Personal Finance Assessment Quiz

Overview

• This event assesses student understanding of financial issues
• Students analyze consumer rights and responsibilities
• Students apply financial knowledge to real-world situations
• The assessment is an individual online test

Competencies and Task Lists

• Detailed list of competencies and tasks is available online (URL provided)

Web Site Resources

• A few web resources are listed (URLs for Business Education Links, Forbes Finance, and Practical Money Skills)

Personal Finance Sample Questions

• Question 1: Ideal retirement planning should begin a few years before retirement.
• Question 2: Pressuring consumers to buy a more expensive product than intended is called "trading up".
• Question 3: A type of financial fraud involving paying to join an organization to sell memberships is a pyramid scheme.
• Question 4: On-the-job training is an example of informal education.
• Question 5: If an hourly worker earns $15.00 per hour with time-and-a-half overtime, their overtime rate for 6 hours worked after 40 regular hours is $22.50.
• Question 6: Taxable income is used to compute income tax.
• Question 7: Form W-4 ensures an employer withholds federal income taxes from an employee's wages correctly.
• Question 8: A budget focuses on net income.
• Question 9: A person's cash flow is a measure of income versus expenses.
• Question 10: Monthly, fixed expenses for budgeting include electricity bills, rent and magazine subscriptions (an example).
• Question 11: A budget with a "surplus" means expenses were less than income.
• Question 12: Time value of money refers to increases in money due to interest.
• Question 13: Setting aside funds for long-term goals is called savings.
• Question 14: Stocks in new, small corporations are considered emerging stocks.
• Question 15: Compound interest of $100 at 10% for three years is approximately $31.
• Question 16: An increase in stock value is called a capital gain.
• Question 17: Tax returns are typically filed by April 15.
• Question 18: Items bought on impulse are called impulse buying.
• Question 19: Reliable research tools for purchasing a major appliance (like a dishwasher) include Consumer Reports.
• Question 20: The insurance that protects businesses against injuries to people or damages to property is called liability insurance.
• Question 21: A rise in prices of goods and services over time is known as inflation.
• Question 22: Lower insurance costs can result from fewer deductibles, paying premiums monthly instead of yearly, and selecting a single type of insurance for a single company.
• Question 23: One should ask for a stop payment order at a bank if a check was lost or stolen
• Question 24: Traveler's checks are paid in advance, and the replacing company will reimburse for loss.
• Question 25: A person's credit capacity shows their ability to repay debt.
• Question 26: Good credit management follows an individual plan for credit use.
• Question 27: The grace period is the time before interest is charged on a credit card purchase (no balance).
• Question 28: Credit reporting agencies include TransUnion, Equifax, and Experian.
• Question 29: Chapter 7 bankruptcy relieves an individual from certain debts (e.g., student loans).
• Question 30: The unpaid portion of a loan is called the principal.