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- 1. Multiple Choice
True or False: Banks are required to make electronically deposited funds available on the same day of the deposit
True
False
- 2. Multiple Choice
The fee the bank charges the depositor of a bad check is...
A returned check fee
Non-sufficient funds fee (NSF)
Below minimum balance fee
Service fee
- 3. Multiple Choice
What is overdraft protection (ODP)?
A cheap and easy way to always avoid overdrawing a bank account
A service provided by the government that insures individuals bank deposits up to $250,000
An insurance policy sold by banks to prevent others from withdrawing your money
A service to automatically transfer available funds from a linked account to cover purchases, prevent returned checks and declined items when you don’t have enough money in your checking account at the time of the transaction.
- 4. Multiple Choice
The fee the bank charges the issuer of a bad check is...
A returned check fee
Non-sufficient funds fee (NSF)
Below minimum balance fee
Service fee
- 5. Multiple Choice
What type of accounts can be linked to a checking account for overdraft protection?
401k account and IRA account
Savings account, 401k account, & frequent shopper account
Savings account, credit card, or another checking account
There are no linked accounts needed for overdraft protection
- 6. Multiple Choice
1. Increasing your 401k deduction will ________ your gross pay and __________your federal taxes in the current year.
decrease, decrease
not change, decrease
decrease, Increase
increase, decrease
- 7. Multiple Choice
4. Assume you are participating in your employer's direct deposit program. On payday, the employer deposits your ________ into your bank account.
Gross pay
Net Pay
401(k)
W-2
- 8. Multiple Choice
Suppose you filed your taxes and received a small refund from the IRS. What would have been the impact on the refund amount if you had increased the W-4 allowances for that tax year?
The refund would be larger.
The refund would be smaller or you may owe taxes.
The refund would not change.
None of the answers provided are correct.
- 9. Multiple Choice
To improve your credit score, your credit utilization rate should be below _______ .
20%
80%
60%
40%
- 10. Multiple Choice
Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, would you have more than $102, exactly $102 or less than $102?
More than $102
Exactly $102
Less than $102
Don't know
- 11. Multiple Choice
True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.
True
False
- 12. Multiple Choice
True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund.
True
False
- 13. Multiple Choice
What is a dividend?
Money a company regularly (typically quarterly) charges shareholders to increase profitability
Money a company regularly (typically quarterly) pays shareholders from its profits
The interest from a corporate bond that a company pays the bond-holder
The fee charged for owning stock
- 14. Multiple Choice
What is the intended purpose of a 401(k) account?
Invest money for college
Invest money for retirement
Save money for emergencies
Save money for vacation
- 15. Multiple Choice
Which of the following types of investments typically charge the investor the lowest fees?
Bond fund - actively managed
Index fund - passively managed
International funds
Mutual fund - actively managed
- 16. Multiple Choice
Which of the following is not considered income?
A paycheck
A gift of money
An allowance
Interest paid on a loan
- 17. Multiple Choice
What is the best way to keep track of your budget?
pen/paper
spreadsheet
cellphone app
whatever works best for you
- 18. Multiple ChoiceA _____ is something that is necessary for humans to live a healthy life an example could be food, water, medical, housing, clothingNeedWant
- 19. Multiple ChoiceA ______ is something that is desired e.g. computer, holiday, car, cell phoneNeedWant
- 20. Multiple Choice
For how many years do most people carry a home mortgage?
50 years
10 years
5 years
30 years
- 21. Multiple Choice
The average car loan is for how many years?
8 years
10 years
5 years
2 years
- 22. Multiple ChoiceWhat two things does a budget compare?Income and ExpensesSavings and InterestIncome and InvestmentsExpenses and Expenditures
- 23. Multiple Choice
___ is the amount of money taken out of each paycheck for insurance coverage.
Medicare
Co-payment
Premium
Deductible
- 24. Multiple Choice
The APR for a credit card means the _______.
monthly payment
interest charged on the credit card balance
the credit limit for the account
type of credit card
- 25. Multiple Choice
Joey and Chris are both drivers. Joey lives in the country and has been in 0 car accidents. Chris lives in the city and has the following driving history: 5 speeding tickets, 2 automobile accidents, and he drives a sports car. Who is probably going to have a lower rate for auto insurance?
Joey
Chris
The price will be exactly the same
Joey does not need auto insurance
- 26. Multiple Choice
True or False: You are required by law to have auto insurance.
True
False
- 27. Multiple Choice
A 30 year woman broke her arm and went to the ER for treatment. Her health insurance plan has a $1,500 deductible. What does this mean
She can deduct $1,500 from the hospital bill, but must pay the rest.
The hospital will only charge her $1,500.
She is responsible for paying $1,500 of her medical expenses before her insurance covers any of her costs.
Her insurance company will only pay $1,500 and she must pay the rest.
- 28. Multiple Choice
A store clerk has an individual health insurance plan with a $20 co-payment for in-network doctor visits. She goes to her doctor, who is in-network, twice during the year. What can she expect to pay for health care for the year?
$40 in co-payments only
The cost of her premiums, $40 in co-payments, and any extra costs for prescriptions or non-covered services
Her premiums plus $40 in co-payments plus an extra office fee and any extra costs for non-covered services
None of the answers provided
- 29. Multiple Choice
Car insurance is more expensive for teenage males than teenage females because studies have shown that
male teenagers have a greater number of accidents than female teenagers.
more male teenagers take driver education classes than female teenagers.
female teenagers do not drive often.
female teenagers frequently own their cars.
- 30. Multiple Choice
What is the key determinant for insurance companies when establishing the cost for an insurance policy?
net pay
employment status
risk
credit
- 31. Multiple Choice
What should you NOT expect if you have a bad credit score?
Higher interest rates on loans
Lower rates on loans
Being denied for a loan
None of the answers provided
- 32. Multiple Choice
What can be found on your credit report?
FICO score
Deduction made on your paycheck
Cash amount in your bank account
Your high school and/or college record
- 33. Multiple Choice
True or False: Routinely paying my bills late could negatively affect my credit history.
True
False
- 34. Multiple Choice
Which of the following is TRUE about finding errors on your credit report?
You may have to file a dispute with each credit bureau.
You should wait until the end of the month before reporting.
Finding errors is common and is not a big deal.
Overlooked errors may result in you paying a fine.
- 35. Multiple Choice
Aisha wants to improve her credit utilization rate. Which of the following can she do?
Make several late payments on each credit card
Spread her spending among her 3 credit cards so none of the 3 cards has a high utilization rate.
Keep her credit utilization rate to 55%
Keep her spending all to 1 card and not use the other 2 credit cards
- 36. Multiple Choice
How are a credit score and credit report related?
A credit report is determined by the factors in your score.
A credit score is determined by the factors in your report.
Credit reports are less important than your credit score.
They're not related.
- 37. Multiple Choice
Where can you get a free copy of your credit report?
annualcreditreport.com or freecreditreport.gov
freecreditreport.com
getmycreditreport.com
creditreport.gov
- 38. Multiple Choice
All of the following may access your credit report EXCEPT...
A landlord
A future employer
Colleges and universities
Insurance companies
- 39. Multiple Choice
Jim is 23 and has 1 credit card. What would be the best way to improve his credit score?
Get 4 more credit cards in the next 3 months
Use his credit card every day for a month
Make sure he makes his payments in full and on time
Increase his credit utilization rate
- 40. Multiple ChoiceWhat is gross income?Take home payTotal amount of wages after deductionsTotal amount of wages before payroll deductionsAmount the employer keeps
- 41. Multiple Choice
Which of the following is not a standard, required tax deduction from your paycheck?
federal income tax
Savings for retirement
state income tax
Social Security
- 42. Multiple Choice
What is net income?
Amount of money paid after deductions
Cost of lifetime allowance
Amount of money paid before deductions
Keeping your money in a net
- 43. Multiple ChoiceThis is the form you must fill out before going to college in order to get aid from the government to pay for collegeFAFSAFASAFFASFAAFSAF
- 44. Multiple Choice
True or False: Those with a college degree, on average, earn thousands of more dollars/year when compared to those with just a HS diploma.
True
False
- 45. Multiple Choice
True or False: Private student loans have better interest rates than government student loans.
True
False
- 46. Multiple ChoiceA federal student loan is provided by...Private companiesThe state you live inUS Federal governmentInvestors
- 47. Multiple ChoiceWhich of the following statements is TRUE about the advantages of federal student loans compared to private student loans?Federal student loans generally offer higher interest rates which remain fixed over the term of the loanFederal student loans do not need to be repaid if the borrower runs into financial difficulty and goes bankruptFederal student loans require a credit checkFederal student loans offer more flexible repayment terms
- 48. Multiple ChoiceA subsidized loan is when ____________________ pays the interest while you are in school, while an unsubsidized loan is when ___________________ pays the interest while you are in school.the government; parentsthe borrower; parentsthe borrower; the governmentthe government; the borrower
- 49. Multiple Choice
The time between when you graduate and when you must begin repayment of student loans.
subsidized
award letter
grace period
unsubsidized
- 50. Multiple Choice
True or False: A majority of students receive student loans/aid to help pay for college.
True
False
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