Personal Finance Final Questions

Which question does not represent a topic that 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 and recorded a will?"

A. "How much money do you have in your checking account?"

Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction? A. A brokerage firm B. The New York Stock Exchange C. A real estate agent D. Conner should complete this transaction on his own.

A. A brokerage firm

Which is a general rule when dealing with credit reports to minimize identity theft? A. Check each credit report at least once per year. B. Wait 60 days before disputing any wrong information found in a credit report or on a credit card statement. C. Keep credit reports in an easily accessible location, so information can be accessed if fraud occurs. D. Report mistakes to only one credit reporting agency and they will inform the others.

A. Check each credit report at least once per year.

When making food decisions, which is likely to be the least expensive? A. Convenience foods B. Fast food restaurants C. Ready-to-eat foods D. Full-service restaurants

A. Convenience foods

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

A. Decrease expenses

Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be true? A. Federal income tax, state income tax, social security, and medicare deductions are all required deductions. B. Federal income tax, state income tax, workers compensations, and life insurance are all required deductions. C. Social security, Medicare, life insurance, and health insurance are all required deductions. D. Social security, Medicare, federal income tax, and workers compensation are all required deductions.

A. Federal income tax, state income tax, social security, and medicare deductions are all required deductions.

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

A. How much time she has available to prepare food

Kylee's Personal Finance class has been discussing the importance of understanding liquidity and she is trying to explain the term to another student. Which statement is the most correct description of liquidity? A. How quickly and easily an asset can be converted into cash B. The amount of savings available C. A measurement of how much a person or household owns once all debts have been paid D. The amount of money needed to pay for the necessities and comforts currently enjoyed

A. How quickly and easily an asset can be converted into cash

Which statement 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.

A. Most people have several careers throughout their lifetime.

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

A. Phone numbers

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.

A. Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people.

Which is not considered a form of giving? A. Reading about the storm victims of Hurricane Katrina B. Making a monetary donation to a charitable cause C. Spending an afternoon cleaning up an abandoned park in one's hometown D. Donating material goods to a campaign

A. Reading about the storm victims of Hurricane Katrina

Which federal program assists low-income families in purchasing nutritious foods? A. SNAP B. TANF C. Social Security D. Medicare

A. SNAP

Jose has been challenged by his academic advisor to develop some human capital this school year. Which activity would be the least effective way to reach that goal? A. Spend additional time playing video games to further develop his eye-hand coordination. B. Volunteer to pick up trash along the roadsides. C. Attend a workshop on a topic he has little knowledge of. D. Ask his employer if there are any new tasks at work that he might be assigned.

A. Spend additional time playing video games to further develop his eye-hand coordination.

Brett plans to save money toward purchasing a car. His coworker is telling him about a money market account he has that offers a tiered interest rate. What is Brett's coworker talking about? A. The amount of money he earns depends on the balance, i.e. the higher the account balance the higher the interest rate he would earn. B. The amount of money he earns depends on the number of accounts he has at the depository institution, i.e. the more accounts he has, the higher interest rate he will earn. C. Brett's coworker is talking about something that is illegal. A tiered account is promoted by scam artists who trick people into investing money in hopes of earning higher rates over time. D. The rate of interest earned increases over time, i.e. leaving money in the account for 3 months would earn a lower interest rate than leaving money in the account for 12 months.

A. The amount of money he earns depends on the balance, i.e. the higher the account balance the higher the interest rate he would earn.

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.

A. a type of debt that a company issues to investors for a specified period of time.

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 areas while commercial banks are more commonly located in urban areas. D. commercial banks offer more services, debit cards, and online banking than credit unions.

A. commercial banks are for-profit and credit unions are not-for-profit.

The most secure method for an employer to pay employees is to use: A. direct deposit. B. a payroll card. C. a printed paycheck. D. in-store credit.

A. direct deposit.

Planned giving can occur through: A. estate planning activities. B. buying Girl Scout Cookies on the way out of the grocery store. C. paycheck deductions for retirement accounts. D. pulling over to help someone with car trouble.

A. estate planning activities.

Chad has decided to rent an apartment and is gathering information to be sure he has enough money saved for all the expenses when he moves in. His landlord explained to him that he would need to pay a refundable 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.

A. rental agreement.

Rent is defined as: A. the cost of using someone else's property. B. the fee charged for performing property management tasks. C. an advance payment for costs beyond normal wear and tear. D. the purchase price of a housing unit.

A. the cost of using someone else's property.

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. $640.00

B. $363.32

Hannah needs a savings tool to help her manage her everyday purchases. The savings tool needs to be very liquid and accessible. Which savings tool should Hannah choose? A. Certificate of deposit B. Checking account C. Money market deposit account D. Any of the above savings tools

B. Checking account

Which is not an example of a data furnisher? A. Landlord B. Credit card company C. Utility company D. Medical provider

B. Credit card company

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

B. Excise

Insurance can be purchased to protect one from which losses? A. Stock market losses B. Health care expenses C. Maintaining the price of your home D. Car maintenance

B. Health care expenses

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 well-being. 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.

B. Her counselor wants Zoe to match her skills, abilities, interests and values with a list of specific occupations.

Ian has been shopping for a different vehicle for the past several months. He needs something reliable and 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 trade-off 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.

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.

Which best describes the benefits of having insurance? A. The policyholder may become better off financially if an accident occurs. B. Insurance combined with emergency savings provides a sense of financial security and peace of mind. C. The policyholder no longer has to worry about paying for financial losses resulting from an accident because all risk of financial loss is transferred to the insurance company. D. It is required by law to purchase insurance so the benefits do not matter.

B. Insurance combined with emergency savings provides a sense of financial security and peace of mind.

When taking advantage of the time value of money, which is most likely to result in the largest return? A. Invest a large principal amount of money and then make no additional investments. B. Invest as long as possible and at the highest interest rate possible. C. Invest a small amount of money for a short period of time at the highest interest rate possible. D. Invest at a high interest rate because interest is the only factor that affects return.

B. Invest as long as possible and at the highest interest rate possible.

Jake's credit application has been declined because of his negative credit history. Which is most likely to be true? A. Jake pays his bills consistently and on time. B. Jake has applied for 4 credit cards and a car loan in the past 6 weeks. C. Jake has received 3 traffic tickets in the past 2 months. D. Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.

B. Jake has applied for 4 credit cards and a car loan in the past 6 weeks.

If a person drives an automobile, they are required by law to have automobile liability insurance. In which situation would this type of policy protect the policyholder? A. James hit a deer while driving to work on a foggy morning, killing the deer and causing $2,000 in damage to his car. B. James backed into a vehicle in the grocery store parking lot and caused $2,000 in damages to his own car and $3,000 in damages to the other vehicle. C. An uninsured driver ran a stoplight, hit James' car, and caused $2,000 in damages to James' car and $3,000 in damage to his own vehicle. D. James' car was in the parking lot at work during a severe hailstorm where $2,000 damage was done to his vehicle.

B. James backed into a vehicle in the grocery store parking lot and caused $2,000 in damages to his own car and $3,000 in damages to the other vehicle.

Jenny is 18 years old and has applied for credit for the first time. Her credit application was declined because she has no credit history. What should be recommended in order for Jenny to build a positive credit history? A. Jenny should acquire several credit cards to establish that she can manage them responsibly. B. Jenny should obtain a secured credit card. C. Jenny should reapply for the same credit but include a letter of recommendation from someone who knows her well and can vouch for her character. D. Jenny should apply for a different type of credit. Since she was applying for a bank loan, she should apply for a credit card.

B. Jenny should obtain a secured credit card.

41. Common fees that may be charged on savings or checking accounts include all except: A. Overdraft fees B. Late fees C. ATM fees D. Minimum Balance fees

B. Late fees

Brett is creating a Statement of Financial Position and needs to list his assets. Which of the following should he not list as an asset? A. Money in his checking account B. Money in the paycheck he will receive next week C. His hockey equipment D. The market value of his car

B. Money in the paycheck he will receive next week

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 purchasing to a single stock.

B. Mutual funds are diversified investments.

Which 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.

B. Savings tools are secure because they are protected by the U.S. government against loss.

Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. What would be the best advice for Ariel? A. Check several depository institutions and choose one with a free, no-interest checking account. That way, when Ariel has saved enough for her computer she can simply write a check to pay for it. B. Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer. C. Look for a credit union that offers share draft accounts. These secure accounts are designed especially for saving for long-term financial goals. D. Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra security for deposits and can be set up to allow her to withdraw her money when she needs it.

B. Shop around for the depository institution with the highest interest rates for their savings accounts. She would be able to make regular savings deposits and earn interest while she is saving up for the computer.

Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective? A. Carrying all credit cards in her wallet so they do not get lost B. Signing the back of her card with her signature and "Please see picture ID" C. Giving account numbers over the Internet rather than over the phone D. Using credit cards for all her purchases so she only needs to pay one bill each month

B. Signing the back of her card with her signature and "Please see picture ID"

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.

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.

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.

B. Susan will have more spending power if she stays in Kansas City.

Sarah learned in her Financial Education class that she needs to consider the cost of living when comparing job offers. Which is the most important consideration? A. How much she will spend in moving expenses to relocate to the city where her new job is B. The average cost of basic necessities, such as housing and food in the city where her new job is C. The total value of the benefits package she will be offered in her new job D. The total amount of her college costs compared to the salary she is being offered in her new job

B. The average cost of basic necessities, such as housing and food in the city where her new job is

In which scenario should renters insurance be considered? A. Steve and Teri have purchased a home in a rural area. B. Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home. C. Zach and Leah have rented an apartment in an urban area. D. Don and Denise are landlords for several rental properties.

B. Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home.

Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario best represents the purchase of a need? A. Whitney is being inducted into the National Honor Society at her high school. Students have been directed to 'dress nicely'. Whitney has a dress she wore to a wedding last year that still fits but her mom thinks she needs a new one to celebrate this occasion. B. Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress 'professionally' for one of the tours. She plans to wear her new jeans and a T-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more appropriate. C. Whitney has several pairs of jeans in her closet but found some that really fit her well at an excellent price when she and her mom were shopping. Her mom agrees that with these jeans at this price, they need to purchase a pair. D. Whitney will be traveling to Europe with a youth ambassador program this summer. She has been instructed to pack a rain jacket. The rain jacket she already owns does not have a hood since she always uses an umbrella in rainy situations. Her mom believes she needs to purchase a hooded rain jacket because it would be more convenient.

B. Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress 'professionally' for one of the tours. She plans to wear her new jeans and a T-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more appropriate.

Which 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

B. Wrongfully acquiring and using someone's personal identification

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. the well‐being of only the receiver is affected. D. someone with limited resources gives all they have to make another happy.

B. an individual wants to give back and the result is positive emotions for both the giver and receiver.

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance company is requiring her to pay the first $500 of the repair bill because: A. she did not call her agent and report the accident quickly enough. B. her policy's deductible is $500. C. she will be reimbursed by the insurance company later. D. the cost of the repairs is higher than her policy covers.

B. her policy's deductible is $500.

Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her: A. salary. B. human capital. C. family. D. interest inventory.

B. human capital.

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 off a credit card in a decent amount of time. D. allow the cardholder to avoid paying any interest charges.

B. make the final amount paid substantially higher than the amount initially charged to the card.

The money one would have earned if she/he had worked instead of continuing her/his education is called the: A. debt-to-income ratio. B. opportunity cost. C. benefit. D. total estimated cost.

B. opportunity cost.

The regular schedule that employers use to pay their employees is called the: A. worker's compensation. B. pay period. C. employee benefits. D. employer contributions.

B. pay period.

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.

B. she will receive her pay directly into her checking account at her depository institution for each pay period.

Which 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 one is 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

C. Ability to increase time, effort, and dollar costs incurred by survivors

One element of a financial goal is missing in this example. "I will save $150 each month to go on a vacation in one year." Which one is it? A. Time Bound B. Specific C. Attainable D. Measurable

C. Attainable

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 on-the-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.

C. Austin neglected to deduct the amount required to pay income and payroll taxes.

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 nonprofit organizations. Which would qualify as a nonprofit? A. An extracurricular activity in her school B. The local private daycare center C. Big Brothers/Big Sisters D. Her elderly neighbor who needs yard work done

C. Big Brothers/Big Sisters

As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is then least important one to consider at this point? A. What kind of training and education do I need and how much will it cost? B. Is there a career pathway available if I continue my education and training? C. Can I get the education and training I need near where I currently live? D. Will a job be available and will I earn enough in my career to pay for the education and training it requires?

C. Can I get the education and training I need near where I currently live?

Joanna has arranged to complete a job shadow with a physical therapist to decide if this is a career she wants to pursue. Which of her concerns is she most likely to have answered as a result of her job shadow? A. The future outlook for physical therapy jobs B. The amount of money physical therapists earn C. Common tasks and typical daily activities D. Opportunities for advancement in the career

C. Common tasks and typical daily activities

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. Individuals 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.

C. Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired.

What is not an example of a durable good? A. Automobile B. Cell phone C. Food D. Clothing

C. Food

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 him with which type of income? A. Earned income B. In‐home income C. Gift income D. In‐kind income

C. Gift income

Diana has faced the fact that she and her family need to explore assistance programs they might qualify for during the time she must be off work following an accident. How might she and her family locate an appropriate program? A. Call the Social Security Administration. B. Contact her local bank. C. Go to www.govbenefits.gov on the web. D. Inquire at the local food pantry.

C. Go to www.govbenefits.gov on the web.

Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer will not be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement is most likely to be true? A. Hunter will not need to pay taxes on the income from his summer job because the total amount he will earn is under the amount required for federal tax deductions. B. It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so. C. Hunter will need to pay his federal and state taxes on his own, since his employer is not paying these required taxes for him. D. Hunter's employer is doing him a favor by offering to pay him in cash. Hunter will potentially earn more by this method of payment.

C. Hunter will need to pay his federal and state taxes on his own, since his employer is not paying these required taxes for him.

Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier? A. Maggie, because her income minus her net worth is a smaller amount than Samantha's. B. Samantha, because her income minus her net worth is a larger amount than Maggie's. C. Maggie, because her net worth is higher than Samantha's. D. Samantha, because her annual income is higher than Maggie's.

C. Maggie, because her net worth is higher than Samantha's.

Which action will not make an individual vulnerable to identity theft? A. Using a computer without updated spyware protection B. Responding to an email from one's depository institution C. Paying cash for a movie ticket D. Throwing mail in the garbage

C. Paying cash for a movie ticket

Which statement is true about payroll taxes? A. Payroll taxes 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.

C. Payroll taxes fund the Social Security and Medicare programs.

Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he wants to explore ways he can receive money he won't have to repay. Which set of options should he explore? A. Federal Perkins Loans, PLUS loans, 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

C. Pell Grants, work-study, and scholarships

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 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

C. TANF

Erica wants her class project to reflect her values. Which items would be best to include? A. Things that she intends to acquire, do, reach, or accomplish in the near or distant future B. Things that are necessary or essential for life and survival C. Things that reflect her fundamental beliefs about what is worthwhile and important to her D. Things that are unnecessary but desired which increase the quality of her life

C. Things that reflect her fundamental beliefs about what is worthwhile and important to her

Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his first step? A. Decide what income and spending categories would reflect his values, needs, and wants. B. Decide how much money he can spend for each of the bills he pays each month. C. Track his current income and expenses—if he has already created an Income and Expense Statement then he has completed this step. D. Develop a control system that will work with his life style.

C. Track his current income and expenses—if he has already created an Income and Expense Statement then he has completed this step.

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.

C. develop personal goals, complete a career assessment, and research careers.

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.

C. earning interest on interest.

One's lifestyle is to their standard of living as present is to: A. past. B. recent. C. future. D. gift.

C. future.

Erin has been in college for 2 years and has decided that the major she has been studying is not for her. Changing her major and/or her college could result in: A. a well-rounded college degree. B. the need for backward planning. C. losing credits for classes she has already taken. D. remediation courses to make up for the change in majors.

C. losing credits for classes she has already taken.

Gross income - deductions = A. Social Security B. Medicare C. net income D. employee benefits

C. net income

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.

C. premium.

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 the 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.

C. taxes at the local, state, and federal levels.

Advocacy is: A. when someone is audited by the Internal Revenue Service (IRS). B. a wish list developed by nonprofit 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.

C. the act or process of writing or speaking out in favor of or about a cause.

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. $320.00 C. $576.92 D. $640.00

D. $640.00

Which is not true with regard 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.

D. A stockholder will always receive a profit when the stock is sold.

Carter wants to participate in an activity that will improve his well-being. Which activity would contribute the most to his well-being? A. An activity his friends like to participate in B. An activity that does not cost much money C. An activity that his teacher suggested to him D. An activity that makes him lose track of time

D. An activity that makes him lose track of time

Caitlyn's parents were rushing off to a meeting to get some help planning their estate. When Caitlyn asked who they were meeting with, her parents likely told her they were going to the office of: A. a certified financial planner. B. an accountant. C. an attorney. D. Any of the above

D. Any of the above

David plans to apply for college in 2 years. His guidance counselor suggested that he begin adding items to a College/Training application folder. Which items would not be helpful as additions to this folder? A. Copies of awards and achievements he earns B. A list of all the extracurricular activities he gets involved in C. A resume of all community service and volunteer work he is actively involved in D. Copies of his elementary and middle school report cards

D. Copies of his elementary and middle school report cards

It is recommended that one's educational loan payments require no more than 10-15% of one's estimated starting income. What should a student consider in order to calculate this amount? A. Opportunity cost B. Career pathway C. Benefit D. Debt-to-income ratio

D. Debt-to-income ratio

Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some student comments were based on fact while others were based on myths. Which aspect of security at a depository institution is not true? A. Depository institutions have insurance protection for up to $250,000 per depositor per account type so if something happened to the money in the bank, you would get it back as long as the deposited amount was no more than the insurance limit. B. All money stored at a depository institution is kept safe at all times by numerous security measures. C. Information about depositors and their accounts is kept in secure data storage. D. Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than a $100,000 balance.

D. Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than a $100,000 balance.

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the school year when she does not have a job. Which expense would not be considered part of the total transportation expenses? A. Automobile payment B. Fuel C. Parking D. Depreciation

D. Depreciation

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 do not 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 type 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)

D. Free Application for Federal Student Aid (FAFSA)

Which of the following is likely to have the least influence on an individual's values? A. Media B. Family C. Religious affiliations D. Grade average

D. Grade average

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

D. Gross Income

Which statement about our interactions with money is not considered to be true? A. You are responsible for your present self and your future self. B. Your present self impacts your future self. C. You are better off in a community than by yourself. D. Investment increases risk and reduces your ability to cope with risk and uncertainty.

D. Investment increases risk and reduces your ability to cope with risk and uncertainty.

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 his money management plan has established high well-being C. When he is 70 years old D. Never - it is an ongoing process

D. Never - it is an ongoing process

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 C. Income tax on the shirt she purchased D. Sales tax on the shirt she purchased

D. Sales tax on the shirt she purchased

Carson's wallet with his driver's license, a debit card, and his credit card has been stolen. Which 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

D. Take a college admissions exam in Carson's name

Erin and her mother are putting together an Income and Expense Statement for Erin to use as she applies for a college scholarship. Which income source does she not need to include for this statement? A. Interest earned on her savings account B. Money she received from her grandparents for her birthday C. Social Security income her mother is receiving for her since her father died of cancer last year D. Taxes she paid based on her income last year

D. Taxes she paid based on her income last year

Which statement would not be true about the value of career research? A. Everyone values different aspects of an occupation. One person might value the flexible schedule a particular job offers and another might care more about the amount of training that a career might require. B. Current job availability and the outlook for future employment are as essential to consider as whether you have the skills, interest and abilities to pursue a particular career. C. Opinions from different people working in the occupation should be considered before ruling out a particular career. D. There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree.

D. There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree.

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 investor 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.

D. decreases risk by investing money in a variety of investment tools.

In relation to the rate of inflation, it is best to have the rate of return on an investment: A. lower, in order to minimze taxes. B. lower, in order to minimize risk. C. higher, to maintain purchasing power. D. higher, to minimize risk.

D. higher, to minimize risk.

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.

D. possible career areas related to one's interests.

Alisa is looking for an investment that is structured to have tax benefits. She should look for information on: A. tax-rated bonds. B. speculative investments. C. index funds. D. tax-advantaged investments.

D. tax-advantaged investments.

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. should 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 of versatile skills that she can apply to many personal and professional roles.

D. will have a set of versatile skills that she can apply to many personal and professional roles.