Economics Test
Which of the following financial institutions typically have the highest fees?
a) Check cashing and payday loan companies
Which type of bank account is best for everyday transactions?
a) Checking Account
Which type of bank account typically offers the least (if any) interest?
a) Checking account
Which of the following is NOT considered part of your benefits package available from your employer?
a) Free technology equipment
What does the W-2 form tell you?
a) How much you've earned and how much taxes you've paid in the last year.
Which savings account will earn you the most money?
a) One that compounds interest daily.
Recommended methods to protect yourself from identity theft and fraud include_______.
a) Placing a credit freeze with the credit bureaus.
Which of the following expenses would be a good reason to spend money from an emergency fund?
a) Repair your laptop that you use for homework.
All of the following are benefits to paying the full balance on your credit card each month EXCEPT:
a) Your credit score can decrease.
Credit cards can help _____________ when paid off on time regularly
a) build credit history
The ___________ is a flexible market that allows you to work short-term, independent jobs.
a) gig economy
To maintain a good credit score you must ______.
a) manage your debt wisely.
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
b) Choosing a credit card
When considering a job offer, you should only consider how much you're being paid before you accept the offer.
b) False
Which of the following should NOT be considered when setting a current budget?
b) Future income
Which of the following statements about investing is TRUE?
b) Investing is riskier than putting money in a savings accounts.
Which is a positive reason for using a credit card to finance purchases?
b) Paying it off on time can help build your credit history
What is net pay?
b) The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
When are loans a good option to use?
b) When paying for higher education
Going directly to a car dealer for a loan to keep things simple is a...
b) not great because they typically offer higher interest rates.
Paying only the minimum balance on your credit card can lead to...
b) paying more interest.
Using a loan could help with the purchase of which of the following?
c) A house
A stock is ________.
c) A share of ownership in a company.
A mutual fund is _________.
c) A type of investment that invests in a mix of different types of investments.
Which of the following is NOT a common feature of a financial institution?
c) Access to investment advice
Savings accounts typically offer more interest than what type of account?
c) Checking account
This helps you prepare for unexpected expenses
c) Emergency fund
Which of the following statements about savings accounts is FALSE?
c) Savings accounts may require you to maintain a minimum balance to avoid paying a fee.
What is the purpose of the W-4 form?
c) To inform your employer of how much federal income tax to withhold from your paychecks.
What will happen to your credit score if you do not manage your debt wisely?
c) Your credit score will go down
Investing is best for ________.
c) long-term financial goals, like paying for retirement
What do you need in order to fill out your 1040?
d) All of the above
When setting a budget, you can choose to make room for:
d) All of the above
Which of the following is a possible tax or deduction that they may show up on your paycheck?
d) All of the above
Which of the following statements is true about taxes?
d) All of the above
Why is using a budget beneficial?
d) All of the above
Which choice or choices best describes the purpose of an emergency fund?
d) All of the above are good reasons to have an emergency fund.
Secured loans are less costly than unsecured loans because _________.
d) All of these are true.
For most careers, which degree will most likely result in the highest lifetime earnings?
d) Bachelor's Degree
Which item is important to consider when selecting a credit card?
d) Both APR and fees
What is NOT a good way to prevent unnecessary spending?
d) Buy all of your wants at one time.
Which of the following statements is TRUE?
d) None of the above
What is a benefit of having a good credit score?
d) When you need a loan, you'll have more loan offers to pick from.
Which is NOT a positive reason for using a credit card to finance purchases?
d) You will get charged high interest.
What is NOT a benefit of having a good credit score?
d) You'll get accepted to better education institutions.
When looking for pre-approval on a car loan you should...
d) compare pre-approval offers and select the one that is best for you.
