Trumark Pre-test for Financial Jeopardy

Which strategy is most likely to improve most people’s financial situation over a lifetime?

• Using credit to spend more than a person earns

• Making financial decisions based on friends’ recommendations

• Saving early in life when a person begins earning an income

• Investing in stocks and bonds rather than certificate of deposits

What is the difference between gross and net pay?

• Net pay is gross pay minus saving

• Gross pay is net pay minus saving

• Gross pay is net pay minus deductions

• Net pay is gross pay minus deductions

How many years would it take for $1,000 to become $2,000 if $1,000 is deposited in a savings account with an interest rate of 7.2%?

• 7.2

• 10

• 14.4

• 20.0

An account which is liquid is a:

• real estate investment trust

• mutual fund

• money market

• certificate of deposit

What is the general relationship between risk and reward?

• The higher the risk, the lower the potential reward

• The higher the risk, the higher the potential reward

• The amount of risk does not influence potential reward

• There is a relationship, but it’s uncertain

Which statement best describes your right to check your credit report?

• You can check your credit report for free within 30 days of being denied for credit

• You can check your credit report bi-monthly if you suspect identity theft

• You can only check your credit report when applying for a loan

• You can call one of the three credit bureaus at your own discretion and request a credit report as often as you would like

Which savings program is not protected by the Federal government against loss?

• A bond issued by one of the 50 States

• A U. S. Treasury Bond

• A U. S. Savings Bond

• A certificate of deposit at the bank

Which of the following instruments is not typically associated with spending?

• Cash

• Credit card

• Debit card

• Certificate of deposit

If each credit card user charged the same amount per year on his/her credit card, who is likely to pay the greatest dollar amount in finance charges per year?

• Justin, who always pays off his credit card bill in full shortly after he receives it

• Jake, who only pays the minimum amount each month

• Megan, who pays at least the minimum amount each month and more, when she has the money

• Eric, who generally pays off his credit card in full but, occasionally, will pay the minimum

Which of the following statements is true?

• If you fail to make a loan payment, you can double the payment the following month without a penalty

• Your payment record with one financial institution will not affect your relationship with another financial institution

• Banks and lenders share the credit history of their borrowers with each other

• If you miss one loan payment, you are granted “a one-time pass” before you are assessed a late fee