stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Financial Literacy Online - Exam Review Flashcards | StudBud
Explore
/
Financial Literacy Online - Exam Review
Financial Literacy Online - Exam Review
33 terms
·
StudBud Administration
·
405 plays
Review for the final exam
Flashcards
33 cards
F
Practice quiz
P
Host live
L
Questions
33
Answers
1
In general, which investment type has the potential for the highest rate of return?
Stocks
Savings Account
Certificate of Deposit
Bonds
2
Which would have the most positive impact on your credit score?
Close any credit cards you're no longer using
Take out a car loan for $18,000 or more
Spend more money on each of your credit cards
Make all payments on time, and paying down your credit cards
3
Interest earned on principle plus previously earned interest
Simple Interest
Basic Interest
Compound Interest
Complex Interest
4
Which tax document are you likely to receive during your first week on the job?
Medicaid enrollment form
1040 or 1040EZ Form
W-4 Form
W-2 Form
5
$1000 put into an account earning 1% annual compound interest for 10 years - how do you have?
Exactly $11,000
$2000
Exactly $1100
Slightly more than $1100
6
When saving for an emergency fund which saving strategy would likely be most effective?
At the end of the month put any money left into saving
Set up a direct deposit from each paycheck to fund savings
After you pay all your expenses save whatever you have left
Pay off your debt first and then begin an emergency fund
7
Using a Credit Card is like using free money as long as you pay the minimum payment
False
True
8
Interest earned only on the principle
Basic Interest
Simple Interest
Complex Interest
Compound Interest
9
Mutual funds are typically purchased to achieve
Bet Against the Stock Market
Diversification
Maximum Returns
Make Quick Cash
10
When you have liability coverage with your auto insurance policy...
If you are caught speeding, you won't get "points" off
it will cover damage to property of others that you caused
your medical bills will be covered if you're in an accident
you cannot be found liable or guilty of causing an accident
11
Amount earned, before any taxes or other deductions have been taken out
Gross Income
Earned Income
Net Cash Remaining
Net Income
12
Account used to manage your money day-to-day
Certificate of Deposit
Checking Account
Money Market Account
Savings Account
13
Form of credit involving fixed, regularly scheduled payments over a specified time period.
Loan
Credit Card
Secured Credit
Line of Credit
14
Budget: income $3000 , rent $1200, car $700, utilities $200, insurance $300, & food $400.
You have a budget deficit of $400
You have a budget deficit of $200
You have a budget surplus of $400
You have a budget surplus of $200
15
When selecting investments what should you consider?
Your Goal for Investing
Your Risk Tolerance
Your Time Horizon
All should be considered
16
Contains a summary of your life in credit
Credit Summary
Credit Report
Credit Score
Credit Line
17
Something of value that the lender can take if you do not make the payments
Credit Compact
Collateral
Credit Backing
Credit Property
18
Saving/investing tool typically paying low interest, but providing a safe and accessible option
Mutual Fund
Savings Account
Bond
Certificate of Deposit
19
To avoid finance charges, credit card balances should be paid in full within the ____
clear peirod
interest-free period
grace period
unrestricted period
20
Investment which involves lending money to a government or business for a fixed return
Bond
Mutual Fund
Certificate of Deposit
Stock
21
Amount remaining after all taxes and deductions are taken out.
Net Income
Net Cash Remaining
Variable Expense
Gross Income
22
Form of investment which always represents partial ownership in a corporation
Mutual Fund
Certificate of Deposit
Bond
Stock
23
Spreading money across various investments to lower the risk
Divergence
Diversification
Bond Investing
Investing Wisely
24
Which of the following is not good interview advice?
Bring copies of your resume, cover letter, and references
Be on time and dressed appropriately
Make a list of questions you want answered ahead of time
Ask about how much vacation time you can expect to receive
25
Which payment method would reduce the amount of money in your checking account?
Pay with a prepaid card loaded earlier in the month
Uses your debit card and select 'credit' at the register
Pays with cash
Use your credit card
26
Which of the following is true about resumes and cover letters?
Limit your resume to 1 page and your cover letter to 2-3
Resume needs accuracy, but exagerating on cover letter is ok
Cover letter allows to expand on a few areas of your resume
Cover letters state the same things as your resume
27
The higher the risk, the higher the potential for reward
True
False
28
A plan for using your money efficiently and effectively
Spreadsheet
Income Statement
Check Stub
Budget
29
Which would NOT impact your credit score?
Your payment history
Your credit utilization ratio
Number of times you apply for credit
The items you are buying with credit
30
Which of the following is describing saving versus investing.
Contributing 2% of your pay to the company's 401(k) plan
Using your bonus to purchase some Corporate Bonds
Putting $750 per month into her savings account earning 1%
Buy $100 of shares in an S&P 500 index fund every month
31
Numeric representation of you ability or inability to use credit effectively
Credit Value
Credit Score
Credit Agency
Credit Report
32
Which of the following is true of Overdraft Protection?
W/out overdraft protection you cannot overdraw your account
You never have to worry about how much is in your account
You have to pay a fee for the service and repay the amount
Overdraft protection is free at most bankds
33
Diversification can help to minimize investment risk
False
True
