Guaranteed pay of a job that is usually based on a contract.
Hourly Wage
Salary
Divident
Piece Rate
Extra money received for a show of gratitude.
Salary
Hourly Wage
Piece Rate
Tips
income agreed upon that is based on a contract where the person is not considered an employee.
Independent Contractor
Salaray
Bonus
Piece rate
Income earned by holding shares of a stock in a company.
Interest
dividends
bonus
tips
Income earned when you sell something for more than you paid for it.
Capital Gain
Capital Loss
Interest
Bonus
a resource with value that an individual owns with expectations of a future benefit.
Dividends
asset
income
investment
a loss from the sale of financial investment at a decreased value
Capital gain
capital loss
delinquency rate
transaction cost
Putting money in a savings account or in any number of other accounts hoping to increase income.
Capital gain
Financial literacy
Financial investment
Financial rate
Income before payroll taxes such as federal income tax and state income tax are taken out.
Net Profit
Business Profit
Gross Profit
Adjusted Profit
¨Wages or salary plus fringe benefits refers to
Compensation package
Salary
Tips
Investment
The lowest hourly wage allowed by law
tips
hourly wage
minimum wage
salary
is paid for hours worked over the 40 hour work week.
Bonus
Piece Rate
Hourly Rate
Overtime
This form of income indicates that an employee has a contract or a specified set of duties.
Tips
Hourly Wage
Salary
Benefits
Income a salesperson receives, often a percentage of the sales price of goods or services they are offering you.
Salary
Benefits
Bonus
Commission
A portion of a company’s earnings paid back to shareholders.
Stock
Dividends
Interest
Wage
What is the primary reason income is considered a scarce resource?
People have unlimited wants and needs but limited income
Most people prefer not to work for income
Income is only available to certain individuals
The government controls all income distribution
How does education level typically relate to unemployment rates?
No relationship exists between education and unemployment
Higher education leads to higher unemployment
Higher education generally leads to lower unemployment
Education only affects employment in certain industries
Which type of income is characterized by fixed regular payments, regardless of hours worked, typically paid monthly or biweekly?
Hourly wages
Salary
Tips
Capital gains
What is disposable income?
Money spent on luxury items
Total income before any deductions
Income remaining after taxes are deducted
Money set aside for savings only
Which of the following is a mandatory payroll deduction?
Health insurance premiums
401(k) contributions
FICA taxes
Union dues
What is the primary characteristic of independent contractor income?
Guaranteed hourly wages
Regular monthly salary
Payment for specific agreed-upon services
Profit from investment sales
Which statement best describes gross pay?
The amount remaining after all deductions
The total amount earned before any deductions
The amount of taxes withheld
The sum of all overtime payments
When should you update your W-4 form?
Only when starting a new job
Every tax season
When significant life changes occur
Once every five years
What happens to your disposable income if your pay stays the same but taxes go up?
It increases
It stays the same
It decreases
It depends
What document shows exactly where your money went in a pay period?
W-4 form
Pay stub
Tax return
Bank statement
Which form determines how much tax is withheld from each paycheck?
W-2 form
1099 form
W-4 form
1040 form
What type of income earner is eligible for overtime pay?
Salaried (exempt) employees
Independent contractors
Hourly (nonexempt) workers
Dividend recipients
Which factor has the strongest direct relationship with income?
Age
Location
Education
Gender
What is a characteristic of capital gains income?
Regular monthly payments
Customer-provided gratuity
Profit from selling investments
Guaranteed hourly rate
