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OCC Financial Management

Midterm Exam

  1. What are expenses, such as utilities and groceries, which change from week to week or month to month?
  2. Fixed expenses
  3. Variable expenses
  1. What are expenses, such as television and rent, which are the same from week to week or month to month?
  2. Fixed expenses
  3. Variable expenses
  1. What is the money you spend on something you want or need?
  2. Income
  3. Debt
  4. Expense
  5. Saving
  1. What is the money you owe?
  2. Debt
  3. Budget
  4. Expense
  5. Utilities
  1. To ___ is to move money from one area to another.
  2. Transfer
  3. Income
  4. Expense
  5. Estimate
  1. What is the money you set aside to spend later for a certain purpose?
  2. Transfer
  3. Expense
  4. Savings
  5. Needs
  1. Services such as electricity, water, and air conditioning are ___.
  2. Budgets
  3. Transfers
  4. Utilities
  5. Housing
  1. Transportation to work or school is a _____.
  2. Want
  3. Need
  1. Recreation – concert tickets and video games – are a ____.
  2. Want
  3. Need
  1. Money that earn from working is called ___.
  2. Expense
  3. Debt
  4. Average
  5. Income
  1. What is a plan for spending or saving money?
  2. Balance
  3. Budget
  4. Transfer
  5. Income
  1. What is the money you pay to live in an apartment?
  2. Rent
  3. Mortgage
  4. Lease
  5. Tenant
  1. What is the money held by a landlord that covers any damages the renters may cause? Hint: renters get this back when they move out if their apartment is undamaged.
  2. Mortgage
  3. Insurance
  4. Rent
  5. Security deposit
  1. Who is the person who pays rent to stay in an apartment?
  2. Landlord
  3. Bank worker
  4. Dependent
  5. Tenant
  1. Who is the property owner that collects rent and manages apartments?
  2. Landlord
  3. Bank worker
  4. Dependent
  5. Tenant
  1. What is a loan to buy a house or condo, usually paid monthly to the bank?
  2. Insurance
  3. Rent
  4. Mortgage
  5. Security deposit
  1. What is the legal contract that states the tenant’s responsibilities for an apartment, including when rent is due and what happens if you move out early without notice?
  2. Security deposit
  3. Mortgage
  4. Lease
  5. Rent
  1. ____ is the money taken from gross pay for such things as taxes, health insurance, and social security.
  2. Salary
  3. Deduction
  4. Net pay
  5. Hourly wage
  1. A ___ is a piece of paper attached to the paycheck that gives information on total hours worked, gross pay, and net pay.
  2. Pay stub
  3. Tax
  4. Exemption
  5. Social security card
  1. ___ is money paid to the local, state, or federal government.
  2. Tax
  3. Union dues
  4. Worker’s compensation
  5. Health insurance
  1. ____ is the hours worked beyond the number of hours in the regular work week, usually anything more than 40 hours.
  2. Hourly wage
  3. Overtime
  4. Tax
  5. Deduction
  1. The amount of money earned for each hour of work is your ___.
  2. Net pay
  3. Overtime
  4. Hourly wage
  5. Medicare
  1. ____ is the amount of money earned by a worker, before any deductions are taken.
  2. Salary
  3. Gross pay
  4. Net pay
  5. Income tax
  1. ___ is the amount of money received after deductions have been taken out, this is also referred to as take-home pay.
  2. Salary
  3. Gross pay
  4. Net pay
  5. Income tax
  1. When you sign the back of a check at a bank in order to exchange it for cash, you are ___ it.
  2. Paying
  3. Endorsing
  4. Employing
  5. Deducting
  1. Lyle’s income is $950.75 a month. His fixed expenses are $675.90 a month. How much does he have left available after those are paid?
  2. $74.85
  3. $274.85
  4. $585.90
  5. $1,626.25
  1. Gabriel shares a house with 3 other people. The rent is $2,100 per month. The phone, cable, and internet together are $360 per month. What must Gabriel pay each month if he shares the rent, phone, cable, and internet evenly with his roommates?
  2. $552.67
  3. $615.00
  4. $1,740.00
  5. $2,460.00
  1. Gil spent the following this week: Rent for $320.00, Utilities for $15.25, Bus fare for $39.45, Food for $52.13, Bowling for $7.00, and a Video Game for $38.00. How much did Gil spend on his wants?
  2. $38.00
  3. $45.00
  4. $84.45
  5. $426.83
  6. Bill spent $20, $29, $15, and $14 for lunch in the last four weeks. What was his average weekly expense for lunch?
  1. $39.00
  2. $19.50
  3. $9.75
  4. $4.50
  1. What is one reasonable way to save more money every month?
  2. Don’t pay rent or power bills
  3. Spend less on variable expenses
  4. Spend less on fixed expenses
  5. Only buy things with your credit card
  6. Ranekka can save $45 a month to buy a cell phone. The cell phone costs $360. How many months will she need to save for it?
  7. 5 months
  8. 6 months
  9. 7 months
  10. 8 months
  1. Daniela wants to buy a leather jacket. It costs $198. She wants to buy it in three months. How much will she have to save each month?
  2. $47.50
  3. $50.00
  4. $66.00
  5. $99.00
  6. Cliff’s monthly income is $1,450.00. His expenses include rent for $650.00, utilities for $110.00, phone for $65.00, groceries for $135.00, and bus fare for $50.00. How much money can Cliff save each month (hint: what’s left over)?
  7. $150
  8. $215
  9. $275
  10. $440
  11. Mauricio pays $1,308 a year for car insurance. He makes monthly payments. What is his fixed monthly expense for car insurance?
  12. $109.00
  13. $130.80
  14. $218.00
  15. $308.00

For questions 35-36, convert these decimals to percentages:

  1. 0.70
  1. 8

For questions 37-38, convert these percentages to decimals:

  1. 45%
  1. 4.9%

For the following questions, solve the problems and circle your answers. Remember to show your work!!

  1. If you work 40 hours per week at an hourly rate of $7.95 per hour, how much is your weekly pay?
  2. If your work pays you $26,000 per year, how much is your weekly pay?
  1. If your weekly pay is $258, what is your yearly pay?
  1. If your monthly pay is $1,880, what is your yearly pay?
  1. If your yearly pay is $24,000, what is your monthly pay?
  1. What is the highest rent you can afford if your monthly income is $3,300? Hint – remember, rent should not go over 30% of your monthly income.
  1. If the rent is $700 per month and the security deposit on the apartment is 2 months of rent, what is the amount of the security deposit?
  1. Magenta pays $976 a month in rent and she signed a one-year lease. If she wants to leave 3 months early, how much money will she owe to the landlord?

Use the following weekly earnings statement to answer questions 47-48:

Gross Pay = $558.00

Federal income tax = $73.00

State income tax = $28.70

Health insurance = $31.00

Medicare = $12.14

  1. What are the total deductions?
  1. What is the net pay?

For questions 49-50, calculate the total time worked for each time card sample:

  1. IN 9:00 am OUT 5:00 pm BREAK ½ hour
  1. IN 1:30 pm OUT 7:00 pm BREAK 15 minutes

For questions 51-52, calculate the total pay. Remember that time and a half is for any overtime over 40 hours and double time is only for holidays. Also, please show your work and circle the correct answer on the test itself. Use the pay charts to help you do these problems:

  1. Sabrina worked 46 hours. Her regular rate of pay is $8.28 per hour. What is her total pay?
  1. Ms. Bloomer earns $24 an hour. She worked 40 hours at the regular rate, 3 hours at time and a half, and 5 hours on Christmas day. What is her total pay?

For questions 53-57, choose the word that best completes each statement.

balanced budget expense expense record fixed expenses

  1. Money spent on something you want or need is an ______.
  1. ______are expenses that remain the same every month.
  1. A budget is ______if your income is greater than or equal to your expenses.
  1. An ______is an organized chart used to list things you spent money on for a period of time.

For questions 57-62, fill in the needs and wants chart with items from the list below.

Groceries movies utilities toothpaste DVD rent

Wants / Needs

For questions 63-67, please circle the best possible answer.

63. Tom makes $290.00 per week at his regular job and $150.00 per week at his

part-time job. How much money does Tom earn per week?

a.  $675.00

b.  $226.00

c.  $440.00

d.  $290.00

64. Lisa earns $1,769.00 per month. Her fixed expenses for the month are

$1,465.00. How much money does Lisa have left for variable expenses?

a.  $315.00

b.  $226.12

c.  $304.00

d.  $95.00

65. Mike’s income is $859.68 per week. His fixed expenses for the week are

$523.12. His variable expenses are $136.80. How much money does Mike have left for savings each week?

a.  $199.76

b.  $115.12

c.  $68.32

d.  $212.36

66. Mike earns $1,756 per month. His fixed expenses for the month are $975.

How much money does Mike have left for variable expenses?

a.  $781.00

b.  $354.00

c.  $81.00

d.  $197.25

67. Sherri buys a weekly pass for $15. It costs her $3.25 each way to ride the bus

from home to work and from work back home. Sherri rides the bus 5 days a week. How much money does Sherri save with the weekly pass?

a.  $7.50

b.  $6.25

c.  $32.35

d.  $42.18

Use the chart below to answer questions 68-71 about financial institutions.

BANK SERVICES
Denver Newport Chess
Services Bank Bank Bank
Monthly service charge for checking accounts $6 $8 Free
Monthly service charge for savings accounts $3 $5 Free
Direct Deposit Yes Yes Yes
Electronic withdrawal Yes No Yes
Debit cards Yes Yes Yes
Number of branches in state 25 10 5
Open late one night and Saturdays No Yes No

68. Which bank DOES NOT offer electronic withdrawals?

a.  Denver Bank

b.  Newport Bank

c.  Chess Bank

69. Which bank offers free savings and checking accounts?

a.  Denver Bank

b.  Newport Bank

c.  Chess Bank

70. How many branches does Chess Bank have in state?

a.  25

b.  12

c.  10

d.  5

71. Which bank is open late one night and Saturdays?

a.  Denver Bank

b.  Newport Bank

c.  Chess Bank

For questions 72-76, please circle the best possible answer.

72. Mary wants to buy a dress for the dance on Friday. She goes to the ATM to get cash.

She must withdraw money in multiples of $20. The dress costs $70.00. What is the least amount of money Mary must withdraw?

a.  $60.00

b.  $80.00

c.  $55.00

d.  $70.00

73. John used his bank’s ATM to withdraw $150. This was the eighth time he used the ATM card in March. His bank does not charge a fee for the first five ATM uses each month. After that, a fee of $2.00 is charged for each use. What is the total he should subtract from his balance including fees?

a.  $360.00

b.  $156.00

c.  $165.00

d.  $86.00

74. Phyllis used the ATM to withdraw $60. This WAS The fifth time she used the ATM this month. Her bank does not charge a fee for the first four ATM uses each month. After that, the fee is $.85 each use. Before she used the ATM, her balance was $542.72. What is the new balance?

a.  $65.12

b.  $361.18

c.  $173.82

d.  $481.87

75. John purchased school supplies from Wal-Mart totaling $25.36. He gave the cashier 2 bills and 3 coins. What was the value of each?

a.  1-$20, 1-$5, 1-quarter, 1-dime, 1-penny

b.  1-$20, 1-$10, 1-dime, 2-pennies

c.  2-$10, 2-$5, 1-quarter, 1-dime, 2-pennies

76. Gloria purchased a TV and a couch for her new apartment for $756.89. Tax on the items totaled $5.94. She gave the clerk eight $100 bills. How much change should she expect to get back?

a.  $356.89

b.  $56.89

c.  $37.17

d.  $12.91