Financial Literacy Certification Test Review

Question 1

ATM stands for

Accepted Answer

Automated Teller Machine

Question 2

Something offered as security on a loan

Accepted Answer

collateral

Question 3

Which of the following is NOT one of the 3 c's of credit?

Accepted Answer

consumption

Question 4

The amount of cash you pay on something that you finance

Accepted Answer

down payment

Question 5

When revenue exceeds costs

Accepted Answer

profit

Question 6

A mortgage payment would usually be considered a

Accepted Answer

fixed payment

Question 7

Which of the following is NOT a major US stock exchange?

Accepted Answer

DOW

Question 8

Which of the following investments is a pre-tax investment?

Accepted Answer

Traditional IRA

Question 9

The opposite of a fixed interest rate

Accepted Answer

variable

Question 10

A legal way to get rid of some of your debt without paying your creditors the full amount owed

Accepted Answer

bankruptcy

Question 11

The document that plans your estate upon death

Accepted Answer

will

Question 12

If the total amount you can borrow on a credit card is 3,000, 3,000 is the

Accepted Answer

credit limit

Question 13

This is a type of savings option

Accepted Answer

CD

Question 14

Card that automatically deducts cash from checking account when used

Accepted Answer

debit card

Question 15

A card that can be used like a debit card but has a pre-set amount of cash added to it

Accepted Answer

cash card/gift card

Question 16

Common type of company provided retirement program

Accepted Answer

401(k)

Question 17

Simplest way to determine how long it will take your investment money to double

Accepted Answer

Rule of 72

Question 18

Increase in price of goods

Accepted Answer

inflation

Question 19

Paid vacation time is considered a....

Accepted Answer

fringe benefit

Question 20

This reduces your taxable income

Accepted Answer

All of these

Question 21

Person who can legally buy and sell stocks for you.

Accepted Answer

stock broker

Question 22

This kind of insurance protects the other person's property when you are at fault

Accepted Answer

liability

Question 23

Total value of assets owned minus total debt owed.

Accepted Answer

net worth

Question 24

This kind of life insurance builds cash value

Accepted Answer

whole life

Question 25

Set amount you have to pay to visit a dr.

Accepted Answer

co-pay

Question 26

A type of loan specific to real property

Accepted Answer

mortgage

Question 27

Which of the following regulates the financial industry?

Accepted Answer

All of these

Question 28

Reduces the amount of income tax you pay

Accepted Answer

more dependents

Question 29

To sign a check on the back before depositing

Accepted Answer

Endorse

Question 30

Ease of which you can convert an asset to cash

Accepted Answer

liquidity

Question 31

This happens when you write a check and don't have funds in your account to cover the check

Accepted Answer

all of these

Question 32

The cost of borrowing money

Accepted Answer

APR

Question 33

Which term is the same as net income?

Accepted Answer

disposable income

Question 34

Kind of stock that includes ownership in a company and voting rights.

Accepted Answer

Common stock

Question 35

What occurs when a person or business spends more than they earn in a year?

Accepted Answer

deficit

Question 36

If you have a $150,000 home and you still owe the bank $100,000, what is true?

Accepted Answer

Both of these are true

Question 37

This occurs when your investment increases in value and you realize the gain by selling it.

Accepted Answer

capital gain

Question 38

Helps creditors assess the risk of an individual when giving them a loan.

Accepted Answer

credit score

Question 39

Getting someone else to sign a loan with you because your credit and/or income isn't enough

Accepted Answer

co-sign

Question 40

Which is more?

Accepted Answer

gross wages

Question 41

Easiest way to have a diverse stock portfolio

Accepted Answer

Buy mutual funds

Question 42

What is an automatic deduction from your paycheck to cover a legal settlement called?

Accepted Answer

garnishment

Question 43

A way to loan money to the government

Accepted Answer

Treasury Bill

Question 44

Which of the following is NOT a standard payroll deduction?

Accepted Answer

Lawyer Fees

Financial Literacy Certification Test Review

Questions 44

Financial Literacy Certification Test Review

Questions 44