Financial Literacy 9 Weeks Exam

20 Questions | Total Attempts: 129

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Financial Literacy 9 Weeks Exam

The 9 Weeks exam for Financial Literacy


Questions and Answers
  • 1. 
    Which of the following is an accurate definition of CREDIT.
    • A. 

      A legal agreement to borrow money and then MAYBE pay it back later.

    • B. 

      A legal agreement to receive cash, goods, or services now and pay for them in the future. A legal agreement to receive cash, goods or services now and pay for them in the future.

    • C. 

      A plastic card that has money.

    • D. 

      A legal agreement to receive cash, and never have to pay it back. Ever.

  • 2. 
    Which of the following is NOT a way to improve your credit score?
    • A. 

      Pay any high balances.

    • B. 

      Use only what you need to use.

    • C. 

      Use your credit card for ALL purchases.

    • D. 

      Don't apply for too many credit cards.

  • 3. 
    What is a credit score?
    • A. 

      A credit score is a number that helps a lender predict how likely an individual is to repay a loan, or make credit payments on time. A credit score is a number that helps a lender predict how likely an individual is to payback a loan or make a credit payment on time.

    • B. 

      A credit score is a number that changes as the elements in a credit report change.

    • C. 

      Your birthday X your age X the year X a million / 76

    • D. 

      Both A & B are correct.

  • 4. 
    A creditor is...
    • A. 

      Someone who is unable to pay a debt.

    • B. 

      The person or bank to whom the debt is owed

    • C. 

      The person who owes money.

    • D. 

      The person or bank that borrows the money.

  • 5. 
    A credit card is...
    • A. 

      A card deducts money directly from a persons checking or savings account to make a purchase.

    • B. 

      A card issued by a bank or store allowing the holder to buy goods or services on credit.

    • C. 

      A number that determines an individuals credit worthiness.

    • D. 

      A card that you buy for a store that has a set amount of money.

  • 6. 
    A card deducts money directly from a persons checking or savings account to make a purchase is called a...
    • A. 

      Credit Card

    • B. 

      Gift Card

    • C. 

      Green Card

    • D. 

      Debit Card

  • 7. 
    Which of the following is correct?
    • A. 

      Revolving credit is the type of credit that has a predetermined number of payments and amount, like a car loan.

    • B. 

      Revolving credit is the amount of credit you get when you apply for a student loan.

    • C. 

      Revolving credit is a type of credit that does NOT have a fixed payment number, like a credit card.

    • D. 

      Revolving credit is. It just is.

  • 8. 
    Which of the following is true?
    • A. 

      An installment loan is a loan in which the amount of payment and the number of payment are predetermined, like a car loan.

    • B. 

      An installment loan is what you get when you install something and need money for it.

    • C. 

      An installment loan is a loan that does not have predetermined payments or amounts. You just pay it all off at once.

    • D. 

      An installment loan is a loan that does not need to be repaid because you just pay it off with your credit card.

  • 9. 
    A student loan is...
    • A. 

      A loan you use to assist in payment of the cost of a professional education.

    • B. 

      Free money given to you to pay for college.

    • C. 

      A loan that you use to assist in payment of the cost of professional education but you never pay it back.

    • D. 

      A loan that must be paid back the DAY you graduate from college.

  • 10. 
    One benefit of a debit card is...
    • A. 

      The money comes directly from your checking or savings account so you wont owe anyone any money.

    • B. 

      The money isn't YOUR money so it doesn't feel that bad to spend it.

    • C. 

      There are never any fees with Debit Cards.

    • D. 

      You can pay it back whenever you have the money.

  • 11. 
    A Co-Signer is...
    • A. 

      The person who agrees to take responsibility for a loan in case the person borrowing can't pay it back. They have the borrowers back.

    • B. 

      The person who borrows the loan

    • C. 

      The person who loans the money.

    • D. 

      The person who earns the money.

  • 12. 
    Identity theft is....
    • A. 

      When someone uses your personal information to open accounts, file taxes, or make purchases.

    • B. 

      When someone steals your wallet.

    • C. 

      When someone steals your cell phone.

    • D. 

      When someone steals your purse.

  • 13. 
    Which of the following is NOT an example of identity theft?
    • A. 

      Stealing someones credit card and using it to make purchases

    • B. 

      Using someone else's social security number to rent an apartment

    • C. 

      Stealing someone's account number to gain access to their money.

    • D. 

      Calling someone from an anonymous phone number.

  • 14. 
    Sending emails that have fake links to gather a victims information is called...
    • A. 

      Phishing

    • B. 

      Fishing

    • C. 

      Nemo

    • D. 

      Faking

  • 15. 
    What are the three D's?
    • A. 

      Deter, Detect, Determine

    • B. 

      Deter, Detect, Defend

    • C. 

      Dylan, Diego, Damien

    • D. 

      Deter, Determine, Describe

  • 16. 
    When you are HIRED, your employer asks you to complete which of the following forms?
    • A. 

      W2

    • B. 

      1099

    • C. 

      W4

    • D. 

      1040

  • 17. 
    In January your employer sends you a form that summarizes your earnings for the year. What is this form called?
    • A. 

      W2

    • B. 

      W4

    • C. 

      1099

    • D. 

      0

  • 18. 
    The money you get back from the IRS after filing your income tax is called...
    • A. 

      Cash Money

    • B. 

      Federal Tax Return

    • C. 

      Bank

    • D. 

      Federal Student Loans

  • 19. 
    What is one way to DETECT identity theft?
    • A. 

      Shred documents

    • B. 

      Monitor your credit score and any bank activity

    • C. 

      File a police report

    • D. 

      Do not provide your social security number.

  • 20. 
    Choose one. You're welcome. 
    • A. 

      This is probably not the answer.

    • B. 

      This could've been the answer, but isn't.

    • C. 

      This is the answer.

    • D. 

      This just isn't the answer.

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