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Financial Literacy Flashcards | StudBud
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Financial Literacy
Financial Literacy
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Personal Financial Literacy
Flashcards
22 cards
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Practice quiz
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Questions
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1
When selecting a PIN for your debit card you should
Use a random selection of letters and numbers
use your first initial and last name
Use the name of a friend, family member or pet
Use your birth date
2
When you file bankruptcy, it's on your credit report for:
Until you receive a new credit card
10 years
Until you repay the all debts
3 years
3
Consumer finance companies, advertised on TV, are known as:
Purchase loan lenders
Savings & loans associations
Small loan companies
Banks
4
Which is typically true of people who are financially literate?
They have high debt and low savings
They know the basics of personal finance & money management
They almost always choose stocks and bonds that
They achieve all their financial goals
5
One of the reasons cigarettes are so expensive is:
the tobacco supply is controlled by the Federal Trade Com
their cost is controlled by the FDA
the government imposes excise tax on them
most of the tobacco is imported
6
What is the benefit to holding an investment for more than a year?
money earned is tax-free
capital gains taxed at lower rate
brokers won't charge you a fee
profits are averaged over the life of investment
7
Which documents should be stored in a safe-deposit box?
Current paycheck stubs
Copies of current & past budgets
Checkbook statements
Mortgage loan papers
8
Which is considered to be open-ended credit?
A mortgage
Installment loans
A car loan
Department store charge cards
9
Which of the following does the Federal Reserve use to regulate the nation's money supply?
fiscal policy
monetary policy
regulations
proposing legislation
10
If your expenses exceed your income, you should:
apply for a loan
ignore your budget
reduce or eliminate expense
open an IRA account
11
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the
Federal Reserve Board
State Banking Commission
US Treasury Department
Federal Deposit Insurance Corporation (FDIC)
12
The best suggestion you gave a friend who is writing a check for the first time is:
Use pencil for changes
Make check payable to cash
Date the Check for proof of payment
Use the register to keep a record of the date you wrote it
13
If you want to store a valuable coin collection, you should:
Store them in a locked drawer
Rent a safe deposit box
Give them to an attorney
Store them in a cabinet at home
14
What is meant by an uncollateralize loan?
A loan taken on a life insurance policy
A loan not backed by a co-signer
A home equity loan
A personal loan without assets to cover the loan amount
15
Coin denominations in the US are:
.01, .05, .10, .25, .50, 1.00
they can be any denominations
.01, .10, .30, .75
.05, .10, .25, .50
16
If you budget $200 per month for clothing but spend $150 this month
an income overage
an outflow deficit
a budget variance
a budget deficit
17
When Mary bought a DVD player with her credit card, her purchase created a(an):
investment
reserve
debt
savings
18
Debt ratio shows the relationship between debt & net worth. The lower the ratio the:
worse off financially the person is
better off financially the person is
less liquid assets the person has
more liquid assets the person has
19
Who uses consumer credit reports in making decisions?
brokers
schools
lenders
churches
20
When a person brings an item to a pawnshop for cash, it is called:
A custodial payment
A sales agreement
A collateralized loan
An unsecured loan
21
To qualify for Federal Housing Admin (FHA) loan you must:
fulfill income guidelines
Have a high school diploma
have 1/4 the cost for a down payment
have to people co-sign
22
If you have 3 credit cards with balances you can't afford to pay:
Call credit card companies to negotiate a new plan
Notify credit reporting agency to avoid late fees
File for bankruptcy
Call the IRS in order to avoid paying income tax this year
