Financial Literacy Certification - Practice Questions

Front

All of the following make up the big three credit reporting agencies EXCEPT: Equifax, TransUnion, Experian, Federal Reserve

Back

Federal Reserve

Front

Is it important to reconcile your checking account to ensure accuracy and know your balance?

Back

True

Front

What is a cashier's check?

Back

A check guaranteed by the bank that prints the check.

Front

What is liquidity?

Back

How quickly you can convert an asset to cash

Front

Which savings instrument is most liquid? Options: A savings account, A certificate of deposit, A savings bond

Back

A savings account

Front

Which of the following will charge the highest interest rate on a loan? Payday Lenders, Credit Unions, Banks

Back

Payday Lenders

Front

What is a credit union?

Back

A non-profit institution that is owned by its members and often provides higher dividends and lower interest rates on loans.

Front

True or False: If you want to have the most money possible for retirement, it is better to start saving when you're about fifteen years away from retirement, rather than when you're younger.

Back

False

Front

What is a credit card cash advance?

Back

Getting cash from your credit card (such as taking at withdrawal from it at the ATM) and paying a higher fee

Front

What is compound interest?

Back

Interest that is earned on the principal plus interest already earned.