Financial Literacy Exam UPDATED Exam
Questions and CORRECT Answers
What should you do with your bank statements?
Select one or more:
a. Keep them in a safe file for at least a year before shredding
b. Review them to identify improvements you could make to your spending habits
c. Throw them away as soon as you have examined them
d. Shred them monthly
e. Review them to identify and budget for fees
f. Reconcile them with your records/register - CORRECT ANSWER - a, b, e, f
The best way to pay your credit card bill is to pay with:
Select one:
a. Cash
b. Any other credit card
c. A check from another credit card
d. A personal check - CORRECT ANSWER -d
What happens if you only pay the minimum on your credit card bill rather than paying the
balance in full?
Select one:
a. You pay the same amount for your debts, but it takes much longer
b. You pay less to cover your debts, but it takes much longer
c. You pay more to cover your debts due to interest, but it doesn't take as much time
d. You may more to cover your debts due to interest, and it takes much longer - CORRECT
ANSWER - d
Which of the following should you do if you find an error in your credit report?
, Select one:
a. Write the corrections directly on the credit report and fax it to the credit reporting agency
b. Write a letter to the credit report agency telling them which items are wrong and why
c. Pay a credit counselor for assistance in filing a complaint
d. Take no action until you receive a new credit report in three months - CORRECT
ANSWER - b
Which of the following will help you keep your personal information secure?
Select one:
a. Giving your personal information out to close family and friends only
b. Carrying your social security card around in your wallet
c. Installing spyware detection software on your computer
d. Writing your entire account number on credit card payments checks - CORRECT
ANSWER - c
Which of the following activities will result in a banking fee?
Select one or more:
a. Getting a cashier's check
b. Meeting with the bank's manager
c. Overdrawing your account
d. Cashing a large check at your bank - CORRECT ANSWER - a, c
Shauna wants to estimate what her net worth will be 5 years from now. Which of the following
tasks is/are involved in calculating Shauna's future net worth?
Select one or more:
a. Estimate her projected total liabilities, including all debts and loans
b. Estimate her projected total assets, including all bank accounts, property, and investments
c. Subtract her projected liabilities from her projected assets
Questions and CORRECT Answers
What should you do with your bank statements?
Select one or more:
a. Keep them in a safe file for at least a year before shredding
b. Review them to identify improvements you could make to your spending habits
c. Throw them away as soon as you have examined them
d. Shred them monthly
e. Review them to identify and budget for fees
f. Reconcile them with your records/register - CORRECT ANSWER - a, b, e, f
The best way to pay your credit card bill is to pay with:
Select one:
a. Cash
b. Any other credit card
c. A check from another credit card
d. A personal check - CORRECT ANSWER -d
What happens if you only pay the minimum on your credit card bill rather than paying the
balance in full?
Select one:
a. You pay the same amount for your debts, but it takes much longer
b. You pay less to cover your debts, but it takes much longer
c. You pay more to cover your debts due to interest, but it doesn't take as much time
d. You may more to cover your debts due to interest, and it takes much longer - CORRECT
ANSWER - d
Which of the following should you do if you find an error in your credit report?
, Select one:
a. Write the corrections directly on the credit report and fax it to the credit reporting agency
b. Write a letter to the credit report agency telling them which items are wrong and why
c. Pay a credit counselor for assistance in filing a complaint
d. Take no action until you receive a new credit report in three months - CORRECT
ANSWER - b
Which of the following will help you keep your personal information secure?
Select one:
a. Giving your personal information out to close family and friends only
b. Carrying your social security card around in your wallet
c. Installing spyware detection software on your computer
d. Writing your entire account number on credit card payments checks - CORRECT
ANSWER - c
Which of the following activities will result in a banking fee?
Select one or more:
a. Getting a cashier's check
b. Meeting with the bank's manager
c. Overdrawing your account
d. Cashing a large check at your bank - CORRECT ANSWER - a, c
Shauna wants to estimate what her net worth will be 5 years from now. Which of the following
tasks is/are involved in calculating Shauna's future net worth?
Select one or more:
a. Estimate her projected total liabilities, including all debts and loans
b. Estimate her projected total assets, including all bank accounts, property, and investments
c. Subtract her projected liabilities from her projected assets
