1. Interest is? Hide answers

A charge for lending money to a bank

amount owed for borrowing money

amount added into your savings when opening a n account

a charge for accessing the money in your savings account

2. To earn as much interest as possible, you should open a savings account that earns () interest Hide answers

compounding

simple

diverse

justified

3. Which compounding frequency will earn you the MOST money? Hide answers

Compounding one time a year

Compounding four times a year

Compounding monthly

Compounding daily

4. Which answer enables you to earn the most interest? Hide answers

Selecting an account with a high interest rate

Leaving money in the account for a long period of time

Transferring money into a checking account each month

Both A & B

5. Which of the following is NOT a type of savings vehicle? Hide answers

simple savings account

certificate of deposit

checking account

all of these

6. Which is true about savings vehicles? Hide answers

they are only useful for long-term investments

look at different forms of savings vehicles based on needs

savings vehicles are never insured

all of these

7. Which savings vehicles usually requires a high minimum balance? Hide answers

Certificate of Deposit

Simple savings account

Checking account

All of these

8. Which savings account gives you the LEAST access to your money? Hide answers

Cash

Checking account

CD

Simple savings account

9. The purpose of a budget is? Hide answers

help you plan how you will spend your money

stop you from spending too much

increase the balance of your savings account

tell you how much you owe the government in taxes

10. When saving money, what is a good rule of thumb? Hide answers

Keep your savings in your checking account

choose a savings account with the lowest interest rate

Put aside money for savings each month

put anything you can't afford on your credit card

11. FOMC stands for? Hide answers

Free Office Money Counsel

Federal Office Market Commission

Federal Open Market Committee

Free Osha Marriage Counsel

12. Which is NOT one of the responsibilities of the Federal Reserve? Hide answers

Supervising the Reserve banks

Maintaining a stable banking system

setting the nation's monetary policy

Establishing the federal budget

13. Which represents typical account fees? Hide answers

ATM Fee

Service Fee

Minimum Balance Fee

All of these

14. Which type of account is typically the MOST liquid? Hide answers

Checking account

Savings account

CD

Exchanged Traded Fund

15. What part of a check is the LEAST important? Hide answers

The check number

Signature Line

Memo Line

Routing Number

16. What is the best strategy for avoiding ATM fees? Hide answers

Only use ATM's close to home

Only use ATM's to withdraw cash

Only use ATM's in your bank's network

Only use ATM's you have used before

17. Savings accounts usually offer ______ interest rates than checking accounts. Hide answers

easier

lower

higher

faster

18. Which of the following payment types require you to pay upfront? Hide answers

Money Order

Cashier's Check

Pre-paid card

All of these

19. What is the purpose of balancing your checking account? Hide answers

To find out which checks you have bounced

Help calculate how much money you have in your account

Keep an estimation of how many checks you write

To protect against identity theft

20. The best way to ensure the accuracy and safety of your accounts is to: Hide answers

Monitor your online accounts regularly

Shred your paper account statements weekly

Call your customer service center daily

Balance your checkbook annually

21. Which is a unique feature of credit unions? Hide answers

credit unions are owned and run by their members

credit unions limit membership to certain people

Credit unions offer a wide variety of banking services

Both A and B

22. The annual percentage rate on a credit card determines ________? Hide answers

The amount of interest you are charged on CC purchases

The amount your credit limit can go up within a year

How man credit cards that you can own

none of these

23. Which of the following statements comparing debit cards to credit cards is TRUE? Hide answers

DC allow you to draw fund directly from your account

DC typically offer greater fraud protection vs. credit cards

DC never require a signature to finalize a purchase

BC charge higher interest rates on purchases

24. What has NO impact on your credit score? Hide answers

You inquire about a credit card charge

You use large percentages of your credit limit

You opened several new credit cards last week

You send in your credit card payment a couple days late

25. Which payment method charges the highest interest rate? Hide answers

Credit card

Cashier's check

Pre-Paid cards

Payday Loans

26. What payment type can help you stick to a budget? Hide answers

Credit cards

Debit cards

Payday Loans

Cash Advances

27. If you are planning to carry a large balance on a CC, which feature should you look for? Hide answers

Low APR

Low annual fees

Lots of credit card rewards

A large credit limit

28. Making a minimum payment: Hide answers

means you are paying a small portion of your total CC debt

Is the same as making a late CC payment

will have a negative effect on your credit score

will cause your CC to be cancelled

29. What can increase your credit card's APR? Hide answers

Paying the minimum

Missing a credit card payment

Paying off the full balance

Cashing in on rewards points

30. What is a credit card balance? Hide answers

The amount of interest you must pay the credit card company

The required minimum payment to your credit card company

A way to track your incoming and outgoing purchases

The amount of money you still owe to the credit card company

31. Which is NOT a common credit card fee? Hide answers

Late fee

Annual membership fee

Balance transfer fee

Minimum payment fee

32. Which statement about credit scores is TRUE? Hide answers

Credit scores reflect how likely people are to repay debt

Credit scores range from the low 300's to the mid 800's

Each person has three credit scores

They are all correct

33. Having a good credit score is important because? Hide answers

It can impact your ability to get a drivers license

It can impact your ability to be approved for bank loans

It can impact how much you will have to pay in taxes

It can impact how much you will have to pay for college

34. What can negatively impact your credit score? Hide answers

You disputed an item on your credit report

you forgot to pay the cable bill

You pay all your bills in cash

You use small amounts of your available credit

35. What influences your credit score the MOST? Hide answers

Types of credit used

Payment history

Length of Credit History

Amounts Owed

36. Which action would IMPROVE your credit score? Hide answers

Closing out old credit cards

Paying off your credit card bill

Using large portions of your credit limit

Opening a new savings account

37. What is least important in regards to maintaining a healthy credit score? Hide answers

Make on-time payments

Check your credit report annually

Know your exact credit score

Fix inaccurate information on your credit report

38. Which one does NOT make up the big three credit reporting agencies? Hide answers

Equifax

TransUnion

Experian

Federal Reserve

39. How many free credit reports are you legally entitled to each year? Hide answers

One credit report each year

Three credit reports each year

One credit report from each credit bureau

Three credit reports from each bureau

40. Having a low credit score can make it more difficult to_____? Hide answers

Obtain a car loan

Open a new credit card

Secure an apartment lease

All of these

41. The return on investment from education is typically the highest for? Hide answers

A high school graduate

A college applicant

Someone with a 2 year (Associates) degree

Someone with 4 year (Bachelor's) degree

42. What is the first step for a 9th grader thinking about going to college? Hide answers

Fill out your FAFSA form

Start applying for grants and scholarships

Look for school clubs and organizations you have interest in

Sign up for college admission exams

43. Which loan offers the lowest interest rate? Hide answers

Payday Loan

Federal Student Loan

Private Loan

Both A & B

44. When referring to student loans, what is a grace period? Hide answers

The time period between graduating college and your 1st job

The period after graduation before you start paying loans

The amount of time you have to pay back your entire loan

None of these

45. Which statement about federal student loans is TRUE? Hide answers

The interest rate on your loan will be fixed over time

Interest rates on federal loans & private loans are similar

You can only get federal student loans if you have a need

You do not accumulate interest on federal loans

46. Using the FASFA form, you can apply for? Hide answers

Federal student loans

The federal work-study program

Private Loans

Both A & B

47. The Federal Application for Student Aid (FASFA) form: Hide answers

must be completed by your guidance counselor

can only be filled out by U.S. citizens

is used to apply for private loans

can be submitted online or by mail

48. One reason to buy a home instead of rent a home is? Hide answers

Homes have the potential to appreciate in value over time

Homes have a few maintenance costs

Buying a home requires less money upfront

Buying a home is a more flexible housing option

49. Which option requires you to pay back any money receive? Hide answers

Grants

529 Plan

Federal Student Loans

Scholarships

50. Which loan type requires you to make loan payments while you're attending school? Hide answers

Unsubsidized federal loan

Subsidized federal loan

Both A and B

Neither A or B

51. Renting provides _______ flexibility but can lead to ______ costs in the long-term Hide answers

greater; lower

greater; higher

less; lower

less; higher

52. Which statement about renting & owning is CORRECT? Hide answers

Renter has complete responsibility & control over property

Owner has complete responsibility & control over property

Neither has responsibility and control over the property

Both share responsibility and control over the property

53. A ______ is generally considered an appreciating asset because it will _____ in value over time Hide answers

Car; increase

Car; decrease

House; increase

House; decrease

54. Which scenario requires you to pay the LEAST amount of money out-of-pocket for medical bills? Hide answers

You have no insurance

You have health insurance with a $500 deductible

You have auto insurance with a $700 deductible

You have health insurance with a $1,500 deductible

55. After you send in your FASFA form, you will receive back: Hide answers

Your Student Aid Report

Your IRS Data Retrieval Form

A copy of your family's tax returns

A copy of your completed FASFA form

56. What is a mortgage? Hide answers

A type of rent used to pay for housing

A type of loan used to buy property

A measure of the value of a home

A measure of your credit rating

57. All components are commonly found in a rental housing agreement EXCEPT? Hide answers

Weather the renter can have pets in the house

How much the renter will pay

What type of renter's insurance the renter must buy

Which repair types the renter will be responsible for

58. Someone may choose to own a car instead of leasing because? Hide answers

The car can be resold later to make some money back

The car can be resold later for a higher price

The maintenance costs for leased cars are generally higher

The insurance costs for a leased car is higher

59. Which are costs associated with owning a car? Hide answers

Fuel, Insurance, Wear and Tear fees, repairs

Fuel, Insurance, Wear and Tear Fees

Insurance, Fuel, Repairs

Wear and Tear Fees, Insurance

60. Insurance can help you? Hide answers

Minimize monthly expenses

Protect against unexpected accidents

Reduce the chances of getting into an accident

Cover all out-of-pocket costs

61. Sam pays $70 each month for his auto insurance policy. This regular payment is called? Hide answers

Co-pay

Deductible

Premium

Claim

62. Which is true about 401(k) and 403(b) retirement plans Hide answers

They are plans offered through employers

The offer some tax benefits

They restrict when you can withdraw your money

All of these

63. Which typically have the highest insurance premiums? Hide answers

Young, inexperienced drivers

Older, experienced drivers

Drivers who have safe driving records

Drivers who travel long distances

64. When you purchase an item in a store, you may be charged_______? Hide answers

income tax

capital gains tax

sales tax

property tax

65. Which are NOT deducted on a typical pay-stub? Hide answers

Sales tax

Social security tax

State income tax

Medicare tax

66. Which statement about taxes is FALSE? Hide answers

Taxes are collected at the local, state, & federal level

Some states don't collect income tax

Some states don't collect sales tax

Taxes at the local, state and federal level are all equal

67. What is the primary reason to issue stock? Hide answers

To help investors earn a higher rate of return

To raise money to grow the company

To distribute the risk of bankruptcy across more investors

To increase investor awareness of the company

68. When starting a new job, the form you complete to determine how much tax is withheld is called? Hide answers

1040EZ

1099

W-2

W-4

69. Which is the BEST way to protect against identity theft? Hide answers

Discard old account statements weekly

Use only local public access Wi-Fi

Change online account passwords frequently

Avoid emails from people who do not like you

70. Identity thieves can use your personal information to? Hide answers

Open a credit card

Sign up for electricity service

Get a cell phone contract

All of these

71. What is the safest way to dispose of old bank account statements? Hide answers

Throw them out in a neighbor's trash

Shred them in a paper shredder

Keep them bundled together in a folder

Put them in the trash unopened

72. The safest action to take if someone claiming to be from your bank calls you to ask for info is Hide answers

Pull up the bank website and compare information

Hang up and call back using the bank's official phone number

Ask the caller to explain the account info they need

Provide only your name and account number

73. Which Document puts you at the LEAST risk of identity theft? Hide answers

Cash Receipts

Pre-approved credit card offers

Old tax records

Paycheck stubs

74. It is generally safe to provide your Social Security Number to? Hide answers

Anyone who asks for it

Verified trusted sources that need it

School personnel who want to have it on record

Close friends and relatives who do not know it

75. The best way to investigate fraudulent transactions on your credit card is to? Hide answers

Review your recent credit card statements

Review all old bank statements

Keep a copy of your bank statements in a safe place

Keep track of your monthly budget

76. Which action will be LEAST helpful if you've been the victim of identity theft? Hide answers

Report the fraud to each credit bureau

Contact your bank and credit card companies

Withdraw your money from all accounts

Ordering your latest credit report

77. If an investment is considered "volatile", it means? Hide answers

The investment will experience rapid growth over time

The value of the investment may be hard to predict

The investment is high-risk, and its price will increase

The investment is undervalued and may increase over time

78. Consumer protection laws are meant to? Hide answers

Protect businesses from consumers

Prevent unfair or deceptive business practices

Protect consumers from spending too much money

Prevent consumers from buying unnecessary items

79. How can investors receive compounding returns? Hide answers

By selecting a savings account that has a high interest rate

By investing their earnings back into their first investment

By transferring their earning into a high-risk investment

By diversifying their investment portfolio

80. When you buy a ______, you are loaning money to an organization Hide answers

Stock

Bond

Mutual Fund

Index fund

81. When it comes to investing, what is the typical relationship between risk and return? Hide answers

The greater the risk, the smaller the return

The greater the risk, the greater the return

There is no relationship between risk and return

It depends on the investment mix in your portfolio

82. Which of the following correctly orders the investments from LOWEST to HIGHEST risk? Hide answers

Treasury bond, Stock, Diversified mutual fund

Stock, Treasury bond, diversified mutual fund

Treasury bond, Diversified mutual fund, Stock

Diversified mutual fund, Treasury bond, Stock