Financial Literacy Online Test

When starting your budget, what is the best way to figure out how much you have to spend each month?
Look at your salary
Subtract your income tax from your salary
Add up what you take home from work, any interest you might receive from your financial institution and investments and any other income such as alimony, child support or disability checks.
Salary plus what you expect to get back in taxes
Which of the following are benefits of keeping money in an account at an insured bank, thrift (savings association) or credit union?
Your savings can earn interest
Your savings are insured by FDIC or NCUA if the institution goes out of business
You receive a monthly statement to help you manage your spending and savings
All of the above
How do I know if an internet bank is a safe place to deposit my money?
Call the phone number listed on the website
Check with the institution's regulator
Send an email to the website asking them to confirm in writing that they are legitimate
All of the above
There is no difference between a stockbroker and a financial advisor. True or False?
Rebecca has saved $12,000.00 for her college expenses by working part time. Her plan is to start college next year and she needs all of the money she has saved. Which of the following is the safest place for her college money?
Locked in a closet at home
Corporate bonds
A bank savings account
At what income level does a family really need a budget?
Low Income
High Income
Moderate Income
All of the above
Justin just found a job with a take-home pay of $2,000.00 per month. He must pay $800.00 per month for rent and $200.00 for groceries each month. He also spends $200.00 per month for transportation. If he budgets $100.00 each month for clothing, $150.00 for restaurants and $250.00 for everything else, how long will it take him to accumulate a savings of $900?
1 Month
2 Months
3 Months
4 Months
Which of the following types of investments would best protect the purchasing power of a family's savings in the event of a sudden increase in inflation?
25 Year Corporate Bond
Fixed rate house mortgage
10 Year Bond Issued by a corporation
Certificate of Deposit at a bank
Which of the following statements is true?
Your bad loan payment record with one bank will not be considered if you apply to another bank for a loan
If you missed a payment more than 2 years ago, it cannot be considered in a loan decision
Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed
People have so many loans it is very unlikely that one bank will know your history with another bank
Scot and Eric are young men. Each has a good credit history. They work at the same company and make approximately the same salary. Scott has borrowed $6,000.00 to take a foreign vacation. Eric has borrowed $6,000.00 to buy a car. Who is likely to pay the lowest finance charge?
Eric will pay less because the car is collateral for the loan
They will both pay the same becaue the rate is set by law
Scott will pay less becaue people who travel overseas are better risks
They will both pay the same because they have almost identical financial backgrounds
The largest single factor that determines my credit score is:
The length of my credit history
The amount of debt I owe
Whether I pay my bills on time
None of the above
Are you satisfied with your financial condition and literacy?
Yes but always looking to improve
No. But there is nothing that can be done
No. But I'm already doing enough to improve
Yes. I don't need any improvement


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