Personal finance modules 1-5

Interest is:A. A charge for lending money to a bankB. The amount owed for borrowing money C. The amount added into your savings when opening a bank accountD. A charge for the convenience of accessing money stored in your bank account B
Jade is deciding between savings accounts at her bank. She has four options based on how frequently interés compounds. Which should she choose if she wants the best rate of return on her interest.A. Daily compounding B. Monthly compoundingC. Semi-annual compoundingD. Annual compounding A
What is the typical relationship between time and interest rate?A. Longer time period usually equals higher interest ratesB. Shorter time period usually equals higher interest ratesC. Longer time periods usually have no effect on interest ratesD. Shorter time periods usually have no effect on interest rates A
To earn as much interest as possible, you should open a savings account that earns ________ interest has the ________ interest rate.A. Compound; lowestB. Compound; highest C. Simple; lowestD. Simple; highest B
Morgan just opened a savings account and wants to maximize the amount she earns. Which of the oink following actions would enable her to earn MORE interest?A. Selection an account with a high interest rateB. Leaving her money in the account for a long period of timeC. Transferring money into her checking account each monthD. Both A & B D
Circle all that apply. Which of the following are examples of types of saving vehicles?A. Certificate of deposit (CD)B. Money market accountC. Checking accountD. Savings account A B D
Which of the following is generally true about savings vehicles?A. Savings vehicles are only useful for long-term investments B. People should evaluate different forms of savings vehicles based on their needsC. Savings vehicles are never insuredD. All of the above B
Which of the following savings vehicles usually requires a high minimum balance?A. Simple savings accountB. Certificate of Deposit (CD)C. Checking accountD. All of the above B
Which of the following accounts will give you the LEAST access to your money?A. Simple savings account B. Certificate of Deposit (CD)C. Checking accountD. Cash B
Jazzmyn earns $250 per month. Which statement below is most correct?A. Jazzmyn makes more than she spendsB. Jazzmyn spends more than she makesC. Jazzmyn should save more in the futureD. Jazzmyn should stop saving in the future B
Which of the following is NOT one of the responsibilities of the Federal Reserve?A. Supervising the Reserve banksB. Maintains a stable banking system C. Setting the nation’s monetary policy D. Establishing the federal budget D
Which type of financial institution typically has membership requirements?A. Credit unionB. Online commercial bankC. Commercial bankD. Federal reserve bank A
Which type of account is typically the MOST liquid?A. Checking accountB. Savings accountC. Certificate of deposit D. Exchange traded fund A
Which of the following is a primary responsibility of the Federal Reserve Bank?A. Establish monetary policyB. Write monetary lawsC. Collect taxes D. Print money A
Savings accounts usually offer ______ interest rates than checking accounts. It is ________ to access your money in a savings account than in a checking account.A. Lower; harderB. Lowers easierC. Higher; harderD. Higher; easier C
Which type of account will typically have the highest interest rate?.A. Checking accountB. Savings accountC. Money market accountD. Certificate of deposit (CD) D
The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:A. Board of Governors B. United States MintC. Department of the Treasury D. Secretary of State A
Which of the following fees would likely be the highest?A. Overdraft feeB. Account transfer feeC. Monthly service feeD. ATM fee A
Which of the following is a unique feature of credit unions?A. Credit unions are typically owned and run by their membersB. Credit unions limit membership to certain people and groups C. Credit unions offer a wide variety of banking services D. Both A & B D
The first set of numbers (74894934) on the ce=heck represents the: A. Bank account numberB. Check numberC. Bank routing numberD. Member number C
The set of numbers (101) on the top right of the check represents the:A. Check numberB. Bank account numberC. Member numberD. The bank routing number A
Which of the following payment types require you to pay upfront?A. Money orderB. Cashier’s checkC. Pre-paid cardD. All of the above D
Which of the following is true?A. Checks and debit cards both withdraw money directly from a bank accountB. Checks are the most widely accepted form of paymentC. Debit cards often have a higher interest rate than credit cardsd. Debit cards offer the highest level of fraud protection A
Which of the following statements comparing debit cards to credit cards is TRUE?A. Debit cards allow you to draw funds directly from your checking accountB. Debit cards typically offer greater fraud protection than credit cards C. Debit cards never require a signature to finalize a purchase like credit cardsD. Debit cards charge higher interest rates on purchases than credit cards A
Which of the following is NOT true of credit cards?A. They offer the highest level of fraud protectionB. They are the best payment type to use when trying to stick to a budgetC. You can be charged a fee if you are late making a monthly paymentD. Some offer rewards, like cash back or airline miles B
Which payment method typically charges the highest interest rates?A. Credit cardsB. Cashier’s checksC. Pre-paid cardsD. Payday loans D
Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month?A. Late feeB. Annual membership feeC. Balance transfer feeD. Annual percentage rate D
Which payment type can help you stick to a budget?A. Credit cardsB. Debit cardsC. Payday loans D. Cash advances B
Which of the following will happen if you miss a monthly card payment?A. You will be charged a latte feeB. You lose rewards pointsC. Your APR will increase the next monthD. Both A&B A
If you are planning to carry a large balance on your credit cards, which of the following credit card features should you look for?A. Low APRB. Low balance transfer feeC. Lots of credit card rewardsD. A large credit limit A
What is a credit limit?A. The required payment to your credit card companyB. The amount of interest you are charged each monthC. The maximum amount you can chard each billing cycleD. How many credit cards you can own C
The annual percentage rate on a credit card determines A. The amount of interest you are charged on credit card purchasesB. The amount your credit limit can go up within a yearC. How many credit cards you can nowD. None of the above A
What is the customary APR on purchases after the initial 12 months?A. 36.5%B. 27.357%C. 18.25%D. 5.65% C
What is the annual fee for this card?A. $0B. $5C. $29d. $39 A
Which of the following statements about credit scores is TRUE?A. Credit scores reflect how likely individuals are to repay their debtsB. Credit scores range from the low 300’s to the mid 800’sC. Each person has three credit scoresD. All of the above D
Which of the following is NOT true of credit scores?A. Only the credit bureaus truly know credit scores are calculated B. Having a high score means you are more likely to repay debtsC. The more money you make, the higher your credit scoreD. Your credit score can impact the care or home you can buy C
Having a good credit score is important because:A. It can impact your ability to get a driver’s licenseB. It can impact your ability to be approved for bank loansC. It can impact how much you will have to pay the government in taxesD. It can impact how much you will have to pay for college B
Which action can hurt your credit score? I. Paying your phone bill late II. Taking the bus to work. III. Making out several credit cards. IV. Using the internet to pay your billsA. IB. I and IIc. I and IIID. III and IV C
All of the following make up the big three credit reporting agencies EXCEPT A. EquifaxB. TransUnionC. Experian D. Federal reserve D
Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car?A. Open a savings account at the local bankB. Pay off his credit card balance each monthC. Test drive several cars before deciding which to buyD. All are things he should do to increase or maintain his credit score B
Which of the following actions can NEGATIVELY impact your credit score?A. You disputed an item on your credit reportB. You forgot to pay the cable billC. You pay all your bills in cashD. You use a small amount of your available credit B
Which is true of someone with a low credit score?A. They probably make on time paymentsB. They may not be able to rent the apartment they wantC. They are mor likely to miss a payment than someone with a high credit scoreD. All of the above B or c
Which of the following actions has NO impact on your credit score?A. You inquire about a credit card chargeB. You use a large percentage on your credit limit C. You opened several new credit cards last weekD. You send in your credit card payment a couple days late A
What can you do to make sure you have a healthy credit report?A. Review your credit report each yearB. Make sure everything on your credit report is correct C. Dispute any errors you find on your report with your credit agencyD. All of the above D
Which of the following MOST influences your credit score?A. Types of credit usedB. Payment history C. Length of credit history D. Amount owed B
Which best explains what a credit score represents?A. A number showing how likely you are to have more than one credit cardB. A numerical rating that expresses how likely you are yo repay your debtsC. A numerical rating that shows how much money you have in your bank accountD. A number expressing your yearly income B
Which of the following actions would improve your credit score?A. Closing out old credit cardsB. Paying off your credit card billC. Using a large portion of your credit limit D. Opening a new savings account B
Your credit history is tracked by all of the following EXCEPTA. EquifaxB. Federal reserveC. ExperianD. Trans union B
(Check all that apply) good credit is usually required for which of the following 1. Buying a new car2. Purchasing a home3. Getting a credit card4. Adopting a pet5. Buying new furniture 6. Renting an aparentement 1 2 6
Which of the following could potentially damage your credit score?1. Paying a credit card bill late2. Opening a checking account3. Paying a roommate back4. Opening 3 credit cards at once5. Paying a speeding ticket 6. Ignoring a late payment notice 1 4 6
The return on investment (ROÍ) from education is typically the highest forA. A high school graduate B. A college applicant C. Someone with a 2-year (associate) degreeD. Someone with a 4-year (bachelor’s) degree D
Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.A. You have the potential to earn more money in the future when you continue your education past high school.B. You have the potential to earn less money in the future when you continue your education past college.C. Higher education is not an investment but a debt.D. Earning potential is not affected by education level. A
Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first?a. Fill out her FAFSA formb. Start applying for grants & scholarshipsc. Look for school clubs & organizations she’s interested ind. Sign up for college admission exams C
Which of the following types of financial aid do not require you to pay the money back?a. Grantsb. Private Loansc. Federal Loansd. All of the above A
Which of the following loans will typically offer the lowest interest rate?a. Payday loanb. Federal Student Loan c. Private Loand. Both A & B B
Which type of loan requires that you pay the interest accumulated during college?a. Pell Grantb. Subsidized federal loanc. Unsubsidized federal loan d. University scholarship C
When referring to student loans, what is a grace period?a. The time period between graduating college and starting your first job when you don’t have to pay back student loansb. The period after graduating or leaving school before you must begin paying back student loansc. The amount of time you have to pay back your entire student loan amount d. None of the above B
Which of the following statements about the Federal Application for Student Aid (FAFSA) is TRUE?a. You can only apply online.b. The earliest you can submit your FAFSA application is December 1st.c. The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.d. Both A & B are true. C
Which loan type requires you to make loan payments while you’re attending school?a. Unsubsidized federal loanb. Subsidized federal loanc. Pell Grantd. None of the above D
Which of the following statements about federal student loans is TRUE?A. The interest rate on your loan will be fixed over timeB. The interest rates on federal loans and private loans are similar C. You can only get federal student loans if you demonstrate financial D. You do not accumulate interest on federal loans A

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