Which of the following correctly orders the investments from LOWER risk to HIGHER risk?

Treasury bond − Diversified mutual fund – Stock

It is generally safe to provide your Social Security Number to:

Verified trusted sources that need it.

Which of the following is NOT one of the responsibilities of the Federal Reserve?

Establishing the federal budget

If an investment is considered “volatile”, it means...

the value of the investment may be hard to predict.

Which of the following statements about renting & owning is CORRECT?

An owner has complete responsibility over the property.

Which of the following actions can NEGATIVELY impact your credit score?

You forgot to pay the cable bill.

What is the FIRST action you should take if you suspect a fraud on your credit card?

Contact the credit card company to report the charge.

Which of the following is true?

Checks and Debit Cards both withdraw directly from accounts.

What is a credit card balance?

The amount of money you still owe to the credit card company

What is a credit limit?

The maximum amount you can charge each billing cycle.

Insurance can help you:

financially protect against unexpected accidents

Consumer protection laws are meant to:

Prevent unfair or deceptive business practices.

A type of loan used to buy property

How can investors receive compounding returns?

By investing any earnings back into the original investment

A contract outlining the terms under which a landlord rents.

What is the safest way to dispose of old bank account statements?

Shred them in a paper shredder.

The Federal Application for Student Aid (FAFSA) form:

Is the free application for federal student aid.

Diversification is important in investing because...

It helps you to balance your risk.

the amount owed for borrowing money

Making a credit card minimum payment:

Means you are paying a small chunk of your credit card debt

studbud

Duplicate of EverFi: Financial Literacy

45 termsStudBud Administration591 plays

Review for Written Quiz!

Flashcards45 cardsFPractice quizPHost liveL

Questions 45

Answers

1
Generally speaking, the _______ the risk, the _______ the potential return or loss.
Both A and C
lower; higher
higher; higher
higher; lower
2
Which of the following accounts will give you the LEAST access to your money?
Cash
Certificate of Deposit (CD)
Checking account
Simple savings account
3
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Treasury bond − Diversified mutual fund – Stock
Stock − Treasury bond − Diversified mutual fund
Treasury bond − Stock − Diversified mutual fund
Diversified mutual fund − Treasury bond − Stock
4
It is generally safe to provide your Social Security Number to:
Verified trusted sources that need it.
Close friends and relatives who do not know it.
School personnel who want to have it on record.
Anyone who asks you for it.
5
Which of the following is NOT one of the responsibilities of the Federal Reserve?
Maintaining a stable banking system
Supervising the Reserve banks
Establishing the federal budget
Setting the nation’s monetary policy
6
If an investment is considered “volatile”, it means...
the investment is high-risk, and its price will increase.
the investment will experience rapid growth over time.
the investment is undervalued and may increase over time.
the value of the investment may be hard to predict.
7
The biggest factor in determining the price of a mortgage is:
The interest rate.
The total cost of the home.
The down payment.
The lender.
8
Which of the following statements about renting & owning is CORRECT?
A renter has complete responsibility over the property.
An owner has complete responsibility over the property.
Both have responsibility over the property.
Neither has responsibility over the property.
9
Which of the following actions can NEGATIVELY impact your credit score?
You forgot to pay the cable bill.
You pay all your bills in cash.
You use a small amount of your available credit.
You disputed an item on your credit report.
10
What is the FIRST action you should take if you suspect a fraud on your credit card?
Call the store where the purchase was made.
Order your credit report.
Close all bank accounts associated with that credit card.
Contact the credit card company to report the charge.
11
Which of the following is true?
Checks are the most widely accepted form of payment.
Debit Cards have higher interest rates than Credit Cards.
Checks and Debit Cards both withdraw directly from accounts.
Debit cards offer the highest level of fraud protection.
12
What is a credit card balance?
The amount of interest you must pay the credit card company
The required minimum payment to your credit card company
The amount of money you still owe to the credit card company
A way to track your incoming and outgoing purchases
13
Which type of loan requires that you pay the interest accumulated during college?
Pell Grant
University scholarship
Subsidized federal loan
Unsubsidized federal loan
14
When you buy a ____ , you are loaning money to an organization.
Stock
Bond
Mutual Fund
Index Fund
15
Which investment type typically carries the least risk?
Individual Stocks
Mutual Funds
Savings Accounts
Treasury Bonds
16
Which of the following tells you how much your credit card interest will be?
Annual Membership Fee
Balance Transfer Fee
Late Fee
Annual Percentage Rate
17
What is a credit limit?
How many credit cards you can own.
The amount of interest you are charged each month.
The required payment to your credit card company.
The maximum amount you can charge each billing cycle.
18
All of the following make up the big three credit reporting agencies EXCEPT:
Experian
Federal Reserve
TransUnion
Equifax
19
Which of the following is a type of savings vehicle?
Both A & B
Money Market Account
Certificate of Deposit
Checking Account
20
Which type of account will typically have the highest interest rate?
Money Market Account
Certificate of Deposit (CD)
Savings Account
Checking Account
21
Insurance can help you:
reduce the chances of getting into an accident
financially protect against unexpected accidents
minimize monthly expenses
cover all out-of-pocket costs
22
Which payment method typically charges the highest interest rates?
Cashier's checks
Payday loans
Credit cards
Pre-paid cards
23
Consumer protection laws are meant to:
Protect consumers from spending too much money.
Prevent consumers from buying unnecessary items.
Prevent unfair or deceptive business practices.
Protect businesses from consumers.
24
What is a mortgage?
A measure of the value of a home
A measure of your credit rating
A type of loan used to buy property
A type of rent used to pay for housing
25
Which of the following statements about credit scores is TRUE?
Credit scores range from the low 300’s to the mid 800’s.
All of the above.
Your credit score reflects how likely you are to repay debts
Each person has three credit scores.
26
Jan pays $70 each month for her auto insurance policy. This regular payment is called a:
co-pay
premium
deductible
claim
27
How can investors receive compounding returns?
By selecting a savings account that has a high interest rate
By transferring their earnings into a high-risk investment
By diversifying their investment portfolio
By investing any earnings back into the original investment
28
What is a lease?
A contract outlining the terms of a mortgage.
A loan from a bank used to rent a home.
A contract outlining the terms under which a landlord rents.
A loan from a bank used to buy a house.
29
What is the safest way to dispose of old bank account statements?
Keep them bundled together in a folder.
Throw them out in a neighbor’s trash.
Put them in the trash unopened.
Shred them in a paper shredder.
30
________ are typically comprised of a mix of ________ and ________.
Stocks; bonds; index funds
Stocks; index funds; bonds
Bonds; index funds; mutual funds
Mutual funds; stocks; bonds
31
When might be the best time to start saving for retirement?
None of the above.
At the earliest possible date.
Once you've paid off student loans.
After you've bought a house.
32
The Federal Application for Student Aid (FAFSA) form:
Is only used to apply for federal subsidized loans.
Can only be submitted by mail.
Is the free application for federal student aid.
Is only used to apply for federal unsubsidized loans.
33
Diversification is important in investing because...
It increases your overall risk.
It helps you to balance your risk.
It helps you gain the highest rate of return despite risk.
It ensures that you only make low-risk investments.
34
Which of the following loans will typically offer the lowest interest rate?
Payday Loan
Both A & B
Private Loan
Federal Student Loan
35
Interest is:
the amount added to your savings when opening a bank account
the amount owed for borrowing money
a charge for lending money to a bank
charge for the convenience of accessing your money
36
Typically homes ___________ over time and cars ______________ over time.
appreciate; appreciate
appreciate; depreciate
depreciate; appreciate
depreciate; depreciate
37
Which type of account has very high liquidity, low or no interest, and low minimum balance?
Money Market Account
Checking Account
Investment Retirement Account (IRA)
Certificate of Deposit (CD)
38
When starting a new job, what form do you complete for tax purposes?
W-2
1040 EZ
1099
W-4
39
Which of the following typically have the highest auto insurance premiums?
Drivers who travel short distances
Drivers who have safe driving records
Young, inexperienced drivers
Older, experienced drivers
40
Which of the following MOST influences your credit score?
Payment History
Length of Credit History
Amounts Owed
Types of Credit Used
41
Your car insurance has a $200 monthly premium and $700 deductible. Max cost per accident?
$900
$200
$700
$500
42
The numbers on the bottom of a typical check represent all of the following EXCEPT?
Check Number
Social Security Number
Routing Number
Account Number
43
Making a credit card minimum payment:
Is the same thing as making a late credit card payment
Means you are paying a small chunk of your credit card debt
Will cause your credit card to be cancelled
Will have a negative effect on your credit score
44
Which type of account is typically the MOST liquid?
Exchange Traded Fund
Certificate of Deposit
Checking account
Savings account
45
In which of the following situations is having a good credit score important?
Buying a car.
Renting an apartment.
Applying for a loan at a bank.
All of the above.

Duplicate of EverFi: Financial Literacy Flashcards | StudBud