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Financial Literacy Quiz Flashcards | StudBud
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Financial Literacy Quiz
Financial Literacy Quiz
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Financial Literacy Quiz
Flashcards
50 cards
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Questions
50
Answers
1
A type of investment that invests in a mix of different types of investments.
mutual fund
Stock
Bond
2
Budgeting topics include
Tracking projected vs. actual spending, Emergency expenses
All of the above
Purpose of a budget, Setting up a budget, Budgeting tools
3
A tax break that is given for each qualifying child.
Benefits
Compensation
Child and Other Dependent Tax Credit
4
Investing is a guaranteed way to make money.
False
True
5
Savings Account
an interest-bearing deposit account held at a bank
great option for cash you want available for short-term
All
safe and reliability
6
On average, putting money in a savings account earns a higher return than investing money in the stock market.
True
False
7
A Monthly Income Worksheet is listing all sources of income.
True
False
8
A deposit ticket gives the bank instruction for adding money to your account
False
True
9
Which type of bank account typically offers the least (if any) interest?
Savings account
Checking account
Money market account
Certificate of deposit
10
Your check number serves as a reference number for your payment and is located at the top right corner of the check
True
False
11
A Monthly Fixed Expense Worksheet list expenses such as
All
Rent
Car Loans
Taxes
12
Which of the following financial institutions typically have the highest fees?
Credit unions
Check cashing and payday loan companies
Internet banks
Brick-and-mortar banks
13
Online Bill Pay is a feature offered with online banking.
False
True
14
A mutual fund is a share of ownership in a company.
False
True
15
The federal government charges a tax on the money people earn while working.
Deduction
FICA
Federal Income Tax
16
Investing is riskier than putting money in a savings accounts.
False
True
17
A person that is supported by another person financially.
Benefits
Deduction
Dependent
18
Employment and Taxes topics include
Product Research
Tax Withholding and Filing Taxes
None of the above
Using a Credit Card
19
Your financial institution can't help you if there is a mistake on your bank account statement.
False
True
20
Which of the following statements about check cashing companies is TRUE?
They charge low fees
They charge high fees
They offer free services and no interest
All
21
A checking account is
a bank account that allows you to deposit and withdraw money for daily transactions
.
True
False
22
A savings account is
a bank account where you store money and can earn interest on that money
True
False
23
A Monthly Living Expense Worksheet, also called variable expense list expenses such as
Clothes you buy
Recreation & Entertainment
All
Eating out at resturants
24
FICA stands for the Federal Insurance Contributions Act and is deducted from the employee’s paycheck.
False
True
25
Which of the following is NOT a common feature of a financial institution?
Access to investment products
Access to ATMS
Direct deposit
Paper checks
26
A type of insurance that helps cover lost income when an illness or injury keeps an employee from working.
Benefits
Compensation
Disability Insurance
27
Which of the following statements about check cashing companies is FALSE?
They can take a percentage of your check on top of fees.
They offer bad deals where you'll owe a lot more than you borrowed.
They make it easy to fall into a loan cycle that is hard to get out of.
They charge low fees.
28
Investing is best for
long-term financial goals, like paying for retirement.
earning a little interest while keeping your money safe.
guaranteed fast growth on your money.
short-term financial goals, like building an emergency fund
29
Why is it important to reconcile your bank statements?
To determine if you were charged any fees.
To detect any errors in your account.
To avoid spending more than what is in your account.
All of the above
30
A category the IRS uses to determine how much a person’s income is taxed. There are several filing statuses
qualifying widow(er) with dependent child
married filing separately, head of household
All
single, married filing jointly
31
Benefits
They can include social security and unemployment payments
A person that is supported by another person financially.
A savings plan
32
Banking Basics topics include
All
Comparing, Opening and Using Accounts
Monitoring and Reconciling Accounts and Introduction to Investing
Researching Financial Institutions
33
Consumer Skills topics include Product Research, Comparison Shopping, Renting/Leasing vs. Owning, and Payment Methods
True
False
34
Bonds are generally a longer term investment and usally the longer the term, the higher the interest rate.
True
False
35
1040 Form
A tax break that is given for each qualifying child
A tax form that determines the amount of income tax owed in a single year
None
A tax break for educational expenses
36
Online Banking connects you to your bank using a computer and internet access 24/7.
True
False
37
A Rounting Number
Nine-Digit Number printed in the bottom left corner of each check.
The banks identification number that identifies that bank
All of the above
38
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
No one, you can't resolve the issue
The local police department
Your financial institution
39
FICA-Social Security and Medicare Tax, which provides benefits for people who are retired, disabled, and have children.
False
True
40
What should be considered when setting a budget?
Only needs and wants
Needs, wants, and savings
None
Only savings
41
Adjusted Gross Income (AGI)
Your AGI is used to calculate how much of your income can be taxed.
Your gross income minus specific deductions.
All of the above
42
Investing is a guaranteed way to grow your money.
True
False
43
American Opportunity Tax Credit
All of the above
Students enrolled in a degree program, first four years after high school.
A tax break for educational expenses for qualifying students
None of the above
44
A tax break for low- to moderate-income workers and families.
Earned Income Credit
Deduction
Compensation
45
Your account number, unique to each account holder, identifies the account, located on the bottom of the check
False
True
46
Budget
A detailed financial forcast
Used to plan, control and evaluate your spending and saving
All
47
A stock is
Investment that invests in a mix of different types of investments.
A share of ownership in a company
A type of debt investment that acts like a loan.
Savings account, pays interest based on interest rates in the money markek
48
Banks will never request financial or personal information by e-mail.
False
True
49
A Checkbook Register is
A list of transactions in your bank account
All of the above
A balance that tells you how much money you have available and to spend
50
Which of the following is NOT a common feature of a financial institution?
Access to ATMs
Direct deposit
Debit cards
Investment trading
