Specific Competencies and Skills Tested in this Assessment:
Personal Decision Making
- Define and give examples of economic wants and needs
- Analyze the effects of ethics on business and financial management decisions
- Differentiate between types of decisions and identify which types should be used in a formal decision-making process
- Define and give examples of economic wants and needs
Earning and Reporting Income
- Analyze how career choice, education, and skills affect income and goal attainment
- Calculate net pay
Managing Finances and Budgeting
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Construct and use a personal budget plan and evaluate it according to short-term goals
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Construct and use a personal budget plan and evaluate it according to long-term goals
Saving and Investing
- Explain how and why the stock market works
- Analyze the power of compounding
- Describe the advantages and disadvantages of various savings and investing plans
- Explain the role of savings and investing in creating a financial plan
- Contrast the impact of simple interest versus compound interest on savings
Buying Goods and Services
- Describe and give examples of consumer rights, responsibilities, and remedies
- Identify the costs of utilities, services, maintenance, and other expenses involved in independent living
- Explain how a consumer can identify and report fraudulent behavior and practices observed on the internet
Banking and Financial Institution
- Identify the rights and responsibilities associated with using a checking account
- Differentiate among types of electronic monetary transactions offered by various financial institutions
- Describe and demonstrate the steps involved in the bank reconciliation process
Using Credit
- Describe the risks and responsibilities associated with using credit
- Identify and explain methods of establishing and maintaining a good credit rating
- Identify basic features of credit ratings and reports
Protecting Against Risk
- Identify risk in life and how to gain protection against the consequences of risk
- Identify features and types of insurance, including auto, flood, and home
Written Assessment:
Administration Time: 2 hours
Number of Questions: 77
Areas Covered:
- 12% Personal Decision Making
- 6% Earning and Reporting Income
- 6% Managing Finances and Budgeting
- 24% Saving and Investing
- 14% Buying Goods and Services
- 14% Banking and Financial Institutions
- 13% Using Credit
- 11% Protecting Against Risk
Sample Questions:
Economics is the process of making decisions to satisfy unlimited needs and wants with _____ resources
A. stagnant
B. unwanted
C. abundant
D. limited
The greatest gain on money in a savings account occurs when interest is compounded
A. daily
B. quarterly
C. semi-annually
D. annually
Consumers who put a deposit on merchandise and make payments toward that purchase are putting merchandise on
A. hold
B. lay-away
C. credit
D. lease
Setting up a bill to be paid from an online bank account on a certain date is called
A. auto-pay
B. direct deposit
C. auto-deposit
D. overdraft protection
The public records section of a credit report may contain information regarding
A. employment history
B. checking account numbers
C. delinquent accounts
D. salary history