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Financial Literacy
Financial Literacy
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Financial Literacy Review
Flashcards
50 cards
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Practice quiz
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Questions
50
Answers
1
Which one is NOT an example of a type of savings vehicle
Checking Account
Money Market Account
Certificate of Deposit (CD)
Savings Account
2
Which of the following statements is most correct? A benefit...
of renting a home is you can move when you want
of owning a home it is easy to move
renting a home is your can make renovations
3
When referring to student loans, what is a grace period?
The period after you graduate before you begin paying.
When library late fees affect your credit score
When graduating high school and before starting college
4
The U.S. banking system, called the Federal Reserve, includes...
The Board of Governors
The Reserve Banks
all of the above
The Federal Open Market Committee
5
Which of the following is likely to have the lowest interest rate?
Private Loan
Perkins Loan
Payday Loan
6
Your credit history is tracked by all of the following EXCEPT
Federal Reserve
Experian
Equifax
Trans Union
7
How many Federal Reserve Banks are there in the United States?
10
14
12
8
8
What is a down payment?
A payment that gains value in time according to an index
A large sum of money you pay towards a property upfront
A payment that depreciates
9
Insurance allows you to transfer your financial ____________ onto someone else.
Stocks
Debt
Risk
10
Compound interest is...
Multiple late fees
When interest is added to the principal amount
The amount earned or owed on principal amount
11
What are the two biggest influences on your credit score?
Number of Credit Cards and Bank Accounts you have
Your SAT score and your grade point average
Payment history and amount of debt
12
What is a mortgage?
A type of loan used to buy property
A type of financial statisti
A type of rent used to pay for housing
13
What is the numerical range for credit scores from the three major reporting agencies?
From one to 10
From 300 to 850
From 500 to 1,000
14
By what date must federal taxes typically be filed and sent to the IRS?
March 15
April 15
March 17
April 1
15
Which statement is most correct when choosing to rent or buy a home?
buy or rent a home based on your individual circumstances
rent a home because it is always better than buying
Buy because it is always better than renting
16
Which form is your employer required to send to you before you can file your tax return?
W-4
1040EZ
Yearly paycheck stub
W-2
17
Which of the following typically have the highest fees?
Payday Lender
Online Bank
Retail Bank
Credit Union
18
Using the Rule of 72 to calculate how long it will take for your money to double at 6% interest
36 years
16 years
12 years
72 years
19
The numbers listed at the bottom of a check are the ________ number and the ________ number
Check, PIN
Routing, Account
Routing, Legal Tender
20
Which of the following typically has the lowest fees or costs to use?
Credit Card
Debit Card
Cash Advance
Payday Loan
21
Which one is NOT a main factor to consider when deciding to buy or lease a car?
cost of the car
your current savings
your monthly budget
car interior and features
22
What are the 3 credit bureau reporting agencies?
Experience, TransGender, Equifacts
Experian, TransUnion, Equifax
none of them
Experimental, TransFer, Equifer
23
What U.S. agency protects consumers against false advertising and unfair business practices?
Central Intelligence Agency
Federal Trade Commission
Department of Homeland Security
24
Which of the following is NOT a federal tax form?
1040
W-2
W-4
WD-40
25
What is a mutual fund?
A loan an investor makes to a company or government
A collection of investments sold as a package
A share of ownership in a local government
26
On what type of account can you earn interest while still being able to write checks from it?
Line of credit from a commercial bank
Mutual Fund
Money Market
27
APR stands for?
Annual Point Rate
Annual Percentage Rate
Annual People Rate
Annual Party Rate
28
What type of bank account offer the most access to your money with the fewest restrictions?
Checking
Savings
Certificate of Deposits(CDs)
29
Diversification is important in investing because…
Increases your risk, which could make you more money
Balances your risk across different types of investments.
It ensures you only make low-risk investments.
30
Which type of bank account typically offers no interest?
Money Market
Certificate of Deposit
Checking
Savings
31
What do IRAs, Roth IRAs, 401(k)s and 403(b)s all have in common?
All are long-term savings plans for retirement
All are checking accounts you sign up for at a local bank
All are combination codes on bank vaults
32
Which of the following could potentially damage your credit score?
Paying a credit card bill late
Paying a roommate back late
Paying a speeding ticket
Opening a checking account
33
Which tax type does NOT require you to complete forms at the end of the year?
State Income
Federal Income
Sales
34
One of the effects of consolidating your student loans is...
It increases the amount of money you’ll owe each month
It decreases the amount of money you’ll owe overall
It ends any grace period that might still apply to the loan
35
Borrowing a subsidized federal student loan means the government will...
pay the interest on the loan for 6 months after graduation
repay the loan if you take a certain job
repay the loan in full if you graduate
36
How many free credit reports are you legally entitled to per year from each credit bureau?
One credit report from each credit bureau
Unlimited amount
Two credit reports from each credit bureau
37
The form filed by students to receive federal financial aid for school is known as:
FIFA
FAFSA
FAA
FICA
38
Credit card minimum payments are usually around ___ of the total balance.
20-30 percent
2-3 percent
100-150 percent
39
The annual percentage rate (APR) on a credit card determines _______.
The amount your credit limit can go up within a year
How many credit cards you can own
Interest you are charged on credit card purchases
40
What are the responsibilities of a renter versus an owner?
a renter in a house has complete responsibility and control
an owner of a house has complete responsibility and control
both a renter and owner have equal responsibility/control
none of them are true
41
The application for federal student financial aid is called…
American Lending Document
Free Application for Federal Stud
National Borrowing and Loan Packet
42
Which will most benefit you financially? A savings account that...
compounds interest yearly
compounds interest monthly
does not compound interest
compounds interest daily
43
Which of the following is an ADVANTAGE of federal student loans?
they have a low fixed interest rate
they must be paid back while you're in school
they do not accumulate interest
44
Examples of savings vehicles include…
Credit reports and stocks
Simple savings accounts and car loans
Simple savings accounts and CDs
45
The term referring to the rate of yearly interest for your credit card is commonly known as:
Grace period
COD
Default rate
APR
46
FAFSA stands for...
Free App For Student Aid
Free Application for Federal Student Aid
Federal Aviation For Student Associations
47
Which of the following drivers will likely pay the highest auto insurance premiums?
drivers who travel short distances
drivers who have a safe record
younger, inexperienced drivers
older, experienced drivers
48
The period before you have to begin repaying your student loan is known as...
grace period
default period
zero interest period
promotional period
49
What does PIN stand for?
Personal Identification Number
Personal Information Number
Personal Investigation Number
50
Which of the following does not have to be paid back?
Federal Stafford Loan
Federal Perkins Loan
Federal Pell Grant
