WorksheetsHamilton 1st Quarter Pre-Test (Financial Literacy)
Total questions: 53
Worksheet time: 13hrs 15mins
What is the purpose of an interest rate in a savings account?
To charge you for keeping your money in the bank
To reward you for saving money by paying you a percentage of your balance
To cover the administrative costs of managing your account
To provide insurance for your savings
What is an overdraft fee?
A fee for depositing too much money
A fee for withdrawing money from savings
A fee charged when you spend more money than you have in your checking account
A fee for transferring money between accounts
Which of the following is typically required to open a savings account?
An Initial Deposit
A driver's license or state ID
Your Social Security number
All of the above
Why is balancing a checkbook important?
To ensure you don't miss any bank errors
To keep track of your spending and avoid overdraft fees
To see if someone used your debit card without permission
All of these
What is the benefit of having direct deposit for your paycheck?
It reduces the risk of losing a physical paycheck
It ensures your money is deposited quickly and reliably
It often allows you to access your funds earlier
All of the above
What is a common feature of savings accounts that is not typically offered with checking accounts?
The ability to write checks
Higher interest rates
Unlimited transactions
Overdraft protection
When opening a savings account, what is the significance of the Annual Percentage Yield (APY)?
It tells you how much you will owe the bank each year
It indicates the amount of interest you will earn on your deposits over a year
It represents the fees associated with the account
It is the interest rate the bank borrows at from the Federal Reserve
Loan Card
According to most financial experts, about how much should you save in an emergency fund?
The FDIC insures bank accounts against bank failure up to the sum of
$100,000
$250,000
$1,000,000
$0
What is compound interest?
Interest calculated on the initial principal and also on the accumulated interest of previous periods.
Interest calculated based on the borrower's credit score
Interest calculated only on the initial principal
Interest that grows the faster you withdrawal money from your account.
What should you do if you suspect someone hacked into your checking account and made a purchase?
What is the first step in exploring different career options?
Deciding on a college major
Identifying your interests and skills
Looking for available jobs in the market
Asking friends what they plan to do
What type of financial aid must be repaid?
Scholarships
Grants
Loans
Work-study
Which of the following shouldn't be on a resume?
Education
Work Experience
Skills
Weaknesses
Objective Statement
What's the difference between sticker and net price for college?
The sticker price is how much college costs after scholarships and grants.
Net price is how much college costs after scholarships and grants.
Sticker and
Net price are calculated together through FAFSA to determine indirect costs of college.
Net Price is what's left over on your paycheck after they take out taxes.
What should I do if I don't have much to put on a resume?
Wait to apply for jobs until I have experience.
Makeup experiences and qualifications.
Get more involved in school or get a job that requires no experience.
Skip school to gain employment.
What is the primary purpose of a resume?
To provide a detailed list of personal references
To outline your educational background and work experience
To explain why you need a job
To list your hobbies and interests
If I come from a low-income family and complete the FAFSA, it could make me eligible for a Federal Pell Grant which would:
Cover the entire cost of tuition at a community college.
Make me eligible for a private student loan.
Help me get into to prestigious schools.
Help me cover the costs of transportation to and from college.
What is the benefit of applying for grants and scholarships?
They provide work experience
They have to be repaid after graduation
They reduce the need for student loans
They are only available for graduate students
When should you start exploring career options?
After graduating from college
During your final year of high school
As early as possible
Once you have a job
Which of the following is not a good interview strategy?
Practice questions with a friend or family.
Research the company.
Firm handshake and eye contact.
Have questions prepared for the interviewer ahead of time.
Follow-up each day after the interview with a phone call to the manager until they hire you.
How can you increase your chances of receiving a scholarship?
By applying to a single scholarship
By waiting until the last minute to apply
By applying to as many scholarships as possible
By only focusing on scholarships for high grades
This form determines how much in taxes will come out of each of your paychecks.
W-4
Direct Deposit
I-9
W-2
What is the purpose of completing the FAFSA?
to determine if you are college-ready
to determine eligibility for financial aid for college
to pay off student loans
to figure out the sticker price of college
Which are considered mandatory deductions from a paycheck?
social security
medicare
federal income tax
all of these
What is gross pay?
The amount of money a worker earns after deductions.
The amount of money a worker earns for overtime.
The amount of money a worker earns for cashing in vacation time.
The amount of money a worker earns before deductions.
What is the term for the cost of borrowing money, typically expressed as an annual percentage of the loan amount?
Principal
Interest rate
Credit line
Loan term
Which of the following factors does NOT affect your credit score?
Payment history
Employment status
Credit utilization ratio
Types of credit in use
Paying more than the minimum payment on a loan each month can:
Increase the total interest paid over the life of the loan
Decrease the total interest paid over the life of the loan
Have no effect on the interest
Result in a penalty for early repayment
What is the main benefit of having a good credit score?
Eligibility for higher-paying jobs
Access to better interest rates on loans
Automatic approval for all credit card applications
No need for a security deposit on utilities
What is a secured loan?
A loan that does not require any collateral
A loan backed by a guarantor
A loan that is secured by collateral, such as a house or car
A loan given only to individuals with secure employment
What does APR stand for?
Annual Percentage Rate
Automated Payment Requirement
Additional Payment Rate
Approved Personal Rate
Which of the following can increase your credit score over time?
Frequently applying for new credit cards
Maintaining a high balance on your credit cards
Paying loan bills on time
Closing old credit accounts
What is a grace period in terms of credit card payments?
The time you have to wait before applying for a new credit card
The time during which no interest is charged on a new purchase if the balance is paid in full by the due date
The period after the due date during which you can pay without being charged a late fee
The time frame in which you can dispute a charge on your credit card
What happens if you only make the minimum payment on your credit card each month?
You will pay off the balance faster
You will avoid all interest charges
You may end up paying more in interest over time
Your credit score will increase significantly
What is the impact of late payments on your credit score?
It increases your credit score
It has no impact on your credit score
It decreases your credit score
It freezes your credit score
What is the term for the maximum amount of credit a financial institution extends to a client?
Credit limit
Loan term
Interest rate
Principal amount
What is the purpose of a credit report?
To track your spending habits
To provide a history of your borrowing and repayment, including any late payments
To calculate your annual income
To determine your eligibility for a job
a number assigned to a person that indicates to lenders their capacity to repay a loan.
Credit score
Credit report
Credit history
Credit bureau
Which of the following has no effect on the monthly payment for someone looking to get a loan to buy a vehicle?
What does defaulting mean when it comes to credit/loans?
Getting a good credit score
Building credit history
Failing to pay your debts
Opening many credit card accounts at the same time
Which is NOT part of your credit report?
Your checking account balance
Your current home address
The number of times you have filed for bankruptcy
The number of inquiries made about your credit
If you are too young to be granted credit yet, you need a loan to purchase an expensive item like a car, what might you do?
Ask a friend/family member, to co-sign on the loan
Request your credit history
Allow someone else to apply for the loan for you
Open two lines of credit at the same time
To use a credit card responsibly, you should do what?
pay off the balance in full each month
understand your interest rate and how credit works
not apply for several credit cards in a short period of time
All of the above
