Financial Literacy Test Complete

Front

When seeking to open a bank account, which of the following is needed? a. Blank checks, b. Government-issued identification, c. Recommendation letter, d. School transcript

Back

Government-issued identification

Front

A certificate of deposit (CD) differs from a traditional savings account in what way?

Back

CDs must remain untouched for a fixed period of time

Front

Which investment is characterized by being insured by the FDIC or NCUA, having the lowest interest rate of all investments, and may limit the number of withdrawals per month?

Back

Traditional savings account

Front

Which of the following is a financial institution that handles money, including keeping it safe for saving or commercial purposes? Options: Payday lender, Bank, Check cashing service, Pawn shop

Back

Bank

Front

When choosing between using a bank or a credit union, which of the following is an advantage that credit unions generally have in comparison to banks? Options: Advanced online banking technology, Greater variety in services offered, Owned by members, who may vote and elect board of directors, More branches/locations

Back

Owned by members, who may vote and elect board of directors

Front

When the federal government raises interest rates, which of the following is generally impacted positively for a consumer? Credit card payment, Real estate investment, Savings account, Stock investment

Back

Savings account

Front

The Rule of 72 is used to calculate what?

Back

The amount of time it will take for an investment to double in value

Front

The phrase “balancing a checkbook” refers to which practice?

Back

Comparing bank statements to withdrawal records (checks, ATM, ETF) to track spending

Front

If one spends more money than they have in their bank account, they are charged a what?

Back

Overdraft fee

Front

When inspecting a banking or credit statement and discovering several charges not made by the individual, what is the individual most likely a victim of?

Back

Identify theft