Financial Literacy Certification - Practice Questions

All of the following make up the big three credit reporting agencies EXCEPT:

• Equifax

• TransUnion

• Experian

• Federal Reserve

It's important to reconcile your checking account so you can make sure neither you or the bank have made mistakes. It also guarantees that you know exactly how much money you have in your checking account.

• True

• False

Which of the following institutions give loans? Select all that apply.

• Pawn Shop

• Credit Union

• Payday Lender

• Bank

What is a cashier's check?

• A check you write to the bank

• A check guaranteed by the bank that prints the check

• A check you receive from your friend out of their checkbook

What is liquidity?

• Refers to the state of water

• Money invested as a down payment

• How quickly you can convert an asset to cash

Which savings instrument is most liquid?

• A savings account

• A certificate of deposit

• A savings bond

Which of the following will charge the highest interest rate on a loan?

• Payday Lenders

• Credit Unions

• Banks

What is a credit union?

• A place where people who have bad credit go for a loan. They only require that you bring them the title to your car.

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

• The exact same thing as a bank, just with a different name

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.

• True

• False

What is a credit card cash advance?

• Paying off your credit card bill with cash from your credit card

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

• Using your credit card to make a purchase