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Interest is:
A. A charge for lending money to a bank
B. The amount owed for borrowing money
C. The amount added into your savings when opening a bank account
D. A charge for the convenience of accessing money stored in your bank account
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B
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Jade is deciding between savings accounts at her bank. She has four options based on how frequently interés compounds. Which should she choose if she wants the best rate of return on her interest.
A. Daily compounding
B. Monthly compounding
C. Semi-annual compounding
D. Annual compounding
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A
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What is the typical relationship between time and interest rate?
A. Longer time period usually equals higher interest rates
B. Shorter time period usually equals higher interest rates
C. Longer time periods usually have no effect on interest rates
D. Shorter time periods usually have no effect on interest rates
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A
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To earn as much interest as possible, you should open a savings account that earns ________ interest has the ________ interest rate.
A. Compound; lowest
B. Compound; highest
C. Simple; lowest
D. Simple; highest
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B
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Morgan just opened a savings account and wants to maximize the amount she earns. Which of the oink following actions would enable her to earn MORE interest?
A. Selection an account with a high interest rate
B. Leaving her money in the account for a long period of time
C. Transferring money into her checking account each month
D. Both A & B
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D
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Circle all that apply. Which of the following are examples of types of saving vehicles?
A. Certificate of deposit (CD)
B. Money market account
C. Checking account
D. Savings account
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A B D
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Which of the following is generally true about savings vehicles?
A. Savings vehicles are only useful for long-term investments
B. People should evaluate different forms of savings vehicles based on their needs
C. Savings vehicles are never insured
D. All of the above
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B
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Which of the following savings vehicles usually requires a high minimum balance?
A. Simple savings account
B. Certificate of Deposit (CD)
C. Checking account
D. All of the above
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B
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Which of the following accounts will give you the LEAST access to your money?
A. Simple savings account
B. Certificate of Deposit (CD)
C. Checking account
D. Cash
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B
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Jazzmyn earns $250 per month. Which statement below is most correct?
A. Jazzmyn makes more than she spends
B. Jazzmyn spends more than she makes
C. Jazzmyn should save more in the future
D. Jazzmyn should stop saving in the future
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B
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Which of the following is NOT one of the responsibilities of the Federal Reserve?
A. Supervising the Reserve banks
B. Maintains a stable banking system
C. Setting the nation’s monetary policy
D. Establishing the federal budget
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D
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Which type of financial institution typically has membership requirements?
A. Credit union
B. Online commercial bank
C. Commercial bank
D. Federal reserve bank
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A
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Which type of account is typically the MOST liquid?
A. Checking account
B. Savings account
C. Certificate of deposit
D. Exchange traded fund
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A
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Which of the following is a primary responsibility of the Federal Reserve Bank?
A. Establish monetary policy
B. Write monetary laws
C. Collect taxes
D. Print money
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A
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Savings accounts usually offer ______ interest rates than checking accounts. It is ________ to access your money in a savings account than in a checking account.
A. Lower; harder
B. Lowers easier
C. Higher; harder
D. Higher; easier
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C
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Which type of account will typically have the highest interest rate?.
A. Checking account
B. Savings account
C. Money market account
D. Certificate of deposit (CD)
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D
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The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:
A. Board of Governors
B. United States Mint
C. Department of the Treasury
D. Secretary of State
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A
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Which of the following fees would likely be the highest?
A. Overdraft fee
B. Account transfer fee
C. Monthly service fee
D. ATM fee
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A
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Which of the following is a unique feature of credit unions?
A. Credit unions are typically owned and run by their members
B. Credit unions limit membership to certain people and groups
C. Credit unions offer a wide variety of banking services
D. Both A & B
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D
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The first set of numbers (74894934) on the ce=heck represents the:
A. Bank account number
B. Check number
C. Bank routing number
D. Member number
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C
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The set of numbers (101) on the top right of the check represents the:
A. Check number
B. Bank account number
C. Member number
D. The bank routing number
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A
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Which of the following payment types require you to pay upfront?
A. Money order
B. Cashier’s check
C. Pre-paid card
D. All of the above
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D
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Which of the following is true?
A. Checks and debit cards both withdraw money directly from a bank account
B. Checks are the most widely accepted form of payment
C. Debit cards often have a higher interest rate than credit cards
d. Debit cards offer the highest level of fraud protection
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A
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Which of the following statements comparing debit cards to credit cards is TRUE?
A. Debit cards allow you to draw funds directly from your checking account
B. Debit cards typically offer greater fraud protection than credit cards
C. Debit cards never require a signature to finalize a purchase like credit cards
D. Debit cards charge higher interest rates on purchases than credit cards
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A
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Which of the following is NOT true of credit cards?
A. They offer the highest level of fraud protection
B. They are the best payment type to use when trying to stick to a budget
C. You can be charged a fee if you are late making a monthly payment
D. Some offer rewards, like cash back or airline miles
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B
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Which payment method typically charges the highest interest rates?
A. Credit cards
B. Cashier’s checks
C. Pre-paid cards
D. Payday loans
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D
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Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month?
A. Late fee
B. Annual membership fee
C. Balance transfer fee
D. Annual percentage rate
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D
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Which payment type can help you stick to a budget?
A. Credit cards
B. Debit cards
C. Payday loans
D. Cash advances
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B
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Which of the following will happen if you miss a monthly card payment?
A. You will be charged a latte fee
B. You lose rewards points
C. Your APR will increase the next month
D. Both A&B
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A
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If you are planning to carry a large balance on your credit cards, which of the following credit card features should you look for?
A. Low APR
B. Low balance transfer fee
C. Lots of credit card rewards
D. A large credit limit
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A
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What is a credit limit?
A. The required payment to your credit card company
B. The amount of interest you are charged each month
C. The maximum amount you can chard each billing cycle
D. How many credit cards you can own
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C
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The annual percentage rate on a credit card determines
A. The amount of interest you are charged on credit card purchases
B. The amount your credit limit can go up within a year
C. How many credit cards you can now
D. None of the above
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A
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What is the customary APR on purchases after the initial 12 months?
A. 36.5%
B. 27.357%
C. 18.25%
D. 5.65%
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C
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What is the annual fee for this card?
A. $0
B. $5
C. $29
d. $39
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A
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Which of the following statements about credit scores is TRUE?
A. Credit scores reflect how likely individuals are to repay their debts
B. Credit scores range from the low 300’s to the mid 800’s
C. Each person has three credit scores
D. All of the above
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D
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Which of the following is NOT true of credit scores?
A. Only the credit bureaus truly know credit scores are calculated
B. Having a high score means you are more likely to repay debts
C. The more money you make, the higher your credit score
D. Your credit score can impact the care or home you can buy
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C
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Having a good credit score is important because:
A. It can impact your ability to get a driver’s license
B. It can impact your ability to be approved for bank loans
C. It can impact how much you will have to pay the government in taxes
D. It can impact how much you will have to pay for college
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B
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Which action can hurt your credit score? I. Paying your phone bill late II. Taking the bus to work. III. Making out several credit cards. IV. Using the internet to pay your bills
A. I
B. I and II
c. I and III
D. III and IV
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C
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All of the following make up the big three credit reporting agencies EXCEPT
A. Equifax
B. TransUnion
C. Experian
D. Federal reserve
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D
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Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car?
A. Open a savings account at the local bank
B. Pay off his credit card balance each month
C. Test drive several cars before deciding which to buy
D. All are things he should do to increase or maintain his credit score
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B
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Which of the following actions can NEGATIVELY impact your credit score?
A. You disputed an item on your credit report
B. You forgot to pay the cable bill
C. You pay all your bills in cash
D. You use a small amount of your available credit
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B
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Which is true of someone with a low credit score?
A. They probably make on time payments
B. They may not be able to rent the apartment they want
C. They are mor likely to miss a payment than someone with a high credit score
D. All of the above
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B or c
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Which of the following actions has NO impact on your credit score?
A. You inquire about a credit card charge
B. You use a large percentage on your credit limit
C. You opened several new credit cards last week
D. You send in your credit card payment a couple days late
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A
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What can you do to make sure you have a healthy credit report?
A. Review your credit report each year
B. Make sure everything on your credit report is correct
C. Dispute any errors you find on your report with your credit agency
D. All of the above
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D
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Which of the following MOST influences your credit score?
A. Types of credit used
B. Payment history
C. Length of credit history
D. Amount owed
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B
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Which best explains what a credit score represents?
A. A number showing how likely you are to have more than one credit card
B. A numerical rating that expresses how likely you are yo repay your debts
C. A numerical rating that shows how much money you have in your bank account
D. A number expressing your yearly income
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B
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Which of the following actions would improve your credit score?
A. Closing out old credit cards
B. Paying off your credit card bill
C. Using a large portion of your credit limit
D. Opening a new savings account
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B
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Your credit history is tracked by all of the following EXCEPT
A. Equifax
B. Federal reserve
C. Experian
D. Trans union
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B
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(Check all that apply) good credit is usually required for which of the following
1. Buying a new car
2. Purchasing a home
3. Getting a credit card
4. Adopting a pet
5. Buying new furniture
6. Renting an aparentement
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1 2 6
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Which of the following could potentially damage your credit score?
1. Paying a credit card bill late
2. Opening a checking account
3. Paying a roommate back
4. Opening 3 credit cards at once
5. Paying a speeding ticket
6. Ignoring a late payment notice
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1 4 6
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The return on investment (ROÍ) from education is typically the highest for
A. A high school graduate
B. A college applicant
C. Someone with a 2-year (associate) degree
D. Someone with a 4-year (bachelor’s) degree
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D
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Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.
A. You have the potential to earn more money in the future when you continue your education past high school.
B. You have the potential to earn less money in the future when you continue your education past college.
C. Higher education is not an investment but a debt.
D. Earning potential is not affected by education level.
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A
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Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first?
a. Fill out her FAFSA form
b. Start applying for grants & scholarships
c. Look for school clubs & organizations she’s interested in
d. Sign up for college admission exams
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C
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Which of the following types of financial aid do not require you to pay the money back?
a. Grants
b. Private Loans
c. Federal Loans
d. All of the above
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A
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Which of the following loans will typically offer the lowest interest rate?
a. Payday loan
b. Federal Student Loan
c. Private Loan
d. Both A & B
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B
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Which type of loan requires that you pay the interest accumulated during college?
a. Pell Grant
b. Subsidized federal loan
c. Unsubsidized federal loan
d. University scholarship
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C
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When referring to student loans, what is a grace period?
a. The time period between graduating college and starting your first job when you don’t have to pay back student loans
b. The period after graduating or leaving school before you must begin paying back student loans
c. The amount of time you have to pay back your entire student loan amount
d. None of the above
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B
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Which of the following statements about the Federal Application for Student Aid (FAFSA) is TRUE?
a. You can only apply online.
b. The earliest you can submit your FAFSA application is December 1st.
c. The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.
d. Both A & B are true.
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C
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Which loan type requires you to make loan payments while you’re attending school?
a. Unsubsidized federal loan
b. Subsidized federal loan
c. Pell Grant
d. None of the above
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D
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Which of the following statements about federal student loans is TRUE?
A. The interest rate on your loan will be fixed over time
B. The interest rates on federal loans and private loans are similar
C. You can only get federal student loans if you demonstrate financial
D. You do not accumulate interest on federal loans
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A
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