Hands On Banking
Hands-on banking post-test for adults.
- 1.
Your take-home pay, or net income, is:
- A.
The amount you receive after benefits, such as vacation pay and health insurance, have been added.
- B.
The amount you receive after taxes, insurance, or other costs have been subtracted.
- C.
The total amount you earn.
Correct Answer
B. The amount you receive after taxes, insurance, or other costs have been subtracted. -
- 2.
The amount of interest you earn on money in your savings accout will depend a lot on which three factors?
- A.
The interest rate, how often you make deposits, and how the financial institution invests your money.
- B.
The interest rate, how long you keep the money in your account, and how the financia institution pays the interest.
- C.
The prime rate, your credit rating, and how you make the deposits (cash, check, or direct deposit).
Correct Answer
B. The interest rate, how long you keep the money in your account, and how the financia institution pays the interest. -
- 3.
All of the following are good ways to establish a good credit record except:
- A.
Don't write a check for more money than you have in your account.
- B.
Pay your bills in full and on time.
- C.
Use your credit card to buy something you can't really afford.
- D.
Always keep your promises to repay the money you borrow.
Correct Answer
C. Use your credit card to buy something you can't really afford. -
- 4.
Charging on a credit card is essentially taking out a loan.
- A.
True
- B.
False
Correct Answer
A. True -
- 5.
Companies that keep track of everyone's credit history are called:
- A.
Big Brother
- B.
Collection Agencies
- C.
Credit Unions
- D.
Credit Bureaus
Correct Answer
D. Credit Bureaus -
- 6.
Which one of the following statements is true about a credit card's "minimum payment"?
- A.
It is all you ever have to pay.
- B.
Minimum payments are really just a guideline and it's okay to pay less, but only once in awhile.
- C.
It is the minimum to keep your account in good standing. You should always pay the minimum, but it's much better to pay the entire balance if possible; that will also hep you avoid interest charges, too.
Correct Answer
C. It is the minimum to keep your account in good standing. You should always pay the minimum, but it's much better to pay the entire balance if possible; that will also hep you avoid interest charges, too. -
- 7.
A good general guideline is to avoid having credit card debt that exceeds:
- A.
10% of your monthly net income
- B.
The amount of your school loans
- C.
The amount you save on a monthl basis
- D.
20% of your monthly gross income
Correct Answer
D. 20% of your monthly gross income -
- 8.
What's the significance of being pre-approved for a loan?
- A.
You'll get higher interest rates.
- B.
You'll know the amount that will be available to you to make the purchase.
- C.
You'll get a longer term for payment.
- D.
You won't need a down payment.
Correct Answer
B. You'll know the amount that will be available to you to make the purchase. -
- 9.
What is APR?
- A.
A way to estimate the time or interest rate you would need to double your money on an investment.
- B.
A type of credit that is repaid to the lender in equal amounts, over a fixed period of time.
- C.
A measurement used to compare different loans, that takes into account the interest rate, term, and fees to illustrate the total cost of the loan.
Correct Answer
C. A measurement used to compare different loans, that takes into account the interest rate, term, and fees to illustrate the total cost of the loan. -
- 10.
A good general guideline is to not borrow more than _____ percent of your annual net income.
- A.
10
- B.
20
- C.
30
- D.
40
Correct Answer
B. 20 -
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Apr 08, 2020Quiz Edited by
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Jul 05, 2012Quiz Created by
Firstnoel12
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