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Financial Literacy CBA Review

Total questions: 120

Worksheet time: 4hrs 16mins

Name
Class
Date
1.
(6.14C)
a)
$175.25
b)
$25.25
c)
$632.65
d)
$482.65
2.
(6.14H) Based on the following scenario, what is the difference in lifetime income over 30 years of employment for individuals with 2-year vocational training and graduate degrees?
2 year vocational training = $52,000 average annual salary
Post graduate degree = $76,000 average annual salary
a)
$720,000
b)
$7,200
c)
$7,200,000
d)
$72,000
3.
(6.14B) Julio paid $35.92 for gasoline with his debit card. Which of the following is an accurate description of Julio's transaction?
a)
Julio's payment will affect his credit rating.
b)
Julio might be charged interest for his purchase.
c)
Julio's linked account will immediately have #35.92 removed.
d)
Julio will make payment for his purchase when he receives his monthly statement.
4.
(6.14D) Why is it important to establish positive credit history?
a)
Higher credit scores result in lower interest rates on loans.
b)
Positive credit history results in higher credit scores.
c)
You are more likely to be offered a loan by a bank.
d)
All of the above.
5.
(6.14E) How long will a negative credit action usually remain on a credit report?
a)
4 years
b)
7 years
c)
10 years
d)
15 years
6.
(6.14A) Which of the following reasons for selecting a bank is valid?
a)
Madison should select Bank B because the monthly fee is $3.00 lower than Bank A.
b)
Madison should select Bank A because her overall monthly cost will be $1.50 less than Bank B.
c)
Madison can select either bank because her monthly cost will be identical at both banks.
d)
Madison should not select Bank A because they charge $0.25 more per check transaction.
7.
(6.14F) Which of the following accurately describes one benefit gained by financial institutions from a credit report?
a)
Determines the grade of the lending institution.
b)
Increases the likelihood the lender can borrow money.
c)
Comparatively ranks lending institutions.
d)
Provides a detailed report of a borrower's financial history.
8.
(6.14G) Which list contains methods to pay for college that do not require students to make payments back to lenders?
a)
student loans and work-study
b)
scholarships, student loans, and savings
c)
savings, scholarships, and grants
d)
grants, scholarships, and student loans
9.
(6.14G) Jared's family has been saving $500 per month for his college education since Jared was born. How much money will Jared's family have saved up by the end of Jared's 18th year?
a)
$6,000
b)
$9,000
c)
$36,000
d)
$108,000
10.
(6.14C) Carlos had an original balance of $418.77 in his checking account. He then wrote one check for $199.81. Which check amount below would cause an overdraft of his account after writing the check for $199.81?
a)
$199.81
b)
$218.96
c)
$209.91
d)
$219.75
11.
Which type of degree takes about two years to earn attending college full time?
a)
Doctoral or Professional Degree
b)
Associate's Degree
c)
Master's Degree
d)
Bachelor's Degree
12.
A payment option that allows you to work on campus at your college and earn money is called what type of payment option?
a)
scholarship
b)
loan
c)
pell grant
d)
work-study program
13.
Paul used a type of card to pay for his purchase that withdraws money immediately from his checking account. What is this type of payment card called?
a)
credit card
b)
debit card
c)
401 card
d)
savings plus card
14.
A type of college payment option that you receive for maintaining excellent grades and performing well (merit) on standardized test is called what type of payment option?
a)
a work-study
b)
a scholarship
c)
a loan
d)
a savings plan
15.
_____________ is to put money in the bank.
_____________ is to take money out of the bank​.
a)
Deposit; Withdraw
b)
Withdraw; Deposit
16.

How long does information stay on your credit report?

a)

3 yrs

b)

5 yrs

c)

7 yrs

d)

9 yrs

17.

A company that makes loans to consumers is called a ________________.

a)

debit company

b)

store

c)

grant

d)

lender

18.

Credit reports show cash purchases.

a)

True

b)

False

19.
Bad credit can affect your ability to 
a)
Buy a home
b)
Get a job
c)
Get a loan
d)
All of the above
20.
Which action will raise your credit score?
a)
Paying bills late.
b)
Acquiring lots of loans.
c)
Borrowing more money than you can repay.
d)
Paying bills on time.
21.
How long will negative actions remain on your credit history?
a)
7 years
b)
7 months
c)
7 decades
d)
7 centuries
22.
Which person is most likely to be offered a loan, if the decision was solely based on their credit scores?
a)
M. Spiller
b)
B. Murphy
c)
S. Thorne
d)
W. Myers
23.
Katie wants to purchase a camera that costs $149.99.  She has $435.00 in her checking account.  Which statement is true if Katie uses a debit card to pay for the membership?
a)
She will have to pay interest on the amount she borrows.
b)
She will have to pay a penalty fee because she does not have enough money in her account.
c)
She will have to make payments on the amount she borrows.
d)
She will not have to pay a fee because she has enough money in her account.
24.
Juanita uses her friendly debit card for most of her purchases.  Over the last three months, her debit purchases were $245.67, $451.32, and $388.79.  How much cash will she get credited to her account?  Round to the nearest cent.
a)
$10.85
b)
$108.57
c)
$10.86
d)
$108.58
25.
Alyssa is going to use her Home Makeover credit card to buy kitchen cabinets without interest for $990.66, what is the minimum she can pay each month?
a)
$82.56
b)
$990.66
c)
$330.22
d)
$165.11
26.
If Frank uses online banking and averages 20 transactions a month, which bank should he choose?  Explain.
a)
First-Star; The average cost per month would be $6.75.
b)
First-Star; The average cost per month would be $10.99.
c)
Lane Avenue; The average cost per month would be $6.75.
d)
Lane Avenue; The average cost per month would be $1.25.
27.
James's initial balance in his checking account was $800.  He withdrew $200 and then deposited $164.  James made another transaction that brings his balance to $750.  What was the transaction?
a)
a deposit $314
b)
a withdrawal of $14
c)
a withdrawal of $414
d)
a deposit of $50
28.
Determine the final balance of the account below.  The opening balance was $143.54.
a)
$163.30
b)
$161.30
c)
$162.30
d)
$160.30
29.
What is a similarity between debit and credit cards?
a)
Both are small and made of plastic.
b)
Both require you to use a PIN #
c)
Both are paid when the bill arrives.
d)
Both charge interest fees on unpaid balances.
30.
Which of these options WILL NOT subtract money from an account?
a)
Check
b)
Withdrawal
c)
Transfer
d)
Deposit
31.
Using a credit card will take money out of your checking account.
a)
True
b)
False
32.
Maintaining a good credit history by spending wisely and paying bills in a timely manner is beneficial to the consumer. Which combination of statements below list benefits of maintaining a good credit score?
1) People with good credit history have more financial options.
2) People with good credit history can get better interest rates on loans.
3) People with good credit history have better credit scores.
4) People with good credit history can borrow any amount of money.
a)
All statements list benefits of maintaining a good credit history.
b)
Only statements 1, 3, and 4 list benefits of a good credit score.
c)
Only statements 1, 2, and 4 list benefits of a good credit history.
d)
Only statements 1, 2, and 3 list benefits of a good credit history.
33.
Credit cards, when used responsibly, can provide benefits for its consumers. Which statement below describes a benefit for a consumer using a credit card?
a)
A credit card company will allow you to buy now and pay back your debt when you are ready.
b)
A credit card doesn't cost you any more money than using a debit card as long as you make regular payments.
c)
Using a credit card responsibly and paying the balance off each month can help improve your credit score.
d)
People that use credit cards become wealthy more quickly.
34.
How you spend money and pay your debts can have a positive or negative effect on your credit score. Which statement below describes situations that will affect your credit score in a positive way?
a)
You have only a couple of credit cards that you pay off each month.
b)
You have lots of credit cards with high balances and you pay only the minimum monthly payment.
c)
You pay some of your bills on time and some late.
d)
You own your home and usually make payments on time, but sometimes you pay late.
35.
Your credit report helps determine your overall credit score. Which statement about your credit report is false?
a)
Your credit report contains information about your late payments for at least 25 years.
b)
Your credit report contains information about your payment history.
c)
Your credit report can contain your address, your age, and job history.
d)
Your credit report contains information about your debts.
36.
Many payment options are available to help with the cost of a college education. A payment option that allows you to work on campus at your college and earn money is called what type of payment option?
a)
scholarship
b)
loan
c)
pell grant
d)
work-study program
37.
There are various methods in which to pay for your purchases. Paul used a type of card to pay for his purchase that withdraws money immediately from his checking account. What is this type of payment card called?
a)
credit card
b)
debit card
c)
401 card
d)
savings plus card
38.
Mrs. Johnson works as a Librarian and makes $46,320 per year. Mr. Rivera makes $75,490 per year working as an Actuary. Which statement below accurately describes the difference in their salaries over time?
a)
Mrs. Johnson will make $125,760 less than Mr. Rivera over a 5-year period.
b)
Mrs. Johnson will make $194,800 less than Mr. Rivera over a 10-year period.
c)
Over a 15 year period, Mr. Rivera will make $377,450 more than Mrs. Johnson.
d)
Over a 15 year period, Mr. Rivera will make $437,550 more than Mrs. Johnson.
39.
Noah keeps track of his checking account balance by writing down all his purchases and deposits. The list below shows his transactions for a week.
- June 3rd, used debit card at coffee shop, $5.85
- June 4th, deposit of $20.00
- June 6th, used debit card for movie tickets, $9.75
- June 6th, used debit card for popcorn and snacks, $10.50
- June 8th, deposit, $115.34
What is the difference between the amount of money Noah spent and the amount of money Noah deposited?
a)
$109.24
b)
$203.34
c)
$150.24
d)
$254.05
40.
Your credit history contains information about you. Which answer choice below is NOT something that would appear on your credit report?
a)
payment history
b)
height and weight
c)
loan amounts
d)
credit card debts
41.
There are options available to pay for college. A type of college payment option that you receive for maintaining excellent grades and performing well (merit) on standardized test is called what type of payment option?
a)
a work-study
b)
a scholarship
c)
a loan
d)
a savings plan
42.
The list below shows odd jobs that Michael has completed and the amount of money he earned for each job.
- Yard work         $25.00
- Babysitting       $33.50
- Grade money    $20.00
- house cleaning  $65.00
How much more money does Michael need to earn in order to make at least $300.00 if he spent $16.75 at the movies and $55.20 on a new game?
a)
$71.55
b)
$240.60
c)
$228.45
d)
$143.50
43.
Which statement below does NOT accurately describe aspects pertaining to your credit history or credit score?
a)
Credit scores are based on your salary.
b)
Lenders use your credit score to determine your ability to repay debt.
c)
Your credit score is negatively affected by late payments and high debt to income ratios.
d)
Your credit score changes over time based on your spending and borrowing habits.
44.
Amelia is attending college. She received money based on her financial need that she does not have to pay back. What is this type of money for college called?
a)
loan
b)
grant
c)
work-study program
d)
college savings plan
45.
Which statement below accurately describes the similarities between credit cards and debit cards?
a)
Debit cards and credit cards incur monthly finance fees on unpaid balances.
b)
Debit cards and credit cards allow you to buy now and pay later.
c)
Debit cards and credit cards require a PIN number.
d)
Debit cards and credit cards are accepted at most places and are safer and easier to pay with than cash.
46.
Sunshine Bank offers free checking, a savings account for $5.00 per month, free online banking, and an overdraft fee of $35.00 as well as a free debit card. Johnson Credit Union offers a checking account for $3.00 per month, a free savings account, and an overdraft fee of $25.00 as well as a free debit card. Which statement below does NOT accurately compare these two banking options?
a)
Sunshine Bank offers free checking as opposed to a $3.00 fee for checking charged by Johnson Credit Union.
b)
Both banks offer a free debit card and free online banking.
c)
Sunshine Bank charges $10.00 more for an overdraft fee.
d)
Johnson Credit Union and Sunshine Bank both charge a fee for a savings account.
47.
Mrs. Jenkins  has earned $2,241,400 during a 20-year period. What could be her average yearly salary and profession?
a)
Web Developer: average yearly salary $75,390.
b)
Pharmacist: average yearly salary $112,070.
c)
Manager: average yearly salary $53,500.
d)
Dermatologist: average yearly salary $184,600.
48.
Tripp kept track of his spending for a week in the check register presented.

What is Tripp's ending balance on November 16th?
a)
$393.15
b)
$300.65
c)
$233.16
d)
$134.45
49.
Amanda has to pay taxes on her annual salary and investments. Which type of tax is Kimberly paying? 
a)
Sales Tax
b)
Property Tax
c)
Payroll Tac
d)
Income Tax
50.

Which of the following is an advantage of using a credit card?

a)

Interest is charged for the use of a credit card.

b)

Consumers can purchase things now, and pay for them later in the event of an emergency.

c)

You could be a victim of identity theft.

51.
Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck. The total amount of money she is able to put in the bank is $75.62. What type of income does this amount describe?
a)
Gross Income
b)
Net Income
c)
Both Gross and Net Income
d)
None of the above
52.
Jonathan's new clothes cost a total of $572.50 before tax. What type of tax does Jonathan have to pay for his new clothes?
a)
Income Tax
b)
Property Tax
c)
Payroll Tax
d)
Sales Tax
53.
Amarise's salary has a net income of $235 per week. If she pays $30 in income tax and $15 in payroll tax, how could Juliette determine her gross income? Why?
a)
235 – 30 – 15 = $190 Net income minus all deductions equals gross income.
b)
235 + 15 = $250 Net income plus payroll tax deductions equals gross income.
c)
235 + 30 = $265 Net income plus income tax deductions equals gross income.
d)
235 + 30 + 15 = $280 Net income plus all deductions equals gross income.
54.
Anthony has a new job. He is paid twice a month. He wants to save $720 a year to put toward college. How much money does Anthony need to save from each paycheck
a)
Anthony should save $30 from each paycheck.
b)
Anthony should save $20 from each paycheck.
c)
Anthony should save $10 from each paycheck.
d)
Anthony should save $5 from each paycheck.
55.
Jenny just received her first paycheck. She noticed that after they deducted $30 for payroll taxes and $60 for medical insurance. Her net pay was $320. How much did Jenny make before the deductions were removed from her gross pay?
a)
$230
b)
$410
c)
$320
d)
$140
56.
If Sammy’s expenses are greater than his income, what must he do to balance his budget?
a)
Earn more money
b)
Spend less money on expenses
c)
Earn more money AND spend less
d)
None of the above
57.
Damian has $585 in his bank account. His expenses consist of a $150 cell phone payment, $75 for food, and $90 for his internet bill. He also wants to buy his favorite video game and wants to save $65 for the game. Damian wants to be sure he is within his budget because he wants to buy his mother a birthday gift. How much money will Damian have left in his bank account to buy his mother a gift? Will he have enough?
a)
$205; no he doesn't have anough
b)
$335; no he doesn't have enough
c)
$205; yes he has enough
d)
$355; yes he has enough
58.
Which of the following is considered an advantage to using a debit card to make purchases?
a)
Debit cards are convenient and easy to carry around.
b)
Purchases can be made quickly and easily.
c)
You can use many ATMs to get cash.
d)
All of the above.
59.

To take money out of an account.

a)

deposit

b)

withdrawl

60.

Money put IN to an account.

a)

deposit

b)

withdraw

61.
Which person is most likely to be offered a loan, if the decision was solely based on their credit scores?
a)
M. Spiller
b)
B. Murphy
c)
S. Thorne
d)
W. Myers
62.
Principal = $500
Interest rate =5%
Time = 5 years
What is the interest earned?
a)
95
b)
105
c)
125
d)
135
63.

Which of the following can have a positive effect on your credit score?

a)

owing more money than you earn

b)

losing your job

c)

paying your bills on time

d)

having a high debt-to-income ratio

64.

Which of the following situations describes the use of an ATM?

a)

Jill purchased an item and paid for it when the bill came in the mail.

b)

Jill wrote out an amount for an item and gave it to the cashier.

c)

Jill entered a PIN to begin a transaction and received an amount of cash.

d)

Jill balanced her checkbook.

65.

Which of the following will make it less likely for you to be approved for a car loan?

a)

having a steady job

b)

late credit card payments

c)

a high credit score

d)

having a low debt-to-income ratio

66.

The cost for Dan's college next year is $20,000. He took out a loan for $6,000 and received a scholarship for $2,500. How much will still be left to pay?

a)

$11,500

b)

$12,500

c)

$11,000

d)

$16,500

67.

What payment describes the following situation?

Ray purchased an item with a plastic card and paid for it when the bill came in the mail.

a)

ATM

b)

Debit Card

c)

Credit Card

d)

Writing a check

68.

What payment describes the following situation?

Jay purchased an item with a plastic card and the payment was directly deducted from his account.

a)

ATM

b)

Debit Card

c)

Credit Card

d)

Writing a check

69.

Last month, June received a salary increase at her job. Is this more likely to have a positive effect or a negative effect on her credit score?

a)

negative

b)

positive

70.

Last week, May bought a pair of jeans at a store in the mall. She paid for the purchase using a plastic card, and the amount was deducted from her checking account. What did she use to buy the jeans?

a)

debit card

b)

credit card

c)

check

71.

Will losing your job have a positive or negative effect on your credit score?

a)

positive

b)

negative

72.

Will paying your bills on time have a positive or negative effect on your credit score?

a)

positive

b)

negative

73.

Will having late credit card payments have a positive or negative effect on your credit score?

a)

positive

b)

negative

74.

Max wrote out an amount for an item and gave it to the cashier.

a)

Max used an ATM

b)

Max used a debit card

c)

Max used a credit card

d)

Max wrote a check

75.

Credit card purchase:

a)

Pay now?

b)

Pay later?

76.

Debit card purchase:

a)

Pay now?

b)

Pay later?

77.

All of these are reasons why people are in debt except?

a)

They misuse credit cards

b)

They don't follow a budget

c)

They have checking accounts

d)

They don't invest their money

78.
A checking account is: 
a)
An account where money can easily be deposited and withdrawn by means of checks, debit cards and ATM transactions. 
b)
An interest bearing account where your deposit remains for a set period of time.
c)
 A computer program that checks your email account.
d)
Ownership in a company.
79.
What are rooms located on a college campus called?
a)
Home
b)
Dorm
c)
Apartment
d)
Loft
80.
Besides tuition, most colleges also charge their students for:
a)
Room and Board
b)
Extra Fees
c)
Textbooks
d)
All of the Above
81.
Which of the following is one of the main costs of college?
a)
Tuition
b)
Food
c)
Transportation
d)
Fitness Center
82.

Paying for your utilities is an example of a

a)

withdrawal

b)

deposit

83.

Taking money out of an ATM is an example of a

a)

Withdrawal

b)

Deposit

84.

Getting paid is an example of a

a)

withdrawal

b)

deposit

85.
The bank issued card that deducts money directly from the checking account is
a)
debit card
b)
credit card
c)
savings account
d)
money market
86.
When you write a check from your checking account, the amount of the check will be ______ from your account.
a)
added
added
b)
subtracted
subtracted
c)
multiplied
multiplied
d)
divided
87.
The payee is the one to whom
a)
payment is made
b)
payment is deducted
88.
The amount of the check is written in ____ and ____.
a)
numerals and words
b)
doesn't get filled in until being cashed
89.
The ________ is at the top right corner of the check.
a)
Endorser
b)
Date
c)
check number
d)
what it is for
90.
Pay to the Order of is for the
a)
payee
b)
payor/payer
c)
endorsement
d)
balance
91.
The routing number is found at the ____ ____ of the check.
a)
bottom left
b)
bottom right
c)
top right
d)
top left
92.
What is the starting balance on this check register?
a)
4720.33
b)
4500.00
c)
4500.75
d)
4320.00
93.
What was the balance of the account at the end of the day on 7/24?
a)
4720.33
b)
4320.03
c)
5091.15
d)
4500.75
94.
On which day was the balance the highest?
a)
7/7
b)
7/15
c)
7/19
d)
7/20
95.
What happened on 7/5?
a)
a paycheck was deposited
b)
check #164 was written
c)
nothing
d)
the balance went up
96.
What is the balance on 6/25?
a)
1177.80
b)
1000.00
c)
157.80
d)
320.55
97.
How many withdrawals occured on 4/2/14?
a)
1
b)
2
c)
5
d)
8
98.
The balance in your account is $500.  You then deposit $23 into your account.  What is your new balance?
a)
$500
b)
$477
c)
$523
d)
$23
99.
When you write a check from your checking account, the amount of the check will be ______ from your account.
a)
added
added
b)
subtracted
subtracted
c)
multiplied
multiplied
d)
divided
100.
What does it mean to make a withdrawal?
a)
Find the amount of money in the account
b)
Add money to the account
c)
Subtract money from the account
d)
Write a check
101.
The bank issued card that deducts money directly from the checking account is
a)
debit card
b)
credit card
c)
savings account
d)
money market
102.
Which of the following is listed on your credit report?
a)
Traffic Violations
b)
Amount of cash in your bank account
c)
Hourly wage
d)
Full name, social security, date of birth, current address
103.
Why is it important to have good credit?
a)
Buy candy
b)
Buy school supplies
c)
Start a business
d)
Buy groceries
104.

What happens to you if you have bad credit?

a)

High interest rates on loans

b)

You can easily be approved for a loan

c)

You have a high credit score

d)

The government will erase your loans to be nice

105.
If you have bad credit, it maybe ...
a)
harder to obtain a mortgage loan
b)
ok
c)
likely for you to get a better paying job
d)
easier to get a credit card
106.
Can car insurance companies use your credit report to determine how much you will pay?
a)
yes
b)
no
107.
Telephone and utility companies may use information in your credit report to decide whether to provide services to you.
a)
True
b)
False
108.
I should review my credit report for errors.
a)
True
b)
False
109.

Ms. Peysen no longer wants to use her Clothes-R-Us store credit card. What is the best thing she could do with the credit card?

a)

File the credit card away for use at a later time.

b)

Let a family member take over the credit account so her credit score will not be affected.

c)

Keep the credit card in her wallet in case she needs proof of identification.

d)

Close the account by phone and in writing, then destroy the card.

110.
Which is not included in an individual’s credit report?
a)
Current and past addresses
b)
Account balances
c)
Bankruptcies and foreclosures
d)
Medical information
111.

When Leo attempted to borrow money at the bank, he learned that his credit score is low. Which best describes what this is likely to mean for Leo?

a)

The interest rates on his loan will be lower, since his credit score is low.

b)

The purchase price of the item he needs the loan for will be higher due to his low credit score.

c)

The monthly loan payments will be lower due to his lower credit score.

d)

The interest rates on his loan will be higher, since his credit score is low.

112.

Mr. Wylie wants to develop a positive credit history. How should he do this?

a)

Maintain reasonable amounts of available credit

b)

Have one type of credit account

c)

Pay cash for the majority of purchases

d)

Open credit accounts in his parents’ names

113.
What is a credit report?
a)
A summary of a person's financial history that includes personal information, financial information, and employment information.
b)
History from a FICO score.
c)
Adding monthly bills and dividing the sum by the monthly income then multiplying by 100.
d)
Shoes, man. Lots of shoes.
114.
What is credit?
a)
Money allocated to a specific account for future use by the consumer without borrowing
b)
Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date
c)
The ability and willingness of an individual to pay back a loan as perceived by the lender
d)
An individual’s character, capital, capacity, collateral and conditions
115.
How can a cardholder avoid paying interest on a credit card?
a)
Pay the minimum balance every month
b)
Pay the balance in full every month
c)
Only use a credit card for balance transfers
d)
Interest is always paid on a credit card
116.
If a credit card is used properly, what benefits does it have for the cardholder?
a)
The cardholder will pay higher interest rates on other forms of credit
b)
The cardholder will develop a positive credit history
c)
The cardholder will develop a negative credit history
d)
There are no benefits for the cardholder
117.

T'kyren wants to show lenders that he's financially trustworthy . He should__________.

a)

charge things he knows that he can afford and pay the balance quickly

b)

max out his credit cards

c)

pay less than the minimum payments on his credit card bills

d)

never borrow money and never check his credit score

118.

Bryana's credit score is below 600, so she _________

a)

will never below allowed to buy a car

b)

will be charged very low interest rates

c)

cannot access her credit report without paying high fees

d)

will have a hard time borrowing money and will be charged high interest rates

119.

Jackson can raise his credit score by:

a)

never borrowing money

b)

paying his bills on time

c)

cutting up his credit card

d)

keeping his debt limit to 37.64% of his credit card limit

120.

Which of the following is a true statement?

a)

If your credit score is high, you won't have to repay money you owe.

b)

You can access your credit report for free every month.

c)

A landlord can access your credit report to decide if you are financially responsible.

d)

Your credit score can never increase, only decrease.