Week 1 Quiz - Banking (24pts) (Answers)



Similar documents
12-Step Guide to Financial Success

Financial Literacy Quiz ~ ANSWERS

FINAL EXAM. True or False. Multiple Choice. 21. False 22. False 23. False KEY. 10. False. 24. True. 31. True. 4. False. 26. True 27. True 28.

Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account.

Canada Deposit Insurance Corporation (CDIC) a federal government organization that provides insurance to protect money deposited in Canadian banks

Pay Yourself First. Identify Steps You Can Take to Save The following tips will help you to save your flexible income.

40 Par Whole Life. Learn How to Save Money without Risk or Taxes for a Lifetime of Financial Security. Here's the problem...

National Standards for Personal Finance Education - Jump $tart Correlation to Virtual Business - Personal Finance

It s Your Paycheck! Glossary of Terms

Financial Literacy Course Outline Maryland, USA

JUST BEGINNING. Your financial life is. I m Buying a Car!

Jump$tart Coalition for Personal Financial Literacy. Goodheart-Willcox Foundations of Personal Finance 2014 by Sally Campbell and Robert Dansby

Money Matters by Suze Orman. The 12 Biggest Money Mistakes. Monday, February 13, 2006

Describe and use the steps involved in the banking reconciliation process

SM4-1: Credit Card Application (version 1)

Lesson 13 Take Control of Debt: Become a Savvy Borrower

ACVL Web Site LEASING VS. BUYING QUIZ

GLOSSARY. Annual Percentage Rate (APR) The cost of credit on a yearly basis, expressed as a percentage rather than a dollar amount.

457 EMERGENCY WITHDRAWAL PACKET. City of Madison, Wisconsin

Banking Test - MoneyPower

DOLLARS & SENSE Curriculum Map

FREQUENTLY ASKED QUESTIONS

LIFE INSURANCE THE DIVIDEND DIFFERENCE. Adding Value to Your Whole Life Insurance Policy INVEST INSURE RETIRE

Chapter 113. Texas Essential Knowledge and Skills for Social Studies. Subchapter C. High School

GETTING THE MOST OUT OF YOUR ESOP

Glossary. Copyright 2008 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.

How To Use A Massmutual Whole Life Insurance Policy

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Center for Gifted Education Focusing on the Future 2015 CAREERS IN FINANCE

Current liabilities - Obligations that are due within one year. Obligations due beyond that period of time are classified as long-term liabilities.

Discretionary. Deficit

Building Your Financial House

If yes, complete the savings plan using the worksheet that follows. To complete this worksheet, you will need to know:

account statement a record of transactions in an account at a financial institution, usually provided each month

CHG Companies, Inc. Employee 401(k) Plan

Financial Planning Basics Financial Planning Fundamentals

lesson twelve saving and investing overheads

It lets you pay for expenses you could not afford with cash, such as a college education, a new vehicle, furniture or a home.

Financial Planning. Introduction. Learning Objectives

OHIO TREASURER S FINANCIAL EDUCATION GLOSSARY OF TERMS

The Game of Life Purchasing Auto Insurance Updated:

Adviceguide Advice that makes a difference

Personal Financial Literacy 2014

University of Rio Grande Fall 2010

FAST Financial Aid for School Tuition Following is the list of questions asked by the FAST program.


RETIREMENT ACCOUNTS (c) Gary R. Evans, , September 24, Alternative Retirement Financial Plans and Their Features

Getting the Most from Your Insurance

Income taxes. Welcome to the real world of income taxes. How not to dread April 15 th Legally minimize your taxes Ins and outs of the 1040 form

BANKING 101. Consolidated Credit 5701 West Sunrise Boulevard Fort Lauderdale, FL

Adviceguide Advice that makes a difference

SUMMARY OF THE COUNTY OF SAN DIEGO INCENTIVE RETIREMENT DEFERRED COMPENSATION PLAN

Life Insurance Buyer's Guide

A financial empowerment toolkit for community volunteers

20 Major Advantages of Investing in Mutual Funds

Online Advisor October Major Tax Deadlines For October 2015

Common Sense Economics Part IV. Twelve Key Elements of Practical Personal Finance Practice Test Multiple Choice Questions

Personal Finance Standards (Assignment Code #22210)

Coleman & Associates CPA's, Ltd. has successful review by peers

Goals: What are you saving your money for college, a car, retirement? Decide what you want and how much you will need for each item.

Prepared by the National Association of Insurance Commissioners. This guide does not endorse any company or policy.

SUMMARY REVIEW COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN FOR THE

ASSET OF THE MONTH August Annuities

Financial Planning Exam II Sample Exam 2014

Statewide Campus Practice Management Seminar. Personal Financial Planning For Informed Physicians

Economics EOC Quiz Answer Key Personal Finance Economics - (SSEPF4) Creditworthiness, (SSEPF5) Risk-management, (SSEPF6) Earnings

Get Financially Fit. Define short-and long-term goals. Have your goals changed from 2-3 years ago? When goals change, adjust your plan.

Your Money Matters! Financial Literacy Teacher Guide. Thanks to TD for helping us bring this resource to schools for free.

Money Management Test - MoneyPower

NAIC Consumer Shopping Tool for Auto Insurance

CONSUMER S GUIDE TO AUTO INSURANCE

PERSONAL FINANCE QUESTIONS

Investing in Bonds - An Introduction

Tax Impact of Job Loss

Alternative Retirement Financial Plans and Their Features

Investments. Introduction. Learning Objectives

Make Money Like Banks Do The How to make money with credit cards report

Tax Impact of Job Loss

Fixed Deferred Annuities

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook

Insurance Corporate Insured Retirement Plan

The relationship of accounting ratios in balance sheets

Cash Flow and Asset Analysis

A Consumer s Guide to Personal Auto Insurance

Using Credit to Your Advantage

Lesson 6: Inheritance and Investing What s Your Story?

$uccessful Start, Sponsored by the Office of Student Services, Presents: HOW TO PLAN FOR MAJOR PURCHASES

Eco: Personal Finance

Life Insurance and Estate Tax

VISA CLASSIC CONSUMER CREDIT CARD AGREEMENT

Assist. Financial Calculators. Technology Solutions. About Our Financial Calculators. Benefits of Financial Calculators. Getting Answers.

Life Insurance Buyer s Guide

BUILDING YOUR MONEY PYRAMID: FINANCIAL PLANNING CFE 3218V

Financial Planning Questionnaire

PRESCOTT UNIFIED SCHOOL DISTRICT District Instructional Guide Revised 6/3/15

Saving and Investing. Being an educated investor will help enable you to become financially sound. Chapters 30 and 31

UNDERWRITTEN IN VIGILANT INSURANCE COMPANY. (If coverage is desired for more than one Company, a separate Application must be completed for each.

Expand your world of investment choices.

ONLINE INVESTMENTS OUR FUND RANGE AND INVESTMENTS.

Transcription:

Week 1 Quiz - Banking (24pts) (Answers) 1. Money deposited into a 401k is not taxed; however it is taxed years later when it is withdrawn for retirement. So if the money is taxed either way, why do many experts recommend taxdeferred savings such as 401k? 2. What is overdraft protection (ODP)? 3. What type of accounts can be linked to a checking account for overdraft protection? 4. What happens if you do not have enough funds in your linked account to cover the overdraft? 5. If you have ODP, you won't ever bounce a check. Is this True or False? Why? 6. What is the best way to pay a bank fee: Cash, Debit Card, or Credit Card? Week 2 Quiz - Checks & Paychecks (24pts) 1. Increasing your 401k deduction will your federal taxes in the current year. 2. Increasing your 401k deduction will your gross pay. 3. If the interest rate at the bank for a savings account is 0.03%, how much money would you need to leave in the account for one year in order to earn $10 in interest? 4. The fee the bank charges the issuer of a bad check is a... 5. The fee the recipient of the bad check issues the originator of the check for giving them a bad check is a... 6. Which of the following payday frequencies provides employees with the smoothest cash flow?

Week 3 Quiz - Investments (28pts) 1. If you had $1,000 to invest into the following funds, which one would have the highest value (not including any fees) at the end of the second year? A. Orange Fund with Year 1 return of 0% & Year 2 return of 0%, B. Purple Fund with Year 1 return of +10% and Year 2 return of -9.5%, C. Green Fund with Year 1 return of -9.5% and Year 2 return of +10%, D. Yellow Fund with Year 1 return of +30% and a year 2 return of -25% 2. If you had a fund with a Year 1 return of +30% and a year 2 return of -25%, what is this fund's a) average annual return for the two years and b) actual return for the two year period? A. a)+2.5% b) -2.5% B. a) +2.5% b) +2.5% C. a) +5% b) +2.5% D. a) +5% b) 0% 3. Which type of investment typically charges the investor the lowest fees? A. Mutual fund - actively managed B. Index fund - passively managed C. Bond fund - actively managed D. International funds 4. What is a dividend? A. Money a company regularly (typically quarterly) charges shareholders to help profits B. Money a company regularly (typically quarterly) pays shareholders from its profits C. The interest from a corporate bond that a company pays the bond-holder D. The new company entity that results from a company merger

5. Suppose you have been employed for about a year and a half and have been offered a better job at a different employer. Assuming you have been taking advantage of the matching 401k plan, what will happen to your 401k if you leave your current job before you are fully vested? A. You will lose your entire 401k B. You may lose some or all of your 401k match, but will get to keep your contributions C. You will always get to keep the entire balance of your 401k, A judge will need to review the company charter to decide D. You may lose some or all of your 401k match, but will get to keep your contributions 6. What would happen to the buying power of your investment after one year if your rate of return was 8% and the rate of inflation was 3%? A. The buying power would increase by 8% B. The buying power would increase by 11% C. The buying power would increase by 5% D. The buying power would decrease by 1% 7. What is the intended purpose of a 401k account? A. Save money for emergencies B. Invest money for college, Invest money for retirement C. Save money for vacation D. Invest money for retirement

Week 4 Quiz - Insurance (24pts) 1. What happens if you don't pay your insurance premium for your car? A. The insurance claim isn't processed and your car doesn't get fixed B. You are driving illegally, You are not insured C. You are not insured and are driving illegally D. Your car payments will increase 2. What happens if you don't pay your insurance deductible for your car? A. The insurance claim isn't processed and your car doesn't get fixed B. You are driving illegally C. You are not insured D. You are not insured and are driving illegally E. Your car payments will increase 3. John, Alyson and Jared all selected identical new cars at the same price. John bought the car with some of his own money and the rest a car loan. Alyson bought the car with cash. Jared leased the car. What is true about their options for car insurance? A. John and Alyson are able to reduce the cost of insurance by selecting legal minimum coverage B. Alyson is able to reduce the cost of insurance by selecting legal minimum coverage C. John, Alyson and Jared are all able to select legal minimum coverage if they choose D. Alyson and Jared are able to reduce the cost of insurance by selecting legal minimum coverage 4. William pays $300 every 6 months for automobile insurance and his deductible is $750. William caused a minor accident that resulted in $800 of damages to his car and $1,100 of damages to the other car. How much will William pay to have both cars fixed? A. $300 B. $750 C. $800 D. $1,100 E. $1,500 5. Which of the following can help reduce the risks associated with unexpected bills? A. Auto insurance B. Emergency fund C. Renter's Insurance D. Health Insurance E. All answers are correct 6. What are some of the potential consequences of driving without auto insurance? A. Suspension of driver's license B. Traffic fines ranging from $100 to $1,000 C. Increased insurance rates, Points added on your license D. Community service hours E. All answers are correct

Week 5 Quiz - Interest and Credit Cards (16pts) 1. Select the most likely consequence of making credit card payments late. A. Fees and paying the default interest rate on the balance B. Fees and paying the introductory interest rate on the balance C. Paying higher interest rates D. None of these answers are correct 2. Zach is an authorized user on his parent s credit card. What may happen if Zach doesn't use the card in a responsible way? A. Zach's credit may be damaged B. Zach's parents credit may be damaged C. Zach and Zach's parents credit may be damaged D. None of these answers are correct 3. If interest rates rise, what will happen to the prices of bonds? A. Increase B. Decrease C. No change D. Interest rates and bond prices are not related 4. If the typical balance on Lucy's credit card is $500 and the interest rate on her credit card is 16%, how much in interest would you expect Lucy to be charged in a typical month? A. About $6.67 B. About $16.00 C. About $51.74 D. About $80.86

Week 6 Quiz - Credit and Credit Building (20pts) 1. Select the scenario most likely to build your credit (improve your credit score). A. Borrow 10%-30% of the credit limit on a credit card and make the minimum payment on time every month B. Use a debit card instead of a credit card C. Borrow 10%-30% of the credit limit on a credit card and pay the full balance on time every month D. Borrow more than 50% - 100% of the credit limit to show that you can handle more credit. 2. If Troy's credit card utilization is 35% and his current balance is $455, what is the credit limit on his only credit card? A. $1,300 B. $1,000 C. $159.25 D. $1,900 E. $900 3. After your loan application is submitted, who decides if you get approved for the loan? A. Credit agency B. Loan Underwriter C. Loan Undertaker D. Credit bureau 4. Which of the following are fast ways of improving your credit score (within 60 days)? A. Dispute any errors on credit reports B. Settle up any delinquent accounts with creditors and ask them to report the account as Paid As Agreed C. Check credit limits in credit report for accuracy and make sure that they are not listed lower than they actually are, Cancel all credit cards D. All answers can quickly improve credit score E. All answers except cancelling credit cards can quickly improve credit score 5. Whose responsibility is it to identify credit report errors? A. Federal Government B. Credit reporting agencies C. It is your responsibility to identify mistakes and report them D. There are 3 reporting agencies to make sure that there are no errors on credit reports

Week 7 Quiz - Financial Responsibility (20pts) 1. When John received his W2, he received several copies. Why was he sent multiple copies of this form? A. John gets 2 copies because this is a W-2. He would get 4 copies of a W-4 B. The government always prints multiple copies of forms C. The different copies are for John and each tax return he may file 2. Who sent John this W-2? A. The Federal Government B. John's employer - ProperLiving Widget Engineering & Design C. The Internal Revenue Service 3. How much did John make in wages in the 2014 tax year? (assuming this was John's only job) A. $48,119.00 B. $42,417.88 C. $31,878.71 4. How much did John 'take home' in net pay? (assuming this was John's only job)

A. $48,119.00 B. $42,417.88 C. $31,878.71 5. How much did John save in his 401(k) in the 2014 tax year? A. $1,217.39 B. $2,113.29 C. $1,781.46 6. Assume your employer provides health care insurance and deducts your portion of the premiums from your paycheck with pre-tax dollars. Are your health insurance premiums federally tax deductible? Yes or No 7. John earned $2,500 as a life guard over the summer. This was his only job and income taxes were deducted from his paychecks by his employer. For filing a tax return, what should John do? A. John should not file a tax return. John is legally not required to file because his income is less than the minimum requirement for filing. B. John should file a tax return. He can then get all of his taxed money refunded. C. John should report this income on his parent s tax return since he is still living at home. D. John should send a check for $50 to the IRS in case the employer didn't take out enough taxes. 8. Select what would happen to your 1) taxable income and 2) tax liability when you are able to claim a deduction such as student loan interest? A. lower 2) lower B. higher 2) higher C. higher 2) lower D. lower 2) higher 9. Which is tax deductible? A. Community service hours B. Student loan payments C. Medical Bills totaling $200, 401k gains D. None of the answers are correct E. All of the answers are correct