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Financial Literacy Semester Exam Flashcards | StudBud
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Financial Literacy Semester Exam
What is a need?
What is a goal?
Financial Literacy Semester Exam
70 terms
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Semester Test Review
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Answers
1
What is a goal?
Accomplished through financial planning
Giving up one thing for another.
Acquire, achieve, or accomplish in the future
The value of the next best alternative
2
What is a need?
A. A fundamental belief of what is, worthwhile
Goods or services that are required to survive.
Giving up one thing for another.
The value of the next best alternative
3
What is NOT a fee associated with a credit card?
Over the limit fee
ATM fee
Interest fee
Late fee
4
What is the higher cost of living index?
102
99
100
101
5
What is a salary?
Being paid by the hour
A set amount of pay
Getting paid by the week
Getting paid with a debit card
6
What are the two main components of a spending plan?
Values and Family
Housing and transportation
Income and Expenses
Wants and Needs
7
What is NOT a common way to get paid?
By electronic deposit
Payroll card
By check
Debit card
8
What is a value?
A. Desirable, worthwhile and important to an individual.
A. Goods or services that is required to survive.
The value of the next best alternative
Giving up one thing for another.
9
What does cost of living mean?
Cost of your human capital
The amount of money it costs to live in a certain area
Cost of getting a loan
Cost of getting an education
10
What is the missing element? I plan to save $1,500 by saving $125 a month for a year.
Time Bound
Measurable
Specific
Attainable
11
Which is not an example of transportation expense in a budget?
Fuel
Repairs
Disability Insurance
Monthly Payment
12
When thieves break into a computer system and steal information.
Phishing
Pretexting
Hacking
Skimming
13
What is the most common type of depository institution?
Credit Union
Savings and Loan Institution
Commercial Bank
Mortgage Broker
14
What is a short-term goal?
Accomplish in less then a year
Accomplished through financial planning
To acquire, achieve, or accomplish in the future.
Giving up one thing for another.
15
What is NOT an example of a speculative investment?
Livestock Futures
Gold and Silver
Grain Futures
Index Funds
16
When thieves fill out a change of address form and have a victim’s mail sent to them.
Skimming
Pretexting
Phishing
Diverting Mail
17
What is the advantage of buying a mutual fund over a stock?
Cost less to purchase compared to a stock
Spreads out the risk
It has a guaranteed rate of return
The return on the investment is greater
18
How much of your paycheck should you try to save?
A. 20-25%
10-20%
5-10%
Whatever you have left at the end of the month
19
What is the rule of 72 used for?
Determines the best investment to purchase
How much interest you make on an investment
Calculate your rate of return on an investment
How long it takes for an investment to double
20
When thieves pretend to be depository institutions, telephones companies and etc. to get info.
Phishing
Pretexting
Skimming
Hacking
21
What is gross pay?
Pay minus bonuses
Pay after income taxes are processed
Pay after taxes
Pay before taxes
22
What federal act protects ATM and debit cards use from fraud?
A. Electronic Funds Transfer Act
Truth in Lending Act
Consumer Rights Act
Bank Lending Act
23
How old do you need to be to apply for a credit card?
25
16
18
21
24
Missing element? I plan to save $1,000 to buy a new camera by saving $55 from each paycheck
Time Bound
Measurable
Attainable
Specific
25
What is not an example of a housing expense in a budget?
Renters Insurance
License and Registration
Property Taxes
Utilities
26
How often should you check your credit report?
Once a year
Monthly
Twice a year
Three times a year
27
What is inflation?
When prices match buying power
The rise in prices over time
When buying power goes up
When prices hold steady over time
28
What form is used to calculate the amount of taxes withheld from your paycheck?
I-9
A-4
W-4
W-2
29
A key difference between a commercial bank and a credit union is that:
A commercial bank pay higher interest rate than credit union
Credit unions are located only in rural areas
Commercial banks offer less services, than credit unions
Commercial banks are for profit and credit unions are not
30
What is a stock dividend?
A set amount of money paid by the company
A piece of the company
A bonus paid by the company
Will go up over time
31
What determines if it’s a need or want?
Culture
Our Perception
The legal system
Society
32
What is a want?
A. Goods or services that is required to survive.
The value of the next best alternative
goods and services that can increase our quality of life
A. Giving up one thing for another.
33
What is the difference between a debit card and credit card?
Debit cards are tied to your bank account
You’re charged interest on balances carried on debit cards
Debit cards have several fees tied to them
Credit cards are tied to your bank account
34
What is a trade off?
The value of the next best alternative
Goods or services that is required to survive
A. The desire for goods and services
A. Giving up one thing for another.
35
What is risk?
When buying power goes down
When purchasing power goes down
Uncertainty of a future outcome
Tied to the markets ups and downs
36
Which of the following is NOT one of the three credit bureaus?
Experian
Trans Continental
Equifax
Trans Union
37
What is human capital?
Skills acquired in school
Skills gained from reading books
Skills learned from family and friends
Skills you gain during your life
38
What is a co-signer?
A person who agrees to pay your debt if you don’t
A person who shares in your investment profits
A person who helps you get a debit card
Person who helps get the loan but not responsible for losses
39
When thieves steal information that is carelessly discarded into the trash.
Skimming
Stealing
Dumpster Diving
Phishing
40
When thieves attach a device to card processors to obtain credit or debit card information.
Spyware
Hacking
Phishing
Skimming
41
What is a mutual fund?
A special stock offered by a company
Pays more dividends compared to a stock
Made up of several different stocks
A risky investment
42
What is NOT a use of social security?
If a parent dies
Medical costs
For retirement
If you are disabled
43
Missing element? I plan to save $100 for a new phone by saving my whole check for a month.
Realistic
Measurable
Time Bound
Specific
44
What should you do with unwanted credit card offers you receive in the mail?
Tell the post office not to deliver them
Throw them away
Shred them
Return them to the credit card company
45
How does an individual “bounce a check”?
Writes checks for more than the amount in the account
Deposits more money then is withdrawn
Writes a check for more than the charged amount
Doesn’t write enough checks per day.
46
What is financial planning?
Managing money continuously through life
The value of the next best alternative
Giving up one thing for another
objectives that are accomplished through financial planning
47
Software installed that monitors the computer and looks for personal information.
Hacking
Skimming
Spyware
Phishing
48
What is a depository institution?
A business that provides higher interest rates
A business that offers loans only
A business that only allows customers to deposit money
A business that provides financial services
49
What federal act protects credit card users from fraud?
Bank Lending Act
Truth in Lending Act
Consumer Rights Act
A. Electronic Funds Transfer Act
50
What is one-activity identity thieves DON’T commonly try to use stolen information for?
Obtain your credit report
Apply for a driver’s license
Getting a job
Take out a loan
51
What is the purpose of Medicare?
Pay medical benefits for working students
Pay for the medical cost of the elderly
Pay for medical cost of working adults
Pay retirement benefits
52
What is an opportunity cost?
A. The desire for goods and services
A. Giving up one thing for another.
A. Goods or services that is required to survive.
The value of the next best alternative
53
What does it mean to reconcile an account?
Balance the checkbook register with the bank statement
Track Check 21 transactions
Pay outstanding transactions
Deposit income and record withdraws
54
What is the missing element? I plan to save $1,000 for a new computer in two years.
Attainable
Measurable
Specific
Realistic
55
What is the first thing you should do when you lose or have your credit card stolen?
Check your credit card statement for unauthorized charges
Call the police
Call the area stores and tell them
Call the credit card company
56
What is investing?
Putting money in a safety deposit box
A short-term goal
The hope of breaking even on the money you have put away
Purchasing assets with the hope of increasing its value.
57
Who has more withheld from their paycheck.
A family of two
A family of four
The same amount is taken out
Its based on the type of job you have
58
What is a long-term goal?
The value of the next best alternative.
Accomplished through financial planning
Accomplish in distant future (over a year)
Giving up one thing for another.
59
What piece of information would NOT be found on a paystub?
Net Pay
Spouses name
Gross Pay
Pay rate
60
On average how much of your paycheck goes for taxes?
25%
10%
20%
30%
61
A stock is
a piece of the company
a set amount of money paid by the company
a bonus paid by the company
will go up over time
62
How much of your paycheck should you save for an emergency fund?
9 months
3 months
1 months
6 months
63
What is NOT associated with making the minimum payment on a credit card?
It damages your credit
It will take a long time to pay off the balance
The credit card company likes it when you make min payments
You pay mostly interest
64
What is the missing element I plan to save for a new iPad by saving $100 each month for a year.
Attainable
Specific
Measurable
Realistic
65
Which one of these is not a need?
Clothing
Shelter
Pop
Shoes
66
Which of the flowing represents a secure website?
http://www
htsp://www
https://www
httpsafe://www
67
How do you avoid paying interest on credit card charges?
Pay the minimum payment suggested
Pay the balance in full each month.
Have a good credit rating
Find a no interest credit card
68
What is a fringe benefit?
Benefits that go with the job
Your human capital
Cost of housing
The salary you get paid.
69
What represents the largest area of a budget?
Food
Insurance
Housing
Savings
70
Which of the following is NOT a piece of personal information identity thieves try to obtain?
Credit Card Number
Employer Information
Social Security Number
Birthdate
