Multiple Choice 1
Multiple Choice 2
Multiple Choice 3
Multiple Choice 4
Multiple Choice 5
100
1. One way that leads a person to earn additional income is for the person to
A. discuss financial goals with her supervisor.
B. increase budgeted monthly expenses.
C. increase her knowledge or improve skills.
D. volunteer at a successful corporation.
What if
C. increase her knowledge or improve skills.
100
6. Which of the following factors, other than job performance, will result in higher wages being given to many workers?
A. An increase in the number of vacation days per year.
B. A decrease in corporate borrowing.
C. A higher number of college graduates who have the same major.
D. A low number of available qualified workers looking for a job.
What is
D. A low number of available qualified workers looking for a job.
100
11. A person is age 16 and looking for part-time work at a restaurant that is part of a national chain. Which of the following is the employer allowed to ask for on a job application?
A. Copy of a major credit card.
B. Social Security number.
C. Parents’ occupations.
D. List of medical problems.
What is
C. Parents’ occupations.
100
16. An important responsibility for young adults living independently is to
A. purchase cell phone product insurance.
B. pay the principal if they have a mortgage.
C. purchase vacation homes.
D. monitor credit card expenses and debt.
What is
D. monitor credit card expenses and debt.
100
21. For the past two years, the price of gasoline increased 10%, while incomes did not increase. Which of the following will impact the monthly budget and financial plans of most people as a result of this price increase?
A. Insurance premiums.
B. Property taxes.
C. Use of an automobile.
D. Automobile repairs.
What is
C. Use of an automobile.
200
2. Entrepreneurs who start a new business with the hope of making a profit are
A. working fewer hours than people who have an employer.
B. earning higher wages than most people.
C. taking advantage of government protection against financial loss.
D. accepting the risk of financial loss if unsuccessful.
What is
D. accepting the risk of financial loss if unsuccessful.
200
7. Read the information below about the profiles of individuals regarding their federal income tax Mr. Chu – Married with two children, contributes to a retirement plan Mr. Ortiz – Single, age 35, rents an apartment Ms. Lalio – Single, age 58, contributes to a Roth IRA Ms. Feldman – Married, no children, rents a house. Which person listed above is likely to have the greatest number of payroll tax exemptions which lowers taxable income?
A. Mr. Chu.
B. Mr. Ortiz.
C. Ms. Lalio.
D. Ms. Feldman.
What is
A. Mr. Chu.
200
12. What is the opportunity cost of a person selling her stocks and bonds worth $5,000 to spend on a winter vacation?
A. Loss of the ability to go out of town during the cold weather.
B. Loss of the chance for the money to grow in value.
C. Ability to have a balanced budget.
D. There is none since they are equal opportunities.
What is
B. Loss of the chance for the money to grow in value.
200
17. A college student wants to buy a bike to ride from a rented apartment to the college campus. Which of the following should be part of the research?
A. Finding out which is the most popular bike sold in the area.
B. Determining which bike is safe and affordable for the intended user.
C. Comparing the cost of a repair and an accessory from three bike shops.
D. Checking to see if the bicycle was made in America.
What is
B. Determining which bike is safe and affordable for the intended user.
200
22. A highly successful high school student applied to public and private colleges and he was accepted to all of them, including one very prestigious university. The tuition at these colleges ranges from $15,000 to $55,000 a year. His mother lost her job. What is the first thing the family should do to address this situation?
A. Use their emergency fund to pay for tuition.
B. Charge the cost of the son’s first semester tuition on a low-interest rate credit card.
C. Have the son postpone going to college for one year.
D. Contact all of the colleges to explain the current financial situation to see if they can help.
What is
B. Charge the cost of the son’s first semester tuition on a low-interest rate credit card.
300
3. Income can be earned or unearned. Which of the following is an example of unearned income?
A. Money from a part-time second job.
B. Tips from customers.
C. Interest from bank accounts.
D. Paid vacation days from work.
What is
C. Interest from bank accounts.
300
8. The terms “job” and “career” are often used interchangeably. However, there is a major difference in the meaning of the terms. A career is characterized as
A. responsibilities without risk because it involves different tasks.
B. responsibilities that result in earning income from an hourly wage.
C. a profession or vocation requiring special education or training.
D. work that includes the benefit of short hours or little responsibility.
What is
C. a profession or vocation requiring special education or training.
300
13. Which of the following will help to create discretionary income?
A. Having payroll taxes deducted from each paycheck.
B. Contributing to an emergency savings account.
C. Spending less than total income each month.
D. Paying credit card bills at the end of the month.
What is
C. Spending less than total income each month.
300
18. When selecting a financial planner for advice, it is important to know the
A. person’s age.
B. whether the person has a license or certification.
C. credit history of the person.
D. discount being offered by the person to new clients.
What is
B. whether the person has a license or certification.
300
23. Which of the following types of personal information should never be sent in an email or text message?
A. Birthdate.
B. Credit or Debit card number.
C. Name of high school or college the person attended.
D. Name of the town where the person lives.
What is
D. Name of the town where the person lives.
400
4. Which of the following terms is correctly matched?
A. Capital Gains – Scholarships.
B. Rent – Tax free income.
C. Gross Income – Salary before taxes.
D. Deductions – Earned Income.
What is
C. Gross Income – Salary before taxes.
400
Review the information in the graph below before answering Question 9.
9. Which of the following explains why a person with an Associate’s Degree from a two-year community college earns $10,700 more than someone with a high school (HS) diploma?
A. They are more productive because they have better writing, reading, and thinking skills.
B. Community colleges place graduates in jobs with higher salaries.
C. They have less student debt as a result of their higher income.
D. The income gains shown are only during the first five years after graduating college.
What is
A. They are more productive because they have better writing, reading, and thinking skills.
400
14. When a consumer is disappointed with the quality of a product purchased, which of the following should the person try to do first?
A. Return the product with a receipt.
B. Write to the manufacturer complaining about the product.
C. Try to sell the product online.
D. Use social media to post comments about the product.
What is
A. Return the product with a receipt.
400
19. An individual or family should consult with a lawyer when
A. deciding between term or whole life/universal life insurance policies.
B. establishing a 529 College Education Fund.
C. estate planning that includes a will.
D. receiving an inheritance or windfall income.
What is
C. estate planning that includes a will.
400
24. When making a will, a person will choose a trusted individual to make sure that the will is carried out as intended. This individual is the
A. beneficiary.
B. executor.
C. proxy.
D. probate lawyer.
What is
B. executor.
500
5. What strategy is an effective way to build adequate financial resources for a family to pay for college tuition?
A. Opening a 529 College Savings Plan in the first year of a child’s birth.
B. Taking a greater risk by purchasing speculative stocks until a child is age 16.
C. Reducing taxes by investing money in mutual funds.
D. Increasing contributions to Social Security.
What is
A. Opening a 529 College Savings Plan in the first year of a child’s birth.
500
10. Which of the following is the best advice for a student with college loans?
A. After graduation, have a budget that includes money for paying more on the loan than is required monthly.
B. Get a full time job with a large company that has a tuition reimbursement policy for its employees.
C. Refinance the loan by transferring the amount of money owed to a credit card with a low-interest rate.
D. After five years of working, if the loan is not fully repaid apply for personal bankruptcy.
What is
A. After graduation, have a budget that includes money for paying more on the loan than is required monthly.
500
15. An example of a change in a person’s life situation requiring a review of their financial goals and plans is
A. graduating from middle school.
B. purchasing a new car.
C. buying life insurance.
D. becoming a parent.
What is
D. becoming a parent.
500
20. Which of the following can cause a person to become a victim of consumer fraud?
A. Having accounts at more than one bank.
B. Responding to an email from an unknown sender.
C. Filing income taxes online.
D. Registering for the “Do Not Call” list.
What is
B. Responding to an email from an unknown sender.
500
25. A person who owns a house needs to reduce her monthly expenses. Which of the
following is good advice to help her save money?
A. Buy environmentally safe cleaning products for home use.
B. Make purchases for home products online.
C. Lower the thermostat for heat when no one is home.
D. Pay home repair bills with a debit card.
What is
C. Lower the thermostat for heat when no one is home.