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WorksheetsEverfi Financial Literacy Review
Total questions: 76
Worksheet time: 39mins
Which of the following statements about check cashing companies is TRUE?
They have limited operating hours during the day.
They sometimes offer free services.
They charge high fees.
They delay when you can access your cash.
Which of the following financial institutions typically have the highest fees?
check cashing and payday loan companies
credit unions
brick-and-mortar banks
internet banks
Which of the following statements about check cashing companies is FALSE?
They offer bad deals where you will owe a lot more than you borrowed.
They charge low fees.
They can take a percentage of your check on top of fees.
They make it easy to fall into a loan cycle that is hard to get out of.
Which type of bank account typically offers the least, if any, interest?
checking account
savings account
money market account
certificate of deposit (CD)
Savings accounts typically offer more interest than what type of account?
retirement account
money market account
checking account
certificate of deposit (CD)
Which type of bank account is best for everyday transactions?
checking account
savings account
money market account
certificate of deposit (CD)
A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.
True
False
Which savings account will earn you the most money?
one that compounds interest daily
one that compounds intrest monthly
one that earns simple interest daily
one that earns simple interest monthly
What should you do before you withdraw money from the ATM?
Ask someone nearby for help using the ATM.
Find a hidden ATM so no one will see you withdraw money.
Inspect the ATM to make sure it wasn't tampered with.
Share your pin number with trusted friends so you don't forget it.
What should you do before you use an ATM?
Inspect the ATM and its surroundings to make sure it is safe to use.
Ask someone nearby for help using the ATM.
Share your pin number with trusted friends so you don't forget it.
Memorize your debt card number because you'll need to type it in at the ATM.
Which of the following statements about savings accounts is FALSE?
Savings accounts pay interest on the money you deposit.
Savings accounts allow an unlimited number of withdrawals each month.
Savings accounts may require you to maintain a minimum balance to avoid paying a fee
Savings accounts are best used to store money for longer-term goals.
Which of the following statements about savings accounts is FALSE?
Savings accounts pay interest on the money you deposit.
Savings accounts limit the number of withdrawals that can be made each month.
Savings accounts don't usually require a minimum balance to avoid paying a fee
Savings accounts are best used to store money for longer-term goals.
Which of the following statements about savings accounts is FALSE?
Savings accounts don't usually pay interest on the money you deposit.
Savings accounts limit the number of withdrawals that can be made each month.
Savings accounts may require you to maintain a minimum balance to avoid paying a fee
Savings accounts are best used to store money for longer-term goals.
Which statement is true?
If there is a mistake on one of your bank accounts, there is nothing you can do about it.
If there is a mistake on one of your bank accounts, you should wait 30 days as these issues tend to resolve themselves.
If there is a mistake on your bank account, you should contact your financial institution immediately.
none of the above
Which statement about investing is true?
On average, putting money in a savings account earns a higher return that investing money in the stock market.
Investing is riskier than putting money in a savings account.
Investing is best for short-term financial goals.
Investing is a guaranteed way to make money.
Investing is best for
short-term financial goals, like building an emergency fund
earning a little interest while keeping your money safe
long-term financial goals, like paying for retirement
guaranteed fast growth on your money
Which of the following statements about investing is FALSE?
Investing is a guaranteed way to grow your money.
Investing is riskier than putting your money in a savings account.
Investing is best for long-term financial goals, like paying for retirement.
On average, investing money in the stock market earns a higher return than putting money in a savings account.
A stock is
a type of debt investment that acts like a loan
a type of investment that invests in a mix of different types of investments
a share of ownership in a company
a type of savings account that pays interest based on current interest rates in the money market
A ________ is a share of ownership in a company.
bond
stock
mutual fund
money market acdount
Which of the following is true?
Checks and Debit Cards both withdraw money directly from a bank account
Checks are the most widely accepted form of payment
Debit Cards often have a higher interest rate
Debit Cards offer the highest level of fraud protection
Which of the following is not true about credit cards
They offer the highest level of fraud protection
They are the best payment type to use when trying to stick to a budget
You can be charged a fee if you are late making a monthly payment
Some offer rewards, like cash back or airline miles
which of the following statements comparing debit cards to credit cards is true
Debit Cards allow you to draw funds directly from your checking account
Debit Cards typically offer greater fraud protection
Debit cards never require a signature
Debit cards have higher interest rates
Which payment method typically charges the highest interest rate
Credit cards
Cashier's check
Pre-paid cards
Payday loans
Which payment type can help you stick to a budget
Credit cards
Debit cards
Payday loans
Cash advances
Which of the following will happen if you miss a monthly credit card payment
You will be charged a late fee
You will lose reward points
Your APR will increase next month
Both A & B
If you are planning to carry a large balance on your credit card, which of the following features should you look for?
Low APR
Low balance transfer fees
Lots of credit card rewards
A large credit limit
What is a credit limit
The required payment to your credit card company
The amount of interest you pay
The maximum amount you can charge each billing cycle
How many credit cards you can own
The annual percentage rate on a credit card determines
the amount of interest you are charged
the amount your credit limit can go up within a year
how many credit cards you own
none of the above
What is the amount of money you still owe to their credit card company called?
Credit Card Interest
Credit Card Balance
Credit Card Limit
Credit Card Fee
Making a credit card minimum payment
Means you are paying a small portion of your total credit card debt
Is the same thing as making a late payment
Will have a negative effect on your credit score
Will cause your credit card to be cancelled
Which of the following is true of both paying with a check and paying with debit card
Both are accepted by most people and most businesses
A personal identification number must be anytime checks or debit cards are used
When used, both take money directly out of a bank account
Both work like a loan from your bank
Which of the following can increase your credit card's APR
Paying the minimum
Missing a credit card payment
Paying off the full balance
Cashing in on rewards points
The amount of money you can charge to a credit card is called:
Annual percentage rate
Balance transfer
Credit limit
Annual fee
What is a credit card balance?
The amount of interest you are charged on a credit card purchase
The minimum payment
A way to track your purchases
The amount of money you still owe to the credit card company
which of the following are true if you pay only the minimum amount each month
You will be charged interest
Your APR will increase
You may be in debt for a long time
Both A & B
Which is not a common credit card fee
Late fee
Annual membership fee
Balance transfer fee
Minimum payment fee
Which payment type is best if you are trying to stick to a budget
Credit Card
Debit Card
Cash Advance
Payday Loan
Interest can be:
a charge for lending money to the bank
the amount owed for borrowing from the bank
the amount added into your savings account when opening a bank account
a charge for the convenience of accessing money stored in your bank account
Which financial institution usually charges the highest interest rates on loans?
Savings & Loan Associations
Pay Day Lenders
Commercial Banks
Credit Unions
Which of the following statements comparing debit cards to credit cards is true?
Debit cards allow you to draw funds directly from your checking account
Debits cards typically offer greater fraud protections
Debit cards never require a signature to finalize a purchase
Debit cards charge a high rate of interest
Good credit is usually required for which of the following:(Check all that apply)
buying a new car
adopting a new pet
getting a credit card
buying a house
buying used furniture
The form filed by students to receive federal financial aid for school is known as:
FICO
FAFSA
FIFA
FALALA
Which piece of information is most useful to an identity thief?
Your full name and address
Your full name and date of birth
Your full name and social security number
Your full name and student ID number
Is a record of a person's borrowing and repayment activity
Bank statements
Loan interest rate
Credit History
The amount owed for borrowing money
Gratuity
Interest
Median
Three major credit bureaus in the United States, which tracks credit histories, creates credit reports, and calculates credit scores.
Equifax, Experian, & TransUnion
Google, Yahoo, Safari
Select the answer that best describes what an opportunity cost is:
The amount of money you put into savings each year
The trade-off of making one choice and giving up a different choice
The amount of money a business makes every year from sales
The benefit you gain by choosing one option versus another
If you know the unit prices of two different brands of an item, you are better able to:
Compare the prices of the two brands
Estimate how much of the item you will need
Determine which of the two brands is higher quality
Figure out the discount during a sale on the two items
What factor has the biggest impact on a credit score?
Having a variety of types of credit
The amount of money you owe on your credit cards
Your history of making payments on time
The number of years that you have used credit responsibly
Which of the following statements is TRUE:
Applying for several lines of credit in a short period of time can help boost a person’s credit score.
Paying off a credit card balance in full can have a negative impact on someone’s credit score.
The longer you use credit responsibly, the higher your credit score.
Low risk borrowers tend to have low credit scores.
Which of the following is not a source of income?
Your annual salary for doing your job
Your monthly student loan payment
The stipend you receive for doing an internship
The wages you receive after a work shift
Which of the following statements is TRUE about payday loans?
They are harder to pay back because of low fees and high interest rates
They are harder to pay back because of high fees and high interest rates
They are easier to pay back because of lower fees and higher interest rates
They are easier to pay back because of lower fees and lower interest rates
Amy's new summer job at the pool will pay her $9 per hour. Which term describes this type of hourly income?
Salary
Stipend
Wage
Benefit
Which of the following is NOT an example of a job skill?
Attending work every day
Working well in groups
Being good with computers
Being creative
Before you buy something you want, you should buy _____.
a. something that is cheap
b. something you need
c. something expensive
d. something on sale
Food, water, shelter and clothing are examples of _____.
a. limited means
b. wants
c. needs
d. opportunities
Which is a reliable source of information when trying to research something you will buy?
a. Friends
b. Advertisements
c. Expert reviews
d. Social media
When you get paid a certain amount for each hour you work.
Salary
Wage
Gross income
Net income
When you get the same amount of money each week, but you’re expected to work a certain number of hours each week.
Salary
Wage
Gross income
Net income
the amount of money in your paycheck that you take home after paying taxes and anything else that gets taken out of your pay.
Salary
Wage
Gross income
Net income
used to buy something now and you will have to pay it back when our bill comes later.
credit card
check
If your credit history is good, others are more likely to lend you money if you need it.
False
True
Credit is _____.
a. money you are given and promise to pay back later
b. money you borrow and promise to pay back later
c. money you borrow and don’t have to pay back later
A debt is _____.
a. money you have to pay pack
b. money you don’t have to pay back
c. money used for needs, not wants
d. money used for wants, not needs
Why is a credit card a type of debt?
a. Credit cards are only used in stores and not between friends.
b. Credit card companies charge a small fee to use them.
c. Using a credit card is borrowing money that needs to be paid back later.
d. Using a credit card allows you to earn points and rewards.
When is using a credit card a good idea?
a. You want something now that you can’t afford ever.
b. You have the money to buy what you need now.
c. You want something and have included it in your budget
d. You need something now but won’t have the money until the next time you get paid.
Which of the following expenses should be included in a typical budget?
Taxes
Charitable Giving
Savings
All of the above
Which of the following would be considered a want for most people?
A brand-name jacket
Transportation to get to work
A place to live
Nutritious food
If you know the unit price of an item, you are better able to:
Compare prices of two brands
Estimate how much you will need
Determine the total cost of the purchase
Figure out the discount during a sale
Which of the following is NOT a successful budgeting strategy?
Keep some extra money in your budget for emergencies
Pay with a credit card if you have a hard time sticking to a budget
Think about which items are your most important needs
Revisit your budget regularly and make adjustments
