WorksheetsFinancial Literacy Worksheet MCQs
Total questions: 43
Worksheet time: 22mins
What is a credit union?
A for-profit bank
A not-for-profit financial institution
A government agency
A payday lender
What happens during a depression?
Low unemployment
High unemployment
Low prices and high wages
More people buying stocks
What does renter’s insurance cover?
The building
The land
The inside contents
Natural disasters only
A stock’s close price refers to:
The highest price of the year
The price it cost when the company started
The price it sold for at the end of the day
The price you personally paid
Buying stock means you…
Become a company employee
Are loaning money to the company
Become a part-owner
Are renting part of the company
The Dow Jones is made up of:
All U.S. stocks
30 major companies
All technology stocks
All international companies
Claiming more exemptions on a paycheck means:
Your paycheck decreases
Your paycheck increases
You pay more taxes
You lose benefits
Why should you shop around for insurance?
All companies charge the same
Some companies charge lower premiums
Prices are set by law
Insurance never changes
Taxes are used to pay for:
Credit card debt
Personal loans
Government services
Retirement only
The main purpose of Social Security (FICA) tax is:
Buy stocks
Provide retirement money
Pay teachers
Fund schools
A beneficiary is the person who:
Pays the will
Writes the will
Receives assets from a will
Invests the money
Savings account interest rates:
Never change
Only increase
Only decrease
Can increase or decrease
What should you never do with a check?
Sign it immediately
Sign a blank check
Write neatly
Record it
A person needs liquid assets for:
Long-term investing
Emergencies
Buying a car
Earning interest
Corporations issue stock to:
Replace employees
Raise money for growth
Pay off credit card debt
Avoid taxes
Advantage of electronic fund transfer (EFT):
Costs more
Can get lost in the mail
Faster and not lost in the mail
Must be done in person
A larger down payment on a car loan leads to:
Higher monthly payments
Lower monthly payments
Higher interest
More years to pay
Endorsing a check helps by:
Increasing the amount
Preventing someone else from cashing it
Decreasing security
Making it void
The purpose of investing is to:
Spend money faster
Increase wealth over time
Replace savings accounts
Avoid paying taxes
Net pay means:
Before taxes
After taxes
Total yearly salary
Overtime pay
Gross pay is:
Money after taxes
Pay before taxes
Lowest paycheck
Take-home pay
If you lose a check someone gave you, you should:
Ignore it
Cash another person’s check
Ask the giver to stop payment
Call the IRS
First step if you're a victim of identity theft:
Do nothing
Cancel your insurance
Call the police and file a report
Pay the debt
Electronic funds transfer means:
Sending cash
Shipping money orders
Moving money electronically
Getting a payday loan
Income greater than expenses is a:
Deficit
Surplus
Loan
Debt
Expenses greater than income is a:
Surplus
Balanced budget
Deficit
Credit line
Tuition reimbursement is offered because companies want to:
Reduce education
Increase employee skills
Limit job choices
Lower wages
Benefit of a Roth IRA:
You pay taxes when withdrawing
Money is tax-free when withdrawn
You can't withdraw money
It replaces Social Security
Pension plans help workers:
Save money for retirement
Pay taxes
Buy homes
Start businesses
Banks being FDIC insured means:
You may lose all your money
Your deposits are protected
Only rich people qualify
Only stocks are insured
Student loans usually require repayment:
Immediately
Before graduation
After graduation
Never
Company benefits exist to:
Push employees out
Attract and keep good workers
Lower wages
Increase taxes
Collateral helps lenders because:
They can repossess it if you don’t pay
It increases your credit card bill
It decreases risk for you
It raises loan interest
The Federal Reserve influences:
Utility bills
Interest rates
Life insurance
Housing prices
Diversification is important because it:
Increases risk
Spreads risk
Eliminates savings
Guarantees profits
Which is an example of a long-term goal?
Buying lunch
Saving for a house in 10 years
Paying a phone bill
Filling your gas tank
Car insurance tip:
Never compare prices
Buy from the first company
Shop several companies
All prices are identical
A copay is:
Insurance deductible
The fee you pay at a medical visit
Monthly insurance premium
A federal tax
A higher credit score means:
Worse credit
Better credit
No loan approval
More debt
A gift is defined as:
Money required to be paid back
Money given with no strings attached
Loan from a bank
Credit card reward
What is the main reason to have a savings account?
To spend money quickly
To keep money safe and earn interest
To avoid paying bills
To increase your taxes
Which of the following is a benefit of having health insurance?
It lowers your salary
It increases your rent
It helps pay for medical costs
It covers all grocery expenses
What should you do before signing a loan agreement?
Read and understand all terms
Sign without reading
Ignore the interest rate
Ask a friend to sign for you
