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WorksheetsFinancial Literacy FINAL EXAM
Total questions: 40
Worksheet time: 21mins
Which of the following methods have you personally used to put money into your checking account?
Direct deposit
Mobile check deposit
ATM deposit
In-person deposit at a bank branch
Which of the following methods have you personally used to take money out of your checking account?
ATM withdrawal
Writing a check
Online transfer
In-person bank withdrawal
Which are two advantages of having an account at a local community bank versus a national bank?
Community banks are typically larger and more well-known than national banks
Community banks typically have LOWER fees and charges when compared to a national bank
Community banks typically have HIGHER fees and charges when compared to a national bank
Community banks typically give back and support the local community
When you deposit your money at a community or online bank, your money is insured by the FDIC up to $250,000.
True
False
Which reason to open an account would benefit you, personally, the most?
To save money
To earn interest
To manage expenses
To receive salary
What is the benefit of making sure your account is FDIC/NCUA insured?
It guarantees a fixed interest rate.
It provides insurance against theft.
It ensures your deposits are protected up to a certain limit.
It offers higher returns on investments.
Which of the following is usually a benefit of being a member at a credit union?
Higher interest rates and lower fees
Lower interest rates and higher fees
Higher interest rates and higher fees
Lower interest rates and lower fees
Daisy reads her bank statement and finds an error. She should…
Do nothing. The bank will correct the error at the end of the month.
Call the FDIC. She is insured up to $250,000.
Call the bank. The bank will investigate the transaction to see if it was an error.
Assume that it’s a transaction that she made and forgot about.
Which of the following is typically a feature of a savings account but not a checking account
?
Ability to withdraw money from an ATM
FDIC insured up to $250,000
Your money earns interest
Ease of making payments using a debit card
Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?
t’s ok to open an account with a
low interest rates as long as you deposit your money early
Deposit your money as early as possible in an account with the highest interest rate possible
Wait for interest rates to rise above 5%, otherwise compounding doesn’t have any effect
Compound interest will not have any effect at such a low dollar amount. Find different opportunities toearn interest on your savings.
Which of the following is TRUE when comparing savings accounts and certificates of deposit?
Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
Savings accounts are FDIC insured while certificates of deposit are not
Savings accounts typically have a higher interest rate than certificates of deposit
Both savings accounts and certificates of deposit allow you to deposit money at any time
Which offers its customers better interests rates and fees on their products and services, Credit Unions or Banks?
(a)
How much is your money Federally Insured up to while in Banks/Credit Unions?
$50,000
$1,000,000
$500,000
$250,000
When using cell phone apps to do banking, what is this considered?
Mobile banking
Smartphone banking
Internet banking
Wifi banking
What is true about CD interest rates?
The rates are usually the same.
The rates are lower than savings accounts.
The rats are decided by the FDIC.
They are higher than regular savings accounts.
What are way that you can deposit funds into your checking account?
Direct Deposit
Wire Transfer
Zelle, Cash App, Venmo
A, B, and C
An ATM can be used to
Apply for a bank account
Get a payday loan
Deposit money
Send a Zelle transfer
Automatic deposit of funds into a bank account
(a)
Paper method to pay from a checking account
Hand written promise to pay
Write a check
Cash
Fill out a credit application
What do Banks/Credit Unions usually put in writing in FINE PRINT: Checking Account Agreement?
Terms and conditions
Payment due dates
Checking account approval notification
Welcome note
What is the business conducted by a bank, or services offered by a bank called?
Investments
Savings
Banking
Budget
What term describes money received, especially on a regular basis, for work or through investments?
Budget
Financial Plan
Income
Expenses
What is an estimate of income and expenditure for a set period of time called?
Budget
Expenses
Investments
Savings
What term is used to describe the cost required for something; the money spent on something?
Banking
Expenses
Financial Plan
Income
What is a full evaluation of an individual's current pay and future financial state called?
Financial Plan
Budget
Investments
Savings
Which term refers to the act of putting money aside for future use?
Savings
Income
Banking
Budget
Which of the following is NOT a term related to financial planning?
Digital Citizenship
Banking
Budget
Income
Which term is associated with the services offered by a financial institution?
Expenses
Banking
Income
Budget
What is the term for the money spent on something?
Expenses
Budget
Savings
Income
What is the financial term for using money to make money?
Savings
Banking
Investments
Budget
What is a Credit Score?
A consumer's age in percent.
The first 3 digits of a consumer's social security
numer.
A credit approval code.
A computer generated number of a consumer's
likelihood to payback loans.
What is considered a GOOD credit score?
750
600
580
350
Joe Blow has a car loan he has not been paying on time. He will most likely start to:
Receive offers to purchase new cars.
Develop a bad credit history.
Have the car salesmen talk badly about him
Get approved for a high limit credit card.
What is the cost of credit?
The price of the item purchased on credit
Interest
Bad credit
The annual fee
How long does negative items remain on your credit report?
2 years
7 years
12 years
4 years
Debit cards and credit cards are the same thing.
FALSE
Sad Face
TRUE
Smiley Face
Life is more expensive for people with Bad Credit.
Sad Face
FALSE
Smiley Face
TRUE
What is a credit inquiry?
An inquiry to buy an item
A method to improve your credit
Asking a lender for credit
When a lender checks a consumers' credit
report
Teenagers' parents can add them as authorized users on their credit cards to help them build credit.
FALSE
Smiley Face
Sad Face
TRUE
What credit score is considered Bad Credit?
720
450
699
800
