Alabama Financial Literacy Test

What is the term used to describe interest earned on interest gained?

Which of the following is the term for a person who relies on someone else financially?

Which of the following practices could negatively affect one’s credit score?

Banks offer the service of a safety deposit box, which can be used for what?

When one invests in a commodity, they are investing in a what?

Which type of insurance assists in covering medical expenses associated with short-term illness and accidents?

When eating at a restaurant, one must consider the following additional costs to the price of their meal + sales tax?

When one is purchasing a product at store, what additional cost must be paid on top of the listed price of the product?

Which of the investments is characterized by the following traits: •Risky • Ownership in a corporation • Pays dividends 

Which financial institution may an individual visit to get money from a check if they do not have a bank account

The total money one gets to “take home” from a paycheck after taxes and deductions are taken out is known as what?

When receiving a mortgage loan, if an individual cannot make a large down payment, they will most likely have to pay?

What is gross pay?

What can be paid for as part of the escrow funds included in a mortgage loan?

Which of the following types of insurance helps pay for stays in a nursing home?

Rent-to-own agreements can negatively impact consumers because:

When comparing a bank and credit union, which characteristic of credit unions is not a characteristic of a bank?

When the federal government raises interest rates, which of the following is impacted positively for the consumer?

Which of the following is the typical amount of time in which a borrower must pay off a mortgage loan?

Describe the concept of APR (annual percentage rate)?

All of the following are advantages of bundling insurance EXCEPT?

When one party to a contract does not do what the contract requires,the individual has committed a what of the contract?

Which is the institution that handles money, including keeping it safe for saving or commercial purposes?

Which of the following is an advantage of maintaining a good credit score?

. Which purchasing card removes funds from one’s checking account almost instantly after one makes a purchase?

Federal income tax brackets can be impacted by which of the following?

Which of the following is the correct sequence in the formation of a contract?

If the value of one’s house increases, all the following will most likely rise EXCEPT:

All of the following are examples of installment loans EXCEPT:

Which form does an employer provide to an employee to tell them how much money was taken from paychecks in a given year?

What allows a customer to pay a deposit on an item, and then not receive the item until the balance is paid in full?

A certificate of deposit (COD) differs from a traditional savings account in what way?

When one receives a product or service now, but pays for it later, it is known as what?

When one is inspecting a statement and discovers several charges they did not makethe individual is most likely a victim

The purpose of an umbrella insurance policy is best summarized as what?

The phrase “balancing a checkbook” refers to which practice?

The Rule of 72 is used to calculate what?

Using the simple interest formula I = prt, calculate the interest earned on $150 after one year at a 6% return rate.

Which of the following practices does not lead to a higher car insurance rate?

Sales tax amounts are generally established by which of the following?

Which of the following positions can confirm signatures to a contract?

Which form do employers use to determine how much tax to deduct from a paycheck?

Which type of insurance provides income to people who depend on a wage earner after the wage earner dies?

Which of the following financial institutions is criticized for targeting people in poverty through high interest rates?

What is needed to open a bank account?

If one spends more money than they have in their bank account, they are charged a what?

When planning one’s personal budget, a variable expense is what?