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WorksheetsPersonal Financial Literacy Test Review
Total questions: 60
Worksheet time: 30mins
Name
Class
Date
1.
The budgeting process starts with monitoring current spending
a)
true
b)
false
2.
Most short-term goals are based on activities over the next 2 or 3 years
a)
true
b)
false
3.
A common long-term goal may involve saving for college for parents of a newborn child
a)
true
b)
false
4.
Rent is considered a fixed expense
a)
true
b)
false
5.
Flexible expenses stay about the same each month
a)
true
b)
false
6.
An electric bill is commonly considered a fixed living expense
a)
true
b)
false
7.
a security deposit covers the rent for the first month when moving into an apartment
a)
true
b)
false
8.
A roommate may reduce the financial burded of renting an apartment
a)
true
b)
false
9.
Saving money for a down payment to buy a house is usually considered a short-term goal
a)
true
b)
false
10.
A lease is designed to protect the rights of both a tenant and landlord.
a)
true
b)
false
11.
A disadvantage of using credit is impulse buying.
a)
true
b)
false
12.
Capital refers to a person's assets.
a)
true
b)
false
13.
A steady employment record helps a person's credit history.
a)
true
b)
false
14.
Installment credit usually allows a person to make additional purchases on an account.
a)
true
b)
false
15.
Using the 20/10 rule, a person making 40,000 a year should have no more than $8,000 of outstanding debt
a)
true
b)
false
16.
A proprietary credit card is usually accepted by one type of store or company
a)
true
b)
false
17.
The average daily balance method of calculating interest is based on the opening balance of the account for the previous month.
a)
true
b)
false
18.
The annual fee for a credit card is set by the government.
a)
true
b)
false
19.
APR measures the interest rate charged by a credit card.
a)
true
b)
false
20.
if someone uses your lost or stolen credit card, you are liable for no more than $50
a)
true
b)
false
21.
most used cars sold by private parties have a one-year warranty.
a)
true
b)
false
22.
A service contract is designed to avoid costly repairs as a motor vehicle gets older.
a)
true
b)
false
23.
The Truth-in-Lending law requires that a borrower be informed of the total finance charge.
a)
true
b)
false
24.
Bodily injury liability covers the damage to another person's car for which you were at fault.
a)
true
b)
false
25.
Collision insurance covers damage caused to a motor vehicle by vandalism or floods.
a)
true
b)
false
26.
Financial difficulties are commonly caused by overspending.
a)
true
b)
false
27.
People with financial difficulties may obtain assistance from the Consumer Credit Counseling Service.
a)
true
b)
false
28.
Consolidation loans are mainly used to finance the starting of a new business.
a)
true
b)
false
29.
Deb collectors are usually allowed to call you at home before 8pm
a)
true
b)
false
30.
Bankruptcy is suggested for people who are a few weeks behind in their credit payment.
a)
true
b)
false
31.
The final phase of the budgeting process is to
a)
set personal and financial goals
b)
compare your budgets to what you actually spent
c)
review financial progress
d)
monitor current spending patterns
32.
An example of a long term goal would be
a)
an annual vacation
b)
saving for retirement
c)
buying a used car
d)
completing college within the next 6 months
33.
A clearly written financial goal would be
a)
to save money for college for the next 5 years
b)
to pay off credit card bills in 12 months
c)
to invest in an international mutual fund for retirement
d)
to establish an emergency fund of 4,000 in 18 months
34.
An example of a fixed expense is
a)
clothing
b)
auto insurance
c)
an electric bill
d)
educational expenses
35.
Of the following, what is commonly considered a flexible expense?
a)
rent
b)
mortgage payment
c)
home insurance
d)
entertainment
36.
A common flexible expense associated with apartment renting is
a)
a security deposit
b)
apartment insurance
c)
electricity
d)
rent
37.
what is the deposit that refers to money held to cover possible damange in an apartment
a)
cleaning
b)
security
c)
telephone
d)
utilities
38.
A common moving-in cost for an apartment would be
a)
a down payment
b)
building insurance
c)
real estate taxes
d)
a security deposit
39.
A long-term goal would be to
a)
rent an apartment
b)
own an apartment building
c)
move to a larger apartment
d)
buy additional furniture
40.
The agreement between a renter and a landlord is a
a)
security deposit
b)
mortgage payment
c)
lease
d)
deed
41.
A common advantage of using credit is
a)
less impulse buying
b)
lower cost for items purchased
c)
ability to obtain needed items now
d)
low chance of overspending
42.
A person's regular income is referred to as
a)
character
b)
capital
c)
collateral
d)
capacity
43.
To build a credit history, a person could
a)
establish a steady employment record
b)
file his or her federal income taxes on time
c)
use an ATM several times a month
d)
request to view her or his credit file
44.
Utility companies and medical service orgnizations commonly offer what type of credit?
a)
revolving
b)
single payment
c)
installment
d)
retail
45.
Using the 20/10 rule, a person earning 1,500 a month should not have monthly credit payments that exceed
a)
300
b)
150
c)
20
d)
40
46.
A credit card issued through a credit unio would be an example of what type of card?
a)
Bank
b)
Travel and entertainment
c)
store
d)
proprietary
47.
The grace period refers to the time
a)
taken to process a credit card application
b)
for paying an account without an interest charge
c)
allowed to notify a creditor of a billing error
d)
used for calculating interest
48.
Comparing APR among several credit cards allows you to obtain the
a)
lowest grace period
b)
lowest annual fee
c)
lowest interest rate
d)
least expensive method of calculating interest
49.
If a billing error occurs on a credit statement, a consumer has how many days to notify the creditor?
a)
30
b)
60
c)
90
d)
120
50.
The most reliable source for buying a used car is usually
a)
a rental car company
b)
a police auction
c)
a car dealer
d)
private part sales
51.
What warranty refers to the fact that a product will do what it is designed to do
a)
extended
b)
implied
c)
dealer
d)
unexpired manufacturer's
52.
The Truth-in-Lending law requires that borrowers be informed of the
a)
amount financed
b)
cost of auto insurance
c)
features of an extened warranty
d)
reasons a person has been denied credit
53.
The auto insurance coverage for damage to your vehicle as a result of an accident is called
a)
property damage
b)
oomprehensive
c)
liability
d)
collision
54.
Doctor costs for injuries to others resulting from an accident are covered by what type of insurance?
a)
Medical
b)
collision
c)
bodily injury
d)
comprehensive
55.
A common cause for financial difficulties is
a)
poor money management habits
b)
a need for additional career training
c)
preparing your tax return late
d)
not having enough life insurance
56.
A nonprofit organization that provides financial counseling is
a)
the FDIC
b)
The CCCS
c)
The BBB
d)
The NCUA
57.
The purpose of consolidation loan is to
a)
deduct amounts owed from a person's paycheck
b)
pay off one credit card amount before others are paid
c)
combine several debts into one payment
d)
reduce the amount owed for federal income taxes
58.
An example of fair-debt collection practice would be to
a)
pretend to be a salesperson to attempt to collect a debt
b)
Threaten to take legal action to collect the money owed
c)
Call a debtor at work even in personal calls are not allowed
d)
Call a debtorat home before 8PM
59.
Bankruptcy refers to the process of
a)
Obtaining permission to be late with credit payments
b)
obtaining assistance from a credit counsling service
c)
using court action to reduce or elimate your debts
d)
using court action to have payments owed deducted from your paycheck
60.
What Russian novel embraces more than 500 characters and was set during the Napoleonic War?
a)
War and Peace
b)
Crime and Punishment
c)
The Gulag Archipelago
d)
A, choose A
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