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

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1 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

2 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

3 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

4 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

5 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

6 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

7 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

8 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

9 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

10 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

11 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

12 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 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 s 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

13 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

14 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