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Personal Financial Literacy

Total questions: 18

Worksheet time: 19mins

Name
Class
Date
1.

Avery is a waitress who does online banking. She rarely writes checks but uses a debit card at least twice a day. What type of features will she not need from a financial institution?

a)

Free debit card

b)

Free debit card usage

c)

Free checks

d)

Free online banking

2.

Aliyana is a retired nurse. She does not use a debit card but writes many checks. She does online banking and transfers money from her savings account to her checking account twice a month. Aliyana's bank is one of the four financial institutions described. Which most likely is Aliyana's bank?

a)

Bank 1

b)

Bank 2

c)

Bank 3

d)

Bank 4

3.

John is deciding whether to use a debit card or a credit card to purchase a $50 remote control helicopter. Which statement correctly explains which card John should use to make his purchase?

a)

He should use a credit card because it withdraws the money from his bank account automatically.

b)

He should use a credit card because it can withdraw money from a bank account as purchases are made.

c)

He should use a debit card because it is used like cash or checks.

d)

He should use a debit card because it is used like a personal short-term loan.

4.

What happens to a bank account when a deposit is made?

a)

The bank balance increases.

b)

The bank balance decreases.

c)

The bank balance stays the same.

d)

None of the above.

5.

What mathematical operation is used in a check register when a withdrawal is made?

a)

addition

b)

subtraction

c)

multiplication

d)

division

e)

some other really cool operation we haven't learned yet

6.

Based on the transactions recorded in the check register, what would be the ending bank balance?

a)

$60.95

b)

$160.95

c)

$240.95

d)

$150.95

7.

Which of the following does not describe a reason for establishing a good credit history?

a)

It helps you get a better interest rate on a loan.

b)

It helps a lender determine if you are eligible for a loan.

c)

It makes your resume look better.

d)

It allows you to have a higher credit limit on a credit card.

8.

Which of the following does not describe a function of a credit report?

a)

It helps a lender determine if you are able to get a loan.

b)

It determines whether or not a person is issued a debit card.

c)

It helps a credit card company determine your credit limit.

d)

None of the above.

9.

Ken says that the information on his credit report can be retained for only 1 year. Is Ken correct?

a)

Yes, because the consumer chooses how long credit report information is retained.

b)

No, because most credit report information is retained for 7 years.

c)

Yes, because most credit information is updated monthly.

d)

No, because all credit report information is retained indefinitely.

10.

Victoria is learning about credit reports in school. She is becoming acquainted with the types of information contained in reports. Which of the following information is not found in credit reports?

a)

Diplomas earned

b)

Amounts owed

c)

Credit types

d)

Payment history

11.

Raul is learning that information is retained on credit reports for varying lengths of time. Which of the following arranges credit report information in the order from the least amount of time retained to the greatest?

a)

Late payments, credit inquiries, closed accounts in good standing, bankruptcies

b)

Credit inquiries, late payments, closed accounts in good standing, bankruptcies

c)

Bankruptcies, credit inquiries, late payments, closed accounts in good standing

d)

Late payments, bankruptcies, credit inquiries, closed accounts in good standing

12.

Kyrie needs to shop for automobile insurance. Which is not a reason insurance companies will look at his credit report?

a)

To determine the right rate for him

b)

To see whether he pays bills on time

c)

To determine what his credit score is

d)

To see what cell phone company he uses

13.

Toya wants to know what lenders look for when they review loan applications. What is the most important factor that lenders look at?

a)

Payment history

b)

Permanent address

c)

Credit card limit

d)

Telephone number

14.

Sam has been saving money for college since he was 10. Every birthday, he puts money away in his savings account. Even with his careful savings, he will need more money for college. He wants to apply for financial aid that he will not have to pay back because he wants to be debt free when he graduates. Which of the following choices is not a good option for Sam?

a)

Grant

b)

Student loan

c)

Scholarship

d)

Work study

15.

Sasha's family doesn't have a lot of money to help her pay for college. She completed a financial aid application. Now, Sasha receives $2,500 per semester from the government to help her pay for college. This money does not have to be paid back. What type of payment is this considered?

a)

Grant

b)

Student loan

c)

Scholarship

d)

Family support

16.

A college will give Kimberley $3,200 per year toward tuition if she competes on the track team. What type of college funding is this?

a)

scholarship

b)

grant

c)

savings

d)

loan

17.

Your uncle deposited $50 each month into a bank account. Your uncle plans to use the money to help pay for college. What type of college funding does this describe?

a)

grant

b)

scholarship

c)

savings

d)

loan

18.

In researching ways to pay for college Meg is realizing that there are a lot of scholarships available. Which of the following is true about scholarships?

a)

Scholarships have different application deadlines and requirements.

b)

Scholarships are paid by only private corporations and wealthy families.

c)

Scholarships are only for high school students with very good grades.

d)

All scholarship applications are due by the end of the first semester of the student's senior year.