1. TEST PREP 1

2. A. The amount you can afford to pay B. The minimum payment stated on your bill C. The minimum amount due on your debit card D. 20 percent of the outstanding balance B 2

3. A. Being a good saver B. Living outside the city C. Spending more money than you earn D. Spending more than the average American C 3

4. A. Throw it in the trash right away B. Destroy it after reviewing your account statement C. Send it with your credit card payment D. Send it with your utility payment B 4

5. A. Can get cash back when you make a purchase B. Can pay for items online C. May be charged fees for insufficient funds D. All of the above D 5

6. A. Help you build credit history B. Charge you interest if you don’t pay the balance in full C. Be used to buy merchandise online D. All of the above D 6

7. A. Loaded onto a prepaid card before using it B. A cash reward for using your debit card C. Money you withdraw from your savings account D. Cash you can borrow from a bank using your credit card D 7

8. A. You cannot withdraw money B. You can transfer funds among your accounts C. You may be charged a fee D. You earn rewards points C 8

9. A. Bank loan B. Bank account C. Certificate of deposit D. Credit card account B 9

10. A. Refers to the name in which the account is opened B. Is a free gift from the bank C. Is the money the bank pays you to borrow your money D. Is a monthly fee charged by the bank C 10

11. A. You owe money B. Someone owes you money C. You are saving money D. You have tangible assets A 11

12. A. The fee a financial planner charges B. A charge for being overdrawn C. Interest charged on your credit card balance D. A fee for buying stock C 12

13. A. A fixed amount every month B. Interest on your account balance C. With rewards points D. Ten percent of your account value per year B 13

14. A. Spend $5 a week in music downloads B. Save at least 10% of what you earn C. Save for a new video game D. Eat out once a week instead of twice B 14

15. A. A gas card B. A debit card C. A credit card D. A membership card B 15

16. A. You go to college B. You pay your bills on time C. You apply for as many credit cards as possible D. None of the above B 16

17. A. Free money B. A bank error C. An overdraft D. Deductibility C 17

18. A. Is the minimum amount due each month B. Limits the fees a person can be charged C. Limits the interest rate on a credit card D. Is the maximum balance that can be carried on a credit card D 18

19. A. You earn higher interest in your linked bank accounts B. You may increase impulse buying C. There is a record kept of all transactions D. Financial impacts of major purchases are diluted over time B 19

20. A. Payment activity reported by lenders B. What you purchase with your debit card C. Your most recent employment application D. All of the above A 20

21. A. Credit card B. Debit card C. Personal check D. Overdraft fee A 21

22. A. The credit card issuer B. Their employer C. Their parents D. The federal government A 22

23. A. A percentage of an outstanding balance B. The lowest amount due for the month C. The least you can pay to avoid incurring a fee D. All of the above D 23

24. A. Groceries B. Gas C. Mobile phone bill D. All of the above D 24

25. A. Not earning any interest B. Accessible with little or no penalty C. Not insured by your financial institution D. A risky investment B 25

26. A. Lowers the amount borrowed B. Increases the mortgage amount C. Reduces loan “points” D. Has no effect on the mortgage amount A 26

27. A. Has been cashed twice B. Does not have enough money in the bank to cover it C. Is a mistake and is voided D. Was used to purchase an item you later returned B 27

28. A. Have your account closed B. Be fined $500 C. Be charged an overdraft fee D. Receive $50 rewards points C 28

29. A. You can probably save more money B. You are likely living beyond your means C. You will owe interest on the amount D. None of the above B 29

30. A. Your personal information B. Your wallet C. Your Social Security card D. Your loose change A 30

31. A. Have you used credit before? B. How old are you? C. Do you pay your bills on time? D. What is your total debt? B 31

32. A. Stock in a beverage company B. A savings account C. Money you may receive if a relative passes away D. An IRA B 32

33. A. Can be found in your credit report B. Appears on your monthly credit card statement C. Is gross income minus taxes and items withheld from your pay D. All of the above C 33

34. A. Insurance that pays medical expenses B. A fire escape plan C. A savings plan for unexpected expenses D. A fund for dining out C 34

35. A. Counting your change B. Adding up your paychecks C. Checking it regularly online or by phone D. Cashing a check C 35

36. A. Something that costs you money B. Part of your budget C. A pizza D. All of the above D 36

37. A. Incur fees B. Increase your interest rate C. Impact your credit score D. All of the above D 37

38. A. Cash advance B. Direct deposit C. Automatic banking D. Stop-gap financing B 38

39. A. Take out a loan B. Save until you have enough money C. Borrow from a friend D. Write a post-dated check B 39

40. A. Low MPG B. High MPG C. A big fuel tank D. A new gas gauge B 40

41. A. Loan sheet B. Credit history C. Balance D. Credit record B 41

42. A. Income from recycled materials B. Interest paid on a savings account C. Money that is left after all bills are paid D. Income that you donate to charity C 42

43. A. Debit card B. Credit card C. Check card D. Gift card B 43