TEST PREP
FINANCIAL FOOTBALL
1
THE MINIMUM MONTHLY CREDIT
CARD PAYMENT IS:
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
“LIVING BEYOND YOUR MEANS” IS:
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
WHEN YOU GET AN ATM RECEIPT:
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
WITH DEBIT CARDS YOU:
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
CREDIT CARDS CAN:
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
A CASH ADVANCE IS
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
IF YOU USE AN ATM OUTSIDE YOUR
BANK’S NETWORK
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
DEBIT CARD PURCHASES ARE DEDUCTED
FROM YOUR
A. Bank
loan
B. Bank account
C. Certificate of deposit
D. Credit card account
B
9
INTEREST IN A SAVINGS ACCOUNT:
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
GOING INTO DEBT MEANS:
A. You
owe money
B. Someone owes you money
C. You are saving money
D. You have tangible assets
A
11
A FINANCE CHARGE IS:
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
A SAVINGS ACCOUNT PAYS YOU:
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
A RESPONSIBLE SAVINGS GOAL WOULD
BE:
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
A CHECK CARD IS THE SAME THING AS:
A. A
gas card
B. A debit card
C. A credit card
D. A membership card
B
15
IT HELPS YOUR CREDIT HISTORY WHEN:
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
WRITING A $150 CHECK WHEN YOU
HAVE ONLY $100 IN YOUR
ACCOUNT IS CALLED:
A. Free
money
B. A bank error
C. An overdraft
D. Deductibility
C
17
A CREDIT LIMIT
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
WHICH OF THESE IS A DISADVANTAGE TO
USING A CREDIT CARD?
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
YOUR CREDITWORTHINESS CHANGES
BASED ON:
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
WHICH OF THE FOLLOWING DOES NOT
TAKE MONEY DIRECTLY FROM YOUR
BANK ACCOUNT?
A. Credit
card
B. Debit card
C. Personal check
D. Overdraft fee
A
21
WHO DECIDES WHETHER AN ADULT’S
CREDIT CARD APPLICATION IS
ACCEPTED?
A. The
credit card issuer
B. Their employer
C. Their parents
D. The federal government
A
22
WITH CREDIT CARDS, THE MINIMUM
MONTHLY PAYMENT IS:
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
A DEBIT CARD CAN BE USED TO PAY FOR:
A. Groceries
B. Gas
C. Mobile
phone bill
D. All of the above
D
24
WHEN FUNDS ARE LIQUID, THEY ARE:
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
HOW DOES A LARGER DOWN PAYMENT
AFFECT A HOME MORTGAGE?
A. Lowers
the amount borrowed
B. Increases the mortgage amount
C. Reduces loan “points”
D. Has no effect on the mortgage amount
A
26
A BOUNCED CHECK:
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
IF YOU WRITE A CHECK FOR $100, BUT
YOU ONLY HAVE $50 IN YOUR CHECKING
ACCOUNT, YOU MAY:
A. Have
your account closed
B. Be fined $500
C. Be charged an overdraft fee
D. Receive $50 rewards points
C
28
IF THE NET AMOUNT OF YOUR BUDGET IS
NEGATIVE:
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
PHISHING IS A TECHNIQUE USED BY
CRIMINALS TO OBTAIN:
A. Your
personal information
B. Your wallet
C. Your Social Security card
D. Your loose change
A
30
WHICH QUESTION WILL LENDERS NOT
CONSIDER IN EVALUATING
CREDITWORTHINESS:
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
AN EXAMPLE OF “LIQUID” FUNDS IS:
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
YOUR NET INCOME:
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
AN EMERGENCY FUND IS:
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
YOU CAN MONITOR YOUR BANK ACCOUNT
BALANCE BY:
A. Counting
your change
B. Adding up your paychecks
C. Checking it regularly online or by phone
D. Cashing a check
C
35
AN EXPENSE IS:
A. Something
that costs you money
B. Part of your budget
C. A pizza
D. All of the above
D
36
LATE PAYMENTS ON A CREDIT CARD BILL
CAN:
A. Incur
fees
B. Increase your interest rate
C. Impact your credit score
D. All of the above
D
37
WHEN YOUR PAYCHECK IS
AUTOMATICALLY ADDED TO YOUR BANK
ACCOUNT, IT IS CALLED:
A. Cash
advance
B. Direct deposit
C. Automatic banking
D. Stop-gap financing
B
38
IF YOU CAN’T AFFORD SOMETHING RIGHT
AWAY, THE SMARTEST CHOICE IS:
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
A CAR WITH GOOD FUEL ECONOMY HAS:
A. Low
MPG
B. High MPG
C. A big fuel tank
D. A new gas gauge
B
40
A RECORD OF ONE’S BORROWING AND
REPAYING ON CREDIT IS CALLED A:
A. Loan
sheet
B. Credit history
C. Balance
D. Credit record
B
41
WHAT IS DISPOSABLE INCOME?
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
WHICH IF THE FOLLOWING ALLOWS YOU
TO PAY LATER?
A. Debit
card
B. Credit card
C. Check card
D. Gift card
B
43