Finance Quiz: Can You Pass This Trivia? Test

41 Questions | Total Attempts: 70

SettingsSettingsSettings
Please wait...
Finance Quiz: Can You Pass This Trivia? Test

.


Questions and Answers
  • 1. 
    A credit union is a financial institution that is owned by its members.
    • A. 

      True

    • B. 

      False

  • 2. 
    A restrictive endorsement allows you to transfer a check to an organization or another person.
    • A. 

      True

    • B. 

      False

  • 3. 
    The FBI insures each account in a federally chartered bank up to $250,000 per account.
    • A. 

      True

    • B. 

      False

  • 4. 
    Credit cards allow you to ______.
    • A. 

      Spend only the amount in your account

    • B. 

      Transfer money between accounts on-line

    • C. 

      Protect your checks from thieves

    • D. 

      Borrow money for a short term

  • 5. 
    A ________ savings plan the interest rate varies from month to month.
    • A. 

      CD

    • B. 

      Regular savings

    • C. 

      U.S. Savings Bond

    • D. 

      Money market

  • 6. 
    The following are considered deposit institutions EXCEPT
    • A. 

      Mutual Savings banks

    • B. 

      Savings & Loan association

    • C. 

      Credit Union

    • D. 

      Mortgage company

  • 7. 
    A mortgage is an example of a closed-end credit.
    • A. 

      True

    • B. 

      False

  • 8. 
    Inflation increases the buying power of money.
    • A. 

      True

    • B. 

      False

  • 9. 
    Equifax is a credit bureau.
    • A. 

      True

    • B. 

      False

  • 10. 
    When you cosign a loan for a friend, you may be responsible to make loan payments if the other person fails to.
    • A. 

      True

    • B. 

      False

  • 11. 
    Your debt to income ratio formula is gross income divided by the amount of monthly loan payments you make.
    • A. 

      True

    • B. 

      False

  • 12. 
    An example of open-end credit is a(n)
    • A. 

      Mortgage

    • B. 

      Auto loan

    • C. 

      Installment loan

    • D. 

      A credit card charge

  • 13. 
    The dollar amount you pay to use credit is the
    • A. 

      Debt to income ratio

    • B. 

      Finance charge

    • C. 

      Annual percentage rate

    • D. 

      Term of the loan

  • 14. 
    A higher interest rate is usually the trade-off for a
    • A. 

      Long-term loan

    • B. 

      Secured loan

    • C. 

      Short-term loan

  • 15. 
    How many major credit bureaus are there in the U.S.?
    • A. 

      1

    • B. 

      2

    • C. 

      4

    • D. 

      3

  • 16. 
    Which of the following is NOT one of the 5 C's
    • A. 

      Consciousness

    • B. 

      Collateral

    • C. 

      Character

    • D. 

      Capacity

  • 17. 
    Closed end credit is payed back whenever you want
    • A. 

      True

    • B. 

      False

  • 18. 
    To decide what type of checking account will meet your needs, you should weigh which of the following factors
    • A. 

      Fees and charges

    • B. 

      Interest earned, if any

    • C. 

      Account restrictions

    • D. 

      All the answers are legit

  • 19. 
    A plan for using money to meet wants and needs is  ______.
    • A. 

      Budget

    • B. 

      Income

    • C. 

      Insolvency

    • D. 

      Marketing plan

  • 20. 
    The FDIC insures each account in a federally chartered bank up to
    • A. 

      $200,000

    • B. 

      $300,000

    • C. 

      $100,000

    • D. 

      $250,000

  • 21. 
    Which of the following is another name for a net worth statement
    • A. 

      Financial statement

    • B. 

      Credit sheet

    • C. 

      Personal balance sheet

    • D. 

      Liability statement

  • 22. 
    You should maintain a maximum what percentage of debt payments to net income (debt to income ratio)
    • A. 

      50%

    • B. 

      5%

    • C. 

      20%

    • D. 

      30%

  • 23. 
    What are four categories of wealth
    • A. 

      Market value, liquid assets, current liabilities

    • B. 

      Cash flow, liabilities, insolvency, assets

    • C. 

      Liquid assets, real estate, personal possessions, and investments

  • 24. 
    There is an annual fee to rent a safe deposit box at a bank.
    • A. 

      True

    • B. 

      False

  • 25. 
    Assets include cash, property, personal possessions, and investments.
    • A. 

      True

    • B. 

      False

Back to Top Back to top