PERSONAL FINANCIAL LITERACY
FINAL EXAM AND CHOICES.
Which of the following categories on a bank statement shows checks you have written?
- Answers-debits
If you have your wages automatically deposited into your checking account, - -
Answers-your net income will appear as a credit on your statement.
If you exceed a category one month in your budget, you must- - Answers-take the
money out of another category that month.
Which of the following is the lowest priority in creating a personal budget? - Answers-
money for entertainment
Which of the following taxes are employers required to deduct from your earnings? -
Answers-federal taxes
Which of the following is an advantage of renting a home over owning one? - Answers-
Homeowners are responsible for repairs.
Approximately what percentage of Americans own their own homes? - Answers-about
64%
Which of the following is an example of a non-liquid investment? - Answers-a pension
Home ownership is cheaper than renting in the - - Answers-long term.
Which of the following is a correct statement about buying a car? - Answers-Loan terms
for cars can be as long as 72 months.
Which of the following is an accurate description of a liquid asset? - Answers-easily
converted into cash
Under what circumstances could a home owner lose money on a home? - Answers-
bought in a small town just before the town's top employer closes
Advantages of Credit Unions
Superior Service
More Credit Card Awards
Higher Interest Paid on Deposits
Lower Fees
Which of the items above should not be part of this list? - Answers-More Credit Card
Awards
, Service Fees
ATM fees
Overdraft Fees
The above list of fees applies to which type of bank account? - Answers-checking
People invest money to earn- - Answers-interest.
Which of the following best describes the miracle of compounding interest? - Answers-
Tiny amounts can grow to large sums given enough time.
What percent of Americans believe they will be able to retire by age 65? - Answers-
about 29%
Which of the following types of retirement accounts are more common in public sector
employment? - Answers-pensions
Retirement income is described as "fixed" income, which means - Answers-it doesn't
really go up.
Which expense poses the greatest risk for retirees? - Answers-medical expenses
Employer-sponsored retirement account where the employer will match the funds that
you invest. - Answers-401(k)
Investment account for retirement. Money placed into it can be deducted from your
taxable income. - Answers-Traditional IRA
Investment account for retirement. Government will not charge income tax on profits
taken out of the account. - Answers-Roth IRA
Safety program purchased for homes, cars, and other property to reimburse you in case
of damage or loss. - Answers-Insurance
Loan taken out to purchase a home. - Answers-Mortgage
A rating that determines whether or not an individual will be approved for loans, and
what interest rates they will pay. - Answers-Credit Score
Legal proceeding where a person attempts to have their debts cleared. Goes on their
credit score for ten years. - Answers-Bankruptcy
What is the purpose of a credit report? - Answers-to assess your credit worthiness
What is the most important factor in assigning a credit score? - Answers-payment
history
FINAL EXAM AND CHOICES.
Which of the following categories on a bank statement shows checks you have written?
- Answers-debits
If you have your wages automatically deposited into your checking account, - -
Answers-your net income will appear as a credit on your statement.
If you exceed a category one month in your budget, you must- - Answers-take the
money out of another category that month.
Which of the following is the lowest priority in creating a personal budget? - Answers-
money for entertainment
Which of the following taxes are employers required to deduct from your earnings? -
Answers-federal taxes
Which of the following is an advantage of renting a home over owning one? - Answers-
Homeowners are responsible for repairs.
Approximately what percentage of Americans own their own homes? - Answers-about
64%
Which of the following is an example of a non-liquid investment? - Answers-a pension
Home ownership is cheaper than renting in the - - Answers-long term.
Which of the following is a correct statement about buying a car? - Answers-Loan terms
for cars can be as long as 72 months.
Which of the following is an accurate description of a liquid asset? - Answers-easily
converted into cash
Under what circumstances could a home owner lose money on a home? - Answers-
bought in a small town just before the town's top employer closes
Advantages of Credit Unions
Superior Service
More Credit Card Awards
Higher Interest Paid on Deposits
Lower Fees
Which of the items above should not be part of this list? - Answers-More Credit Card
Awards
, Service Fees
ATM fees
Overdraft Fees
The above list of fees applies to which type of bank account? - Answers-checking
People invest money to earn- - Answers-interest.
Which of the following best describes the miracle of compounding interest? - Answers-
Tiny amounts can grow to large sums given enough time.
What percent of Americans believe they will be able to retire by age 65? - Answers-
about 29%
Which of the following types of retirement accounts are more common in public sector
employment? - Answers-pensions
Retirement income is described as "fixed" income, which means - Answers-it doesn't
really go up.
Which expense poses the greatest risk for retirees? - Answers-medical expenses
Employer-sponsored retirement account where the employer will match the funds that
you invest. - Answers-401(k)
Investment account for retirement. Money placed into it can be deducted from your
taxable income. - Answers-Traditional IRA
Investment account for retirement. Government will not charge income tax on profits
taken out of the account. - Answers-Roth IRA
Safety program purchased for homes, cars, and other property to reimburse you in case
of damage or loss. - Answers-Insurance
Loan taken out to purchase a home. - Answers-Mortgage
A rating that determines whether or not an individual will be approved for loans, and
what interest rates they will pay. - Answers-Credit Score
Legal proceeding where a person attempts to have their debts cleared. Goes on their
credit score for ten years. - Answers-Bankruptcy
What is the purpose of a credit report? - Answers-to assess your credit worthiness
What is the most important factor in assigning a credit score? - Answers-payment
history
