Financial Literacy Final Exam

1. Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT…

• Reducing spending by canceling some of her streaming subscriptions
• Taking extra shifts at work to increase her income
• Making more than the minimum required payment on her debt
• Applying for another credit card to use in case she runs out of cash paying off her debt

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

• Only consumers with high scores are approved for credit
• Consumers with low scores get lower interest rates on loans than those with high scores
• 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

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

• Wages or tax refunds can be garnished
• Passport revocation
• Driver’s license suspension
• Termination from your job

4. Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck, EXCEPT...

• Medicare
• Federal taxes
• Overdraft fees
• Social Security

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

• Salary of your current job
• Payment history of your car loan
• Credit card payment history
• Student loan activity

Which of the following statements about the W2 is true?

• James had $565.01 taken out for Federal Income Tax
• James had $4,768.50 taken out for Federal Income Tax
• Total wages and tips were $42,567.85
• James didn't pay any state income tax

7. You are a realtor and you sell a house that is $300,000. You receive $9000 for that sale. The $9000 is your ___?__

• Salary
• Benefit
• Commission
• Bonus

8. Healthcare, vacation time and retirement plans are examples of __?__

• Wages
• Benefits
• Salary

How much state income tax did James have taken out in 2023?

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

• Far more businesses accept credit cards than debit cards
• Credit cards pull money directly from your bank account, while debit cards get their money from Visa and Mastercard
• Credit card companies provide you with a monthly statement, while debit cards do not
• With debit cards, you are spending your own money, but with credit cards you're getting a loan that you need to pay back later