17. Each of the following is a benefit of online and mobile banking EXCEPT...

You can overdraw your account without penalty

25. One of the core differences between a stock and a bond is...

Stocks are high-risk investments; bonds are typically low-risk investments.

You receive your 1st paycheck and notice that it seems less than you figured. What could explain this difference

Taxes, social security, and Medicare are being deducted from your pay

7. Which of the following people is required to file taxes?

Fatima, who earned $6,200 through her own marketing business.

All of these are reasons to check your credit report at least once a year, which is the most common reason ?

Identify inaccurate or incomplete information

2. Which statement describes a benefit of credit cards over debit cards?

Credit cards allow you to buy things now, even if you don't have the cash

Which is the best description of a W-2 form?

It tells you how much you made last year and how much taxes were deducted.

INTEREST RATE refers to

How much the lender charges per year for the loan

10. Which description of the difference between saving and investing is MOST accurate?

Saving is less risky, Investing is more risky

15. If you want to avoid being the victim of ID theft, you should...

Shred all unnecessary documents that contain personal information

11. Which of the following will result in your paying the LARGEST amount of interest to the credit card company?

Making the minimum payment every month

1. If you want a low monthly payment and a lot of time to repay your student loans, you should select...

A repayment plan with a long term

9. Which of the following is a method of gaining access to the money in your checking account?

Swipe your debit card at a store and sign the electronic machine

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Financial Literacy Review

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Questions 24

Answers

1
17. Each of the following is a benefit of online and mobile banking EXCEPT...
You can overdraw your account without penalty
You can transfer money electronically between accounts
You can check your balances before you make a purchase
You can keep an ongoing record of your deposits and withdrawals
2
Which of the following is NOT an installment loan?
MasterCard
Mortgage
Auto Loan
Student Loan
3
25. One of the core differences between a stock and a bond is...
Stocks allow you to loan a company money; bonds allow you to own shares
Stocks are for investment accounts; bonds are for saving accounts.
Stocks guarantee a specific rate of return; bonds your rate will vary.
Stocks are high-risk investments; bonds are typically low-risk investments.
4
You receive your 1st paycheck and notice that it seems less than you figured. What could explain this difference
Taxes, social security, and Medicare are being deducted from your pay
They decided to pay you less without telling you.
Businesses deduct a "payroll fee" for preparing checks each week.
Businesses typically pay high school students less than minimum wage
5
You get a new job. Which should be your first step in making sure you're paying the correct amount of taxes?
Complete a 1040 form
Complete a W4 form
Buy a copy of TurboTax and file her taxes
Complete an I-9 form
6
6. How can you improve your credit score?
When merchants ask, "Credit or debit?" always choose credit
Spend more money on each of your credit cards
Apply for 3 new credit cards in two months
Pay all of your bills on time
7
7. Which of the following people is required to file taxes?
Troy, who earned $9,500 from his paid internship.
Brandon, who earned $600 by mowing his neighbors' lawns.
Fatima, who earned $6,200 through her own marketing business.
Sonia, who earned $3,000 by babysitting her cousins every week.
8
All of these are reasons to check your credit report at least once a year, which is the most common reason ?
Check your credit score
Identify inaccurate or incomplete information
See who is looking at your information
Check for Identity Theft
9
2. Which statement describes a benefit of credit cards over debit cards?
Credit cards are available to teenagers while debit cards are not
Credit cards allow you to buy things now, even if you don't have the cash
Credit cards work better for college tuition payments
Credit cards can be used for online shopping while debit cards cannot
10
Which is the best description of a W-2 form?
You fill it out to prove you are eligible to work in the United States.
The form you fill out when you start a new job.
It tells you how much you made last year and how much taxes were deducted.
You fill it out to file your taxes in April.
11
INTEREST RATE refers to
How much the lender charges per year for the loan
The total amount you pay to borrow the money
The original amount borrowed
The length of the loan
12
4. Which of these is best if you don't need access to the money AND want to earn the highest interest rate?
Checking account
Traditional savings account
Online savings account
Certificate of deposit
13
You can significantly reduce the cost of an "Installment loan" by paying more than the monthly payment.
False
True
14
5. In order to qualify for financial aid, prospective college students must file their _____________.
PSAT, SAT, or ACT scores
Financial aid letter
FAFSA
Parent's credit score
15
A budget "deficient" means you have MORE money than you need for the month.
False
True
16
TERM refers to
The original amount borrowed
The total amount you pay to borrow the money
How much the lender charges per year for the loan
The length of the loan
17
PRINCIPAL refers to
The total amount you pay to borrow the money
How much the lender charges per year for the loan
The original amount borrowed
The length of the loan
18
10. Which description of the difference between saving and investing is MOST accurate?
Saving and Investing are exactly the same
Investing is when you put your money in stocks; everything else is saving
Saving is less risky, Investing is more risky
Investing is if you have more than $10,000 in the bank, < $10,000 is saving
19
15. If you want to avoid being the victim of ID theft, you should...
Shop only at websites starting with http:// NOT https://
Shred all unnecessary documents that contain personal information
Use the same password for all online sites
Only pay for things using your debit card, not a credit card.
20
11. Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
Paying 20% of your credit card balance every month
Making the minimum payment every month
Paying off your balance every month
Saying "credit" every time the cashier asks "Debit or Credit?"
21
1. If you want a low monthly payment and a lot of time to repay your student loans, you should select...
A repayment plan with a short term
A repayment plan with a long term
The standard repayment plan
A loan consolidation plan
22
9. Which of the following is a method of gaining access to the money in your checking account?
Deposit a paycheck from your job
Take money from the ATM using your credit card
Swipe your debit card at a store and sign the electronic machine
Buy a prepaid card using cash
23
You will pay the same amount every month with a "Revolving credit" account.
True
False
24
When opening a checking acct, which is the feature you should probably care LEAST about?
ATM fees
The annual fee
Overdraft fee
The interest rate

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