Economics Personal Financial Literacy (EverFi modules 1-7)

Using a loan could help with the purchase of which of the following? a) A new television b) A dream wedding c) A house d) Airline tickets to your dream vacation

A house

Which of the following is NOT a common feature of a financial institution? a) Direct deposit b) Paper checks c) Access to investment advice d) Checking and savings accounts

Access to investment advice

Which item is important to consider when selecting a credit card? a) Annual Percentage Rate (APR) b) Fees c) The look of the credit card d) Both APR and fees

Both APR and fees

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

None of the above

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. b) Upgrade your phone to the latest model. c) Buy new track shoes because they're in style. d) Purchase concert tickets to see your favorite artist.

Repair your laptop that you use for homework

Which of the following statements about savings accounts is FALSE? a) Savings accounts don't usually pay interest on the money you deposit. b) Savings accounts limit the number of withdrawals that can be made each month. c) Savings accounts may require you to maintain a minimum balance to avoid paying a fee. d) Savings accounts are best used to store money for longer-term goals.

Savings accounts don't usually pay interest on the money you deposit

What is net pay? a) The amount of pay earned for the total number of hours worked. b) The amount of money you're paid after all taxes and deductions are taken out of your paycheck. c) The amount of money you're paid before all taxes and deductions are taken out of your paycheck. d) Your gross pay plus any bonuses.

The amount of money you're paid after all taxes and deductions are taken out of your paycheck

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

long-term financial goals, like paying for retirement

A stock is ________. a) A type of debt investment that acts like a loan. b) A type of investment that invests in a mix of different types of investments. c) A share of ownership in a company. d) A type of savings account that pays interest based on current interest rates in the money market.

A share of ownership in a company

A mutual fund is _________. a) A type of debt investment that acts like a loan. b) A share of ownership in a company. c) A type of investment that invests in a mix of different types of investments. d) 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

Which choice or choices best describes the purpose of an emergency fund? a) An emergency fund prepares you for unexpected expenses. b) An emergency fund keeps you from borrowing money from friends and family. c) An emergency fund removes the worry about expenses not in the budget. d) All of the above are good reasons to have an emergency fund.

All of the above (An emergency fund prepares you for unexpected expenses, An emergency fund keeps you from borrowing money from friends and family, An emergency fund removes the worry about expenses not in the budget)

Which of the following is a possible tax or deduction that they may show up on your paycheck? a) Federal income tax b) Contributions to retirement savings c) FICA d) All of the above

All of the above (Federal income tax, Contributions to retirement savings, FICA)

When setting a budget, you can choose to make room for: a) Financial goals b) Entertainment expenses c) Charitable donations d) All of the above

All of the above (Financial goals, Entertainment expenses, Charitable donations)

Why is using a budget beneficial? a) Helps to keep track of the money you receive b) Helps to prioritize your spending c) Helps reach short- and long-term financial goals d) All of the above

All of the above (Helps to keep track of the money you receive, Helps to prioritize your spending, Helps reach short- and long-term financial goals)

Which of the following statements is true about taxes? a) Taxes pay for schools and government departments. b) Taxes pay for roads and emergency services. c) Taxes are often used at the federal, state, and local levels. d) All of the above

All of the above (Taxes pay for schools and government departments, Taxes pay for roads and emergency services, Taxes are often used at the federal, state, and local levels)

What do you need in order to fill out your 1040? a) Your W-2 b) Your routing and bank account number c) A record of any other supplemental income d) All of the above

All of the above (Your W-2, Your routing and bank account number, A record of any other supplemental income)

Secured loans are less costly than unsecured loans because _________. a) They usually have a lower interest rate. b) They require collateral. c) They are less risky for the financial institution. d) All of these are true.

All of these are true (They usually have a lower interest rate, They require collateral, They are less risky for the financial institution)

For most careers, which degree will most likely result in the highest lifetime earnings? a) High school degree b) Associate's degree c) Licensure or certification d) Bachelor's Degree

Bachelor's Degree

What is NOT a good way to prevent unnecessary spending? a) Cancel any unused recurring expenses like subscription boxes. b) Use an app to find the cheapest gas station. c) Make your own food more often. d) Buy all of your wants at one time.

Buy all of your wants at one time

Which of the following financial institutions typically have the highest fees? a) Check cashing and payday loan companies b) Credit unions c) Brick-and-mortar banks d) Internet banks

Check cashing and payday loan companies

Savings accounts typically offer more interest than what type of account? a) Retirement account b) Money market account c) Checking account d) Certificate of deposit

Checking account

Which type of bank account is best for everyday transactions? a) Checking Account b) Savings Account c) Money Market Account d) Certificate of Deposit

Checking account

Which type of bank account typically offers the least (if any) interest? a) Checking account b) Savings account c) Money market account d) Certificate of deposit

Checking account

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____. a) Choosing a financial advisor b) Choosing a credit card c) Looking at your credit score d) Selecting a financial institution

Choosing a credit card

This helps you prepare for unexpected expenses. a) Credit cards b) Checking account c) Emergency fund d) None of the above

Emergency fund

When considering a job offer, you should only consider how much you're being paid before you accept the offer. a) TRUE b) FALSE

FALSE (When considering a job offer, you should NOT only consider how much you're being paid before you accept the offer)

Which of the following is NOT considered part of your benefits package available from your employer? a) Free technology equipment b) Disability Insurance c) Paid time off d) Healthcare insurance

Free technology equipment

Which of the following should NOT be considered when setting a current budget? a) Your financial goals b) Future income c) Needs and wants d) Savings

Future income

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. b) When to file your tax return. c) How much federal income tax your employer will withhold from your paycheck. d) How often your employer will be paying you.

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

Which of the following statements about investing is TRUE? a) On average, putting money in a savings account earns a higher return than investing money in the stock market. b) Investing is riskier than putting money in a savings account. c) Investing is best for short-term financial goals. d) Investing is a guaranteed way to make money.

Investing is riskier than putting money in a savings account

Which savings account will earn you the most money? a) One that compounds interest daily. b) One that compounds interest monthly. c) One that earns simple interest daily. d) One that earns simple interest monthly.

One that compounds interest daily

Which is a positive reason for using a credit card to finance purchases? a) You will get charged high interest. b) Paying it off on time can help build your credit history. c) You won't have to budget for your credit card expenses. d) You'll be able to spend a lot of money without paying it back.

Paying it off on time can help build your credit history

Recommended methods to protect yourself from identity theft and fraud include_______. a) Placing a credit freeze with the credit bureaus. b) Monitoring your credit report every 2-3 years. c) Allowing inaccurate information to be removed from your report after 7 years. d) Utilizing a specialty locking or monitoring service.

Placing a credit freeze with the credit bureaus

What is the purpose of the W-4 form? a) To file your tax return. b) To determine how much your gross pay should be. c) To inform your employer of how much federal income tax to withhold from your paychecks. d) To avoid paying income taxes on your paychecks.

To inform your employer of how much federal income tax to withhold from your paychecks

When are loans a good option to use? a) To pay for airline tickets to your dream vacation b) When paying for higher education c) To buy that new television d) For a dream wedding

When paying for higher education

What is a benefit of having a good credit score? a) Loan sharks will be less likely to bother you. b) You'll get accepted to better education institutions. c) You'll get more job offers. d) When you need a loan, you'll have more loan offers to pick from.

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? a) Paying it off on time can help build your credit history. b) You can get rewards and discounts. c) You can buy something you need now and pay for it after pay day. d) You will get charged high interest.

You will get charged high interest

What is NOT a benefit of having a good credit score? a) When you need a loan, you'll have more loan offers to pick from. b) You'll get better interest rates on your loans. c) It will be easier to get an apartment. d) You'll get accepted to better education institutions.

You'll get accepted to better education institutions

All of the following are benefits to paying the full balance on your credit card each month EXCEPT: a) Your credit score can decrease. b) You won't have to pay interest. c) You won't have to pay any late fees. d) Your credit score can increase.

Your credit score can decrease

What will happen to your credit score if you do not manage your debt wisely? a) You won't be able to track your credit score b) Your credit score will go up c) Your credit score will go down d) It will not affect your credit score

Your credit score will go down

46) Credit cards can help _____________ when paid off on time regularly. a) build credit history b) act as a form of identification c) lower your debt d) balance your checking account

build credit history

When looking for pre-approval on a car loan you should... a) get a loan from the car dealer directly to keep things simple. b) get a loan from the car dealer directly to keep things simple. c) select the loan that has the longest repayment period. d) compare pre-approval offers and select the one that is best for you.

compare pre-approval offers and select the one that is best for you

The ___________ is a flexible market that allows you to work short-term, independent jobs. a) gig economy b) labor market c) employee workforce d) sharing economy

gig economy

To maintain a good credit score you must ______. a) manage your debt wisely. b) check your credit score every week. c) have credit monitoring. d) have many open credit cards.

manage your debt wisely

Going directly to a car dealer for a loan to keep things simple is a... a) great idea because they want you to get the car so it'll be the best offer. b) not great because they typically offer higher interest rates. c) great idea because you don't have to deal with another lender. d) not great because car dealers don't offer loans.

not great because they typically offer higher interest rates

Paying only the minimum balance on your credit card can lead to... a) an increase in your credit score. b) paying more interest. c) late fees. d) All of the above

paying more interest