WorksheetsFinancial Literacy Quiz
Total questions: 37
Worksheet time: 37mins
When choosing a credit card you should consider the:
both APR and fees
the look of the credit card
Annual Percentage Rate (APR)
fees
Lisa is a part-time employee at Dairy Queen. Her W-2 tells her
how much taxes she owes to the federal government.
how much taxes she's paid in the last year based on how much she's earned.
how often she will be paid.
how much taxes to withhold from her paycheck.
Choose the true statement about stocks.
A stock is a type of debt investment that acts like a loan.
A stock is a type of investment that invests in a mix of different types of investments.
A stock is a type of savings account that pays interest based on current interest rates in the money market.
A stock is a share of ownership in a company.
When building your budget, in addition to needs, what should you plan for first?
needs and wants
your financial goals
Recurring expenses
Savings
Do this to keep a good credit score:
manage your debt wisely.
have credit monitoring.
check your credit score every week.
have many open credit cards.
Who pays an insurance deductible?
the claims adjuster.
the policy holder.
the insurance company.
the government.
Ben's car collides into another car and causes $5,000 worth of damage to the other car. What type of insurance will cover the other car's damages?
uninsured motorist insurance.
liability insurance.
collision insurance.
comprehensive insurance.
Liability insurance will not pay for this if you have an accident or cause a loss:
injury to yourself
damage to someone else’s property
injury to the other driver
damage to someone else’s car
Ways to shield to protect yourself from fraud and identity theft include:
utilizing a specialty locking or monitoring service.
monitoring your credit report every 2-3 years.
allowing inaccurate information to be removed from your report after 7 years.
placing a credit freeze with the credit bureaus.
Insurance deductible:
the contract fee applied to the monthly premium.
the amount you owe before insurance will cover the rest of the bill.
a commission paid to the agency for the purchase of a policy.
the monthly premium on an insurance policy.
Net pay is:
the amount of money you're paid before all taxes and deductions are taken out of your paycheck.
the amount of pay earned for the total number of hours worked.
your gross pay plus any bonuses.
the amount of money you're paid after all taxes and deductions are taken out of your paycheck.
Check cashing companies:
have limited operating hours during the day.
they delay when you can access your cash.
sometimes offer free services.
they charge high fees.
Unexpected expenses:
all answer choices are correct
may cause you to be unable to pay necessary bills.
can make it hard to stick to your budget.
should be planned for.
Jane is starting a new job. She is asked to fill out a W-4 form. Why?
to file he tax return.
to avoid paying income taxes on her paychecks.
to determine how much her gross pay should be.
to determine how much federal income tax her employer should withhold from your paychecks.
What is a good course of action that may be available to you if you are behind on your loan payments?
You can ignore your payments until the financial institution asks about them.
Ask your financial institution to get out of the loan contract.
A financial institution may offer for you to pay a little now and pay the rest after your next pay day if you ask.
You can take out a payday loan.
Chose the true statement about investing:
On average, putting money in a savings account earns a higher return than investing money in the stock market.
Investing is best for short-term financial goals.
Investing is a guaranteed way to make money.
Investing is riskier than putting money in a savings accounts.
Which statements about check cashing companies is FALSE?
They charge low fees.
They make it easy to fall into a loan cycle that is hard to get out of.
They offer bad deals where you'll owe a lot more than you borrowed.
They can take a percentage of your check on top of fees.
NOT an advantage of having a good credit score:
you'll get better interest rates on your loans.
you'll get accepted to better education institutions.
when you need a loan, you'll have more loan offers to pick from.
it will be easier to get an apartment.
A mutual fund is
a type of investment that invests in a mix of different types of investments.
a share of ownership in a company.
a type of debt investment that acts like a loan.
a type of savings account that pays interest based on current interest rates in the money market.
A reason why you should not pay the minimum on your credit card:
all answer choices are correct
doing so will increase your credit score
you'll get late fees
you will be paying more interest.
To avoid over-drafting your bank account, do this.
Keep your own records to compare with your financial institution's records.
Ask your financial institution to notify you when you are close to $0 in your account.
None of these
Check your bank statement once a month.
The BEST option for taking out a loan is:
to buy that new television
for a dream wedding
when paying for higher education
to pay for airline tickets to your dream vacation
In which situation is health insurance not necessary?
If you are a student under the age of 26.
You should always have health insurance.
If you do not have a full time job.
If you are young and healthy.
When building your budget, in addition to needs, what should you plan for first?
Investments
Shopping money
Possible charitable donations
Recurring expenses
Good outcome for using a credit card to finance purchases:
you won't have to budget for your credit card expenses.
you'll be able to spend a lot of money without paying it back
you will get charged high interest.
paying it off on time can help build your credit history
What is the outcome of not having health insurance?
You can only see doctors in your home state.
You must pay all costs for healthcare and medical emergencies.
You will get a lower standard of care from doctors.
You’re not allowed to go to a hospital.
Services such as schools and first responder services provided by the government are paid for by who?
They are funded through charitable donations.
None of the above
They are funded through taxes.
They are funded through non-profits.
Why should you have an emergency fund?
An emergency fund removes the worry about expenses not in the budget.
An emergency fund keeps you from borrowing money from friends and family.
An emergency fund prepares you for unexpected expenses.
All are good reasons to have an emergency fund.
To curb your spending you should do all of the following except:
use and app to find the cheapest gas station
buy all of your wants at one time.
cancel any unused recurring expenses like subscription boxes
make your own food more often
NOT a common feature of a financial institution?
Investment trading
Direct deposit
Debit cards
Access to ATMs
Which item is important to consider when selecting a credit card?
Annual Percentage Rate (APR)
Fees
The look of the credit card
Both APR and fees
Which of these items is NOT important to consider when selecting a credit card?
Annual Percentage Rate (APR)
The look of the credit card
Credit limit
Penalties and fees
Benefits to paying the full balance of your credit card each month include:
Paying more in interest
Decreasing your credit score
Not having late fees
Increasing your credit score
Paying only the minimum balance on your credit card can lead to
an increase in your credit score
paying more interest
late fees
All of the above
This type of card is designed for people with bad or no credit.
Secured card
Unsecured Card
Ideally, how much of your credit card limit should you actually borrow?
20%
30%
40%
50%
