Which of these factors may make you more competitive in the job market?

Having a higher education degree

What is the main purpose of having auto insurance?

To protect yourself against unintentional costs and financial losses

What does "pay yourself first" mean?

Put money in your savings account before you pay other expenses

Are sponsored or verified purchaser reviews more reliable? Why?

Verified purchaser; the reviewer isn't being paid for a positive review

Which best describes the difference between secured and unsecured loans?

Secured loans require collateral, while unsecured loans do not

When do you need to apply for the Free Application for Federal Student Aid (FAFSA)?

The year before college & every year you attend.

What can a budget help you do?

Prioritize expenses and track spending

Which is a good way to make an informed decision about a purchase?

Read reviews from other consumers

Anthony was in a car accident & hit another car. Insurance said that he needs to pay $500 before they would pay.

The $500 is his auto insurance deductible

Why should you work to be an informed consumer?

To get the most value for your money.

How do loan terms affect the cost of credit?

Shorter loan terms have higher month payments & lower overall interest

The total cost of attending a university includes....

tuition, housing, food, books, and other costs.

Which of the following are things a skilled consumer does?

Research before buying, buy only what you need, consider unit prices

Why do you have to fill out a W-4 when you start a new job?

To document what money should be withheld from your paycheck

What would happen if your car was stolen and you didn't have auto insurance?

You would still have to pay off your car loan in full

What is withholding tax?

Money an employer deducts from an employee's wages to pay to the government

Overdraft protection helps you cover a purchase in your checking account....

when you don't have enough funds.

What is the main benefit of taking out a federal student loan instead of a private loan?

You may qualify for loan forgiveness after you graduate.

If your earnings potential is higher than the cost of your education, you will have a...

a positive return on investment for higher education.

What is the benefit of a checking account?

It helps you spend money without carrying cash.

Why do financial institutions offer you higher interest rates for Certificates of Deposits (CDs)?

You must keep your money in the account for a set amount of time.

A positive return on investment for education happens when...

your earnings potential is higher than the cost of your education.

What does it mean when the money in your 401k is vested?

You can keep the money your employer contributed, even if you leave the job

Which of the following best describes a loan?

A borrower promises to repay money from a lender

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EVERFI Financial Literacy 2024-2025 (NEW)

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Questions 43

Answers

1
Which of these factors may make you more competitive in the job market?
Having a higher education degree
Living in a rural area
Living in your own apartment
Being under 18
2
Which of the following items describes features of a checking account?
High interest
Debit card
High fees
Credit card
3
What is the main purpose of having auto insurance?
To pick a cost savings premium so you can save the most amount of money
To protect yourself against unintentional costs and financial losses
To be able to legally drive a car with other passengers across the US
To get out of paying any money out of pocket in case you get in an accident
4
What should be prioritize when creating a budget?
Needs and wants
Career path
Future earnings
Credit report
5
Which type of financial aid is considered free money?
Federal student loans
ROTC
Work-study programs
Grants
6
What does "pay yourself first" mean?
Put money in your savings account before you pay other expenses
Spend your money on your wants before you spend on your needs
Pay down debt before doing any spending
Split your money according to how much you want to spend on each bill
7
What type of car insurance would you need to use if you damage part of your neighbor's house in a car accident?
Comprehensive insurance
Collision insurance
Property damage liability
Bodily injury libability
8
Keira is new to earning money & saving, & doesn't have a lot of money to open an account. Which is the best option?
Certificate of Deposit (CD)
Money Market Account (MMA)
Checking Account
Savings account
9
What is a risk of using cash?
Paying interest on purchases
Paying more for purchases
Not having fraud protection
Not being able to shop in stores
10
Are sponsored or verified purchaser reviews more reliable? Why?
Verified purchaser; the reviewer isn't being paid for a positive review
Sponsored; the reviewer is being paid for their honest opinion
Sponsored; the reviewer is an expert in the field
Verified purchaser; the reviewer knows more about the product
11
Which best describes the difference between secured and unsecured loans?
Secured loans do not appear on your credit report, while unsecured loans do
Secured loans usually have higher interest rates than unsecured loans
Secured loans have more flexible payment plans than unsecured loans
Secured loans require collateral, while unsecured loans do not
12
Using your mobile banking app, you can....
deposit cash.
withdraw cash.
deposit checks.
write checks.
13
When do you need to apply for the Free Application for Federal Student Aid (FAFSA)?
The year before college & every year you attend.
Once, after you have been accepted into college
Once, after you have complete your first semester of college.
Two years before college & every year you attend.
14
How is money divided using the 50-30-20 Method?
Needs, stocks, bonds
Needs, wants, savings
Savings, expenses, emergencies
Wants, needs, retirement
15
Rosa is getting ready to fill out the FAFSA. Which of these documents will she need to fill it out?
Most recent pay slip
High school transcripts
Individual tax returns
Driving record
16
Which job would be considered gig work?
Lawyer
Police officer
Pet sitter
Nurse
17
What can a budget help you do?
Track spending and increase your income
Use credit and prioritize expenses
Increase your income and use credit
Prioritize expenses and track spending
18
Which is a good way to make an informed decision about a purchase?
Buy the highest priced item
Buy the lowest priced item
Read reviews from other consumers
Read product descriptions online
19
Anthony was in a car accident & hit another car. Insurance said that he needs to pay $500 before they would pay.
The $500 is his auto insurance deductible
The $500 is his comprehensive insurance
The $500 is his homeowners' insurance
The $500 is his health care copay
20
Why should you work to be an informed consumer?
To spend the least about of money
To get the most value for your money.
To stay informed about trends
To ensure you pay the right sales tax
21
Which of these types of insurance is a benefit that employers may offer you when you start employment?
Vision insurance
Homeowners' insurance
Auto insurance
Renters' insurance
22
The envelope method, notebook & pencil, & online budgeting software are all tools to.....
estimate your unexpected expenses.
lower your current expenditures.
plan your future.
track your spending.
23
How do loan terms affect the cost of credit?
Loan terms are based on your pay schedule & how often you get paychecks
Shorter loan terms have higher month payments & lower overall interest
Loan terms only apply to secure loans, but not unsecured loans
Longer loan terms have lower monthly payment & lower interest.
24
The total cost of attending a university includes....
tuition, housing, food, books, and other costs.
tuition, scholarships, grants, and loans.
scholarships, grants, and other forms of financial aid.
student loans and federal grants.
25
Alida works from home. Which item is a want for her?
Groceries
Internet
Cell phone
Streaming service
26
Which of the following are things a skilled consumer does?
Research before buying, buy only what you need, consider unit prices
Research before buying, buy only clearance sales, avoid using credit
Buy only from clearance sales, pay in cash, consider unit prices
Buy only what you need, shop locally, avoid using credit
27
Why do you have to fill out a W-4 when you start a new job?
To opt in to employer-sponsored benefits like health insurance
To agree to a vesting schedule for your company's 401k
To document what money should be withheld from your paycheck
To determine your gross pay on your pay stub
28
What would happen if your car was stolen and you didn't have auto insurance?
The car dealership where you purchased your car would replace it
You would NOT be required to pay the remainder of your car loan
Your car loan institution would be responsible for replacing your car
You would still have to pay off your car loan in full
29
Which of these things would be considered an advantage of gig employment?
Lack of benefits
Paying for your own supplies
Having a flexible schedule
Providing your own transportation
30
What is withholding tax?
Money that the employee receives after deductions are taken out of pay
Money that is used to contribute to an employee's retirement 401k plan
Money that is used to pay for an employee's health insurance benefits
Money an employer deducts from an employee's wages to pay to the government
31
Health insurance, paid time off, disability, retirement plans, & tuition reimbursement are all considered....
intangible benefits.
gig economy benefits.
workplace benefits.
educational benefits.
32
Carlos wants to start a budget. He's categorizing his expenses. How should he categorize paying his insurance?
Needs
Wants
Savings
Debt
33
What is the benefit of a savings account?
It creates investment opportunities.
It allows you to borrow money.
It earns interest.
It helps your track your spending.
34
Which list describes needs?
Shelter, warmth, food
Warmth, entertainment, shelter
Electronics, food, shelter
Entertainment, electronics, food
35
Overdraft protection helps you cover a purchase in your checking account....
only if you are paying with a mobile payment app.
when you lost your debit card.
only if you are investing with your money.
when you don't have enough funds.
36
What is the main benefit of taking out a federal student loan instead of a private loan?
You may qualify for loan forgiveness after you graduate.
You can pay the principal down faster on a federal student loan.
You can defer paying your loan until 5 years after graduation.
You will have a higher interest rate for a federal student loan.
37
If your earnings potential is higher than the cost of your education, you will have a...
a neutral return on investment for higher education.
positive return on investment, depending on your major.
a positive return on investment for higher education.
negative return on investment for higher education.
38
What is the benefit of a checking account?
It allows you to spend money and pay the bill later.
It allows your to save money and earn interest.
It helps you spend money without carrying cash.
It helps you invest your money and gain a greater return.
39
Jobs and careers that require degrees or certificates generally ______ jobs that required little or no training.
pay about the same amount of money as
pay more money than
have fewer responsibilities
earn less money than
40
Why do financial institutions offer you higher interest rates for Certificates of Deposits (CDs)?
They are paying you back for fees and interest you have prepaid.
You must keep your money in the account for a set amount of time.
You'll be required to invest your interest funds with the same institution.
The interest you earn is only borrowed & must be repaid at the end.
41
A positive return on investment for education happens when...
you use federal student loans to attend a private college.
you calculate earnings after working for one year after college.
your earnings potential is higher than the cost of your education.
you attend a public university & do not take out loans.
42
What does it mean when the money in your 401k is vested?
You will never have to pay taxes on your employer-sponsored retirement
You can withdraw your money at any time without a penalty fee from the IRS
You will not have investment gains in your employer-sponsored retirement
You can keep the money your employer contributed, even if you leave the job
43
Which of the following best describes a loan?
A government grant for education
A borrower promises to repay money from a lender
A type of insurance coverate for unexpected losses
A tax deduction for mortgage interest payments

EVERFI Financial Literacy 2024-2025 (NEW) Flashcards | StudBud