FBLA Competitive Event Personal
Finance Exam Study Guide Questions
and Answers
1. Retirement planning should ideally begin: - Answer-When the first paycheck is
received
2. The practice of pressuring consumers to buy a more expensive product than they
intended is called: - Answer-Trading Up
3. A type of financial fraud in which people pay to join an organization in exchange for
the right to sell memberships to others is called a: - Answer-Pyramid Scheme
4. On-the-job training is an example of: - Answer-Informal Education
5. If an hourly worker makes $15.00 per hour and earns time and a half for overtime,
how much is the per hour pay for overtime if the employee works 40 regular hours and 6
overtime hours? - Answer-$22.50
6. Taxable income is used to compute: - Answer-Income tax
7. The purpose of a W-4 form is to: - Answer-Allow the employer to withhold federal
income taxes from an employer's wages.
8. When preparing a budget, you need to focus mostly on: - Answer-Disposable Income
9. A person's ______ is a measure of the amount of money coming in versus the
amount going out: - Answer-Cash Flow
10. Which one of the following would be a monthly fixed expense for budgeting
purposes? - Answer-Rent
11. A budget that shows surplus means: - Answer-Less was spent than what was
earned
12. The time value of money refers to: - Answer-Increases in an amount of money as a
result of interest
13. Setting funds aside as long-term goals is: - Answer-Investing
14. Stocks in young, often small corporations that have higher overall risk than stocks of
successful, long-established companies are called: - Answer-Emerging Stocks
, 15. The total interest earned on $100 for three years at 10% (compounded annually)
would be roughly: - Answer-$21
16. An increase in the value of a stock overtime is called: - Answer-Capital Gain
17. You must file your tax return by this date every year: - Answer-April 15
18. Items purchased on the spur of the moment are referred to as: - Answer-Impulse
Buying
19. Which one of the following would be a reliable research tool for purchasing a
dishwasher: - Answer-Consumer Reports
20. This form of insurance provides protection against losses from injury to people or
property resulting from the products, services, or actions of a business: - Answer-
Liability Insurance
21. A general rise in the prices for goods and services over time is referred to as: -
Answer-Inflation
22. Which one of the following will likely result in lower insurance costs? - Answer-
Buying more than one type of insurance from the same insurance company
23. A ________ should be asked for by your bank if a check is lost or stolen: - Answer-
A stop payment order
24. Which one of the following are checks for which you pay in advance, and if they are
lost or stolen, the company from whom you bought these checks will replace them: -
Answer-Traveler's Check
25. Whether you have the financial ability to repay your debt goes towards determining
this "C" of credit: - Answer-Capacity
26. Exercising good credit management means: - Answer-Following an individual plan
for using credit wisely
27. The 25-day time period in which new credit card purchases can be paid off when
there is no previous balance, without being charged interest is the: - Answer-Grace
Period
28. The agencies who provide free credit reports for consumers are: - Answer-Equifax,
TransUnion, and Experian
29. Chapter 7 bankruptcy relieves an individual from debts arising from: - Answer-
Consumer Credit Debt
Finance Exam Study Guide Questions
and Answers
1. Retirement planning should ideally begin: - Answer-When the first paycheck is
received
2. The practice of pressuring consumers to buy a more expensive product than they
intended is called: - Answer-Trading Up
3. A type of financial fraud in which people pay to join an organization in exchange for
the right to sell memberships to others is called a: - Answer-Pyramid Scheme
4. On-the-job training is an example of: - Answer-Informal Education
5. If an hourly worker makes $15.00 per hour and earns time and a half for overtime,
how much is the per hour pay for overtime if the employee works 40 regular hours and 6
overtime hours? - Answer-$22.50
6. Taxable income is used to compute: - Answer-Income tax
7. The purpose of a W-4 form is to: - Answer-Allow the employer to withhold federal
income taxes from an employer's wages.
8. When preparing a budget, you need to focus mostly on: - Answer-Disposable Income
9. A person's ______ is a measure of the amount of money coming in versus the
amount going out: - Answer-Cash Flow
10. Which one of the following would be a monthly fixed expense for budgeting
purposes? - Answer-Rent
11. A budget that shows surplus means: - Answer-Less was spent than what was
earned
12. The time value of money refers to: - Answer-Increases in an amount of money as a
result of interest
13. Setting funds aside as long-term goals is: - Answer-Investing
14. Stocks in young, often small corporations that have higher overall risk than stocks of
successful, long-established companies are called: - Answer-Emerging Stocks
, 15. The total interest earned on $100 for three years at 10% (compounded annually)
would be roughly: - Answer-$21
16. An increase in the value of a stock overtime is called: - Answer-Capital Gain
17. You must file your tax return by this date every year: - Answer-April 15
18. Items purchased on the spur of the moment are referred to as: - Answer-Impulse
Buying
19. Which one of the following would be a reliable research tool for purchasing a
dishwasher: - Answer-Consumer Reports
20. This form of insurance provides protection against losses from injury to people or
property resulting from the products, services, or actions of a business: - Answer-
Liability Insurance
21. A general rise in the prices for goods and services over time is referred to as: -
Answer-Inflation
22. Which one of the following will likely result in lower insurance costs? - Answer-
Buying more than one type of insurance from the same insurance company
23. A ________ should be asked for by your bank if a check is lost or stolen: - Answer-
A stop payment order
24. Which one of the following are checks for which you pay in advance, and if they are
lost or stolen, the company from whom you bought these checks will replace them: -
Answer-Traveler's Check
25. Whether you have the financial ability to repay your debt goes towards determining
this "C" of credit: - Answer-Capacity
26. Exercising good credit management means: - Answer-Following an individual plan
for using credit wisely
27. The 25-day time period in which new credit card purchases can be paid off when
there is no previous balance, without being charged interest is the: - Answer-Grace
Period
28. The agencies who provide free credit reports for consumers are: - Answer-Equifax,
TransUnion, and Experian
29. Chapter 7 bankruptcy relieves an individual from debts arising from: - Answer-
Consumer Credit Debt
