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Everfi Financial Literacy Final Exam #2

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

a

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d)

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34.

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b

b)

c

c)

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d)

e

35.

a

a)

b

b)

c

c)

d

d)

e

36.

Tamara has $500 she is looking to save for a class trip. She wants to earn the most possible interest and will not need access to her money for a full year. Which type of savings account will be best for Tamara?

a)

Money Market Account

b)

Certificate of Deposit

c)

Savings Account

d)

Checking Account

37.

The purpose of a budget is to:

a)

stop you from spending too much money.

b)

increase the balance of your savings account.

c)

help you plan how you will spend the money you earn or receive.

d)

Tell you how much you owe the government in taxes

38.

The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:

a)

Board of Governors

b)

United States Mint

c)

Department of the Treasury

d)

Secretary of State

39.

Which type of financial institution typically has membership requirements?

a)

Online Commercial Bank

b)

Credit Union

c)

State Bank

d)

Federal Reserve Bank

40.

Which of the following is true?

a)

Checks and Debit Cards both withdraw money directly from a bank account.

b)

Checks are the most widely accepted form of payment.

c)

Debit Cards often have a higher interest rate than Credit Cards.

d)

Debit cards offer the highest level of fraud protection.

41.

What is a credit card balance?

a)

The amount of interest you must pay the credit card company.

b)

The required minimum payment to your credit card company.

c)

A way to track your incoming and outgoing purchases.

d)

The amount of money you still owe to the credit card company.

42.

Select all of the following that are true about credit scores:

a)

Credit scores reflect how likely individuals are to replay their debts.

b)

Credit scores can impact how much you will have to pay in taxes.

c)

Credit scores range from zero to 999.

d)

Each person has three credit scores.

43.

What is the LEAST important to maintaining a healthy credit score?

a)

Make on-time payments

b)

Check your credit report annually

c)

Know your exact credit score

d)

Fix inaccurate information on your credit report

44.

What's a lease?

a)

A loan from a bank used to rent a home or other property.

b)

A loan from a bank used to buy or make a downpayment on a house.

c)

A contract of terms for renting property between a landlord and tenant.

d)

A contract outlining the terms of a mortgage?

45.

What is a mortgage?

a)

A type of rent used to pay for housing.

b)

A type of loan used to buy property.

c)

A measure of the value of a home.

d)

A measure of your credit rating.

46.

Tax that you pay when making a profit from selling a house is an example of:

a)

Sales Tax

b)

Income Tax

c)

Property Tax

d)

Capital Gains Tax

47.

Select all the statements that are true:

a)

Taxes are collected at the local, state, and federal level.

b)

Every state has the same income tax rate.

c)

Some states don't collect sales tax.

d)

Some states don't collect income tax.

48.

(Select all that apply): Identity thieves can use your personal information to:

a)

Open a credit card account

b)

Collect your federal tax refund

c)

Get a cell phone contract

d)

Sign up for electricity service

49.

If your employer does not offer a retirement plan, what might be another way to save for retirement?

a)

401k Plan

b)

Savings Account

c)

529 Plan

d)

IRA Account

50.

Which correctly orders investments from LOWER risk to HIGHER risk?

a)

Treasury bonds, Stocks, Mutual funds

b)

Stock, Treasury bonds, Mutual funds

c)

Treasury bonds, Mutual funds, Stocks

d)

Mutual funds, Treasury bonds, Stocks