stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Financial Literacy Flashcards | StudBud
Explore
/
Financial Literacy
Financial Literacy
42 terms
·
StudBud Administration
·
43 plays
A comprehensive quiz on all things dealing with personal finance and financial literacy
Flashcards
42 cards
F
Practice quiz
P
Host live
L
Questions
42
Answers
1
A car is a good example of a…
Appreciating asset
Unsubsidized Loan
Subsidized Loan
Depreciating asset
2
What is the tax that pays for
health care
for people 65 years and older?
Social Security
401k
State Income Tax
Medicare
3
All of the following are fees typically charged by credit card companies EXCEPT:
Balance transfer fee
Reload fee
Annual membership fee
Late payment fee
4
When would you use the rule of 72?
To calculate a reasonable monthly savings goal
To figure out the interest rate for your savings account
To find out how long it will take your money to double
To estimate how much money you'll have in 72 years
5
In which of the following situations should you expect to provide your Social Security number?
Applying for federal student aid
Registering for a store rewards card
Paying your cell phone bill
Signing up for an after-school club
6
When making college visits, you may be able to…
Schedule a tour of the college campus
All are correct
Attend a college class to see what it’s like
Talk to your future Professor's
7
he __________________ is the amount you are personally required to pay “out-of-pocket”
Claim
Deductible
Interest
Premium
8
Which is LEAST important to maintaining a healthy credit score?
Alerting the credit bureaus to any false info on your report
Knowing your exact credit score
Making on-time payments
Checking your credit report annually
9
Which of the following taxes are charged on items at the time of purchase?
Capital Gains Tax
Income Tax
Item Tax
Sales Tax
10
Put simply, the definition of liquidity is:
How much money you have in 401k investments
The humidity levels of the Federal Reserve
The interest rate of a subprime loan
How quickly you can get your hands on your money
11
Which is TRUE about credit cards?
Credit card purchases come directly out of your account
Debit card purchases have better protection then credit card
You HAVE to be 21 to own a credit card
Credit card purchases can impact your credit score
12
Which of the following statements are TRUE about credit scores?
They reflect how likely individuals are to repay debts
Bad reports on your credit are cleared quarterly
All these answers are correct
Bad reports on your credit are cleared annually
13
The FDIC insures at least ______________ per depositor at qualifying banks
$200,000
$250,000
$300,000
$50,000
14
Which of the following statements about minimum payments is CORRECT?
If you only submit the minimum, you will still pay interest
Even if you have the money, you should only pay the minimum.
If you only pay the minimum, you will be charged a late fee
Minimum payments = 15-20% of your total debt
15
Which password is the strongest?
G0PaCkGo
#F@vRE4Ever!*
ARod12
PackersRock123
16
Interest rate = 4% Account = $50,000. How long would it take to get to $100,000? (Rule of 72)
24
30
18
12
17
Which two components have the greatest impact on your credit score?
Payment History & Types of Credit Used
Amounts owed & Length of credit history
New Credit & Types of Credit Used
Amounts Owed & Payment History
18
Which of the following describes an effective strategy for protecting against identity theft?
Avoid using unsecured wireless networks
Shredding all important mail and documents
Keep your Social Security card in your wallet
Only use trusted organizations to wire money
19
Why is HIgher Education considered an Investment?
It's not an investment, it's a trap that should be avoided!
Because it fluctuates with the stock market
Because you need an investment firm to help pay tuition
You will pay for tuition, but on average this will pay off
20
When should you start saving for your retirement?
When you hit the age of 30
When you get your first steady job after school
When you first get allowance as a kid
When you are settled in your career for 10 years
21
You have $20,000 in your account that is earning compound interest. What would be best for you?
Compounding your interest annually
Compounding your interest semi-annually
Compounding your interest weekly
Compounding your interest monthly
22
Which phrase best describes the stock market?
Low risk, high reward
Investing in oil will make your blood boil
High risk, low reward
High risk, high reward
23
Which of the following conditions will maximize the amount of interest you earn?
A high interest rate & short time period
A low interest rate & short time period
A high interest rate & long time period
A low interest rate & long time period
24
The primary goal of the Federal Reserve system is to:
Keep banks up-to-date on the latest economic research
Provide budget recommendations to the Treasury Department
Maintain a safe and stable banking system
Ensure interest rates for savings accounts stay high
25
What financial behaviors will typically lead to a low credit score?
On-time payments
Maxed out credit cards
Long credit history
Fully paid balances
26
Put these in order of high liquidity to low liquidity. Savings, Checking, CD.
Checking, Savings, CD
Savings, Checking, CD
Savings, CD, Checking
Checking, CD, Savings
27
When looking to finance higher education, what is the best order to look for funding sources?
Grants/Scholarships - Private Loans - Federal Student Loans
Federal Student Loans - Grant/Scholarships - Private Loans
Private Loans - Grants/Scholarships - Federal Student Loans
Grants/Scholarships - Federal Student Loans - Private Loans
28
Which will earn you more money over a period of time
Compound interest
Simple interest
29
At the minimum, how often should you check your credit score?
Once every five years
Every week
Once every decade
Once a year
30
A 500 for your credit score is considered
Bad
Fair
Excellent
Good
31
Which of the following will NOT affect the size of your monthly mortgage payment?
The square footage of the house
The size of your down payment
All answers are correct
The length of your mortgage
32
Which of the following insurance types will cover the possessions inside your home?
Renter's Insurance
Homeowner's Insurance
Both are correct
Neither are correct
33
Which of the following statements is correct?
Houses will usually appreciate in value over the long-term
Neither answers are correct
Both answers are correct
Cars typically gain the most value in the first year
34
An 795 on your credit score is considered
Bad
Excellent
Fair
Good
35
You may have been a victim of identity theft if…
You see your credit report and notice unwarranted accounts
Your Merchant card e-mails you to say your data was stolen
All answers are incorrect
You see charges on your bank account that you dont recognize
36
The _________________ is the amount of money you pay to the insurance company for coverage.
Premium
Primary Mortage
Claim
Interest
37
When you use a debit card or write a check, which bank account does that money come out of?
Savings Account
Checking Account
38
Would you rather have $1,000,000? Or a penny that doubles every day for a month (30 days)
Neither, both would bankrupt you
The doubling penny
$1,000,000
One Million dollars
39
What is the difference between a Bear and a Bull market?
Both mean investors are worried about the market
Bear market is good/optimistic. Bull market is bad/uneasy
Both are made up animals that don't exist
Bull market is good/optimistic. Bear market is bad/uneasy
40
What is a possible reason a company would sell stock?
To shore up middle management
All are correct
To downsize a company
To expand its business
41
What's the difference between putting money in the stock market, compared to a savings account?
Stock market is safer than a savings account
You are guaranteed more money in the stock market
Stock market is riskier than a savings account
Savings account is riskier than the stock market
42
A college loan in which you DO NOT have to pay the interest during college is a..
Unsubsidized loan
Subsidized loan
