Personal Finance Summer 2019

25 Questions | Total Attempts: 205

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Personal Finance Summer 2019 - Quiz

Quiz 1. Value of College, Living Paycheck to Paycheck, Budgeting, Checking Accounts


Questions and Answers
  • 1. 
    What value does college have for you other than dollar value? (check all that apply)
    • A. 

      Exposure to new knowledge and ideas

    • B. 

      You make new relationships with other students and with professors (also called "networking")

    • C. 

      The classrooms all have internet access and are good places for streaming music

    • D. 

      Experiencing a new place outside your immediate community

    • E. 

      The libraries give away books for free

  • 2. 
    Using the chart below, how much more per week does someone earn who has graduated with a Bachelor's degree (four year college) than someone who graduated with a high school diploma? (choose one)
    • A. 

      The amounts are roughly the same

    • B. 

      $464

    • C. 

      $652

    • D. 

      $188

  • 3. 
    Roughly how much is a four year college degree worth over a 40 year career compared to having a high school diploma? (Remember, we calculated this value by calculating what 40 years of earnings would be for someone with a Bachelor's degree minus how much they would earn over 40 years if they only have a high school diploma.) 
    • A. 

      $2.4 million

    • B. 

      Roughly $1 million ($965,120 to be precise)

    • C. 

      There is no difference

    • D. 

      $100,000

  • 4. 
    In the game "Spent," one of your choices was buying healthcare insurance. Which of the following is generally true with healthcare insurance. Check ALL that apply.
    • A. 

      The more expensive your health insurance plan, the lower your copay will be (the amount you pay out of your pocket when you go to the doctor)--in other words, if you pay a higher amount on a monthly basis, you pay less out of pocket on each doctor visit

    • B. 

      The more expensive your health insurance plan (ie, the higher your monthly health insurance payment), the higher your copay will be (the amount you pay out of your pocket when you go to the doctor)

    • C. 

      More expensive healthcare insurance generally will cover a wider range of hospitals and geographic coverage areas than cheaper insurance plans

    • D. 

      Most people will not need health insurance.

    • E. 

      Everyone should have health insurance.

  • 5. 
    In the game "Spent," you had to choose how far away from your job you would live. What was the relationship between home/apartment costs and travel costs?
    • A. 

      The farther you moved from your job, the more expensive the housing costs, while travel costs stayed the same.

    • B. 

      As you move farther from your job, housing costs went down, but travel costs went up.

    • C. 

      The closer you are to your job, the lower the cost of housing and travel.

    • D. 

      Housing and travel costs don't change regardless how far you live from your job.

  • 6. 
    True or false: People in the US with only a high school diploma have about the same unemployment rate as people who have earned a Bachelor's degree (four year college degree). Remember, the unemployment rate is the percentage of people who cannot find a job.
    • A. 

      True

    • B. 

      False

  • 7. 
    In the Bean Game, we talked about "wants" vs. "needs." Which of the following would be considered "wants?" (Choose ALL that apply)
    • A. 

      Housing and utilities

    • B. 

      Gifts you buy for family and friends

    • C. 

      Auto insurance if you own a car

    • D. 

      Eating meals out at restaurants most nights

    • E. 

      Buying designer clothes

    • F. 

      Going to concerts and taking expensive vacations

    • G. 

      Basic products like soap, shampoo and toothpaste

  • 8. 
    When budgeting, we like to say "pay yourself first," which means put money in savings as a top priority. What is a good amount to save each month? 
    • A. 

      1-2% of your salary

    • B. 

      $10 per month

    • C. 

      10% of your net salary, and more if you can.

    • D. 

      Whatever you have available after you have met all your needs and wants.

  • 9. 
    When we did Salary-based Budgeting, we looked at a gross salary amount, then we looked at how you have to pay taxes, medicare and social security (called FICA). The table below shows these calculations for an individual making $60,000 per year, which is $5,000 per month. In this case, the gross salary is $5,000 and the net salary is $3,659.50. Which amount would be deposited in your bank account (which amount is your "take home pay").
    • A. 

      $5,000

    • B. 

      $3,659.50

    • C. 

      Neither, it is impossible to know what will be deposited in your bank account.

  • 10. 
    What is the difference between "gross salary" and "net salary?" (Choose ALL that are correct)
    • A. 

      Net salary is your pay after all "needs" are met

    • B. 

      Net salary is your gross salary minus the amount the government takes out (taxes, social security and medicare)

    • C. 

      "Gross" and "net" are basically the same thing

    • D. 

      Gross refers to yearly salary and net means monthly

  • 11. 
    When we did the budgeting exercise, we looked at apartment rentals in different cities. Select the answer below that best summarizes what we learned about apartment rentals. (Choose ALL that are correct)
    • A. 

      The cost of a rental apartment is pretty similar in different cities across the US.

    • B. 

      Different cities in the US have significantly different costs for apartment rentals.

    • C. 

      It is always better to live alone, because finding a roommate, or multiple roommates, will cause you to pay more.

    • D. 

      Having roommate (or more than one) generally will reduce your cost of apartment rent in any given city.

  • 12. 
    When we did the budgeting exercise, we looked at apartment rentals in different cities. Select the answer below that best summarizes what we learned about apartment rentals. (Choose one answer)
    • A. 

      Most apartment rentals will cost $300-600 per person, regardless of where you live.

    • B. 

      You should reasonably expect that renting an apartment will cost between $500-$3,000, depending on where you live and how nice an apartment you get.

    • C. 

      In places like San Francisco or New York City, most people pay $6,000 per month or more for an apartment.

  • 13. 
    If you want to own a car, which of the following costs should be in your budget? (Choose all that belong in the portion of your budget relating to a car)
    • A. 

      The cost of the car only, including any loan payments. Other car-related items are "wants" not "needs" and do not belong in my budget.

    • B. 

      The monthly loan payment if I borrowed money to buy the car

    • C. 

      Car insurance

    • D. 

      Gas (if I have a gas powered car) or extra electricity costs (if I have an electric car)

    • E. 

      A new paint job once every three years

    • F. 

      An estimate for average maintenance costs (for when things on the car need to be fixed or replaced when they wear out)

  • 14. 
    True or false: Basic car insurance is legally required in order to drive a car.
    • A. 

      True

    • B. 

      False

  • 15. 
    What are some advantages to having a checking account? (Check ALL that are correct)
    • A. 

      No need to carry cash

    • B. 

      Banks will often pay you to open an account

    • C. 

      It is safer to carry a debit card and/or mobile phone than cash (less likely to be lost or stolen)

    • D. 

      A checking account allows you to get cash from any ATM machine anywhere with no fees

    • E. 

      It allows you to use online and mobile banking options

  • 16. 
    When you make a purchase using a debit card, how much can you spend?
    • A. 

      There is no limit on what you can spend using a debit card

    • B. 

      The money can come from your friends’ accounts, so the more friends you have, the more you can spend

    • C. 

      The money comes from the balance in your checking account, so you can spend up to the amount you have in your account, but no more than that

    • D. 

      You can spend up to $20 per transaction

  • 17. 
    Which of the following is NOT a way you can DEPOSIT money into your checking account?
    • A. 

      Going to a bank office and having a bank teller do it for you

    • B. 

      Through an ATM machine

    • C. 

      Direct deposit of your paycheck by your employer

    • D. 

      When you are buying something at a store with a debit card, the checkout person can make a deposit for you

    • E. 

      Electronic transfer from another account

  • 18. 
    Which of the following are ways you can WITHDRAW money from a checking account? (Note: remember, the word "withdraw" in this case means to take money our of your account or to pay others with money from your account.) Check ALL that are correct.
    • A. 

      At a bank office

    • B. 

      Online bill pay or electronic transfer

    • C. 

      Call the bank and ask them to send you cash in the mail

    • D. 

      Use a debit card to make a purchase at a store and get cash back

    • E. 

      Write a check

  • 19. 
    Why is it a good idea to check your bank statements on a regular basis? (Check ALL that are correct)
    • A. 

      You are able to monitor the fees you are being charged to make sure you can change what you are doing if you have fees you can avoid

    • B. 

      It is required by law that you check your bank statements

    • C. 

      The bank will often include offers for free meals with your monthly banks statement

    • D. 

      You can catch any possible errors made by the bank, or identify any other mistakes

    • E. 

      Checking your statements is the only way to know if your employer has given you a pay raise

  • 20. 
    On the statement below, what is the balance in the checking account on October 28, 2003?
    • A. 

      $36.76

    • B. 

      -$72.47

    • C. 

      $731.57

    • D. 

      $0.55

  • 21. 
    On the statement below, what is the total amount deposited in the bank account for the month?
    • A. 

      $694.81

    • B. 

      $1,515.63

    • C. 

      $1,442.61

    • D. 

      -72.47

  • 22. 
    On the statement below, how might the "Out of Network ATM fee" be avoided?
    • A. 

      By using the correct PIN number (passcode) when using your ATM card

    • B. 

      By taking out over $100 in cash when making a cash withdrawal

    • C. 

      By only using ATM machines from the specific bank in which you have a checking account

    • D. 

      By selecting an option on the ATM keypad for “free withdrawals”

  • 23. 
    Which account transactions REDUCE a checking account balance? (Check ALL that apply)
    • A. 

      Paying your mortgage (home loan payment)

    • B. 

      Depositing cash in an ATM

    • C. 

      Paying a bill online

    • D. 

      Using an ATM to withdraw cash from your account

    • E. 

      Receiving your paycheck though a direct deposit

  • 24. 
    Which of the following is true regarding John’s direct deposit (shown as "Payroll Deposit - HOTEL")? (Check ALL that apply)
    • A. 

      Every time John receives a direct deposit he has to pay the bank fees

    • B. 

      The direct deposit increases the balance in his account by the amount of the deposit

    • C. 

      The direct deposit amount is the amount of John’s gross salary (before taxes are taken out)

    • D. 

      The direct deposit is made every four weeks

  • 25. 
    True or false: If the bank where you have an account is Wells Fargo and you go to another bank's ATM machine, say Bank of America, you will be able to withdraw cash BUT the other bank will charge you a fee.
    • A. 

      True

    • B. 

      False

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