Which of the following best defines "financial planning?"

Long-term management of finances to achieve personal goals.

Which of the following is NOT a reason to build a budget for yourself?

It will cause too much stress to look at all those numbers.

Financial literacy is best defined as:

The ability to understand finance.

Which best describes "The Rule of 72?"

Calculation to approximate time needed to double investments

When would it be beneficial to borrow money to buy something and repay it with future income?

When you need to buy a car to get a better paying job.

The WORST way to protect yourself from identity theft is to:

Broadcast your SSN on Twitter, Facebook, etc.

If you find an error on your credit report what are you able to do to correct it?

Dispute the error with the credit bureau.

Which of the following is NOT correct about most ATM cards?

You can get cash anywhere in the world with no fee.

Which of the following credit card users will pay the GREATEST in finance charges each year?

Erin, only pays the minimum amount each month.

Which best describes your right to check you credit history for accuracy?

Your credit record can be checked once a year for free.

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Financial Literacy Quiz - TRiO

25 termsStudBud Administration661 plays

#FinancialLiteracy #PersonalFinance #TRiO #KU

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Questions 25

Answers

1
The interest your savings account earns each month is the:
AARP
PAR
PAY
APY
2
The interest a credit card company charges for borrowed money is the:
APY
AARP
PAY
APR
3
Which of the following best defines "financial planning?"
Planning how best to count-out a cash drawer.
Planning for how you are going to pay for drinks tonight.
Long-term management of finances to achieve personal goals.
Deciding which of your friends you should loan money to.
4
Which of the following is NOT a reason to build a budget for yourself?
It will define your financial situation.
It will compare income to necessary expenses.
It will define the difference between a want and a need.
It will cause too much stress to look at all those numbers.
5
How much more money can you earn with a four-year degree versus a high school diploma?
A little more; about 20% more.
About 10X as much.
No more; I would make the same either way.
A lot more; about 70% more.
6
Financial literacy is best defined as:
The ability to understand finance.
The ability to understand bank statements.
The ability to read investment advice.
The ability to read what's printed on money.
7
Which best describes "The Rule of 72?"
Calculation to approximate time needed to double investments
The time it takes to complete 72 credit hours at KU
The amount of time it takes to spend $72
The number of questions to ask today. (yes, but not right!)
8
Which form of Financial Aid are you not required to pay back?
Private Loans
Federal Unubsidized Direct Stafford Loans
Federal Subsidized Direct Stafford Loans
Federal Grants
9
When would it be beneficial to borrow money to buy something and repay it with future income?
When you need to buy a car to get a better paying job.
When you really need a week vacation.
When the loan has a high interest rate.
When some clothes you like go on sale.
10
How much money should you have in savings to cover the "what-ifs" in life?
About 20% of your annual income.
One full year of income.
None; Roll with the punches.
3-6 months of life expenses.
11
The WORST way to protect yourself from identity theft is to:
Check your credit report annually. (more if able.)
Enroll in paperless billing.
Broadcast your SSN on Twitter, Facebook, etc.
Shred documents containing personal information.
12
If you find an error on your credit report what are you able to do to correct it?
Call a loved one and cry.
Call your senator. They'll fix it.
Nothing.
Dispute the error with the credit bureau.
13
Which of the following is NOT correct about most ATM cards?
You can get cash anywhere in the world with no fee.
You must have a bank account to have an ATM card.
You can get cash 24 hours-a-day.
You can usually get the balance of your account at an ATM.
14
Which card allows you to borrow money?
Dillon's card
Gift card
Credit card
Debit card
15
Which of the following would be considered a short-term goal?
Spending less
Saving for a home
Getting Married
Retirement
16
Which website/app lets you track your budget progress in real-time?
Budgets-R-Us
Mint
Budget-Mate
Pokémon GO!
17
Which of the following credit card users will pay the GREATEST in finance charges each year?
Meg, always pays in full after she receives statement.
Erin, only pays the minimum amount each month.
Vera, generally pays in full. Pays the min. if short of $.
Jess, pays at least the min. each month, more when able.
18
Which of the following is NOT typically associated with spending?
Credit card
Certificate of deposit (CD)
Cash
Debit card
19
Which best describes your right to check you credit history for accuracy?
Credit records are top secret govt. property. FBI, CIA only.
You can only check it if you are turned down for credit.
You cannot see your credit record.
Your credit record can be checked once a year for free.
20
Student financial stress has been linked to which of the following?
Withdrawal from school.
All of these.
Lower academic performance.
Reduced course loads to work more.
21
What kind of card allows you to spend money directly from your checking account?
Gift card
Secured credit card
Credit card
Debit card
22
What is the standard repayment-term for Federal Student Loans?
5 years
10 years
10 months
You don't repay Federal loans
23
Rebecca has saved $12,000 for college. What is the safest place for her money?
Corporate Bonds
A bank savings account.
Locked in her closet at home.
Stocks
24
Which of the following is reported on your credit report?
Your insurance provider
Your car's maintenance history
Payment history
Your GPA at KU
25
Which best describes the primary income source for most people age 20-35?
Dividends and interest.
Rental property.
Profits from business.
Salaries, wages, and tips.

Financial Literacy Quiz - TRiO Flashcards | StudBud