PFL

1.

1 point

Which statement indicates smart steps for the first-time investor?

Plan to give up something nice someday.

Use your credit card to make a regularly finance purchase

rent the most expensive place you find because it is nicer.

Never invest more than you can afford to lose.

2.

1 point

Taxes normally pay for the following:

Services such as police, fire and the military.

Private-practice lawyers

Tractor-Trailer drivers.

Kindergarten pizza parties

3.

1 point

What is "compound interest"?

When you earn interest on the difference between principal and interest.

When you earn interest on only the principal.

Interest that is accumulated over a period of time but only occurs in a passbook savings account.

When you earn interest on the interest you have already made.

4.

1 point

Which tax form is given to me by my employer each tax year to show my earnings and taxes withheld?

W-2

1099

1040

W-4

5.

1 point

Which answer applies to "fine print"?

Many companies like fine print because you can be confused by it, and make the wrong decision.

Companies like fine print because it is cheaper for them to print.

Companies like fine print because it makes it easy for you to understand what you are doing.

Companies like fine print because the fine print saves paper which is better for the environment.

6.

1 point

You have $200.00 in your account. You are very responsible. what is the maximum amount of money you should spend?

100.00

200.00

199.00

225.00

7.

1 point

Your employer is responsible for filing your federal tax return

True

False

8.

1 point

You pay sales tax when you:

Own a property

Buy a video Game

Receive a pay check

Hire someone to clean the windows.

9.

1 point

What is the main risk you face when you buy stocks as investments?

The value of your investment fluctuates with the profits and losses of the company and you have virtually no control over that fluctuation.

The stock value will only increase when the business makes a profit.

Your stock can be bought and sold by the company without your approval.

You can only sell your stock back to the company when the stock has lost value.

10.

1 point

Which statement is true?

It doesn't do much good to have a savings plan if you don't know how to budget your money.

A savings plan and a budget do not really have anything to do with each other.

11.

1 point

When applying for a student loan, you should take the first loan that is offered to you.

True

False

12.

1 point

Foolproof talks in depth about the importance of your credit score when it comes to your budget and your savings. Assume your credit score is bad. Which of the following are true?
1. your car insurance could cost more money
2. your phone deposit could cost more
3. your apartment deposit could cost more
4. your loan could cost you more
5. paying cast for food could cost more
6. your utilities deposit could cost more
7. the gym where you pay cash could cost more

1,2,3,4,6

1,2,4,6

1,2,3,5,7

1,3,4,6

13.

1 point

Some financial institutions like to charge you for checks, check registries, ATM fees and change sorting fees.

True

False

14.

1 point

Which answers best defines "opportunity cost"?

The value of the things you have to give up to get something else

The amount a seller paid to sell you a product.

What it costs to take advantage of a great savings opportunity.

The amount you have to pay to do something.

15.

1 point

Why do banks put a "hold" on a check?

Because the bank does not have enough money on hand to give you your cash.

Because the check is large and the bank wants to make sure it gets the money before releasing it to you.

Because you look shady and they do not trust you.

Because the check is written for a future date.

16.

1 point

Which of these will most likely have a positive effect on your lifestyle?

A skill-based education

Not paying attention in personal finance

Not attending college

Dropping out of high school

17.

1 point

Having a good credit history impacts every one of these items BUT one. Which one is NOT impacted by good credit history.

An employer's decision to offer you a job.

Your ability to graduate high school

Your ability to get a low interest rate credit card.

Your ability to get a low interest car loan.

18.

1 point

Community college credits never transfer to a 4-year institution.

True

False

19.

1 point

"Rate of Return," "Return on Investment," and ROI all mean the same thing. Which answer best describes these terms.

ROI is the dollar amount you invest compared to the stock market's fall.

ROI is the amount of money returned to you if you ask for it within the first year of investing it.

ROI is the amount of profit you receive from your investment, usually measured as a percentage of your investment.

ROI will always match with the Rule of 72 formula.

20.

1 point

Having a _____normally means you are just clocking in and out. When you have a ______, you are required to manage time well and plan for the future.

Career/Job

High School Diploma/Job

Job/Career

Job/college Degree

21.

1 point

You had a part time job that paid you $10,000.00. Do you have to file a federal Tax return.

Yes but my parents are responsible for filing it for me.

Yes

No. But if I am claimed on my parents tax return then I am required to file one.

No. I did not make enough money to get taxed

22.

1 point

Liquidity is the amount of cash you have plus any other assets that you can quickly convert into cash.

True

False

23.

1 point

Using the rule of 72, how many years would it take to double your money if your ROI is 4%?

14 years

18 years

16 years

22 years

24.

1 point

Look at the following statements. Choose the correct answer.

Checking accounts should never be linked to savings accounts.

Online bill paying does not make any sense.

Checking accounts can (and should) be linked to a savings account.

You can't overdraw your account with online bill paying.

25.

1 point

You owe $1,000.00 on a credit card that has an interest rate of 27.99% and make only the minimum payment of $20.0 each month. Which answer is correct?

You will never have the credit card paid off

You will have the card paid off in one year.

You will have the card paid off in five years.

You will have the card paid off in ten years.

26.

1 point

You are just starting out building your credit. What is the easiest way to ruin your credit with your checking account?

You lose your checkbook, and a thief takes your money.

You overdraw your account many times and the bank closes your account.

You don't sue your checking account for four months.

You forget where you put your checkbook.

27.

1 point

Why is it important to take a college entrance exam?

it may help you get into a college, even if you don't make a high score.

It is a good brain teasing exercise.

It will help you receive a promotion.

The guidance counselor told me to take it.

28.

1 point

Which of these normally apply to people who have a career instead of a job?

They are probably not financially secure.

All of the above

They are able to settle down more easily.

They are sad and feel out of control of their lives.

29.

1 point

You have a Saturday job that pays $10.00 per hour and you work 10 hours when you're there. You are thinking about buying a car that cost $1,000.00 . How many Saturdays do you have to work to earn the money?

5

7

12

10

30.

1 point

Why would a smart person keep at least $100.00 balance in their checking account at all times? Which answer is MOST correct?

You can earn more interest if you keep at least $100.00 in your checking account.

It can impress your friends to show them you always keep money in your account, and you should always show your friends your account.

All banks give you bonus gifts if you have at least $100.00 in your checking account.

You never know when unexpected fees or expenses will hit your checking account. You can at times forget to write down a payment you make with your checking account or debit/ATM card...so you're less likely to overdraw your account if you always keep a hundred dollar ballance