Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

Required if you want to do online or mobile banking

Insurance bank branches can buy to protect their business against fraud and scams

Which of the following statements is an advantage of online banking?

Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch

You can only shop online if your bank account has online banking features

Using online banking allows you to earn a higher interest rate

How does investing in the stock market differ from putting money in a savings account at a bank?

Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies

Investing typically earns between 1-2% while saving generally earns between 5-7%

Investing is best for short-term situations like emergency funds; saving is best for the long-term

Which of the following statements is TRUE about compound interest?

Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned

Compound interest directly impacts how much you will be charged in fees

Compound interest means you have a fund manager who is compounding your returns without charging a fee

Which of the statements below BEST describes the relationship between risk and return when considering an investment?

Investors expect to earn a higher return when they invest in a high risk asset

Investors expect to earn zero return when investing in a low risk asset

Investors expect to earn a higher return when they invest in a low risk asset

Why is diversification a recommended investment strategy?

Diversifying your portfolio helps reduce risk

If you diversify your portfolio, you will definitely earn a high return

If you tell your fund manager to use diversification, they’ll charge you lower fees

How is a bond different from a stock?

A bond is a loan you give to an organization while a stock is partial ownership in a company

Bonds are typically riskier than stocks but have the potential to earn higher returns

Bonds are usually issued by smaller startup companies while stocks are issued by well established organizations

Which of the following statements comparing credit and debit cards is TRUE?

With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later

Credit card companies provide you with a monthly statement, while debit cards do not

Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

What is an advantage of using a credit card?

You can make an emergency purchase that you otherwise don’t have the money to pay for right now

If you need to carry a balance, the interest rates are generally quite low (less than 5%)

Since it is tied directly to your checking account, it prevents you from spending money you do not have

Select the statement below that accurately describes a characteristic of a credit card.

Making full payments on-time every month is the only way to avoid interest charges

You must have money deposited into a checking account to use the credit card for purchases

Which of the following statements is CORRECT about secured loans?

If the borrower does not make payments, the lender can repossess the item

They are a good choice to use for student loans

In the event of default, the borrower loses nothing except for the down payment

As a young adult, all of the following are good strategies for building credit, EXCEPT:

Open a credit card, with your parent or guardian as a cosigner

Become an authorized user on a credit card used by your parent or guardian

Why would credit card companies prefer that their cardholders make the minimum monthly payment every month rather than paying their total balance in full?

This enables the credit card company to make more money

This helps cardholders develop financial independence

This allows the card holder to pay their bill quickly and close the card when they’re ready

Which of these credit payback strategies would lead to the HIGHEST overall cost?

Making the minimum payment (3% of your credit card balance) every month with an occasional late payment

Making the minimum payment (3% of your credit card balance) every month on time

Paying 20% of your credit card balance every month on time

Which of the following is true about fixed and adjustable-rate mortgages?

Adjustable-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions

The two mortgages work the same way but are called different names depending if they come from a bank or a credit union

Fixed-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions

What are the two most important factors in calculating your credit score?

Length of credit history and new credit inquiries

Amounts owed and length of credit history

All of the following would show up on a credit report EXCEPT...

Payment history of your car loan

What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?

Consolidate multiple debts into one new loan

Who tracks all of your credit information?

Credit reporting agencies (Equifax, Experian and TransUnion)

Consumer Financial Protection Board (CFPB)

What benefits do you receive by taking out a loan with a cosigner?

You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit

You automatically get the same credit score as the cosigner once the loan is paid off

You get a discount on future loans after this one is paid off

Which response best completes the sentence "It's best to begin establishing credit when you're young because ________" ?

You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card

Credit scores are free for anyone under the age of 25

Negative marks on your credit report go away faster for younger borrowers

The amount you can charge to a secured credit card is limited by…

The amount of money you deposit into an account as collateral

The total amount of money across all your bank accounts

How can your credit score impact your financial well-being?

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

It generally has no impact on your financial situation

Consumers with low scores get lower interest rates on loans than those with high scores

Which of these represents a potential consequence of neglecting to pay your federal student loans?

Wages or tax refunds can be garnished

What is an insurance premium?

Your monthly payment to your insurer, regardless of whether you use any services

A list of the procedures covered by your insurance carrier

An added cost you pay in order to receive higher-quality services

Why would someone choose to get long term disability insurance even if they already have health insurance?

Health insurance only covers medical bills, while long term disability will help compensate for lost work with a percentage of their income

Health insurance only covers regular check ups, while long term disability insurance also covers emergencies

Long term disability insurance plans can also extend coverage to family members and pets

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

Insurance if you cause injury to another person

Insurance if you damage your own property

Insurance in case you get into an accident with someone who does not have insurance

What does the term "withholding" mean in reference to your paycheck?

How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement

How much you earn and includes salary, bonus and commissions

How much you are going to owe the government when you file your annual tax return

When do you start paying income taxes?

When you make more than the minimum income requirement

When you are notified by the IRS that you are required to pay federal income taxes

When you get a full-time job (part-time does not count)

Why is it important to be extremely careful when completing your 1040 form?

The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government

Making a mistake will disqualify you from receiving future refunds

Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward

Which of the following statements about the W-2 form is TRUE?

You need a separate W-2 form from EACH of your employers in order to file your taxes

The W-2 includes information about the interest you earned from your investments

The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form

If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?

They will owe a payment to the IRS

Which of the following describes what a "dependent" is for tax purposes?

A child or adult that you support financially

Someone who is temporarily disabled

An adult who financially supports you

If you are trying to substantially reduce the amount you spend on food, you should try...

Cooking your own food at home for as many meals as possible

Dining at restaurants more often so you don't waste water doing dishes

Eating more snacks on the go and way fewer meals at home

Personal Finance Modified Final Fall 2023

Authored by Stephanie Harp

Business

12th Grade

Used 2+ times

Personal Finance Modified Final Fall 2023

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60 questions

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MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following is an effective strategy for personal saving?

Save a certain percentage of each paycheck and deposit it directly into a savings account

Wait until the end of the month and save whatever is left in your checking account

Cover all of your wants and needs and save whatever is left over

MULTIPLE CHOICE QUESTION

1 min • 1 pt

All of the following statements about bank accounts are true EXCEPT…

Historically, savings accounts earn higher returns than investments in the stock market

Money in a checking account is usually easy to access via ATM, debit card or check

Many banks pay interest on the money you deposit into your savings account

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _________, 30% of your monthly income toward _, and 20% of your monthly income toward ________.

Needs, wants, savings

Savings, needs, wants

Needs, savings, wants

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following statements is TRUE?

The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement

The majority of Americans have sufficient amounts of money saved for retirement

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Fill in the blanks: If inflation is _ your savings account interest rate then you will be __ purchasing power.

Higher than, losing

Higher than, gaining

Equal to, gaining

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following transactions will REDUCE your checking account balance immediately?

Using your debit card to pay for groceries at the supermarket

Writing your monthly rent check which you will mail tomorrow

Using your credit card to pay for your school books

MULTIPLE CHOICE QUESTION

1 min • 1 pt

How often do customers typically receive a bank statement for their checking account?

Monthly

Annually

Weekly

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Personal Finance Modified Final Fall 2023

Which of the following is an effective strategy for personal saving?

All of the following statements about bank accounts are true EXCEPT…

Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _________, 30% of your monthly income toward _, and 20% of your monthly income toward ________.

Which of the following statements is TRUE?

Fill in the blanks: If inflation is _ your savings account interest rate then you will be __ purchasing power.

Which of the following transactions will REDUCE your checking account balance immediately?

How often do customers typically receive a bank statement for their checking account?

Fill in the blanks: Direct deposit typically refers to your sending your electronically to your bank account.

FDIC Insurance is...

Which of the following statements is an advantage of online banking?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business

Personal Finance Modified Final Fall 2023

Which of the following is an effective strategy for personal saving?

All of the following statements about bank accounts are true EXCEPT…

Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.

Which of the following statements is TRUE?

Fill in the blanks: If inflation is _____________ your savings account interest rate then you will be ______________ purchasing power.

Which of the following transactions will REDUCE your checking account balance immediately?

How often do customers typically receive a bank statement for their checking account?

Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.

FDIC Insurance is...

Which of the following statements is an advantage of online banking?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business

Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _________, 30% of your monthly income toward _, and 20% of your monthly income toward ________.

Fill in the blanks: If inflation is _ your savings account interest rate then you will be __ purchasing power.

Fill in the blanks: Direct deposit typically refers to your sending your electronically to your bank account.