When trying to build credit, which of the following should you do?

Pay your balance in full and on time

Which of the following is an advantage to online banking?

Available 24 hours a day, 7 days a week, 365 days a year

When managing your bank accounts, which of the following should you do?

Always write transactions in your Transaction Register

What is the best way to avoid debt?

Do not spend more money than you make

The spending habit that will lead to the worst financial situation is to

Spend more than you earn each month

When writing a check, which of the following should you NOT do?

Write a check in pencil so you can correct mistakes

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Financial Literacy Review

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Questions 25

Answers

1
Why should you NOT use payday/check-cashing/title loan companies for a loan
Prepayment penalties, if you payoff early
Interest rates are higher
Unfair terms - hard to repay
All of the above
2
When trying to build credit, which of the following should you do?
Apply for every credit card you can
Use your credit cards often
Carry a high credit card balance
Pay your balance in full and on time
3
____ is not an example of a need.
Car insurance
Vacation
Groceries
House note
4
A poor credit score can affect
Getting a loan
All of the above
Deposits on utilities, apartment, cell phone
Employment
5
Questions to ask when selecting a checking account
Is there a printed check fee?
All of the above
Is there a monthly maximum transaction limit?
Will I receive monthly statements?
6
Having a personal budget can help you by
Managing money
Track expenses
All of the above
Be organized
7
Which of the following is an advantage to online banking?
Security is an issue
Possible ATM charges
Sometimes online banking websites are not dependable
Available 24 hours a day, 7 days a week, 365 days a year
8
A good rule of thumb is to save _______ % of your gross monthly income:
7%
12%
15%
10%
9
When managing your bank accounts, which of the following should you do?
Write post-dated checks when paying monthly bills
Give your personal account information over the phone
Close your account by letting it go to a zero balance
Always write transactions in your Transaction Register
10
What is the best way to avoid debt?
Apply for more credit cards to cover payments on your other cards
Use your credit to pay for things you cannot afford
Do not spend more money than you make
Use a credit card and save your cash for an emergency
11
What is not one of the 3 credit bureaus?
Credit Karma
Experian
Equifax
Transunion
12
The spending habit that will lead to the worst financial situation is to
Spend too much on food and entertainment
Use credit cards for all your purchases
Have more than one credit card
Spend more than you earn each month
13
The model, make, and year of your automobile affects your automobile insurance premium.
False
True
14
When using a Debit card, which of the following should you NOT do?
Cut up old Debit cards
Give out your PIN
Draw a line through blank spaces on the debit slip
Tear up carbon copies of transactions
15
What determines your credit score?
Credit history (Payment history)
Inquiries (How many people/companies have run your credit)
All of the above
Average age of your credit accounts
16
What are you doing when you complete banking transactions through the Internet or mobile banking software?
Online Bill Pay
Online Banking
Internet Application
Transferring Money
17
The penalty for withdrawing money that exceeds your checking account balance is called
Overdraft fee
Prepaid fee
Debit fee
ATM fee
18
Personal budgets can help you by:
Control finances
All of the above
Manage money
Be organized
19
A ______________ loan is backed up collateral.
Unsecured
Secured
20
Gross pay is what you bring home after deductibles (taxes, insurance)
False
True
21
When writing a check, which of the following should you NOT do?
Write a check in pencil so you can correct mistakes
Double-check information to ensure it is correct
Write clearly and legibly when writing numbers
Start at the beginning of the line when writing the amount
22
What does insurance prepare you for?
A fall at work
Building a house
Medical emergency
College
23
Which of the following can you usually do at an ATM location?
Make deposits
Transfer money
Withdraw cash
All of the above
24
Which of the following is a TRUE statement about credit?
Credit is not cash or a cash substitute
Debt can happen to you
Establishing good credit does not happen overnight
All of the above
25
What is considered a poor credit score?
520
800
620
710

Financial Literacy Review Flashcards | StudBud