Financial Literacy Final Exam Review

Question 1

All of the following are fixed expenses EXCEPT:

Accepted Answer

Gas

Question 2

According to the 20/10 rule, an individual should have loan payments no more than _____% of their monthly take home pay.

Accepted Answer

10

Question 3

In finance, a principal is:

Accepted Answer

The initial investment

Question 4

Which of the following is a cost of credit?

Accepted Answer

Interest

Question 5

Which of the following is a mandatory paycheck deduction?

Accepted Answer

Social security tax

Question 6

How is overtime pay typically calculated?

Accepted Answer

Time and a half

Question 7

Garnishment, repossession, and foreclosure are all consequences of:

Accepted Answer

Delinquency

Question 8

Which transaction puts money into an account?

Accepted Answer

Deposit

Question 9

Equifax, Experian, and TransUnion are the three official:

Accepted Answer

Credit Agencies

Question 10

What investment is a loan to a corporation or the government?

Accepted Answer

Bond

Question 11

All of the following are wants EXCEPT:

Accepted Answer

Groceries

Question 12

Which of the following is NOT an example of fraud?

Accepted Answer

Overdraft

Question 13

What is debt?

Accepted Answer

Money that must be repaid

Question 14

What is the Federal minimum wage as of January 1, 2025?

Accepted Answer

$7.25/hour

Question 15

Which of the following causes inflation?

Accepted Answer

Decreased supply

Question 16

Which type of inflation goes up, then down, then up again?

Accepted Answer

Reinflation

Question 17

A ____________ is the percentage amount added to cost to determine the price of an item.

Accepted Answer

Markup

Question 18

Which is the least liquid investment?

Accepted Answer

Treasury Bond

Question 19

An interest rate that fluctuates from month to month is:

Accepted Answer

Variable

Question 20

Net pay is also known as

Accepted Answer

Take home pay

Question 21

Holding a variety of investments is an example of:

Accepted Answer

Diversification

Question 22

Which financial market is a period of steadily decreasing stock prices and investor pessimism?

Accepted Answer

Bear Market

Question 23

All of the following are disadvantages of credit except

Accepted Answer

Security

Question 24

Bonds are a highly liquid investment

Accepted Answer

False

Question 25

What is a general rise in the prices of goods and services?

Accepted Answer

Inflation

Question 26

All of the following are sources of earned income EXCEPT:

Accepted Answer

Dividends

Question 27

A ___________ loan uses collateral.

Accepted Answer

Secured

Question 28

Insurance to protect against collisions and other vehicle damage is:

Accepted Answer

Car insurance

Question 29

Charleigh worked 48 hours this week. How many of those hours are overtime hours?

Accepted Answer

8

Question 30

What is a performance measure used to evaluate the efficiency of an investment?

Accepted Answer

ROI

Question 31

Insurance holders pay a ___________ each month and a ____________ when they make a claim.

Accepted Answer

Premium, Deductible

Question 32

A plastic card linked to a checking account that can be used to make purchases is a:

Accepted Answer

Debit Card

Financial Literacy Final Exam Review

Questions 32

Financial Literacy Final Exam Review

Questions 32