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.
- 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).
- 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.
- 4.Charging on a credit card is essentially taking out a loan.
- A.
True
- B.
False
- 5.Companies that keep track of everyone's credit history are called:
- A.
Big Brother
- B.
Collection Agencies
- C.
Credit Unions
- 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.
- 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
- 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.
- 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.
- 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
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