EVERFI Test

When setting a budget, you should consider... - mostly income. - creative ways to spend your money. - mostly your goals. - financial goals, current expenses, and income.

- financial goals, current expenses, and income.

Investing is best for ________. - earning a little interest while keeping your money safe. - guaranteed fast growth on your money. - short-term financial goals, like building an emergency fund. - long-term financial goals, like paying for retirement.

- long-term financial goals, like paying for retirement.

A stock is ________. - 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 type of investment that invests in a mix of different types of investments. - A share of ownership in a company.

- A share of ownership in a company.

Which of the following is NOT a common feature of a financial institution? - Direct deposit - Access to ATMS - Paper checks - Access to investment products

- Access to investment products

Which of the following is a benefit of using a budget? - Helps to keep track of the money you receive - Helps to prioritize your spending - Helps reach short- and long-term financial goals - All of the above

- All of the above

Which of the following is a way to track your spending? - Spreadsheet budget - Envelope method - An app - All of the above

- All of the above

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue? - The CFPB - No one, you can't resolve the issue - Your financial institution - The local police station

- Your financial institution

Unexpected expenses... - can make it hard to stick to your budget. - may cause you to be unable to pay necessary bills. - should be planned for. - all of the above

- all of the above

Where should you look to find your current expenses when building your budget? - your bank representative - bank and credit statements - your wallet - ask your parents

- bank and credit statements

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer. - deductions - pensions - allowances - benefits

- benefits

Bank statements, credit statements, and records of cash expenses help you to estimate your ________. - credit score - expenses - emergency fund needs - available investments

- expenses

Generally, the more education you receive, the ________________ will be. - lower your lifetime earnings - lower your electricity bills - higher your food bills - higher your lifetime earnings

- higher your lifetime earnings

Why is it important to reconcile your bank statements? - To avoid spending more than what is in your account. - To detect any errors in your account. - To determine if you were charged any fees. - All of the above

- All of the above

Savings accounts typically offer more interest than what type of account? - Certificate of deposit - Retirement account - Money market account - Checking account

- Checking account

This helps you prepare for unexpected expenses. - Credit cards - Checking account - Emergency fund - None of the above

- Emergency fund

What does the W-2 form tell you? - How much federal income tax your employer will withhold from your paycheck. - How much you've earned and how much taxes you've paid in the last year. - When to file your tax return. - How often your employer will be paying you.

- How much you've earned and how much taxes you've paid in the last year.

How does the government pay for roads, schools, and emergency services? - They are funded through non-profits. - They are funded through taxes. - They are funded through charitable donations. - None of the above

- They are funded through taxes.

What should be considered when setting a budget? - Time management goals - Needs and wants - Savings - Needs, wants, and savings

- Needs, wants, and savings

Each year, you must file ____________________. - only your state taxes since federal taxes are filed every four years - only your federal taxes since state taxes get filed every other year - your federal, state, county and town taxes - your federal taxes and state taxes if your state requires it

- your federal taxes and state taxes if your state requires it

To file your federal and state taxes you ____________ - must prepare the same tax forms for both - can use tax preparation software for state taxes, but can't for federal taxes - can use tax preparation software for federal taxes, but can't for state taxes - must prepare different forms for each type of government (if your state requires it)

- must prepare different forms for each type of government (if your state requires it)

Tax preparation software can help prepare and file your taxes by _________. - making an appointment with a tax expert for you - posing questions to collect necessary information - calculating your taxes based on your savings account balance - providing you with blank tax forms you can fill out

- posing questions to collect necessary information

What should you do before you approach an ATM? - Ask someone nearby for help using the ATM. - Share a picture of your debit card with your friends. - Check for any suspicious people lurking nearby. - Make sure it is hidden so no one will see you withdraw money.

- Check for any suspicious people lurking nearby.

If you have to decide to claim a credit or deduction on your taxes which should you take? - Claim only deductions since credits are charged to you can can result in big bills later. - Claim all deductions and credits that you are eligible for since they both can reduce your taxes. - Only claim credits since deductions reduce the amount of money in your tax refund. - Claim both since they document how much in taxes you have paid.

- Claim all deductions and credits that you are eligible for since they both can reduce your taxes.

When preparing your taxes, what can possibly help reduce the amount of taxes that you owe? - Stock and savings interest - Sharing what you earned on a W-2 or 1099 form - Having stock dividends - Credits and deductions

- Credits and deductions

What is the difference between gross and net pay? - Gross and net pay are basically the same things. - Gross pay is before taxes are subtracted but net pay is after taxes are taken out. - Net pay is a salary and gross pay is from hourly wages. - Gross pay is after taxes are subtracted but net pay is before taxes are taken out.

- Gross pay is before taxes are subtracted but net pay is after taxes are taken out.

Which of the following statements 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.

- If there is a mistake on your bank account, you should contact your financial institution immediately.

Which of the following statements is TRUE? - Recurring expenses don't need to be planned for because they rarely happen. - Recurring expenses are expenses that can never be stopped. - Recurring expenses should be planned for after looking at your wants. - None of the above

- None of the above

Which savings account will earn you the least money? - One that compounds interest daily. - One that earns simple interest daily. - One that compounds interest monthly. - One that earns simple interest monthly.

- One that earns simple interest monthly.

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck? - FICA - Overtime pay - Federal income tax - Contributions to retirement savings

- Overtime pay

Which of the following expenses would be a good reason to spend money from an emergency fund? - Buy new track shoes because they're in style. - Purchase concert tickets to see your favorite artist. - Repair your laptop that you use for homework. - Upgrade your phone to the latest model.

- Repair your laptop that you use for homework.

How can you ensure you don't go over your budget? - Buy all of your wants at one time. - Round up your expense estimates to add a buffer - Use most of your budget for entertainment expenses - Find a friend that enjoys going shopping

- Round up your expense estimates to add a buffer

Which of the following statements about savings accounts is FALSE? - Savings accounts pay interest on the money you deposit. - Savings accounts are best used to store money for longer-term goals. - Savings accounts may require you to maintain a minimum balance to avoid paying a fee. - Savings accounts allow an unlimited amount of withdrawals each month.

- Savings accounts allow an unlimited amount of withdrawals each month.

Which of the following statements about check cashing companies is FALSE? - They offer bad deals where you'll owe a lot more than you borrowed. - They make it easy to fall into a loan cycle that is hard to get out of. - They charge low fees. - They can take a percentage of your check on top of fees.

- They charge low fees.

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily. - True - False

- True

When you start a new job, you fill out a W-4 form to _________. - determine how much your gross pay should be. - avoid paying income taxes on your paychecks. - to determine how much federal income tax your employer should withhold from your paychecks. - file your tax return.

- to determine how much federal income tax your employer should withhold from your paychecks.