FINANCIAL LITERACY QUESTIONS AND
ANSWERS.
TRUE or FALSE: You may be charged multiple fees for using an ATM that is not
associated with your bank. - Answers-True
Why is it important to you to establish credit history and become "credit-worthy"? -
Answers-To get a lower interest rate when you borrow money
What should you do with your bank statements? - Answers-- Keep them in a safe file for
at least a year before shredding
- Reconcile them with your records/register
-Review them to identify improvements you could make to your spending habits
- Review them to identify and budget for fees
Why would someone get a joint checking account? - Answers-To share the account with
someone else
Which items can help you when you categorize your expenses? - Answers-- Checkbook
register
-Online checking account statement
- Store receipts
- Monthly credit card statements
Why would someone want to keep track of his or her net cash flow? - Answers-- to
identify opportunities to save
-To make sure income is larger than expenses
What is the MOST IMPORTANT thing can you do now to improve your net worth 10
years from now? - Answers-- Regularly deposit money into a savings or investment
account and don't take it out
TRUE or FALSE: Investing money always involves some risk. - Answers-True
When paying your bills, it is most financially beneficial to make larger payments to: -
Answers-The debt with the highest interest rate
Which of the following should you include when calculating your liabilities? - Answers-
Money you owe
Which of the following contribute(s) to your credit history, and therefore to your credit
score? - Answers-- Credit Cards
- Student Loans
- Mortgages
, Which of the following statements is/are true of U.S. Personal Income Taxes? -
Answers-- Almost all income earners must pay some tax
- Taxes are based on income level and marital status
-Taxpayers receive tax credits for some government-approved expenses
Which of the following activities will result in a banking fee? - Answers-- Getting a
cashiers check
-Overdrawing your account
It is important to reconcile your checking account every month because - Answers-- It
helps you find errors you may have made in your register
-You may discover fees being charged to your account that you didn't know about
- You may find your bank has made an error
-You may see opportunities to improve your budgeting
-It may alert you that your financial identity has been stolen
Which institutions may access your credit score? - Answers-- Mortgage lenders
-Credit card issuers
-Landlords
- Prospective employers
-Background investigators
Which of the following is true about SALES TAX? - Answers-It makes things more
expensive for you to buy
Amir wants to open a checking account that will pay interest. What is typically true of
interest-bearing checking accounts? - Answers-They have higher minimum balance
requirements
It is important to know the minimum and maximum amounts of each variable expense
because _________________. - Answers-- Then you know the "worst case" for that
expense
- Then you can plan for the variances over a year-long period
- Then an increase in the expense can still be accommodated in your spending plan
-Then you can use the average as the usual amount in your spending plan
Which purchase will cause the buyer to pay ongoing expenses? - Answers-- A
cellphone
- A laptop
Which of the following actions might TEMPORARILY negatively affect your credit
score? - Answers--Opening another credit card account
-Getting a loan
- Missing a credit card payment
- Paying a credit card bill after the due date
ANSWERS.
TRUE or FALSE: You may be charged multiple fees for using an ATM that is not
associated with your bank. - Answers-True
Why is it important to you to establish credit history and become "credit-worthy"? -
Answers-To get a lower interest rate when you borrow money
What should you do with your bank statements? - Answers-- Keep them in a safe file for
at least a year before shredding
- Reconcile them with your records/register
-Review them to identify improvements you could make to your spending habits
- Review them to identify and budget for fees
Why would someone get a joint checking account? - Answers-To share the account with
someone else
Which items can help you when you categorize your expenses? - Answers-- Checkbook
register
-Online checking account statement
- Store receipts
- Monthly credit card statements
Why would someone want to keep track of his or her net cash flow? - Answers-- to
identify opportunities to save
-To make sure income is larger than expenses
What is the MOST IMPORTANT thing can you do now to improve your net worth 10
years from now? - Answers-- Regularly deposit money into a savings or investment
account and don't take it out
TRUE or FALSE: Investing money always involves some risk. - Answers-True
When paying your bills, it is most financially beneficial to make larger payments to: -
Answers-The debt with the highest interest rate
Which of the following should you include when calculating your liabilities? - Answers-
Money you owe
Which of the following contribute(s) to your credit history, and therefore to your credit
score? - Answers-- Credit Cards
- Student Loans
- Mortgages
, Which of the following statements is/are true of U.S. Personal Income Taxes? -
Answers-- Almost all income earners must pay some tax
- Taxes are based on income level and marital status
-Taxpayers receive tax credits for some government-approved expenses
Which of the following activities will result in a banking fee? - Answers-- Getting a
cashiers check
-Overdrawing your account
It is important to reconcile your checking account every month because - Answers-- It
helps you find errors you may have made in your register
-You may discover fees being charged to your account that you didn't know about
- You may find your bank has made an error
-You may see opportunities to improve your budgeting
-It may alert you that your financial identity has been stolen
Which institutions may access your credit score? - Answers-- Mortgage lenders
-Credit card issuers
-Landlords
- Prospective employers
-Background investigators
Which of the following is true about SALES TAX? - Answers-It makes things more
expensive for you to buy
Amir wants to open a checking account that will pay interest. What is typically true of
interest-bearing checking accounts? - Answers-They have higher minimum balance
requirements
It is important to know the minimum and maximum amounts of each variable expense
because _________________. - Answers-- Then you know the "worst case" for that
expense
- Then you can plan for the variances over a year-long period
- Then an increase in the expense can still be accommodated in your spending plan
-Then you can use the average as the usual amount in your spending plan
Which purchase will cause the buyer to pay ongoing expenses? - Answers-- A
cellphone
- A laptop
Which of the following actions might TEMPORARILY negatively affect your credit
score? - Answers--Opening another credit card account
-Getting a loan
- Missing a credit card payment
- Paying a credit card bill after the due date
