State Financial Literacy Test

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

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

• CDs are a riskier investment
• CDs include the purchase of stocks
• CDs have a low interest rate
• CDs must remain untouched for a fixed period of time

Which of the following investments is characterized by the following traits: -Insured by the FDIC or NCUA -Lowest interest rate of all investments -Number of withdrawals per month may be limited

• Money market
• Traditional savings account
• Exchange-traded fund (ETF)
• Certificate of deposit (CD

Which of the following is a financial institution that handles money, including keeping it safe for saving or commercial purposes?

• Payday lender
• Bank
• Check cashing service
• Pawn shop

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?

• Advanced online banking technology
• Greater variety in services offered
• Owned by members, who may vote and elect board of directors
• More branches/locations

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

The Rule of 72 is used to calculate what?

• The amount of time it will take for an investment to double in value
• The amount of money one should save by retirement
• The amount of taxes owed for every $72 invested
• The amount of credit one needs for a good credit report

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

• Deciding if one has enough money to make a large purchase
• Operating a checking account that multiple people use
• Comparing bank statements to withdrawal records (checks, ATM, ETF) to track spending
• Opening a checking account for the first time

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

• Debt fee
• Maintenance fee
• Overdraft fee
• Reserve fee

When one is inspecting a banking or credit statement and discovers several charges they did not make, the individual is most likely a victim of what?

• High service fees
• Identify theft
• Preemptive payments
• Unethical sales practices