Maria Cards
462. Which of the following does NOT represent an interest rate? a. 4% b. .08 c. 5.5% d. $68
$68
553. Those who are self-employed use the _______ form for their tax returns a. 1009 b. 9001 c. 1099 d. 1909
1099
547. The minimum payment on a credit card typically falls between: a. 2% to 4% b. 6% to 10% c. 12 to 15% d. None of the above
2% to 4%
Paying your card bill on time helps your creditworthiness
279. Which statement about credit history is true? a. Paying off an overdue loan removes it from your credit history b. Closing old accounts always improves your creditworthiness c. Paying your card bill on time helps your creditworthiness d. Bankruptcy stays on your record forever
557. You can file for Chapter 7 bankruptcy once every: a. Year b. 3 years c. 6 years d. 12 years
6 years
690. The right time to sign up for Medicaid is close to your ___ birthday: a. 60th b. 65th c. 70th d. It's done automatically for you
65th
527. Those born after 1960 can begin collecting full Social Security benefits at age ___: a. 62 b. 65 c. 67 d. 70
67
556. Negative financial information (excluding bankruptcy) can stay on your credit report for: a. 2 years b. 5 years c. 7 years d. 10 years
7 years
551. Private mortgage insurance is typically required until a mortgage balance is less than: a. 90% of the house's value b. 80% of the house's value c. 70% of the house's value d. 60% of the house's value
80% of the house's value
558. What is the earliest time a telemarketer is allowed to call your home? a. 6:00 a.m. b. 7:00 a.m. c. 8:00 a.m. d. 9:00 a.m.
8:00 a.m.
537. An initial fraud alert stays in your credit report for at least ________days. a. 30 b. 90 c. 60 d. 180
90
523. What is the latest time a telemarketer is allowed to call your home? a. 8:00 p.m. b. 9:00 p.m. c. 10:00 p.m. d. 11:00 p.m.
9:00 p.m.
552. A HELOC is: a. Part of the stock exchange b. A Home Equity Line of Credit c. Part of the Homeowners Association d. A lock placed on an interest rate
A Home Equity Line of Credit
657. A summary of everything a company owes and owns is called: a. A derivative b. A register c. A checklist d. A balance sheet
A balance sheet
304. You obtain a debit card from: a. Your accountant b. Your employer c. An electronics store d. A bank or credit union
A bank or credit union
656. When the stock market is losing value, it is called: a. A spin cycle b. A bailout c. A bear market d. A bull market
A bear market
685. In the financial world, a maturity date is when: a. A bond or Certificate of Deposit comes due b. A person starts collecting his or her retirement pension c. A person turns 18 d. A person turns 21
A bond or Certificate of Deposit comes due
285. Which of these is the most important tool for managing finances? a. A budget b. A credit card c. A consolidation loan d. A stock portfolio
A budget
605. Which purchase/investment does NOT usually gain value over time: a. A car b. A Certificate of Deposit c. A 401(k) fund d. A house
A car
489. Which of these can build your credit history: a. A debit card b. A credit card c. A prepaid card d. All of the above
A credit card
476. Which of the following is considered a liability? a. The house you own b. A financial inheritance c. A credit card balance d. Antique jewelry
A credit card balance
601. One difference between a credit card and a debit card is: a. A debit card deducts money from your bank account b. A credit card deducts money from your bank account c. A credit card can't be used at an ATM d. A debit card can't be used for online shopping
A debit card deducts money from your bank account
589. Money taken out of your paycheck for health insurance is: a. A tax b. A deduction c. A co-payment d. Social Security
A deduction
582. A receipt is: a. A delivery that has been received b. A way accountants "cook" the books c. A document of a completed financial transaction d. A reprint of an invoice
A document of a completed financial transaction
609. When considering pet food expenses, it would be most expensive to own: a. A goldfish b. A cat c. A dog d. A rabbit
A dog
545. The Fair Credit Reporting Act is ______________ law. a. A federal b. A county c. A state d. Not a
A federal
530. An identity theft report includes a copy of a report you have filed with a. The FCC b. A federal, state, or local law enforcement agency c. The FTA d. Your bank
A federal, state, or local law enforcement agency
665. A person qualified to offer advice about investments is: a. A financial planner b. A clergyman c. A co-worker d. An employer
A financial planner
612. An example of someone who is typically self-employed is: a. A pharmacist b. A chef c. A freelance photographer d. A university professor
A freelance photographer
655. When two or more people share a checking account it is: a. A joint account b. A group account c. A mutual fund d. A 401(k) account
A joint account
642. A mortgage is: a. A loan for purchasing a home b. The same thing as a lease c. A kind of revolving charge account d. An agreement between buyer and seller
A loan for purchasing a home
607. A tax on items only the very rich can afford is called: a. An elite tax b. A luxury tax c. A fancy tax d. A snob tax
A luxury tax
596. An example of a business expense is: a. An iPod to use when traveling on business b. A meal with a client c. An upgrade to business class on your flight d. Buying better luggage
A meal with a client
649. An example of a job a child under 16 can usually get is: a. A receptionist b. A sales associate c. A movie usher d. A paper route
A paper route
635. An example of discretionary spending is: a. A pet b. A winter coat c. Car insurance d. A secret savings account
A pet
652. A mint is: a. Another name for a hospital candy striper b. A place that prints money c. Any government building d. The wealth a person has accumulated
A place that prints money
468. Which of the following would NOT be considered an asset? a. A 5-year CD b. A gold watch c. A platinum credit card d. Land you inherited from a grandparent
A platinum credit card
666. When a stock has fallen in price, and then rises again, it is called: a. A boom b. A plateau c. A dividend d. A rally
A rally
588. Your credit score is: a. The number of credit cards you own b. A way for your bank to identify you c. A rating based on your credit history d. The number of dollars you may charge on your card
A rating based on your credit history
651. A job that does NOT require special certification is: a. A barber b. A pharmacist c. A receptionist d. An optician
A receptionist
598. A significant decline in the economy is also known as: a. A recession b. A regression c. A delegation d. A deposition
A recession
621. A "mutual fund" is: a. A group of friends saving to buy something together b. A selection of stocks collected into one investment c. All of a family's savings d. An inheritance
A selection of stocks collected into one investment
688. Term life insurance is only valid for: a. A specific length of time b. Those months you choose to pay for it c. Someone who is terminally ill d. College students
A specific length of time
663. The monthly report of your bank account's activity is called: a. An index b. A spreadsheet c. A declaration d. A statement
A statement
687. A blue chip stock is: a. A stock from a financially sound company b. A new stock issued by a young company c. An investment in an organic food company d. A stock that is performing really poorly
A stock from a financially sound company
456. When funds are liquid, they are: a. Not earning any interest b. Accessible with little or no penalty c. Not insured by your financial institution d. A risky investment
Accessible with little or no penalty
525. A 529 college savings plan usually: a. Accrues interest that is taxed at a lower rate than normal b. Accrues earnings that are exempt from federal income tax c. Accrues earnings that can be accessed by retirees d. Doesn't accrue interest
Accrues earnings that are exempt from federal income tax
632. What is NOT usually part of a monthly budget: a. Utilities b. Food c. Airplane tickets d. Housing
Airplane tickets
477. Which of the following is not a variable expense? a. School books b. The heating bill c. Entertainment d. All are variable expenses
All are variable expenses
290. What should retired people consider to supplement their income? a. Part-time work b. A less-expensive home c. Renting out a spare room d. All of the above
All of the above
293. With credit cards, the minimum monthly payment is: a. A percentage of an outstanding balance b. The lowest amount due for the month c. The least you can pay to avoid incurring a fee d. All of the above
All of the above
294. With debit cards you: a. Can get cash back when you make a purchase b. Can pay for items online c. May be charged fees for insufficient funds d. All of the above
All of the above
299. You can save money by: a. Comparison shopping on the Internet b. Clipping coupons c. Waiting for sales d. All of the above
All of the above
300. You can use a credit or debit card to buy items or services: a. Online b. At a store c. By phone d. All of the above
All of the above
308. Your bank may charge a fee if: a. You withdraw money from a certificate of deposit (CD) early b. You overdraw on your checking account c. You overcharge on your credit card d. All of the above
All of the above
310. Your credit card annual percentage rate may be lower if: a. You are a new customer b. You have a history of paying your bills on time c. Your overall debt is low d. All of the above
All of the above
454. Interest is: a. The extra money you pay on a loan b. The extra money you earn in a savings account c. Based on an APR d. All of the above
All of the above
455. The rule of 72: a. Is used to measure interest over time b. Determines how quickly a savings account can double in value c. Is only an estimate d. All of the above
All of the above
457. Good reasons to save money include: a. Establishing an emergency fund b. Saving for a car or apartment c. Saving for college d. All of the above
All of the above
458. Easy ways to spend less money include: a. Making coffee at home instead of buying at a coffee shop b. Renting DVDs instead of going to the movies c. Cooking meals at home instead of eating out d. All of the above
All of the above
469. Fixed expenses: a. Are easier to plan for than variable expenses b. Might include rent or a cable TV bill c. Cost the same amount every month d. All of the above
All of the above
471. Discretionary spending might include: a. A fashion magazine b. An ice cream at the mall c. Concert tickets d. All of the above
All of the above
473. Assessing "needs" versus "wants" is an effective way to: a. Control excessive spending b. Manage your budget c. Save money d. All of the above
All of the above
482. Debit cards: a. Do not accrue debt b. Are issued by financial institutions c. Have no credit limit assigned to them d. All of the above
All of the above
487. Late payments on a credit card bill can: a. Incur fees b. Increase your interest rate c. Impact your credit score d. All of the above
All of the above
493. Online access to your credit and debit card accounts: a. Lets you view all account activity b. Helps you spot errors or fraud c. Allows you to schedule payments d. All of the above
All of the above
499. A prepaid card is a good option if: a. You want to avoid debt b. You don't have access to a credit card c. You need help tracking spending d. All of the above
All of the above
506. Being creditworthy can help when: a. Applying for a loan b. Looking for affordable auto insurance c. Renting an apartment d. All of the above
All of the above
513. To increase your creditworthiness: a. Pay down your debts b. Spend less than you earn c. Keep old credit card accounts open d. All of the above
All of the above
515. The safest Web sites for online shopping: a. Use https:// in their web address b. Utilize Secure Socket Layer c. Are sites you know well and visit often d. All of the above
All of the above
533. Tax deductions for charitable contributions: a. Are only allowed if you itemize deductions b. Require an appraisal for non-cash items worth over $5,000 c. Require a receipt from the organization you donated to d. All of the above
All of the above
550. Which of these taxes are assessed upon death? a. Estate tax b. Inheritance tax c. Income tax d. All of the above
All of the above
555. A Roth IRA: a. Stands for Roth Individual Retirement Account b. Has annual contribution limits c. Accrues investment earnings that aren't taxed d. All of the above
All of the above
559. Owning a pet includes the following expenses: a. Veterinarian bills b. Food c. Licenses d. CORRECT: All of the above
All of the above
564. Different types of income tax include: a. Federal b. State c. Local d. All of the above
All of the above
585. The following may damage your credit score: a. Opening multiple credit card accounts b. Paying bills late c. Having significant debt d. All of the above
All of the above
587. A debit card: a. Draws from your bank account to pay for purchases b. Allows you to use your bank's ATM c. Requires you to sign or key in your PIN when you use it d. All of the above
All of the above
590. It's smart to carpool to a concert because: a. You can share the cost of gas b. You can share the cost of parking c. You can switch drivers if someone is tired d. All of the above
All of the above
604. Pre-paid cards: a. Are a good way to control spending b. Cannot be overdrawn c. Are used like debit cards d. All of the above
All of the above
606. A consequence of economic recession can be: a. Increased unemployment b. Reduced consumer spending c. Deflation d. All of the above
All of the above
613. A co-signer on an apartment lease is a person who: a. May or may not live there b. Shares financial responsibility c. Shares liability for damages to the unit d. All of the above
All of the above
614. The following activities could be considered gambling: a. Playing the lottery b. Wagering on racehorses c. Playing poker with friends for money d. All of the above
All of the above
616. Having a car at college means budgeting for: a. Gasoline b. Parking permits c. Insurance d. All of the above
All of the above
619. A good way to save money is: a. Set aside the coins you bring home every day b. Divert a portion of every paycheck to a savings account c. Walk or ride your bike instead of driving d. All of the above
All of the above
620. If you shop online, you may have to pay extra for: a. Shipping b. Exchanges c. Returns d. All of the above
All of the above
693. Social Security can provide you and eligible family members with benefits: a. When you retire b. If you become disabled c. When you die d. All of the above
All of the above
541. To place a fraud alert on your credit report, you contact: a. Experian b. TransUnion c. Equifax d. All three
All three
575. Auto insurance is: a. Only required on rental cars b. Never required c. Always required d. You didn't balance your checkbook
Always required
662. If someone needs help filing their tax returns, they can hire: a. An agronomist b. An astronomer c. An accountant d. An acupuncturist
An accountant
676. A person who analyzes financial risk for insurance companies is: a. An aviary b. An arborist c. An actuary d. An antagonist
An actuary
661. A person appointed to carry out the terms of a will is: a. An executor b. An executive c. An extortionist d. An exhibitor
An executor
647. Phishing is: a. An illegal email request for your banking information b. An online application for credit c. A phone call from a bill collector d. A slang term for mobile banking
An illegal email request for your banking information
306. Writing a $150 check when you have only $100 in your account is called a. Free money b. An overdraft c. A bank error d. Deductability
An overdraft
486. Impulse purchases should be carefully monitored when using: a. A debit card b. A credit card c. Cash d. Any form of payment
Any form of payment
514. Identity theft can happen to: a. Credit card holders b. Senior citizens c. Online shoppers d. Anyone
Anyone
296. With online banking, you should be able to view your checking account balance: a. During business hours b. When the bank is open c. When you turn 18 d. Anytime
Anytime
593. "Property tax" is based on a property's: a. Sale price b. Assessed value c. Neighborhood d. School district
Assessed value
518. Collateral is any _______ you can use to secure a loan. a. Liability b. Income c. Co-signer d. Asset
Asset
595. A taxpayer is subject to an "audit" of his tax return: a. Only when there is suspicion of errors b. Only the first time he pays taxes c. Every time he switches jobs d. At any time
At any time
562. When buying a concert ticket, the lowest price is usually found: a. At the last minute b. From a scalper c. At a ticket-selling service d. At the theater's box office
At the theater's box office
572. An "ATM" is an: a. Automatic Teller Machine b. Automatic Trust for Money c. Attainable Type of Money d. Alternate Transaction Method
Automatic Teller Machine
691. Social Security benefits are based on ___ earnings during one's lifetime: a. Net b. Gross c. Average d. Quarterly
Average
625. Budgeting for your household means: a. Balancing income and expenses b. Cancelling cable TV c. Buying a house d. Eating at home
Balancing income and expenses
549. A ____________ mortgage has a very large final payment. a. Conventional b. Graduated payment c. Fixed rate d. Balloon payment
Balloon payment
681. Chapter 11 is a type of: a. Bankruptcy b. Loan c. Retirement account d. Stock
Bankruptcy
648. You must have a Social Security number to: a. Go to school b. Buy a cell phone c. Be hired by an employer d. Hire a housekeeper
Be hired by an employer
636. Some store Gift Cards can be exchanged for cash: a. Always b. Never c. Below a certain dollar value d. Above a certain dollar value
Below a certain dollar value
291. Who gets paid first when a company goes bankrupt? a. Stockholders b. Bondholders c. Customers d. No one gets paid in a bankruptcy
Bondholders
292. Whose rights does a lease protect? a. The tenant's b. The landlord's c. Both the tenant's and landlord's d. Neither the tenant's nor landlord's
Both the tenant's and landlord's
591. People encounter "closing costs" when they: a. Buy a house b. Sell a car c. Open a business d. Get divorced
Buy a house
565. "Property tax" is paid: a. Whenever you buy something b. By renters, when buying furniture c. By renters, on all the things in their apartments d. By owners, on the land and buildings on it
By owners, on the land and buildings on it
451. Highest to lowest, which accounts typically offer the best interest rates? a. CD, Savings Account, Money Market Account b. CD, Money Market Account, Savings Account c. Savings Account, Money Market Account, CD d. Money Market Account, CD, Savings Account
CD, Money Market Account, Savings Account
519. If you don't have the funds to pay a bill: a. Call your creditor to explain the situation b. Try to pay double next month c. Borrow against existing credit d. Close your account
Call your creditor to explain the situation
611. When shopping online, which method of payment is NOT accepted: a. Cash b. Credit card c. PayPal d. BillMeLater
Cash
452. In the banking world, a CD is also known as: a. Certified Debt b. Confidential Debit c. Compact Disc d. Certificate of Deposit
Certificate of Deposit
508. A past bankruptcy factors into a lender's assessment of your: a. Capacity b. Character c. Capital d. All of the above
Character
507. The three "Cs" of credit are: a. Character, capital, capacity b. Character, calculations, capital c. Courage, capital, capacity d. Checks, cards, cash
Character, capital, capacity
298. You can monitor your bank account balance by: a. Counting your change b. Adding up your paychecks c. Checking it regularly online or by phone d. Cashing a check
Checking it regularly online or by phone
624. Which of the following will NOT damage your credit score: a. Defaulting on a student loan b. Home foreclosure c. Checking your own credit score d. Carrying a credit card balance equal to your spending limit
Checking your own credit score
494. If you plan to carry a balance on your credit card: a. Choose a card with a low APR b. Find a card with no annual fee c. Pick the card with the highest credit limit d. Spread the balance over multiple cards
Choose a card with a low APR
689. Which of the following is NOT required when operating a car: a. Driver's license b. Collision insurance c. Liability insurance d. Current license plates
Collision insurance
459. Most savings accounts today accrue: a. Simple interest b. Compound interest c. Negative interest d. Bonus interest when you sign up
Compound interest
617. "Disposable income" is used for purchases such as: a. Groceries b. Rent c. Concert tickets d. Disposable diapers
Concert tickets
498. Banks and credit unions need your PIN to: a. Verify your account balance b. Confirm your identity c. Evaluate creditworthiness d. Encrypt financial data
Confirm your identity
631. When shopping for a cell phone plan, it's best to: a. Consider how many texts you send per month b. Look for the coolest phone c. Do whatever your friends are doing d. Stick with the same company year after year
Consider how many texts you send per month
501. A credit cardholder agreement: a. Is the unspoken promise to always pay your bill b. Contains all the Terms and Conditions of a credit account c. Does not hold merchants liable for fraud d. Is also known as a credit application
Contains all the Terms and Conditions of a credit account
286. Which of these is usually considered a safer investment? a. Corporate bonds b. Technology stocks c. Mutual funds d. Real estate
Corporate bonds
301. You can use your _________ to purchase goods. a. Savings account b. Debit card c. ATM card d. Passport
Debit card
504. Checking account overdrafts can happen with a: a. Credit card b. Prepaid card c. Debit card d. Cash advance
Debit card
566. When a car loses value, it is called: a. Deceleration b. Depression c. Depreciation d. Disinclination
Depreciation
478. Groceries, utilities and rent are all: a. Liabilities b. Wants c. Expenses d. Assets
Expenses
538. If a credit bureau doesn't respond to a correction within 30 days, you can contact the: a. FCC b. FTC c. IRS d. FBI
FTC
544. The annualcreditreport.com website is maintained by the: a. FCC b. FTC c. FICO d. FDA
FTC
627. FDIC stands for: a. Funds Deposited in Confidence b. Federal Deposit Insurance Corporation c. Friendly Depositors in Cooperation d. Fraudulent Double Insurance Claim
Federal Deposit Insurance Corporation
653. Homeowner's insurance is: a. A way to insure the re-sale price of your house b. A guarantee that the neighborhood will maintain its quality c. Financial protection against damage to your home d. Life insurance taken out by a homeowner
Financial protection against damage to your home
578. Name a cost of living that does NOT change over time: a. Fixed mortgage b. Variable mortgage c. Heating bills d. Price of food
Fixed mortgage
634. GDP stands for: a. Government Depression Prevention b. Government Department of Protection c. Gross Development Prediction d. Gross Domestic Product
Gross Domestic Product
610. Which communication method is MOST secure/private: a. Home phone b. Cell phone c. Work email d. Twitter
Home phone
280. Which of these is NOT a factor on which a mortgage approval is based? a. Whether the property is in a flood plain b. The neighborhood of the new home c. The inspection report of the property d. How long the buyer intends to own the property
How long the buyer intends to own the property
505. Creditworthiness measures: a. How much you know about credit b. How many credit cards you use c. How much risk you pose to lenders d. Your personal character
How much risk you pose to lenders
288. Which should NOT be a factor in saving for retirement: a. How much you can borrow from friends and relatives b. The age at which you plan to retire c. Where you plan to retire d. Inflation
How much you can borrow from friends and relatives
512. Which question will lenders NOT consider in evaluating creditworthiness? a. Have you used credit before? b. Do you pay your bills on time? c. What is your total debt? d. How old are you?
How old are you?
531. The code on a credit report for an installment charge-off is: a. I9 b. IO9 c. II9 d. 911
I9
307. Your ATM personal identification number (PIN): a. Tells you your current balance b. Gives the bank access to your financial records c. Identifies you as an authorized account holder d. Indicates your credit rating
Identifies you as an authorized account holder
548. A key difference between a Roth IRA and a Traditional IRA: a. Traditional IRAs allow you to invest more money b. Roth IRAs are only for mutual funds c. In a Roth IRA, taxes are paid up front d. Only traditional IRAs charge a fee to open an account
In a Roth IRA, taxes are paid up front
467. A weekly allowance and a monthly paycheck are both examples of: a. Interest b. Expenses c. Income d. Needs
Income
680. IRA stands for: a. Irreconcilable Request Acknowledgment b. Indiana Revenue Act c. Individual Retirement Account d. Interrupted Required Action
Individual Retirement Account
683. A prospectus is: a. Someone who pans for gold b. An investor c. Information about an investment d. A type of bank account
Information about an investment
542. IPO stands for: a. Investment Protocol Oversight b. Independent Profit Objective c. Initial Public Offering d. Income Percentage Ownership
Initial Public Offering
638. IRS stands for: a. Immigration Reform Sector b. International Revenue Stream c. Intelligent Restructuring Scheme d. Internal Revenue Service
Internal Revenue Service
313. Your net income: a. Can be found in your credit report b. Is gross income minus taxes and items withheld from your pay c. Appears on your monthly credit card statement d. All of the above
Is gross income minus taxes and items withheld from your pay
311. A credit limit: a. Is the minimum amount due each month b. Limits the fees a person can be charged c. Limits the interest rate on a credit card d. Is the maximum balance that can be carried on a credit card
Is the maximum balance that can be carried on a credit card
633. An apartment building manager: a. Can walk in to your apartment anytime unannounced b. Usually owns the building c. Is the person to contact about repairs d. Must carry a real estate license
Is the person to contact about repairs
289. Which statement is true about bankruptcy? a. It stays on your credit record for many years b. Bankruptcy cancels all debts c. It lets you protect property by giving it away d. Income taxes are waived when you file for bankruptcy
It stays on your credit record for many years
520. Which statement about bankruptcy is NOT true? a. It can affect your creditworthiness for many years b. It is decided by a court of law c. It wipes your credit score clean d. Most bankruptcies can be avoided
It wipes your credit score clean
600. A company's "earnings" are the same as: a. Its net income b. Its total revenues c. Its bank account interest d. The price of its product
Its net income
592. When a company increases its "profits": a. Its overall revenue has doubled b. It has hired more employees c. Its net income has gone up d. Its taxes have gone down
Its net income has gone up
658. A calendar year refers to: a. January through December b. A fiscal year c. Last year d. Next year
January through December
472. A mortgage loan is an example of a: a. Lien b. Liability c. Benefit d. Want
Liability
526. The Truth in Lending Act requires that people obtaining auto loans be informed of the: a. Loan's annual percentage rate (APR) b. Cost of auto insurance c. Extended warranty features d. Reasons for denied credit
Loan's annual percentage rate (APR)
546. A long-term U.S. Treasury note is an example of a _________ savings option: a. High yield b. Low risk c. High risk d. Annual
Low risk
287. Which monthly expense is more of a "want" rather than a "need"? a. Electric utility bill b. Magazine subscription c. Rent payment d. College textbook
Magazine subscription
511. Keeping old credit card accounts open: a. Maintains the length of your credit history b. Is a bad idea c. Is the most common reason for fraud d. Increases your net worth
Maintains the length of your credit history
460. Which statement about traditional savings accounts is true? a. They usually earn simple interest b. They yield higher interest than CDs c. They are riskier than CDs d. None of the above
None of the above
491. A credit card's annual fee: a. Is always the same amount b. Is paid for by the issuing bank c. Is waived for customers with multiple credit cards d. None of the above
None of the above
561. Your commute to work is time: a. That your employer pays you for b. That you have to report to the IRS c. That is sometimes called comp time d. None of the above
None of the above
576. At the airport, the least expensive place to park is often: a. Short-term parking b. Long-term parking c. Valet parking d. Off-site parking
Off-site parking
659. When someone receives a lump sum, they are: a. Paid over time b. Paid all at once c. Paid 90% of what they are owed d. Paid without warning
Paid all at once
675. "Holding company" is another term for: a. Parent company b. Employer c. Hiring freeze d. Company that's just breaking even
Parent company
535. Which of the following is NOT true about 401(k) plans? a. Participation is mandatory for workers over age 35 b. If you change jobs, loans must be repaid to avoid penalties c. You can roll over your balance to your new employer's plan d. Employer matching contributions aren't taxed until withdrawn
Participation is mandatory for workers over age 35
305. You take out a mortgage to: a. Pay for a home b. Receive a new credit card c. Buy a used car d. Increase your credit rating
Pay for a home
579. A landlord collects a "security deposit" to: a. Supplement his or her income b. Pay a security guard c. Pay for repairs when the tenant moves out d. Open a bank account
Pay for repairs when the tenant moves out
646. Establishing a good credit score is accomplished by: a. Paying bills on time b. Never getting a credit card c. Making smart investment choices d. Maxing out your credit cards
Paying bills on time
629. Writing checks is good for: a. Buying time when you can't pay a bill for a couple days b. Paying bills via U.S. Mail c. Paying bills online d. Buying things you can't really afford
Paying bills via U.S. Mail
312. Your creditworthiness changes based on: a. Payment activity reported by lenders b. What you purchase with your debit card c. Your most recent employment application d. All of the above
Payment activity reported by lenders
602. "PIN" stands for: a. Private Institution Number b. Plural Identity Number c. Personal Identification Number d. Private Information Number
Personal Identification Number
510. A common and dangerous form of email fraud is called: a. Phishing b. Grifting c. Dishing d. Spamming
Phishing
672. Three currencies used in Europe are: a. Franc, lira, peso b. Pound, euro, franc c. Euro, franc, dinar d. Dollar, ruble, crown
Pound, euro, franc
490. A gift card is a type of: a. Credit card b. Debit card c. Prepaid card d. None of the above
Prepaid card
524. The mortgage payment components referred to as "PITI" are: a. Principal, investment, tariff, interest b. Payment, insurance, taxes, indemnity c. Principal, interest, taxes, insurance d. None of the above
Principal, interest, taxes, insurance
654. Your bank's routing number is: a. A closely guarded secret b. Printed on your checks c. Something you should memorize d. Needed every time you make a deposit
Printed on your checks
584. A car owner is NOT responsible for: a. License plates b. Proof of health insurance c. A driver's license d. Annual vehicle registration
Proof of health insurance
678. Local school districts often get funding through: a. Import taxes b. Property taxes c. Luxury taxes d. Inheritance taxes
Property taxes
488. Credit cards' zero liability policy: a. Protects consumers from fraudulent charges b. Only applies if your card is lost c. Is offered for an additional fee d. Is only offered for online shopping
Protects consumers from fraudulent charges
534. Contributions to a 401(k) retirement savings plan: a. Cannot lose value b. Provide a tax shelter for income you save c. Can be withdrawn at any time d. Can come from your parents
Provide a tax shelter for income you save
615. If you can't afford something right away, the smartest choice is: a. Take out a loan b. Put it on lay-away c. Borrow from a friend d. Write a post-dated check
Put it on lay-away
608. To offer something of value in exchange for a loan is called: a. Putting up a promise b. Putting down roots c. Putting up collateral d. Putting down a deposit
Putting up collateral
640. Parents with dependent children always: a. Get federal aid b. Qualify for income tax deductions c. Need a bigger house d. Have more debt
Qualify for income tax deductions
309. Your car insurance premium will likely decrease if you: a. Avoid parking tickets b. Lower your deductible c. Raise your deductible d. Buy a new car
Raise your deductible
517. In evaluating creditworthiness, an individual's capacity: a. Is a summary of their payment history b. Is their net income, after taxes c. Refers to how much debt they can handle d. Is a calculation of all existing assets
Refers to how much debt they can handle
637. An example of property maintenance is: a. Repairing a broken toilet b. Building a new garage c. Planting flowers d. Installing central air conditioning
Repairing a broken toilet
679. Which of the following does NOT affect cost of living: a. Salary b. Food c. Rent d. Utilities
Salary
453. A CD and money market account are two examples of: a. Savings b. A high risk investment c. Credit d. None of the above
Savings
529. Which government agency investigates counterfeit money cases? a. CIA b. FBI c. Secret Service d. Federal Reserve Board
Secret Service
626. If you find you always spend all the cash you carry: a. Open a checking account b. Ask for a bigger allowance c. Borrow from a friend d. Set some money aside first for savings
Set some money aside first for savings
450. A smart way to ensure you save money is: a. Eliminating all variable expenses b. Not paying the full amount due on bills c. Setting money aside as soon as you get paid d. Avoiding all discretionary spending
Setting money aside as soon as you get paid
577. Which is NOT a way to save money on groceries: a. Join your store's loyalty program b. Shop only Monday through Friday c. Use coupons d. Compare prices on different brands
Shop only Monday through Friday
475. Discretionary spending: a. Must be eliminated to balance a budget b. Should be monitored on a regular basis c. Is another name for variable expenses d. Includes purchases which are tax exempt
Should be monitored on a regular basis
281. Which of these is NOT a good strategy to get out of debt? a. Pay more than the minimum due on credit cards b. Pay off the highest interest rate card first c. Skip a payment on one card to catch up on another d. Call your creditors and ask for a lower interest rate
Skip a payment on one card to catch up on another
650. An entrepreneur is: a. A French businessman b. Someone who develops a new business c. A fancy name for a doorman d. Another word for employee
Someone who develops a new business
283. Which of these is NOT a sound financial habit? a. Saving money for an unexpected emergency b. Spending beyond your means c. Revising your budget when your salary changes d. Comparison shopping online for major purchases
Spending beyond your means
568. "Living beyond your means" is: a. Being a good saver b. Living outside the city c. Spending more money than you earn d. Spending more than the average American
Spending more money than you earn
497. Which is NOT an effective way to prevent fraud? a. Shredding documents that contain credit account information b. Only shopping online at secure sites that you know c. Spreading purchases over various accounts d. Keeping your PIN written down in a safe place
Spreading purchases over various accounts
539. Each ________ has its own laws governing how long a debt is legally collectible. a. City b. State c. County d. Country
State
671. The FTSE, Nikkei and DAX are: a. Types of bank accounts b. Names of banks c. Funds you can invest in d. Stock exchanges in other countries
Stock exchanges in other countries
282. Which of these is NOT a product credit unions typically offer: a. Savings account b. Money market account c. Stock portfolio d. Car loan
Stock portfolio
594. Someone who owns shares in a company is a: a. Stockholder b. Policyholder c. Day trader d. Fund manager
Stockholder
543. Which of these is usually tax-deductible? a. Time spent volunteering b. Student loan interest c. Business suits d. Money given to a friend
Student loan interest
670. Cash, checks and credit cards are all examples of: a. Tender b. Economic indicators c. Banking regulations d. Funds
Tender
492. Which is typically NOT a feature of credit card email or cell phone alerts? a. Notifying you when a large purchase is made b. Alerting you when you go over your credit limit c. Reminding you when a payment is due d. Thanking you for recent purchases.
Thanking you for recent purchases.
583. The government department that handles home loans is: a. The CDC b. The FCC c. The NTSB d. The FHA
The FHA
677. U.S. monetary policy is established by: a. The World Bank b. The Federal Reserve c. The Government Bank d. The U.S. Mint
The Federal Reserve
623. If you have a credit card, the "credit limit" is: a. The amount you may spend in one purchase b. The amount you may spend in one year c. The phone number to call when you have questions d. The amount of debt you may carry on that card
The amount of debt you may carry on that card
580. An insurance "deductible" is: a. A discount the insurance company deducts from your bill b. The amount you must pay when making a claim c. A thing or activity that cannot be insured d. A term that refers to the policyholder
The amount you must pay when making a claim
574. When you have to pay interest to a bank, it is because: a. Your income changed b. The bank loaned you money c. You became overdrawn d. You didn't balance your checkbook
The bank loaned you money
586. When you earn interest from a bank, it is because: a. You have signed up for a promotion b. The bank uses your money to make loans c. The bank is trying to get established in town d. You promise not to withdraw it
The bank uses your money to make loans
599. When someone with life insurance dies, the policy is paid to: a. The local government b. The employer c. The beneficiaries d. The funeral home
The beneficiaries
570. When a credit card bill is not paid off every month: a. The card-holder pays a penalty b. The card-holder pays interest c. The card is cancelled d. The account is frozen
The card-holder pays interest
571. The following entities can print their own money: a. Each of the 50 states b. The federal government c. The United Nations d. All of the above
The federal government
581. A real estate agent's commission is paid by: a. The house seller b. The house buyer c. The real estate company d. The city he or she works in
The house seller
686. In financial terms, a yield is: a. When your banker recommends a new investment b. When you overrule your banker's idea c. The name of a type of investment d. The rate of return on an investment
The rate of return on an investment
540. If you die unmarried without a will, what generally happens to your assets? a. They are sold at a public auction b. Your closest living relative decides who gets what c. They automatically become the property of the state d. The state probate court decides
The state probate court decides
503. A credit card grace period refers to: a. The 24 hours you have to void an online purchase b. The time between your statement date and due date c. The period of time when you don't use your card d. None of the above
The time between your statement date and due date
470. A person's net worth is: a. The total of their assets minus their liabilities b. The principal amount in all their savings accounts c. A major factor in credit scoring d. Available on the Internet
The total of their assets minus their liabilities
569. A person is carrying credit card debt when: a. Their balance is not paid in full every month b. They use their card to buy luxury items c. They lend their card to someone else d. They have more than one credit card
Their balance is not paid in full every month
682. People save for retirement so that: a. They can go on vacation b. They can buy fancy things c. They can buy a bigger house d. They have enough money to live on after they stop working
They have enough money to live on after they stop working
641. Life insurance is for: a. Those whose death would eliminate necessary income b. Old people with no survivors c. People whose children are adults d. Those who will leave money to their beneficiaries
Those whose death would eliminate necessary income
500. Debit cards are: a. Tied directly to a checking or savings account b. More widely accepted than credit cards c. Assigned a unique credit limit d. Reloadable at many retail locations
Tied directly to a checking or savings account
516. Zero liability applies: a. Only to credit cards with a zero balance b. Only to debit cards with a zero balance c. To most credit and debit card purchases d. To all checking and savings accounts
To most credit and debit card purchases
567. "Barter" is: a. Another word for stealing b. Trading goods or services c. Selling things that aren't yours d. Borrowing
Trading goods or services
303. You keep track of checking account checks, debits, withdrawals and deposits in a: a. Transaction register b. Financial statement c. Annual report d. Credit report
Transaction register
502. Interest rates on credit card cash advances are: a. Usually higher than those for regular purchases b. Tax deductible c. Set and fixed by the federal government d. Linked to a certificate of deposit
Usually higher than those for regular purchases
667. In the U.S., we have sales tax. Other countries have: a. Value Added Tax b. Individual Trade Tax c. Up-market Tax d. Flat-Fee Tax
Value Added Tax
560. A part-time job usually offers: a. Wages b. Paid vacation time c. Sick days d. All of the above
Wages
466. Discretionary spending refers to money spent on: a. Both needs and wants b. Wants c. Fixed expenses d. Variable expenses
Wants
644. Your personal debt is: a. The PIN code for your debit card b. What you still owe on your mortgage c. What you owe in money, goods or services d. The same as your credit score
What you owe in money, goods or services
464. Cashing out a CD before its term ends: a. Is forbidden b. Will result in hefty fees c. Will strip the account of all its value d. Is okay if interest rates go up suddenly
Will result in hefty fees
496. It's safest to share personal or account information: a. With someone who calls you b. With someone you have contacted yourself c. On the Internet d. It is never safe to share this information
With someone you have contacted yourself
554. Which of the following is NOT considered taxable income? a. Unemployment insurance b. Social Security benefits c. Withdrawal of Roth IRA contributions d. Sick pay
Withdrawal of Roth IRA contributions
622. April 15 is when: a. Businesses turn in all sales tax collected b. Employers give annual raises c. Workers file annual income taxes d. Businesses have a federal holiday
Workers file annual income taxes
480. If the net amount of your budget is negative: a. You can probably save more money b. You are likely living beyond your means c. You will owe interest on the amount d. None of the above
You are likely living beyond your means
314. Zero liability means: a. Banks do not have to pay you interest if the market is down b. You are not responsible for fraud on your credit card c. You don't have to pay back your debts d. Credit card companies can charge you a yearly fee
You are not responsible for fraud on your credit card
485. When you shop with a prepaid card: a. You are paying in advance b. You are paying later c. You are paying now d. None of the above
You are paying in advance
484. When you shop with a credit card: a. You are paying in advance b. You are paying later c. You are paying now d. None of the above
You are paying later
483. When you shop with a debit card: a. You are paying in advance b. You are paying later c. You are paying now d. None of the above
You are paying now
481. If the net amount of your budget is positive: a. You can probably save more money b. You may be living beyond your means c. You should scale back on all discretionary spending d. None of the above
You can probably save more money
297. You build up debt on a debit card when: a. You use it to pay your bills b. You use it to pay your rent c. You buy groceries d. You cannot build up debt on a debit card
You cannot build up debt on a debit card
628. You can expect to pay finance charges on your credit card when: a. You make a purchase b. You don't pay off your entire balance c. You don't use your card for more than a month d. You buy something and then return it
You don't pay off your entire balance
645. When you enter into a contract: a. It always lasts until you die b. You have made a legally binding commitment c. You can walk away after 6 months d. You always have 24 hours to change your mind
You have made a legally binding commitment
668. If you buy something with a quality guarantee: a. You may get another one for free if it's stolen b. You may return it after you've used it c. You may exchange it if it breaks d. It will hold its original value
You may exchange it if it breaks
479. If a purchase is considered a "want" versus a "need": a. You should buy it with a credit card b. You should buy it with a debit card c. You should evaluate this purchase carefully d. You shouldn't buy it
You should evaluate this purchase carefully
618. Using coupons at the grocery store makes sense when: a. You get to save on a fancy brand b. You were going to buy that product anyway c. You feel like a treat d. None of the above
You were going to buy that product anyway
465. A budget is considered balanced when: a. Your expenses do not exceed your income b. All of your money is accounted for c. You pay your bills on time d. You live beyond your means
Your expenses do not exceed your income
664. A retirement pension is paid by: a. The government b. Your former employer c. Your bank d. Your family
Your former employer
573. If someone files a lien against your house: a. You need a carpenter to straighten the walls b. You will need a house inspection c. You must move out immediately d. Your house may be seized to satisfy a debt
Your house may be seized to satisfy a debt
563. "Net income" is: a. Your income before taxes b. Your income after taxes c. What a commercial fisherman earns d. Extra pay for hazardous duties
Your income after taxes
643. Money in savings and checking accounts is safe because: a. Your bank is a neighborhood institution b. Money in bank accounts earns very little interest c. Your money is insured by the FDIC d. You can withdraw it with your ATM card
Your money is insured by the FDIC
509. Which of the following DOES NOT factor into creditworthiness? a. A past bankruptcy b. Your net worth c. A history of late payments d. How long you've been at your job
Your net worth
284. Which of these is factored into your creditworthiness by lenders? a. Your parent's mortgage amount b. Your sibling's mortgage amount c. Your father's annual income d. Your past history paying back loans
Your past history paying back loans
660. When you have direct deposit: a. It means you can use an ATM b. Your bills are automatically paid c. You are transferring money from one account to another d. Your paycheck goes directly into your bank account
Your paycheck goes directly into your bank account
522. Which of the following does NOT affect your creditworthiness? a. Your payment history b. Your current debt c. Your place of employment d. All of these items affect credit
Your place of employment
532. To find out about the statute of limitations for a credit card lawsuit, contact: a. Your local police department b. Your state representative c. Your city's district attorney d. Your state attorney general
Your state attorney general
461. To calculate simple interest on $1000 at 4% APR, use: a. $1000 x .04 b. $1000 x 4 c. $1000 / .04 d. None of the above
$1000 x .04
302. You have $200 in your checking account and you spend $75. What is your new balance? a. $175 b. $150 c. $125 d. $100
$125
669. A stock ticker: a. Shows how much time is left in the trading day b. Counts down the top 10 stocks that day c. Displays the changing values of stocks during the day d. Is a slang term for a computer used on the trading floor
Displays the changing values of stocks during the day
528. Which of the following is not a financial market? a. New York Stock Exchange b. Dow Jones c. American Stock Exchange d. Chicago Board of Trade
Dow Jones
463. Principal that is very liquid is most likely: a. Earning a very high interest b. Earning a modest amount of interest c. Earning no interest d. Earning only simple interest
Earning a modest amount of interest
674. The Gross Domestic Product is tied to a country's: a. Population b. Number of millionaires c. Top 10 companies d. Economic activity
Economic activity
639. Married couples should file income taxes: a. Together b. Separately c. Only after they have children d. Either 1 or 2
Either 1 or 2
474. Which of the following is typically NOT a fixed expense? a. Rent b. Gym membership c. Entertainment costs d. Insurance
Entertainment costs
630. When visiting a big city, the cheapest form of transportation is: a. Renting a car b. Taking a horse and buggy ride c. Mass transit d. Taxis
Mass transit
521. An email that requests any financial information: a. Is most likely from your creditor b. May be part of a phishing scheme c. Should be answered immediately d. None of the above
May be part of a phishing scheme
684. Which usually pays the highest interest rate: a. Savings account b. Checking account c. CORRECT: Money-market account d. Debit card account
Money-market account
295. With investments, "long-term" generally means: a. 1-3 years b. 1-5 years c. 5-10 years d. More than 10 years
More than 10 years
603. Debit cards are accepted as payment: a. Everywhere credit cards are accepted b. Most places where credit cards are accepted c. Only places where credit cards are accepted d. Only places where credit cards are NOT accepted
Most places where credit cards are accepted
495. A credit card with a low introductory interest rate: a. Always has a high annual fee b. Must be paid on time to avoid losing the low rate c. Must be co-signed by a second cardholder d. None of the above
Must be paid on time to avoid losing the low rate
692. If you work after you start receiving Social Security benefits, you: a. Don't have to pay Social Security taxes b. Only have to pay Social Security taxes after age 55 c. Need to pay Social Security taxes on your new earnings d. None of the above
Need to pay Social Security taxes on your new earnings
673. Which company is NOT headquartered in the U.S.: a. Nike b. Walmart c. Caterpillar d. Nestle
Nestle
597. "NYSE" stands for: a. New Year Structured Examination b. Non-Yield Sales Event c. New York Stock Exchange d. Net Year-end Security Exemption
New York Stock Exchange
536. Which agency insures the stocks in which you invest in the stock market? a. The Federal Deposit Insurance Corporation (FDIC) b. The Securities and Exchange Commission (SEC) c. The U.S. Department of the Treasury d. No one
No one
