1. Financial Literacy State Test Review
Answer the following questions, by circling the correct answer.

2. Opportunity Cost Supply and Demand Scarcity Goods and Services
The Economic Principal that helps explain why prices go up or down in the stock market is?
Opportunity Cost
Supply and Demand
Scarcity
Goods and Services

3. Wage Allowance Salary Commission
The income a salesperson (ex: stockbroker) makes on each sale he/she makes is a
Wage
Allowance
Salary
Commission

4. The employment form that is filled out to prove citizenship is the
W-2 W4
I-15

5. Which of the following Financial Institutions is owned by it’s members?
Savings and Loan
Credit Union
Bank
Stock Brokerage House

6. A retirement investment tool which has tax-deferred benefits?
Stocks
Mutual Fund CD
IRA

7. Which type of insurance will protect against loss due to illness
Life
Health
Automobile
Home Owner/Renter

8. “Live outside your means” “Practice makes perfect”
An savings term that describes what you should do with your income before you start spending on wants?
“Pay yourself first”
“Live outside your means”
“Practice makes perfect”
“Live the Golden Rule”

9. Premium Deductible Grace Period Beneficiary
An insurance term that describes how much you have to pay before the insurance company kicks in money
Premium
Deductible
Grace Period
Beneficiary

10. Foreclosure FDIC Co-Signing Collateral
In order to get a loan, you might have to pledge an asset to the bank in case you don’t make your payments. This is called
Foreclosure
FDIC
Co-Signing
Collateral

11. Which of the following is a way you can improve your financial situation?
Increase your income and/or spending
Decrease your income and/or spending
Decrease your income and/or increase your spending
Increase your income and/or decrease your spending

12. Which form of income is a fixed, yearly amount the earner gets?
Wage
Salary

13. Fraud Credit Bankruptcy Payday Lending
When a person is in debt so much that they can’t see another way out…they might apply for this process?
Fraud
Credit
Bankruptcy
Payday Lending

14. Grace Period Late Period Finance Period Default Period
The period of time between a credit card payment being late…and interest or fee being charged is known as a
Grace Period
Late Period
Finance Period
Default Period

15. Fraud Bounced Check Bankruptcy Utter Stupidness
What is it called when a person writes a check but doesn’t have the money in account to cover it?
Fraud
Bounced Check
Bankruptcy
Utter Stupidness

16. Which of the following is not one of the 3 Credit Reporting Agencies
Equifax
Transunion
Empirical
Experian

17. The tax-advantaged investment plan that is a college savings plan?
401K
IRA
403(b)
529 Plans

18. The tax-advantaged investment that is a mutual fund set up by the employer?
401K
IRA
403(b)
529 Plans

19. This concept is a business’s effort to get the consumer to desire to buy?
Supply and Demand
Advertising
Entrepreneurship
Tax

20. Taxes Scarcity Time Value of Money Supply and Demand
The financial concept that says that a dollar today is worth more than a dollar tomorrow?
Taxes
Scarcity
Time Value of Money
Supply and Demand

21. Money set aside for the purpose of future spending?
Saving
Investing
Spending
Insuring

22. Something that is passed down from your parents to you?
Insurance
Financing
Co-Signing
Inheritance

23. The central banking system of the U.S. is?
The Federal Reserve (FED)
FDIC
NCUA
Certificate of Deposit (CD)

24. Interest that is paid on just the principal?
Simple Interest
Compound Interest
Lack of Interest

25. Predatory Lending Ponzi Scheme Identity Theft Bankruptcy
The crime which involves obtaining personal information so that the criminal can make purchases?
Predatory Lending
Ponzi Scheme
Identity Theft
Bankruptcy

26. Interest that is paid on both the principal and accumulated interest?
Simple Interest
Compound Interest
Lack of Interest

27. Using the rule of 72, how long will it take to double your money with an investment earning 6% interest?
12 years

28. Full Coverage Insurance FAFSA NCUA FDIC
If you put $100,000 into a bank and the bank fails. You will get your money back because of what organization?
Full Coverage Insurance
FAFSA
NCUA
FDIC

29. Financial Goal Short Term Goal Long Term Goal SMART Goal
To save $600 to buy a TV in the 3 months from now is an example of all but which of the following?
Financial Goal
Short Term Goal
Long Term Goal
SMART Goal

30. Delayed Gratification
The concept of passing on buying a junker car today, in order to save and buy a better car later on is called?
Investing
Diversification
Deflation
Delayed Gratification

31. Which of the following would not negatively affect your credit score?
Criminal record
Getting fired from your job
Opening a bank account
Late payments on your bills

32. Which of the following isn’t a banking technology available to consumers?
Direct Deposit
Mobile Payments
Direct Pay
Consumer to Consumer payments (ex: Paypal)
All are examples of banking technology

33. A financial plan used to track income and expenses is known as a(n)?
Budget
Financial Goal
Bankruptcy Plan
Diversification Strategy

34. Deductible Installments Dividends Inheritance
When a corporation pays out part of it’s profits to stockholders, this is known as what?
Deductible
Installments
Dividends
Inheritance

35. A high-tech scam that uses spam or pop-up messages to deceive consumers is?
Phishing
Ponzi Scheme
Identity Theft
Predatory Lending

36. Revolving Credit Store Credit Unsecured Credit Installment Credit
Making regular monthly payments on a loan (i.e. car payment) is what kind of credit?
Revolving Credit
Store Credit
Unsecured Credit
Installment Credit

37. An expense that is different each month?
Income
Revenue
Fixed
Variable

38. Go Up Go Down Stay the same No effect
What will happen to the price of a product if the demand is low and the supply is high?
Go Up
Go Down
Stay the same
No effect

39. Supply and Demand Investing Opportunity Costs Scarcity
An economic principal that exists because of unlimited wants/needs and limited resources?
Supply and Demand
Investing
Opportunity Costs
Scarcity

40. Annual Percentage Rate (APR) Finance Charge
When getting a credit card, the consumer is charged a percentage that represents the actual yearly cost borrowing money from credit card. This percentage is called?
Simple Interest
Compound Interest
Annual Percentage Rate (APR)
Finance Charge

41. Home Owner/Renter Automobile Health Disability
Which of the following insurance types will cover your property due to theft or common natural disasters?
Home Owner/Renter
Automobile
Health
Disability

42. Home Owner/Renter Automobile Health Disability
What kind of insurance provides income payments for long-term injuries or illness?
Home Owner/Renter
Automobile
Health
Disability

43. Revolving Credit Installment Credit Store Credit Bank Loan
What kind of credit loan involves a line of credit to be used when needed and making at least minimum payments?
Revolving Credit
Installment Credit
Store Credit
Bank Loan

44. Another name for the owners of a corporation?
CEO
General Partner
Stockholders
Board of Directors

45. Finance Charge Payment Premium Installment
The payment that is made by the consumer to the insurance company to pay for insurance?
Finance Charge
Payment
Premium
Installment

46. When an investor “sells high and buys low”?
Capital Gain
Short Selling
Dividend Re-investment
Retirement Planning

47. Rule of 72: How long to double your money if the interest rate is 1%?
72 Years

48. Customer Loyalty Programs
A form of advertising where an actual product is displayed within view of a viewing audience?
Merchandising
Endorsements
Product Placement
Customer Loyalty Programs

49. A rewards program for customers who make frequent purchases?
Merchandising
Endorsements
Product Placement
Customer Loyalty Programs

50. Store Credit Student Loan Credit Card Short Term Bank Loan
Credit that typically has lower interest rates and payment can be deferred until out of school?
Store Credit
Student Loan
Credit Card
Short Term Bank Loan

51. Another name for FICA?
Bank Insurance
Social Security
Credit Score
Credit Union Insurance

52. Mortgage or Auto loans are examples of?
Secured Credit
Unsecured Credit
Both Secured and Unsecured Credit

53. An expense that is the same each month, like a car payment?
Variable
Fixed
Income
Revenue

54. Risk/Reward ratio suggests?
Lower the risk, higher the reward
Higher the risk, lower the reward
Lower the risk, lower the reward
No connection between risk and reward

55. Letter of Recommendation
In Job finding, what is the document that is responsible for seeing if applicant meets the minimum job requirements?
Resume
Job Application
Cover Letter
Letter of Recommendation

56. Which term best describes the amount of money borrowed?
Premium
Retirement
Interest
Principal

57. Bank Credit Union Finance Companies Payday Lender
Which of the following financial institutions will loan money out at the highest interest rate?
Bank
Credit Union
Finance Companies
Payday Lender

58. Which document is a summary of job qualifications?
Resume
Job Application
Cover Letter
Letter of Recommendation

59. Phishing Ponzi Scheme Predatory Lending Bankruptcy Fraud
An investing scam that usually promises unreal returns…paying off old investors with new investors money?
Phishing
Ponzi Scheme
Predatory Lending
Bankruptcy Fraud

60. Making a car payment is an example of?
Interest Earned
Interest Charged
Both Interest Charged and Earned
Neither Interest Charged or Earned

61. Health Long Term Disability Whole Life Term Life
What kind of Life Insurance has both a death benefit and money accumulation benefit?
Health
Long Term Disability
Whole Life
Term Life

62. Capital Character Collateral Capacity
Which of the 5 C’s of Credit involves a consumer making enough income in order to pay back a loan?
Capital
Character
Collateral
Capacity

63. Capital Character Collateral Conditions
Which of the 5 C’s of credit involves is best described by a person who has demonstrated over and over that he/she pays their bills?
Capital
Character
Collateral
Conditions

64. Capital Character Collateral Capacity
Which of the 5 C’s of Credit involves putting up something of value (ex: house) in order to secure a bank loan?
Capital
Character
Collateral
Capacity

65. Prices in the economy that are generally going up?
Inflation
Deflation
Supply
Demand

66. Dividend re-investment Diversification Inheritance Short Selling
An investor that varies their investments in different areas (such as stocks, bonds, real estate, precious metals)
Dividend re-investment
Diversification
Inheritance
Short Selling

67. PYF (Pay Yourself First)
An expense that is paid on a irregular basis (non-monthly), such as paying car insurance every 6 months?
Periodic
Fixed
Variable
PYF (Pay Yourself First)

68. The Tax Form that employers are required to send you between January 1 and January 31. It is a summary of earnings for the year?
I-9
1040 EZ
W-4
W-2

69. The tax form that typical high school kids fill out to file their taxes?
1040 EZ
W-4
W-2

70. More taxes will be taken out of your check
On the W-4 Form, changing the exemptions that you claim from 1 to 2 will have what effect on your paycheck each month?
More taxes will be taken out of your check
Less taxes will be taken out of your check
No effect on your check

71. I-9 Short Term Loan FAFSA NCUA
The application that a senior in high school should fill out, in order to try and get college financial aid?
I-9
Short Term Loan
FAFSA
NCUA