Banking
Which represents the BEST time to start saving for your retirement?
A. As soon as you have your first full-time job
B. Right after you pay off your student loans
C. Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
D. At age 45, so you have exactly 20 years until retirement
A. As soon as you have your first full-time job
A key difference between saving and investing is
A.Savings is for everyone, investing is for the wealthy
B.Your money is insured when investing, it is not in savings
C. Investing has a guaranteed return, savings does not
D. Saving is emergencies & goals, investing is long-term wealth
D. Saving is emergencies & goals, investing is long-term wealth
Shira is trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which statement is true?
A. All 3 cards are completely different
B. Debit cards and prepaid debit cards are the same
C. Debit cards and credit cards are the same
D. All 3 cards are completely the same
A. All 3 cards are completely different
In order to qualify for financial aid, which application must you submit?
A. SAVE
B. PLUS
C. FAFSA
D. SAI
C. FAFSA
What is the main purpose of insurance?
A. To help you save money for fun activities
B. To protect you from losing a lot of money when something unexpected happens
C. To guarantee that accidents never happen
D. To avoid paying any money during emergencies
B. To protect you from losing a lot of money when something unexpected happens
What are taxes?
A. Money people save for personal emergencies
B. Money people and businesses are required to pay to the government
C. Optional donations to charities
D. Fees paid only when you get a new job
B. Money people and businesses are required to pay to the government
In Finding Nemo, what kind of fish is Dory?
A. Clownfish
B. Blue Tang
C. Angelfish
D. Yellow Fin
B. Blue Tang
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
A. Days
B. Weeks
C. Months
D. Years
C. Months
Which would be considered the highest risk investment type?
A. Stock
B. Mutual Fund
C. Bond
D. Money Market Account
A. Stock
Which of the following statements comparing credit and debit cards is TRUE?
A. Far more businesses accept credit cards than debit cards
B. Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard
C. Credit card companies provide you with a monthly statement, while debit cards do not
D. With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later
D. With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later
Which of the formulas below correctly calculates net price?
A. Sticker price - student loans = net price
B. Grants and scholarships + student loans = net price
C. Sticker price - grants and scholarships = net price
D. Sticker price + grants and scholarships = net price
C. Sticker price - grants and scholarships = net price
What is the small amount of money you pay monthly to an insurance company called?
A. Deductible
B. Fee
C. Premium
D. Coverage
C. Premium
What do federal taxes mainly pay for?
A. Local school districts and city parks
B. Military defense, Social Security, and national programs
C. Neighborhood trash pickup and local roads
D. Only healthcare for individual states
B. Military defense, Social Security, and national programs
In The Dark Knight, what is the Joker’s famous line before detonating the hospital?
A. “And here…we…go.”
B. “Let the games begin.”
C. “Why so serious?”
D. “You get what you deserve.”
A. “And here…we…go.”
Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
A. Needs, wants, savings
B. Savings, needs, wants
C. Needs, savings, wants
D. Wants, needs, savings
A. Needs, wants, savings
A _____ is a loan given to an organization while a _______ is partial ownership in the company.
A. bond, ETF
B. stock, bond
C. bond, stock
D. ETF, bond
C. bond, stock
Which of the following is most likely to represent a fixed rate, secured debt?
A. A student loan
B. A credit card
C. A prepaid debit card
D. An auto loan
D. An auto loan
During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues…
A. Grace period
B. Grants and scholarships
C. FAFSA
D. Forbearance
D. Forbearance
Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?
A. $0
B. $200
C. $800
D. $1,000
A. $0
Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?
a. Military and Education
b. Health and Veterans’ Benefits
c. Housing and Transportation
d. Social Security and Medicare
d. Social Security and Medicare
Which musician was known as the “King of Pop”?
A. Elvis Presley
B. Prince
C. Michael Jackson
D. Freddie Mercury
C. Michael Jackson
Fill in the blanks: If inflation is _____________ your savings account interest rate then you will be ______________ purchasing power.
A. Higher than, gaining
B. Higher than, losing
C. Equal to, gaining
D. Lower than, losing
B. Higher than, losing
Which retirement account allows tax-free withdrawals in retirement?
A. Traditional IRA
B. Roth IRA
C. Pension
D. FICA
B. Roth IRA
Which of these credit payback strategies would lead to the HIGHEST overall cost?
A. Paying off your credit card bill in full every month
B. Paying 20% of your credit card balance every month on time
C. Making the minimum payment (3% of your credit card balance) every month on time
D. Making the minimum payment (3% of your credit card balance) every month with an occasional late payment
D. Making the minimum payment (3% of your credit card balance) every month with an occasional late payment
Which repayment option does not accrue interest while your required payments are paused?
A. Consolidation
B. Deferment
C. Refinancing
D. Forbearance
B. Deferment
Which of the following insurance coverage options would be the lowest priority for a typical single person, with no children, 1-2 years out of high school?
A. Health Insurance
B. Auto Insurance (if they have a car)
C. Life Insurance
D. Renter's Insurance (if they are renting an apartment)
C. Life Insurance
ou recently accepted a new job and your first day is next week. What form will you have to complete before you receive your first paycheck?
a. W-2
b. 1040
c. 1099
d. W-4
d. W-4
What is the name of the longest river in the world?
A. Amazon River
B. Mississippi River
C. Nile River
D. Yangtze River
C. Nile River
FDIC Insurance is...
A. Optional coverage consumers can purchase so that their bank deposits remain safe
B. Insurance bank branches can buy to protect their business against fraud and scams
C. Required if you want to do online or mobile banking
D. Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
D. Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
How does investing in the stock market differ from putting money in a savings account at a bank?
A. Investing is always a less risky option than saving
B. Investing is best for short-term situations like emergency funds; saving is best for the long-term
C. Investing typically earns between 1-2% while saving generally earns between 5-7%
D. Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies
D. Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies
Why does the amount of INTEREST you owe on a loan decrease over time?
A. The institution trusts you more, so they lower the interest
B. With each payment, principal increases; so interest lowers
C. Banks are legally required to lower interest rates over time
D. With each payment, principal decreases, so interest lowers
D. With each payment, principal decreases, so interest lowers
In what order should you accept different types of financial aid?
A. Work-study, scholarships, federal loans, private loans
B. Private loans, scholarships, work-study, federal loans
C. Scholarships, work-study, federal loans, private loans
D. Scholarships, work-study, private loans, federal loans
C. Scholarships, work-study, federal loans, private loans
Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?
A. You can only see doctors who are also employees of the same company
B. Your health insurance premiums will be paid directly from your paycheck, pre-tax
C. Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care
D. You can remain on that health insurance plan even if you switch jobs
B. Your health insurance premiums will be paid directly from your paycheck, pre-tax
Tim is 16 years old, a high school student, and lives with his parents. He earned $5,200 at his part-time job. Can this person be claimed as a dependent?
a. YES
b. NO
a. YES
Which actor voiced Darth Vader in the original Star Wars trilogy?
A. Harrison Ford
B. James Earl Jones
C. Mark Hamill
D. Alec Guinness
B. James Earl Jones