POST-SIMULATION KNOWLEDGE
ASSESSMENT EXAM QUESTIONS
AND ANSWERS
Which is true of overdraft protection (ODP)? - Correct Answers -It is a free service
available for most accounts.
What is the highest credit card utilization you should have if trying to build your credit
score? - Correct Answers -75%
What is the purpose of a 401(k)? - Correct Answers -It is used to determine your
withholding for income taxes.
What is the grace period on a bill? - Correct Answers -The time between when a
payment is made and when it is received.
What is an insurance deductible? - Correct Answers -The amount the insured must pay
before the insurer pays.
What is the effect of taking a tax deduction when filing a federal tax return? - Correct
Answers -It will decrease the withholding.
Which is an advantage of using a spreadsheet to record and track recurring bills and
income? - Correct Answers -It allows you to project future cash flow.
If you are a full-time employee, what insurance will likely be paid for through payroll
deduction? - Correct Answers -homeowners
Why is it often best to pay off credit card debt before other types of consumer debt or
student loans? - Correct Answers -Credit card debt usually has a higher interest rate
than other consumer debt or student loans.
Which is the best way to avoid overdraft fees for your checking account? - Correct
Answers -Keep additional money in your savings account so that any overdrafts can be
paid.
Which is a drawback of being a salaried employee? - Correct Answers -Work weeks
might exceed 40 hours without additional pay.
ASSESSMENT EXAM QUESTIONS
AND ANSWERS
Which is true of overdraft protection (ODP)? - Correct Answers -It is a free service
available for most accounts.
What is the highest credit card utilization you should have if trying to build your credit
score? - Correct Answers -75%
What is the purpose of a 401(k)? - Correct Answers -It is used to determine your
withholding for income taxes.
What is the grace period on a bill? - Correct Answers -The time between when a
payment is made and when it is received.
What is an insurance deductible? - Correct Answers -The amount the insured must pay
before the insurer pays.
What is the effect of taking a tax deduction when filing a federal tax return? - Correct
Answers -It will decrease the withholding.
Which is an advantage of using a spreadsheet to record and track recurring bills and
income? - Correct Answers -It allows you to project future cash flow.
If you are a full-time employee, what insurance will likely be paid for through payroll
deduction? - Correct Answers -homeowners
Why is it often best to pay off credit card debt before other types of consumer debt or
student loans? - Correct Answers -Credit card debt usually has a higher interest rate
than other consumer debt or student loans.
Which is the best way to avoid overdraft fees for your checking account? - Correct
Answers -Keep additional money in your savings account so that any overdrafts can be
paid.
Which is a drawback of being a salaried employee? - Correct Answers -Work weeks
might exceed 40 hours without additional pay.
