W!SE 26-75 PRACTICE FINANCIAL LITERACY CERTIFICATION TEST

Who is most likely to use the services of a non-bank consumer finance company?

• Consumers who want low interest rate loans

• Individuals who cannot get a loan from a bank or credit union

• Customers with an excellent credit history or credit score

• Retired senior citizens

Who suffers the LEAST when the rate of inflation increases?

• People who buy goods and services with credit cards

• People who need to borrow money

• People who have a loan with a fixed-interest rate

• People who are unemployed

A person has a car loan with a 10% interest rate. The loan would cost the least amount of money if it is paid back in

• 6 years

• 5 years

• 4 years

• 3 years

A person has $2000 to save or invest. If the person strongly believes that interest rates will go up next year, the person should

• Buy a 3-month certificate of deposit(CD)

• Close her savings account

• Invest in a 15-year municipal bond

• Buy antiques

As a result of putting a “stop payment” on a check, a person will

• Not be able to use his debit card

• Be asked to close his checking account

• Have to pay a fee for the service

• Have to increase the minimum balance required for the account

• Only the extra $50 this month

• Only the budgeted $150 this month

Which is NOT a mandatory deduction from a person’s salary?

• State Income Tax

• Social Security (FICA)

• State Unemployment Insurance/State Disability Insurance

• 401(k) contribution

Which is the most difficult budget item for a person to change?

• Monthly savings

• Discretionary income

• Fixed expenses

• Variable expenses

A high school senior should consider going to an in-state or city public college if he

• Is concerned about having excessive student loans to repay after graduation

• Wants a guarantee of a full time job after graduation

• Want to attend a school with a large campus

• Is interested in having many course options

Which is the best lifetime investment?

• Education

• Gold

• Real Estate

• Insurance