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Worksheets2025 Financial Lit Test for CDC
Total questions: 35
Worksheet time: 9hrs 45mins
Being on a budget means:
You pay bills every month at the due date
You are earning enough money to be able to live well
You made a plan of your expenses to be less than or equal to your income
Your bills are generally paid by every due date
A plastic card linked to a bank account that can be used to deposit and withdraw money from a bank account and make purchases at stores is a:
Credit Card
Monthly Bank Statement
Debit Card
Driver's License
What is a credit card?
A way to access money from a checking account
A way to access money from a savings account
A way to access free money
A revolving line of credit, in order to purchase things now and pay later
If you pay only the amount owed on your credit card each month, but don't pay it off completely, what's that called?
Making your minimum payment
Paying your dues
Paying your balance
Making your interest-avoidance payment
At what age does your credit history begin?
16
17
18
21
What is NOT a credit reporting agency?
The federal government
TransUnion
EquiFax
Experian
What is considered an excellent credit score?
700 to 850
500 to 560
561 to 600
1000 to 1500
A person's credit report includes his or her:
medical history and driving record
history of loans and credit activities
retirement and savings account balances
cost of insurance premiums and amount of federal tax refunds
Your credit score is important because:
It can affect your interest rate if you finance a car or home
It can have an impact on whether you can finance major purchases
It can determine whether you can get a credit card
All of the above
None of the above
When a person declares bankruptcy, it will appear on the person's credit report:
for a 3 year period of time
for a 10 year period of time
until the person repays all debts owed
until the person is able to receive a new credit card
It will NOT show up on the person's credit report
Which is a method to fund your college education?
Apply for financial aid using the FAFSA
Seek out less expensive college alternatives
Seek out college scholarships
All of the above
What is the FAFSA?
The form you have to fill out to apply to college
The form you have to fill out to be eligible to receive federal aid for college
Your family's expected contribution for college expenses
How much money you'll get from a college to pay for books
What is your Expected Family Contribution (EFC) to determine financial aid for college?
The amount that your family can actually pay towards your college
The amount that you can actually pay towards college
The amount that your family has already paid towards college
The indicator of your family's ability to pay for college
A grant is:
money that needs to be paid back
money that doesn't need to be paid back
money that doesn't need to be paid back for five years
money given to you as a loan and will collect interest until paid back
What is the purpose of an insurance policy?
To protect against financial loss
To save money for the future
To provide a source of income
To help pay for college
Which of the following is an advantage of a 401(k) retirement plan over a private savings plan that a worker establishes for retirement?
Employers may contribute to a 401(k) plan
An unlimited amount can be contributed to a 401(k) plan
The money withdrawn from a 401(k) plan at retirement is not taxed
The government guarantees a minimum rate of return on a 401(k) plan
Collateral for a loan is:
the fee charged for not repaying the loan
property the bank can sell if the loan is not repaid
the amount in damages the bank is due for a late payment
the contract the bank holds in its vault until the loan is repaid
Brody got a part-time job at a fitness center. He thought his first paycheck would be $200 for working 20 hours at $10 an hour. Instead, the paycheck was for $180. Which was most likely taken from his paycheck?
Federal Income Tax, Sales Tax, and Social Security contribution
Federal & State Income Tax, Social Security, and Medicare contributions
Social Security and Medicare contributions
Federal Income Tax, Property Tax, Medicare and Social Security contributions
On January 10th your account was charged $25.00 for an overdraft fee. Why did that happen?On January 10th your account was charged $25.00 for an overdraft fee. Why did that happen?
It was time for the monthly fee you pay to maintain your account
You spent more than what was in your account.
You went over the limit of transactions per month
You wrote three checks that month and you have to pay a $10 fee for each one
Your new health insurance has a $4,000 deductible. What does that mean?
You'll pay the insurance company $4,000 a year to cover all of your medical expenses
Your insurance will cover up to $4,000 of your medical expenses each year and then you'll have to cover the rest
You'll need to pay $4,000 on medical expenses each year before your insurance will kick in
Your insurance will pay up to $4,000 for each medical visit you have
You walk outside only to find that your car has 2 flat tires and needs to towed. You paid the towing company with a check and took this unexpected expense from which area of your budget?
Entertainment
Utilities
Reserves
Rent
Someone broke into your apartment and stole all of your stuff. Luckily, you have renter's insurance. How do you request that your insurance pay for the lost items?
File a claim
Write a deductible
Submit a PowerPoint presentation
Prepare a lease
What's the difference between net pay and gross pay?
Gross pay is your total paycheck and net pay is what you take home after taxes
Net pay is your total paycheck and gross pay is what you take home after taxes
Gross pay is what you get from a full-time job and net pay is what you get from a part-time job
Net pay is what you deposit into an account and gross pay is what you cash
Which of the following will help to create a discretionary income?
Having payroll taxes deducted from each paycheck
Contributing to an emergency savings account
Spending less than total income each month
Paying credit card bills at the end of the month
Which of the following is a correct calculation of simple interest on $1,000 at the end of one year?
3% = $30 or $1,030.00
4% = $400 or $1,400.00
5% = $150 or $1,150.00
6% = $600 or $1,600.00
If you have caused an accident, which type of automobile insurance would cover the damage to your own car?
Collision
Comprehensive
Term
Liability
A young man owes $2,500 in income taxes that was due three years ago. To collect this debt, the Internal Revenue Service is able to:
take possession of property equal to the paid balance
garnish his salary
notify the police to make a citizen's arrest
suspend voting rights
If the sales tax rate is 7%, how much sales tax is paid on a $40 purchase?
$1.00
$2.80
$3.00
$2.40
A suggested amount of savings in order to pay for emergencies is:
1 month of living expenses
2 months of living expenses
1 year of living expenses
3 to 6 months of living expenses
An example of a NEED is:
A Florida vacation
A car
A place to live
A laptop
What is an example of a fixed expense?
Rent
Groceries
Gasoline
All of the above
None of the above
Retirement Income paid by a company is called:
Social Security
Rents and Profits
Pension
401(k)
An individual buys a used vehicle and finances the purchase through a local bank. After making timely payments for 1 year, the individual skips 2 payments and subsequently risks losing the vehicle through:
bankruptcy
repossession
garnishment
giving it to a friend
Which of the following is an example of gathering information before making a decision?
Reading novels
Writing letters
Asking questions
Watching movies
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of inflation?
Young couples with no children who both work
Young working couples with children
Older working couples saving for retirement
Older people living on a fixed retirement income
