NGPF Final Exam Study Guide with
Complete Solutions
A household is considered "unbanked" when no one in the household has a checking or
savings account at a bank or credit union. Two reasons could be you do not trust Banks
or not having enough money to maintain a balance at a bank - Many people are
unbanked. Explain what being unbanked means and list at least two reasons that
someone might be unbanked
a systematic error in thinking that can influence humans decisions and judgments -
What is cognitive bias?
A W-2 form is used to report wages paid to employees and the taxes withheld from
them, while at 1040 calculates the total taxable income of the taxpayer and determines
how much is to be paid to or refunded by the government. She can use the information
from the W-2 which has her pay and her taxes withheld in boxes one and two, and she
can use this information to fill out her 1040 - Keisha is filing taxes for the first time.
Briefly explain to her the relationship between a W-2 form and a 1040.
A.) A grant or scholarship, because you don't repay them - When it comes to paying for
college, the first option you should consider is...
A.) A grant or scholarship, because you don't repay them
B.) A Federal student loan, because they offer low, fixed interest rates
C.) A private loan, because they are tailored specifically for you and your family
D.) Work-study, because it comes with low fixed interest rate
A.) Having a clear "unsubscribe" Link at the bottom of an email - All of the following are
examples of dark patterns EXCEPT...
A.) Having a clear "unsubscribe" Link at the bottom of an email
B.) Using colored buttons to confuse users to make an in-app purchase
C.) Including a countdown timer on a deal to create a sense of urgency
D.) Having customers complete a series of time consuming steps to close an account
A.) Taxes, Social Security, and Medicare are being deducted from her pay - Anna
receives her first paycheck and realizes that her take home pay is substantially less
than the rate she was offered when hired. Which of the following would help explain why
this happened?
A.) Taxes, Social Security, and Medicare are being deducted from her pay
B.) Most employers charge a "payroll fee", which the company collects to offset the cost
of preparing each employee's paycheck every pay.
C.) Her company is downsizing and has decided to pay her less without notice
D.) Anna's pay is smaller than she anticipated because businesses typically pay high
school students less than minimum wage
, A.) There are no penalties or late payments - All of the following are benefits of taking
out a loan with a cosigner EXCEPT:
A.) There are no penalties or late payments
B.) You gain access to loans you might not have been approved for on your own
C.) Your interest rate might be lower
D.) Your credit score will be positively impacted by making timely payments
B.) A TDF will automatically adjust your assets for you overtime as you get closer to
retirement - Which of the following is true about a Target date fund TDF?
A.) It is an actively managed fund that usually charges 1 to 2% management fee
B.) A TDF will automatically adjust your assets for you overtime as you get closer to
retirement
C.) You can only sign up for the TDF that aligns with your projected retirement year
D.) A TDF only invests in stocks and will adjust your money between different Industries
over time
B.) Akshay, who checks his bank statements every month to verify all transactions are
accurate - Who is taking a smart step towards protecting themselves from identity theft?
A.) Melody, who uses a website that starts with "http" instead of "https"
B.) Akshay, who checks his bank statements every month to verify all transactions are
accurate
C.) Misha, who throws their expired credit card in the trash without shredding it
D.) Isaiah, who logs onto his bank's mobile app using the public Wi-Fi network at the
local cafe
B.) Decrease time spent on social media and increased time spent on enjoyable
activities - Which of the following steps would you recommend MOST people should
take if they want to feel less FOMO (fear of missing out)?
A.) Buy stuff on a weekly basis so you always have something new to show your friends
and family
B.) Decrease time spent on social media and increased time spent on enjoyable
activities
C.) Say "yes" to all social events even if you don't feel like going to them
D.) Delete all of your social media accounts and data as soon as possible
B.) FAFSA - In order to qualify for financial aid, prospective college students must
submit their _______:
A.) Financial Aid Letter
B.) FAFSA
C.) PSAT, SAT, or ACT scores
D.) Parent's credit score
B.) Making the minimum payment every month - Which of the following will result in your
paying the LARGEST amount of interest to the credit card company?
A.) Paying 20% of your credit card balance every month
B.) Making the minimum payment every month
Complete Solutions
A household is considered "unbanked" when no one in the household has a checking or
savings account at a bank or credit union. Two reasons could be you do not trust Banks
or not having enough money to maintain a balance at a bank - Many people are
unbanked. Explain what being unbanked means and list at least two reasons that
someone might be unbanked
a systematic error in thinking that can influence humans decisions and judgments -
What is cognitive bias?
A W-2 form is used to report wages paid to employees and the taxes withheld from
them, while at 1040 calculates the total taxable income of the taxpayer and determines
how much is to be paid to or refunded by the government. She can use the information
from the W-2 which has her pay and her taxes withheld in boxes one and two, and she
can use this information to fill out her 1040 - Keisha is filing taxes for the first time.
Briefly explain to her the relationship between a W-2 form and a 1040.
A.) A grant or scholarship, because you don't repay them - When it comes to paying for
college, the first option you should consider is...
A.) A grant or scholarship, because you don't repay them
B.) A Federal student loan, because they offer low, fixed interest rates
C.) A private loan, because they are tailored specifically for you and your family
D.) Work-study, because it comes with low fixed interest rate
A.) Having a clear "unsubscribe" Link at the bottom of an email - All of the following are
examples of dark patterns EXCEPT...
A.) Having a clear "unsubscribe" Link at the bottom of an email
B.) Using colored buttons to confuse users to make an in-app purchase
C.) Including a countdown timer on a deal to create a sense of urgency
D.) Having customers complete a series of time consuming steps to close an account
A.) Taxes, Social Security, and Medicare are being deducted from her pay - Anna
receives her first paycheck and realizes that her take home pay is substantially less
than the rate she was offered when hired. Which of the following would help explain why
this happened?
A.) Taxes, Social Security, and Medicare are being deducted from her pay
B.) Most employers charge a "payroll fee", which the company collects to offset the cost
of preparing each employee's paycheck every pay.
C.) Her company is downsizing and has decided to pay her less without notice
D.) Anna's pay is smaller than she anticipated because businesses typically pay high
school students less than minimum wage
, A.) There are no penalties or late payments - All of the following are benefits of taking
out a loan with a cosigner EXCEPT:
A.) There are no penalties or late payments
B.) You gain access to loans you might not have been approved for on your own
C.) Your interest rate might be lower
D.) Your credit score will be positively impacted by making timely payments
B.) A TDF will automatically adjust your assets for you overtime as you get closer to
retirement - Which of the following is true about a Target date fund TDF?
A.) It is an actively managed fund that usually charges 1 to 2% management fee
B.) A TDF will automatically adjust your assets for you overtime as you get closer to
retirement
C.) You can only sign up for the TDF that aligns with your projected retirement year
D.) A TDF only invests in stocks and will adjust your money between different Industries
over time
B.) Akshay, who checks his bank statements every month to verify all transactions are
accurate - Who is taking a smart step towards protecting themselves from identity theft?
A.) Melody, who uses a website that starts with "http" instead of "https"
B.) Akshay, who checks his bank statements every month to verify all transactions are
accurate
C.) Misha, who throws their expired credit card in the trash without shredding it
D.) Isaiah, who logs onto his bank's mobile app using the public Wi-Fi network at the
local cafe
B.) Decrease time spent on social media and increased time spent on enjoyable
activities - Which of the following steps would you recommend MOST people should
take if they want to feel less FOMO (fear of missing out)?
A.) Buy stuff on a weekly basis so you always have something new to show your friends
and family
B.) Decrease time spent on social media and increased time spent on enjoyable
activities
C.) Say "yes" to all social events even if you don't feel like going to them
D.) Delete all of your social media accounts and data as soon as possible
B.) FAFSA - In order to qualify for financial aid, prospective college students must
submit their _______:
A.) Financial Aid Letter
B.) FAFSA
C.) PSAT, SAT, or ACT scores
D.) Parent's credit score
B.) Making the minimum payment every month - Which of the following will result in your
paying the LARGEST amount of interest to the credit card company?
A.) Paying 20% of your credit card balance every month
B.) Making the minimum payment every month
