1|Page
FBLA PERSONAL FINANCE PREP EXAM
| FBLA PERSONAL FINANCE EXAM
STUDY GUIDE | QUESTIONS AND
CORRECT DETAILED ANSWERS |
RATED A+ | NEW AND REVISED
The fixed yearly amount of money earned by an employee is known as...
- ANSWER- salary
Money subtracted from an employee's gross earnings is called... -
ANSWER- a deduction
The Wage and Tax Statement showing the wages an individual earned
for the year and the amount of income tax that is withheld is a... -
ANSWER- W-2 form
The record of deposits and withdrawals for a checking account is kept in
a... - ANSWER- checkbook register
,2|Page
To build a good credit history, a person needs to... - ANSWER- pay bills
on time
When applying for a credit card, the credit card company will consider
which fact most important in establishing her credit rating... -
ANSWER- capacity to repay
If you only sign your name to the back of a check, this type of
endorsement is called... - ANSWER- blank
A form used to place money into a checking or savings account is
called... - ANSWER- deposit slip
An outstanding check is a check that... - ANSWER- has not been
endorsed
Most financial experts agree that families should set aside at least,
______ percentage of their disposable income each pay period. -
ANSWER- 10
, 3|Page
A personal property inventory is most commonly used for... -
ANSWER- proof of loss from a fire, theft, or property damage
The Truth in Lending Act limits your liability when a credit card is lost
or stolen to the first ________, unless the card is reported lost or stolen
before it is used. - ANSWER- $50.00
The act known for its provisions requiring full disclosure of all charges
in a credit transaction is called the... - ANSWER- Truth-in-Lending Act
The formula I = P x R x T is for computing... - ANSWER- simple
interest
Which of the following is a savings plan whereby an individual sets
aside a certain amount of money for retirement? - ANSWER- IRA
account
Finance companies charge higher rates of interest on loans because... -
ANSWER- they take more risk
FBLA PERSONAL FINANCE PREP EXAM
| FBLA PERSONAL FINANCE EXAM
STUDY GUIDE | QUESTIONS AND
CORRECT DETAILED ANSWERS |
RATED A+ | NEW AND REVISED
The fixed yearly amount of money earned by an employee is known as...
- ANSWER- salary
Money subtracted from an employee's gross earnings is called... -
ANSWER- a deduction
The Wage and Tax Statement showing the wages an individual earned
for the year and the amount of income tax that is withheld is a... -
ANSWER- W-2 form
The record of deposits and withdrawals for a checking account is kept in
a... - ANSWER- checkbook register
,2|Page
To build a good credit history, a person needs to... - ANSWER- pay bills
on time
When applying for a credit card, the credit card company will consider
which fact most important in establishing her credit rating... -
ANSWER- capacity to repay
If you only sign your name to the back of a check, this type of
endorsement is called... - ANSWER- blank
A form used to place money into a checking or savings account is
called... - ANSWER- deposit slip
An outstanding check is a check that... - ANSWER- has not been
endorsed
Most financial experts agree that families should set aside at least,
______ percentage of their disposable income each pay period. -
ANSWER- 10
, 3|Page
A personal property inventory is most commonly used for... -
ANSWER- proof of loss from a fire, theft, or property damage
The Truth in Lending Act limits your liability when a credit card is lost
or stolen to the first ________, unless the card is reported lost or stolen
before it is used. - ANSWER- $50.00
The act known for its provisions requiring full disclosure of all charges
in a credit transaction is called the... - ANSWER- Truth-in-Lending Act
The formula I = P x R x T is for computing... - ANSWER- simple
interest
Which of the following is a savings plan whereby an individual sets
aside a certain amount of money for retirement? - ANSWER- IRA
account
Finance companies charge higher rates of interest on loans because... -
ANSWER- they take more risk
