Download PF Pretest

Student Name: ______________________
Teacher:
______________________
District:
Robeson
Test:
9_12 Shared Courses BF05 - Personal Finance Exam 1
Description:
Personal Finance 90% Benchmark (New Curriculum)
Form:
501
Date: ___________
1. Jenna wants to improve her financial well-being. Which of the following would
contribute the most to her financial well-being?
A. Take a personal finance class to learn how to manage her money.
B. Pay her grandma back the money she borrowed to take a school trip last year.
C. Talk to her friends about how to manage her money better.
D. Open another checking account to help her organize her money.
2. Jacob is wondering how he can improve his intellectual well-being. Which of the
following would contribute the most to his intellectual well-being?
A. Go to the gym three times per week.
B. Challenge himself by taking on a new project at work.
C. Join a local service organization.
D. Take a vacation from work.
3. Sylas is studying financial planning in one of his classes. His teacher has assigned him to
create a timeline of his financial future. Where should the end of his financial planning
timeline be set?
A. When his financial goals have been established.
B. When he money management plan has established high well-being.
C. When he is 70-years-old.
D. Never – it is an ongoing process.
4. Ian has been shopping for a different vehicle for the past several months. He needs
something reliableand would really like something with a nice sound system. He and his
parents have talked about how much he can afford and he plans to stay within the price
guidelines he and his family have set. Ian was analyzing the opportunity cost of a tradeoff regarding which car to purchase. Which situation best represents what he might be
thinking through?
A. Ian is comparing new vehicles at two car dealerships. He was able to find nearly
identical cars at nearly identical prices. One dealership is 20 miles away and the other
dealership is 30 miles away.
B. Ian has found two different cars at a local dealership that meet his needs. The first car
has a better sound system than the other. The second car has 20,000 fewer miles on it.
C. Ian has been shopping for a vehicle online. He finds something that would meet his
needs being sold by an individual near him. He would be able to purchase this car for
less than he would have paid for a comparable vehicle at a car dealership.
D. Ian's older brother is trading vehicles and offers to sell Ian his used vehicle. This
vehicle would meet Ian's needs and he knew the service history of the vehicle was
excellent.
5. Which of the following factors is not influenced by values?
A. Everything is influenced by values.
B. An individual's daily decisions.
C. An individual's long-term decisions.
D. An individual's financial decisions.
6. Megan's mother suggested that she was experiencing the consequences of her trade off
regarding a decision she made to purchase a dress for prom. Which situation does
Megan most likely find herself in for her mother to have made this comment?
A. Megan had shopped at several stores when she found the prom dress of her dreams
and purchased it. She used the money she had saved for the prom dress PLUS most of
the money she had saved for replacing the tires on her car. Now the tires need
replacing and Megan is short on the cash needed to do the job.
B. Megan had shopped at several stores when she found the prom dress of her dreams.
She checked online and found a coupon that enabled her to save 30% when she
returned to the store to purchase the dress.
C. Megan had shopped in several stores and found six prom dresses she liked a lot. She
brought 2 friends shopping with her to tell her which one looked best on her. After
much deliberation, she chose the dress that was the least expensive of the 3 she liked
best.
D. Megan had shopped in the store her mother recommended for her prom dress. She
found two dresses she liked a lot. Megan purchased the one that was the most
comfortable even though it cost $28 more than the other one.
7. Kaylee will save her allowance of $25 per month to purchase a $150 mp3 player in six
months. This is an example of what type of goal?
A. Short-term goal
B. Long-term goal
C. Mid-term goal
D. This is not an example of a goal.
8. One element of a financial goal is missing in the example below. Which one is it? "I will
save $150 each month to go on a vacation in one year.
A. Time Bound
B. Specific
C. Attainable
D. Measurable
9. Samantha wants to be able to use funds in her checking account but finds going to the
bank to withdraw cash to be inconvenient. She would like a more effective way to access
her checking account funds. What would you suggest she do?
A. Apply for mobile banking. That way she can access her money with her smartphone to
pay for the things she needs. The amount she spends would automatically be deducted
from her savings account.
B. Apply for a debit card. That way she can use the card instead of cash to purchase the
things she needs and the amount spent is immediately deducted from her account.
C. Apply for a credit card. That way she can use the card to purchase the things she
needs and pay for it when the credit card statement comes from her checking account.
D. Request a cashier's check from her depository institution. That way she can spend
money from her checking account without risk of an overdraft fee.
10. Sanjay is concerned about the safety of the money in his savings account. Which type
of depository institution should he choose?
A. A commercial bank, since his deposits would be insured by the Federal Deposit
Insurance Corporation (FDIC)
B. A credit union, since his deposits would be insured by the National Credit Union
Association (NCUA)
C. He could safely choose either a commercial bank or a credit union, as long as his
savings account balance meets the insurance requirements.
D. Neither a commercial bank nor a credit union. Money is most safely kept at home in a
personal safe or vault.
11. Common fees that may be charged by a depository institution include all EXCEPT:
A. Overdraft fee
B. Late fee
C. ATM fee
D. Minimum Balance fee
12. A key difference between commercial banks and credit unions is that:
A. Commercial banks are 'for-profit' and credit unions are 'not-for-profit'
B. Commercial banks typically pay higher interest rates than credit unions.
C. Credit unions are more commonly located in rural area while commercial banks are
more commonly located in urban areas.
D. Commercial banks offer more services, such debit cards, and online banking, than
credit unions.
13. David made a mistake in his checking account recordkeeping and spent $10 more than
he had deposited in his account. As a result, he can expect to be charged a(n):
A. ATM Fee
B. Contact Fee
C. Safe Deposit Fee
D. Overdraft Fee
14. Which statement is TRUE about Payroll Taxes?
A. Payroll taxes are paid are paid on both earned and unearned income.
B. Payroll taxes fund different operations and programs of the federal government.
C. Payroll taxes fund the Social Security and Medicare programs.
D. The amount of tax paid depends on many different factors but increases as income
increases.
15. Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline
tickets are called which kind of taxes?
A. Sales
B. Excise
C. Federal use
D. property
16. Dane is researching the topic of property taxes for a presentation he is doing in his
Personal Finance class. He has come across the following statements he is considering
adding to his presentation. Which should he EXCLUDE from his presentation because
it is not correct?
A. Property taxes are assessed at the same rate for all types of property, including homes,
land and building, regardless of location or whether they are used for business or
personal use.
B. Property taxes are usually charged by state and local governments to pay for local
schools and other services and expenses incurred by these governments.
C. Property taxes are commonly paid on automobiles. This tax usually paid once per
year when the automobile is licensed.
D. Property tax on homes, land and buildings are usually only paid once or twice each
year.
17. As Mariah was looking over her sales receipt for the shirt she bought at a retail store,
she discovered that she was charged 6% more than the price tag showed for the item.
What is this extra 6% charge most likely to be?
A. An excise tax on the shirt she purchased.
B. Property tax on the shirt she purchased.
C. Income tax on the shirt she purchased.
D. Sales tax on the shirt she purchased.
18. Austin has just received his first paycheck. He worked 22 hours at his new job and is
being paid $8.00 per hour. He calculated that his paycheck should be $176. His
paycheck amount is almost 1/3 less than he expected. What is the most likely reason
that Austin's pay is less than he expected it to be?
A. Austin calculated the hours he worked without deducting the hours he spent doing onthe-job training.
B. Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at
his job.
C. Austin neglected to deduct the amount required to pay income and payroll taxes.
D. Austin's employer made a mistake calculating the number of hours Austin worked
during his first pay period.
19. To increase his net worth, Jackson could:
A. Increase his liabilities
B. Decrease his assets
C. Increase his market value
D. Increase his assets
20. Jonah is writing down his liabilities to complete his Statement of Financial Position.
The item he should include would be:
A. The market value of his car
B. The value of his retirement account
C. The combined total of his savings and checking accounts
D. The balance on his credit card
21. To calculate her net worth Jordyn should use the following formula:
A. Assets – liabilities = net worth
B. Assets x liabilities = net worth
C. Assets + liabilities = net worth
D. Assets / liabilities = net worth
22. Which of the following would most likely be considered a contractual expense?
A. Cell Phone
B. Food
C. Entertainment
D. Clothing
23. Andy is developing an Income and Expense Statement. He has gathered all his
receipts, bank statements, paycheck stubs, and spending records. He needs to
categorize them into income and expenses. He is unsure which of the following items
should be recorded as expenses. Which should be recorded as expenses?
A. Taxes deducted from his paycheck, money saved from his paycheck for emergencies,
and his car insurance
B. Money saved from his paycheck for emergencies, interest paid on his car loan, his tax
refund from filing last year's tax return
C. The scholarship he receives for studying Chinese at the local community college, his
car insurance payment, and stock dividends he received from his grandmother
D. Clothing he purchased for a job interview, tuition for a class he is taking at the local
community college, and interest from his savings account
24. If expenses were to exceed income on a spending plan, what would be a financially
smart solution?
A. Decrease expenses
B. Use a credit card more often
C. Earn less income
D. Increase purchases
25. Diana and Aaron have decided to develop a spending plan to help them gain control
over their finances. Which of the following statements is NOT TRUE about spending
plans?
A. Spending plans are used to record planned income.
B. Spending plans are used to record planned expenses.
C. A spending plan includes items NOT usually included when creating a budget.
D. When creating a pending plan, it is recommended that you examine your trade-offs
and opportunity costs.
26. When is your spending plan complete?
A. When you have allocated all your income into categories for the month.
B. When you have all of your current income and expenses recorded.
C. Spending plans are always under revision so they are never complete.
D. Spending plans are complete each December 31st as one year ends and another year
begins.
27. Individuals with more formal educational training usually have:
A. higher estimated lifetime earnings
B. lower personal satisfaction
C. greater amounts of leisure time
D. more comfortable work environments.
28. One's Lifestyle is to their Standard of Living as present is to _?
A. Past
B. Recent
C. Future
D. Gift
29. Miranda is working to develop a broad base of transferable skills. This means that she:
A. Needs to maintain at least a part time job during the school year.
B. Use her available hours outside of school for paid employment rather than
volunteering.
C. Will not have as much time to develop her human capital.
D. Will have a set a versatile skill that she can apply to many personal and professional
roles.
30. Which of the following statements is NOT true?
A. Most people have several careers throughout their lifetime.
B. Jobs are paid positions.
C. People can develop human capital in a variety of ways.
D. Transferable skills can be applied to many personal and professional roles.
31. Eric is writing a paper on the importance of investing in yourself and he is looking for
a sentence to use as the thesis statement for his paper. Which sentence below would be
the best choice?
A. Completing your college degree is the best way to prepare for a career.
B. Education pays in higher earnings and lower unemployment rates.
C. Human capital and transferable skills result from formal training.
D. Investing in yourself too early can lead to a lower standard of living.
32. In order to make an informed career decision, a high school student will want to:
A. commit to a profession that requires a college degree
B. choose a career that offers the amount of money desired
C. develop personal goals, complete a career assessment, and research careers
D. choose a training program that will guarantee employment after the course work is
completed
33. Career assessments help to identify:
A. the job an individual should have if he/she wants high well-being
B. positions available in a particular occupation
C. fastest and slowest growing careers in a particular occupation
D. possible career areas related to one's interests
34. Zoe has been assigned by her school counselor to complete a career assessment. Which
statement BEST describes why her counselor has suggested she do this?
A. Her counselor wants Zoe to find a career that will provide a high level of income to
support Zoe's lifestyle and wellbeing.
B. Her counselor wants Zoe to match her skills, abilities, interests and values with a list
of specific occupations.
C. Her counselor wants Zoe to conduct interviews with people in her area of interest to
determine if she truly enjoys the career she wants to prepare for.
D. Her counselor wants Zoe to search for a career that will allow occupational flexibility
and provide for possible career advancement as she gains more experience working in
her selected career.
35. Which statement is TRUE regarding college-level expectations for studying and
completing projects?
A. It is best to study alone in a quiet environment.
B. Plan backwards from major deadlines.
C. Multi-tasking during study time develops the important skill of working while being
distracted, so it is okay to message with friends or watch TV while studying.
D. The busier your schedule gets, the more important it is to write down only the most
critical tasks to be done. Wasting time writing down smaller details is not
recommended.
36. When Charles received his college placement test results, he is informed that he will
need remediation in math. Which situation IS NOT TRUE of Charles' situation?
A. Charles will need to take at least one course because he is not college-ready.
B. Since the remedial courses Charles must take will not count toward his degree , he
needs to take the courses but tuition is not charged.
C. Charles should have taken a placement test earlier in high school so he could
strengthen his academic skills before heading for college.
D. Remediation courses do not count toward his degree program so he may need to take
extra credits and his college degree may take longer to complete.
37. Mallory has set a career goal of becoming a veterinarian but does not have the money
to complete this goal without taking out very large student loans. She decides to attend
a 2-year program in to become a veterinary technician, and then work for 3 years in
that field while she saves money for her remaining 2 years of college and veterinary
school. Mallory's plan is known as a/an:
A. Career pathway
B. Opportunity cost
C. Debt-to-income ratio
D. SMART goal
38. It is recommended that your educational loan payments require no more than 10-15%
of your estimated starting income. To calculate this amount, students need to calculate
the of their education and training.
A. Opportunity cost
B. Career pathway
C. Benefit
D. Debt-to-income ratio
39. Carson's family has always struggled financially due to his parents' leaving high school
before graduating and working lower paying jobs to support the family. His parents
don't want him to make the same mistake and are encouraging him to apply for
scholarships and any type of student aid he might qualify for. Which application will
determine which typed of need-based aid he will qualify for?
A. Perkins Federal Loan Application
B. Direct Subsidized Stafford Loan Application
C. Federal Work Study Application
D. Free Application for Federal Student Aid (FAFSA)
40. Sean plans to attend college in 2 years. He and his family have saved some money to
help pay for it but he want to explore ways he can receive money he WON'T need to
repay. Which set of options below should he explore?
A. Federal Perkins Loans, PLUS and local bank loans
B. Federal Student Grants, PLUS Loans, and scholarships
C. Pell Grants, Work-study, and scholarships
D. Work-study, scholarships and PLUS Loans
41. Steven is considering taking a job with a company that is offering gym memberships,
flexible hours, repayment of education loans, merchandise discounts, and childcare.
These components of the job offer are called:
A. employee benefits
B. job perks
C. work incentives
D. competitive hiring practices
42. When Rob graduated from college he considered two different job offers before
accepting his job as an accountant in the IT department of a local manufacturing
plant. He loves that he can walk or ride his bike to work each day. He also loves to
travel and his job will require him to travel several times each year to conduct audits
in manufacturing plants throughout the US, Europe, and Asia. He receives a monthly
salary and his employer pays his health insurance. His employer also matches the
funds he saves in his personal retirement account. Rob has always been very healthy
but he appreciates knowing that he has several days of paid sick leave each year if he
needs them, along with 1 week of paid vacation. His company is encouraging him to
complete the classes he needs to earn his CPA by paying for half of the tuition for the
classes he needs to take. Rob's parents asked him what employee benefits his employer
was providing. Which would be considered
A. monthly salary
B. location within walking distance of his apartment
C. paid sick leave
D. travel opportunities
43. Susan is currently working in Kansas City, MO earning $30,000 per year. She is
offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City's Cost
of Living Index is 100 and Indianapolis' Cost of Living Index is 125, which is true?
A. Susan will have more spending power if she moves to Indianapolis.
B. Susan will have more spending power if she stays in Kansas City.
C. Susan will have the same spending power in Indianapolis as she has in Kansas City.
D. There is not enough information to decide.
44. The average cost of basic necessities, such as housing and food for a particular city is
call the:
A. Standard of Living
B. Lifestyle
C. Cost of Living
D. Economy of Living
45. Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets
paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax,
$33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is
Bob's net pay on his paycheck?
A. 501.66
B. 363.32
C. 576.92
D. 640
46. Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets
paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax,
$33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is
Bob's gross pay on his paycheck?
A. 501.66
B. 320
C. 576.92
D. 640
47. Shannon is reviewing her pay stub to determine how much money she earned before
her deductions were subtracted. Which column should she check to find this amount?
A. Net Income
B. Hours and Earnings
C. Employer Contributions
D. Gross Income
48. Jamie has elected to be paid by direct deposit at her new job. This means .
A. She will receive her paycheck mailed directly to her each pay period.
B. She will receive her pay directly into her checking account at her depository
institution for each pay period.
C. She will receive her pay automatically loaded onto her payroll card at the end of each
pay period.
D. She will receive her paycheck delivered directly to her at her place of employment at
the end of each pay period.
49. The most secure method for an employer to pay employees is to use:
A. direct deposit
B. payroll card
C. printed paycheck
D. in-store credit
50. The regular schedule that employers pay their employees is called the
.
A. worker's compensation
B. pay period
C. employee benefits
D. employer contributions
51. Erica is an active member of the Silver Cord program at her school. Through this
program she commits to completing at least 25 hours of community service each year
of high school. Her advisor has encouraged her to explore volunteering with non-profit
organizations. Which of the following would qualify as a non-profit?
A. An extra-curricular activity in her school
B. The local private day care center
C. Big Brothers/Big Sisters
D. Her elderly neighbor who needs yard work done
52. Steven is moving into his first apartment in a few weeks and has been busy packing. In
addition to the things he has purchased with money earned from his full-time job, his
parents have told him that he can take the furniture in his bedroom and his bedding
when he moves out. His parents are providing for him with which type of income:
A. earned income
B. in-home income
C. gift income
D. in-kind income
53. Medicare is provided by the Federal Government for individuals in specified
circumstances. In which of the situations below would the individual most likely be
receiving Medicare funds?
A. Jim is a 37 year old man who lost his job and is unable to afford health insurance for
himself or his children.
B. Ivan is 60 years old and was injured at work. His employer needs to provide
temporary
C. income for him.
D. Rachel is a seventeen year old high school student who is pregnant and needs
assistance with her medical expenses.
54. Which statement is true of government assistance programs?
A. Government programs were designed to provide permanent assistance to those in
need.
B. The ultimate goal of government programs is for individuals to become self-sufficient
and independent.
C. Government programs were developed to help one specific socio-economic group.
D. All government programs vary from state to state.
55. Due to unexpected circumstances, Ariel is temporarily receiving income from a
government assistance program. The funds she receives through the government
program are most likely funded by:
A. small fees proportional to income of clients
B. fees that are charged to some, but not all, clients using the programs
C. taxes at the local, state, and federal levels
D. donations from large corporations
56. Julie is a single mother who recently lost her job. She would like to obtain training in
the medical field in order to increase her future income and support her two children.
In order to do this, she field in order to increase her future income and support her
two children. In order to do this, she will need help paying some of her expenses while
she is going back to school. Which government program might offer her assistance to
help with living expenses and job training?
A. Earned income tax credit
B. Unemployment insurance
C. TANF
D. Medicare
57. Dylan is preparing a presentation about saving and the presentation rubric says that
he must include an explanation of compounding interest. Which of the following
statements would be the best one to include in his presentation to show that he
understands compounding interest?
A. interest earned on the principal investment
B. any form of interest earned from saving or investing
C. earning interest on interest
D. the effect interest has on the total return on investment
58. Which statement best reflects the philosophy of "pay yourself first?
A. An individual should save whatever money is left over after paying monthly bills.
B. An individual should pay all fixed expenses before paying flexible expenses.
C. An individual should set aside a predetermined amount of money for saving before
using any of that money for spending.
D. An individual should spend money on the items and activities enjoyed in life before
paying any other expenses
59. Compound interest is best defined as:
A. Interest earned on the principal investment
B. Any form of interest earned from saving or investing
C. Earning interest on interest
D. The effect interest has on the total return on investment
60. In relation to the other options, how liquid is a savings account?
A. More liquid than cash
B. Less liquid than mutual funds
C. More liquid than a Certificate of Deposit
D. More liquid than a checking account
61. Which of the following statements correctly describes the security level of savings
tools?
A. Savings tools are not secure because they have a high risk of losing money.
B. Savings tools are secure because they are protected by the U.S. government against
loss.
C. Savings tools are very secure because there are not risks involved with saving or
investing.
D. None of the above is true. It would be safer to keep the money at home in a shoe box.
62. Which of the following is a feature of a certificate of deposit (CD)?
A. Funds deposited in a CD are held for a certain length of time.
B. Funds deposited in a CD have tiered interest rates.
C. Funds deposited in a CD are very liquid.
D. Funds deposited in a CD can be accessed via check or debit card.
63. Which of the following is not true in regards to investing in stock?
A. A stockholder owns a part of a company.
B. Depending upon the current market price, stockholders may pay different prices for
the same stock.
C. A stockholder may or may not receive a dividend.
D. A stockholder will always receive a profit when the stock is sold.
64. A bond is:
A. A type of debt that a company issues to investors for a specified period of time.
B. A share of ownership in a company.
C. A type of investment that is only offered by depository institutions.
D. A type of investment that has the potential for significant fluctuations over a short
period of time.
65. Which statement is TRUE of mutual funds?
A. Mututal Funds are speculative investments
B. Mutual Funds are diversified investments
C. Mutual Funds are a form of real estate investment
D. Mutual funds are superior purhcasing to a single stock
66. Elliot's stock broker is suggesting that he consider investing in a diversified portfolio.
A diversified portfolio is desirable because it:
A. increases the risk/return ratio
B. limits investors choices to only one or two investment tools
C. indicates an investor is a good predictor of the return an investment will have
D. decreases risk by investing money in a variety of investment tools
67. The most common relationship between risk and return in investing can be stated as:
A. higher risk indicates lower return
B. higher risk indicates higher return
C. lower risk indicates higher return
D. No relationship exists between risk and return
68. Harris is concerned about the effects of inflation on his investment returns. Which
statement best describes inflation?
A. The rise in the general level of prices
B. The uncertainty about the return on an investment
C. The number of times something happens to money
D. The projected value of an investment at the end of a specified time frame
69. Edward wants to develop a positive credit history. How should he do this?
A. maintain reasonable amounts of available credit
B. have one type of credit account
C. pay cash for the majority of purchases
D. open credit accounts in their parents' names
70. Becky no longer wants to use her Clothes-R-Us store credit card. What is the best
thing she could do with the credit card?
A. File the credit card away for use at a later time.
B. Let a family member take over the credit account so her credit score will not be
affected.
C. Keep the credit card in her wallet in case she needs proof of identification.
D. Close the account by phone and in writing, then destroy the card.
71. Which of the following is NOT included in an individual's credit report?
A. Current and past addresses
B. Account balances
C. Bankruptcies and foreclosures
D. Medical information
72. When Bryce attempted to borrow money at the bank, he learned that his credit score is
low. Which statement best describes what this is likely to mean for Bryce?
A. The interest rates on his loan will be lower, since his credit score is low.
B. The purchase price of the item he needs the loan for will be higher due to his low
credit score.
C. The monthly loan payments will be lower due to his lower credit score.
D. The interest rates on his loan will be higher, since his credit score is low.
73. The financial counselor that Ariel consulted about her use of credit recommended that
she keep her use of credit within safe boundaries. Ariel's financial counselor most
likely told her to:
A. Keep the total amount of money she has borrowed, including her mortgage and her
car loan, under 20% of her net income.
B. Keep the total amount of money she has borrowed, including her mortgage and her
car loan, under 40% of her net income.
C. Keep the total amount of money she has borrowed, not including her house, under
20% of her net income.
D. Keep the total amount of money she has borrowed, not including her house, under
40% of her net income.
74. David earns $5000 per month at his accounting job. He has a student loan payment of
$120, a car loan of $300. Which statement is true?
A. David's total credit payments are higher than the recommended amount for someone
earning his income.
B. David's student loan payment must be subtracted from his car loan payment to
determine whether his overall credit payments are is within the safe range.
C. David's student loan payment is within the safe range but his car loan is not.
D. David's credit payments are within the safe range for someone with his income.
75. To answer the essay test question about the meaning of open-end credit, Ryan should
include which statement?
A. A down payment must be made before receiving a loan.
B. Individual are allowed to borrow an unlimited amount of money as long as they pay it
back
C. Credit is extended in advance so the borrower does not have to apply for credit each
time credit is desired.
D. Payments are equal and required to be paid on a regular basis.
76. Paying the minimum payment on a credit card every month will:
A. pay a large percentage of the total balance owed every month
B. make the final amount paid substantially higher than the amount initially charged to
the card
C. help the cardholder create a plan for paying of a credit card in a decent amount of
time
D. allow the cardholder to avoid paying any interest charges
77. Tyler is trying to be responsible in using his new credit card and has heard there is a
way to avoid paying interest on the things he charges. How can he LEGALLY avoid
paying interest when using his credit card?
A. Tyler needs to make sure he pays the minimum balance every month before the due
date on the credit card statement.
B. Tyler needs to pay the credit card balance in full every month before the due date
listed on the credit card statement.
C. Tyler needs to limit the use of his credit cards to balance transfers only.
D. Tyler needs to understand that the use of a credit card requires paying interest. There
is not legal way for him to avoid paying interest if he uses his card during the billing
cycle.
78. Carson wallet with his driver's license, a debit card and his credit card has been stolen.
Which of the following is NOT something an identity thief might realistically do with
this information?
A. Rent an apartment under Carson's name
B. Use Carson's name during an arrest
C. Make purchases with Carson's credit card
D. Take a college admissions exam in Carson's name.
79. Ashley plans to do some of her Christmas shopping online. What is a safety tip to
follow when she is shopping online?
A. Shred all sales receipts as soon as the item purchased has been received
B. Use a debit card
C. Use a credit card
D. Black out the bank account numbers on the credit card bill before returning it with
payment.
80. Matt wants to guard his personal information. Which personal information is LEAST
LIKELY to be used by scammers?
A. phone numbers
B. credit card numbers
C. bank account numbers
D. driver's license numbers
81. Which of the following is an act of identity theft?
A. Receiving permission to use a parents' credit card for school clothes
B. Wrongfully acquiring and using someone's personal identification
C. Taking the identity of another individual as inspiration for a costume
D. Having the same name as another person
82. It is recommended that life insurance be purchased when the:
A. individual reaches the age of 50
B. individual flies in an airplane
C. individual gets their first job
D. individual has dependents
83. Insurance can be purchased to protect one from which of the following losses?
A. Stock market losses
B. Health care expenses
C. Maintaining the price of your home
D. Car maintenance
84. What is the difference between property and liability insurance?
A. Property insurance pays for loss to the insured person whereas liability insurance
pays for loss to other people
B. Property insurance pays for loss to other people whereas liability insurance pays for
loss to the insured person
C. The difference between property and liability insurance depends on the specific
insurance policy purchased
D. The difference between property and liability insurance depends on whether
automobile, homeowners, or renters insurance is purchased
85. Patty recently moved into a new apartment with her friend Emma. Who is responsible
for purchasing renter's insurance?
A. The property manager
B. Patty and Emma's parents
C. Patty and Emma
D. Renters insurance is not necessary
86. James received his first medical bill of the year. It was a total of $1000. His health
insurance policy has a $500 deductible and a 20% co-insurance. How much of the
medical bill will Jade be responsible to pay?
A. $0, insurance will cover the entire medical bill
B. 500
C. 600
D. 700
87. Maggie will need to pay $120 per month in order to purchase a health insurance
policy. This monthly payment is known as the:
A. deductible
B. co-insurance
C. premium
D. moral hazard
88. Sally is researching a new tablet and conducting research using a variety of sources.
What is an example of an unbiased source?
A. Product review from a seller
B. Product review from an individual making money from the sale
C. A product review that is five years old
D. A product review from an independent company
89. Perry would like to purchase a new car. What should he consider first in the planned
buying process?
A. Research different sellers to determine where to purchase the car from
B. Evaluate the opportunity cost and trade-offs to purchasing the car
C. Rank product features in order of importance
D. Calculate the cost of ownership
90. Chad has decided to rent an apartment and is gathering information to be sure he has
enough money saved for all the expenses when his moves in. His landlord explained to
him that he would need to pay a fee to cover any potential damages that might occur
while Chad is living in the apartment. This fee is called the:
A. rental agreement
B. down payment
C. amenities
D. security deposit
91. Shelby is working on her spending plan and would like to spend less on her food for 6
months as she saves toward purchasing a more reliable vehicle. As she makes her plan,
which factor would be least important to consider:
A. How much time she has available to prepare food.
B. The skills she has acquired for preparing meals.
C. The nutritional value of the foods she purchases.
D. Her personal preferences
92. Brett borrowed money to purchase a vehicle without making a down payment and now
he owes more on the vehicle than it is worth. This situation is referred to as:
A. depreciation
B. being upside down on the loan
C. leasing
D. a hidden cost
93. The equity that you build by making mortgage payments is:
A. the value of the home after the mortgage debt is subtracted
B. purchasing a housing unit as rental property
C. a home loan where the real estate is collateral
D. the amount of money paid on the home at the time of purchase
94. Alyssa is considering purchasing a car and wants to be sure she can afford to drive it
during the school year when she doesn't have a job. Which expense WOULD NOT be
considered part of the total transportation expenses:
A. automobile payment
B. fuel
C. parking
D. depreciation
95. Healthy giving occurs when:
A. Someone decides to write a check for another
B. An individual wants to give back and the result is positive emotions for both the giver
and receiver
C. Occurs when the well-being of only the receiver is affected
D. Someone with limited resources gives all they have to make another happy
96. Advocacy is:
A. When someone is audited by the Internal Revenue Service (IRS)
B. A wish list developed by non-profit organizations
C. The act or process of writing or speaking out in favor of or about a cause
D. A situation in which two people argue against a policy
97. What is the most appropriate type of giving at the following life cycle stages?
A. School children host a book fair and donate sales to the March of Dimes
B. A CEO of a company suggests that his employees "go paperless and not print out
quarterly reports
C. A grandparent "gifts a plot of land to a hospital in the name of their grandchild
D. All of these qualify as appropriate types of giving during the life cycle stages
98. Which of the following statements would be true in most states:
A. Teens under the age of 18 may write their own will but it may not be a legal document
B. Teens under the age of 18 may not write their own will
C. Teens under the age of 18 may be named an executor of a will
D. Teens under the age of 18 may not accompany their parent/guardian to an attorney's
office
99. Which of the following is NOT considered a positive outcome of estate planning?
A. Ability to leave a legacy with gifts to others including family, organizations, or
institutions
B. Ability to provide for loved ones after you are gone
C. Ability to increase time, effort and dollar costs incurred by survivors
D. Ability to decrease time, effort and dollar costs incurred by survivors
100. Which of the following questions does NOT represent a topic teens should ask parents
and guardians about Estate Planning?
A. How much money do you have in your checking account?
B. Do you have a life insurance policy?
C. Who would take care of me if something happened to you?
D. Have you written a will? Is it recorded?