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Financial Literacy State Test Review Flashcards | StudBud
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Financial Literacy State Test Review
Financial Literacy State Test Review
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FINAL: Financial Literacy Review
Flashcards
50 cards
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Practice quiz
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Questions
50
Answers
1
Which of the following is likely to have the lowest interest rate?
Private Loan
Payday Loan
Credit Card
Student Loan
2
Your credit history is tracked by all of the following EXCEPT
Federal Reserve
Trans Union
Experian
Equifax
3
By what date must federal taxes typically be filed and sent to the IRS?
April 1
March 15
March 17
April 15
4
What U.S. agency protects consumers against false advertising and unfair business practices?
Central Intelligence Agency
Federal Trade Commission
Department of Homeland Security
5
Which type of bank account typically offers no interest?
Money Market
Certificate of Deposit
Checking
Savings
6
Which of the following typically have the highest fees?
Payday Lender
Credit Union
Retail Bank
Online Bank
7
What are the two biggest influences on your credit score?
Your SAT score and your grade point average
Payment history and amount of debt
Number of Credit Cards and Bank Accounts you have
8
The form filed by students to receive federal financial aid for school is known as:
FAFSA
FIFA
FICA
FAA
9
Borrowing a subsidized federal student loan means the government will...
repay the loan if you take a certain job
repay the loan in full if you graduate
pay the interest on the loan for 6 months after graduation
10
Which will most benefit you financially? A savings account that...
does not compound interest
compounds interest monthly
compounds interest yearly
compounds interest daily
11
What is the numerical range for credit scores from the three major reporting agencies?
From 300 to 850
From one to 10
From 500 to 1,000
12
Which of the following is an ADVANTAGE of federal student loans?
they do not accumulate interest
they have a low fixed interest rate
they must be paid back while you're in school
13
Which statement is most correct when choosing to rent or buy a home?
rent a home because it is always better than buying
buy or rent a home based on your individual circumstances
Buy because it is always better than renting
14
The term referring to the rate of yearly interest for your credit card is commonly known as:
APR
Default rate
Grace period
COD
15
Insurance allows you to transfer your financial ____________ onto someone else.
Stocks
Risk
Debt
16
What is a mutual fund?
A collection of investments sold as a package
A loan an investor makes to a company or government
A share of ownership in a local government
17
Which of the following does not have to be paid back?
Federal Perkins Loan
Federal Pell Grant
Federal Stafford Loan
18
APR stands for?
Annual Party Rate
Annual Percentage Rate
Annual People Rate
Annual Point Rate
19
When referring to student loans, what is a grace period?
The period after you graduate before you begin paying.
When graduating high school and before starting college
When library late fees affect your credit score
20
Credit card minimum payments are usually around ___ of the total balance.
2-3 percent
100-150 percent
20-30 percent
21
What are the 3 credit bureau reporting agencies?
Experimental, TransFer, Equifer
Experian, TransUnion, Equifax
Experience, TransGender, Equifacts
none of them
22
Which of the following statements is most correct? A benefit...
of renting a home is you can move when you want
of owning a home it is easy to move
renting a home is your can make renovations
23
What do IRAs, Roth IRAs, 401(k)s and 403(b)s all have in common?
All are combination codes on bank vaults
All are long-term savings plans for retirement
All are checking accounts you sign up for at a local bank
24
How many free credit reports are you legally entitled to per year from each credit bureau?
Unlimited amount
Two credit reports from each credit bureau
One credit report from each credit bureau
25
Compound interest is...
The amount earned or owed on principal amount
When interest is added to the principal amount
Multiple late fees
26
Diversification is important in investing because…
It ensures you only make low-risk investments.
Balances your risk across different types of investments.
Increases your risk, which could make you more money
27
Which of the following typically has the lowest fees or costs to use?
Credit Card
Payday Loan
Cash Advance
Debit Card
28
Which form is your employer required to send to you before you can file your tax return?
Yearly paycheck stub
W-4
W-2
1040EZ
29
What does PIN stand for?
Personal Investigation Number
Personal Identification Number
Personal Information Number
30
What type of bank account offer the most access to your money with the fewest restrictions?
Certificate of Deposits(CDs)
Checking
Savings
31
One of the effects of consolidating your student loans is...
It decreases the amount of money you’ll owe overall
It ends any grace period that might still apply to the loan
It increases the amount of money you’ll owe each month
32
On what type of account can you earn interest while still being able to write checks from it?
Line of credit from a commercial bank
Money Market
Mutual Fund
33
Examples of savings vehicles include…
Credit reports and stocks
Simple savings accounts and car loans
Simple savings accounts and CDs
34
The annual percentage rate (APR) on a credit card determines _______.
The amount your credit limit can go up within a year
Interest you are charged on credit card purchases
How many credit cards you can own
35
What is a down payment?
A payment that gains value in time according to an index
A payment that depreciates
A large sum of money you pay towards a property upfront
36
Which of the following drivers will likely pay the highest auto insurance premiums?
younger, inexperienced drivers
older, experienced drivers
drivers who travel short distances
drivers who have a safe record
37
What is a mortgage?
A type of financial statisti
A type of rent used to pay for housing
A type of loan used to buy property
38
FAFSA stands for...
Federal Aviation For Student Associations
Free App For Student Aid
Free Application for Federal Student Aid
39
Which of the following could potentially damage your credit score?
Opening a checking account
Paying a credit card bill late
Paying a roommate back late
Paying a speeding ticket
40
The numbers listed at the bottom of a check are the ________ number and the ________ number
Routing, Legal Tender
Routing, Account
Check, PIN
41
The U.S. banking system, called the Federal Reserve, includes...
The Reserve Banks
The Board of Governors
The Federal Open Market Committee
all of the above
42
Which tax type does NOT require you to complete forms at the end of the year?
Sales
Federal Income
State Income
43
Using the Rule of 72 to calculate how long it will take for your money to double at 6% interest
16 years
72 years
36 years
12 years
44
How many Federal Reserve Banks are there in the United States?
10
8
12
14
45
Which one is NOT a main factor to consider when deciding to buy or lease a car?
car interior and features
cost of the car
your monthly budget
your current savings
46
Which of the following is NOT a federal tax form?
W-4
WD-40
W-2
1040
47
The application for federal student financial aid is called…
Free Application for Federal Stud
National Borrowing and Loan Packet
American Lending Document
48
Which one is NOT an example of a type of savings vehicle
Certificate of Deposit (CD)
Checking Account
Money Market Account
Savings Account
49
The period before you have to begin repaying your student loan is known as...
promotional period
grace period
zero interest period
default period
50
What are the responsibilities of a renter versus an owner?
an owner of a house has complete responsibility and control
both a renter and owner have equal responsibility/control
a renter in a house has complete responsibility and control
none of them are true
