Financial Literacy Semester Test

You owe $1000 on a credit card and make only the minimum payment each month. Which answer is correct?

1credit card companies love you when you only make minimum payments! Why? You're throwing money away by paying extra interest each month.

Recent studies show that _____% of all compulsive gamblers file bankruptcy after maxing out their credit cards and exhausting other credit options.

20.

Which of these credit scores represent the best credit rating?

750.

Which answer best describes a credit card?

A credit card is a very expensive way to borrow money.

What is the difference between a "not-for-profit" and a "for-profit"?

A not-for-profit is when the money that an organization earns doesn't go to stockholders, but goes to the organization to help it achieve its purposes.

In which cases does property insurance give you coverage?

All of the above.

What are some of the factors that would influence your insurance costs?

All of the above.

What are some smart actions you can take before applying to colleges or trade schools?

All of the above.

What do taxes pay for?

All of the above.

Which of the following do you think are true?

All of the above.

Which of the following expenses are usually "fixed?"

All of the above.

Which of these factors can impact your pay?

All of the above.

What should you do when you open a checking account?

All the above.

Which of the following types of companies or individuals will check your credit rating?

All the above.

_____ is one sign that a person has a gambling problem.

Always thinking about gambling.

You are hopelessly in debt, and you have no chance of paying your bills. You talked with a debt counseling service, and they you should file for the type of bankruptcy that will allow you to discharge your debts. Which type of bankruptcy should you file?

Chapter 7

Comprehensive insurance is when your insurance company usually _____.

Covers collision and physical damage.

The first step when you are in the market to buy a home:

Don't even think about looking at a place to buy until you understand your budget.

Female teens are more likely to have gambling problems than male teens. True or false?

False.

The only type of donation you can make to a not-for-profit is to donate money? True or false?

False.

This business is owned by doctors who provide free physical exams to people who cannot afford insurance. The business collects money from the government for each physical they provide. If they collect more money than they need to pay the bills and expenses, the excess cash goes to the doctors.

For-profit.

Which of these choices shows the smartest thinking?

I use my credit card very carefully and I always pay my credit card bill the minute I get it.

Select the correct example of a "benefits received" tax.

Income tax

Based on current trends in the gambling industry...

Internet gambling is rapidly growing.

What is the main difference between renting and leasing?

Leasing is month to month.

What is the best way to improve your credit?

Make all your payments on time, every time.

When applying for college loans you should:

Shop around for the best loan rates and pay-back options.

What is an insurance deductible?

The amount of damages you are liable for in the case of an accident.

Which answer applies to "Fine Print?"

The fine print can say the opposite of the big print.

With a debit or ATM card ,you are spending your own money. With a credit card you are always spending money. True or False?

True

If you have credit problems you are going to pay more in rent and security deposits. True or false?

True.

People in the age range 18-25 are one of the fastest growing groups to go bankrupt. True or false?

True.

With progressive tax, when you make more money, you pay a larger percent of that money in takes. True or false?

True.

What is a good definition of "house poor?"

You can't save any money; you need every just to par your mortgage and bills.

In regards to "compounding interest."

You earn interest on the money in your savings account. Then you earn interest on the interest.

What is a good reason to buy a house?

You have a good bit of money you can use as your down payment.

Which is the most accurate definitions of bankruptcy?

You legally declare you can't pay your bills.

Being charitable has many benefits. One of the most important benefits you receive when you donate money to a not-for-profit is:

You may be able to write off your donation on your taxes.

What is the easiest way to ruin your credit with your checking account?

You overdraw your account.

Who is responsible for filing your federal tax return?

You.