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Financial Literacy Review

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

What is the amount of money you have to spend?

a)

Cash Inflow

b)

Cash Outflow

c)

Net Worth

d)

Balance Sheet

2.

What is the amount of money that is spent on various living expenses called?

a)

Cash Inflow

b)

Net Worth

c)

Balance Sheet

d)

Cash Outflow

3.

Take-Home Pay is another name for what?

a)

Gross Pay

b)

Net Pay

c)

Cash Flow

d)

Liabilities

4.

What is the Net Worth equation?

a)

Assets + Liabilities = Net Worth

b)

Assets / Liabilities = Net Worth

c)

Assets - Liabilities = Net Worth

d)

Assets x Liabilities = Net Worth

5.

Calculate the Net Worth:

Assets = $57,200

Liabilities = $27,000

a)

$84,200

b)

Not enough information to calculate

c)

$57,200

d)

$30,200

6.

Which of the following is NOT a main purpose of a budget

a)

To make sure you are living within your income

b)

Achieve financial goals

c)

Plan for financial emergencies

d)

Keep you from buying the things you want

7.

Which expenses occur on a regular basis for the same amount each time?

a)

Fixed

b)

Variable

c)

Relative

d)

Incremental

8.

Which expense differs each time and may not be easy to estimate?

a)

Fixed

b)

Variable

c)

Relative

d)

Incremental

9.

This budget format requires each dollar to have a place in your budget (every dollar that goes in, goes out)

a)

Incremental

b)

Activity-Based

c)

Value Proportion

d)

Zero-Based

10.

What is it called when your planned spending is GREATER THAN your actual spending?

a)

Budget Equilibrium

b)

Budget Realism

c)

Budget Surplus

d)

Budget Deficit

11.

Given

40 Regular Hours Worked

2 Overtime Worked

$8.50 Regular Rate of Pay

Calculate Gross Pay

Enter your answer without a dollar sign AND two decimal places. For example, one thousand dollars would be entered as 1,000.00

a)

$357.00

b)

$340.00

c)

$365.50

d)

Not sure what I'm doing Coach Best

12.

Given an annual salary of $87,750, calculate monthly pay.

Enter your answer without a dollar sign AND two decimal places. For example, one thousand dollars would be entered as 1,000.00

a)

$87,750.00

b)

$12,000.00

c)

$7,312.50

d)

Still don't know

13.

Given

40 Regular Hours Worked

6 Overtime Worked

$9.50 Regular Rate of Pay

$66.00 Deductions

Calculate Net Pay

a)

$399.50

b)

$437.00

c)

$371.00

d)

hmmm

14.

What of the following is NOT one of the credit bureaus?

a)

Experian

b)

Equifax

c)

TransUnion

d)

TransCred

15.

What governs all of the credit bureaus?

a)

Fair Credit Reporting Act

b)

Future Credit Removal Act

c)

Federal Credit Awareness Act

d)

Free Credit Score Act

16.

How often can you get a free credit report from each bureau?

a)

Every 6 months

b)

Every 3 months

c)

Every 12 months

d)

Every 2 years

17.

What is the only authorized website to provide consumers with free official credit reports?

a)

AnnualCreditReport.com

b)

CreditReport.gov

c)

creditkarma.com

d)

ftc.gov

18.

How long do late payments generally stay on your credit report?

a)

2 years

b)

10 years

c)

7 years

d)

11 years

19.

What is the main difference between soft and hard inquiries?

a)

Soft inquiries do not impact your credit score, while hard inquiries do

b)

They are essentially the same thing

c)

Soft inquiries are only for small lines of credit, while hard inquiries are for larger lines of credit

d)

Hard inquiries are no longer used, but soft inquiries are

20.

Which of the following is NOT a derogatory mark on your credit report?

a)

Late payments

b)

Liens

c)

Bankruptcy

d)

Variety of accounts

21.

What balance should you keep your credit cards at or below to maintain a good credit report?

a)

20%

b)

0%

c)

35%

d)

30%

22.

Who should you contact if you notice an error on your credit report?

a)

Credit reporting agency only

b)

Company that provided the incorrect information only

c)

Both the credit reporting agency and the company that provided the wrong information

d)

Your bank

23.

Which of these is NOT a type of depository institution?

a)

Commercial

b)

Credit Union

c)

Online

d)

Cloud

24.

How much is covered under FDIC?

a)

250,000

b)

25,000

c)

2,500,000

d)

25% of your account balance

25.

What is true about interest?

a)

it's the price paid for using someone else's money

b)

it's something that you can earn

c)

it's something that you can be charged

d)

All answers are correct

26.

What provides quick access to funds for transactions and uses checks & debit cards.

a)

Checking Account

b)

Savings Account

c)

Money Market Account

d)

IRA

27.

An account for money not intended to be used for daily expenses.

a)

Checking Account

b)

Savings Account

c)

Money Market Account

d)

IRA

28.

This is borrowing money that you will need to pay back later with interest

a)

Credit

b)

Debit

c)

Cash

d)

Savings

29.

What is the difference between Online Banks and Online Banking?

a)

They are the same thing

b)

Online banks are only online and have no building, while online banking allows you to complete certain transactions on the internet and many types of banks have it.

c)

Online banking is ONLY used for online banks.

d)

Online banking is very insecure. 

30.

What is true about fees

a)

they are the same at every institution

b)

they can not be avoided

c)

they should be researched carefully when deciding on a depository institution

d)

they are really not that important