Personal Financial Literacy Test Review2012-2013
Name ______Date ______.
Math Teacher’s Name Math Period .
1Whatform of payment incurs fees if the balance is not paid off in full by the monthly due date?
ANSWER:credit card
2Nasser used his Bank of America credit card to buy a tie at The Tie Rack for $21.65 including tax. What is a result of this transaction?
ANSWER:The Bank of America will loan Nasser $21.65.
3Jill writes a check for $500 to her friend Jack, but she only has $450 in her checking account. What will happen if the check is cashed?
ANSWER: She will have an overdraft in her bank account.
4Which of the following is true statement regarding people with poor credit histories?
A People with poor credit history can easily obtain bank loans.
BPeople with poor credit history usually pay a higher interest rate on
loans.
C People with poor credit history usually pay a lower overdraft fees.
D People with poor credit history tend to obtain the best interest rates
from banks.
5Students need to know how to meet their financial commitment of attending college. What statement is true about financial aid?
ANSWER:Grants and student loans have to be repaid.
6Jeri’s checking account register is shown below.
If Jeri writes a check for $50.78 at Randall’s, what is her new balance?
7Which of the following is NOT true about credit reports?
A Financial institutions may use your credit report information to decide
whether you are approved for a loan.
BEmployers may use your credit report, only with your permission, to
decide whether to hire you.
C Landlords may use your credit report information to decide whether
to allow you to rent or not.
D Utility companies may use your credit report information to decide
whether to provide gas, electric, or water services for you.
8Negative information on a credit report such as late payments, debt collections, and foreclosures is retained for -
ANSWER:7 years
9A credit report contains many types of personal identification information. What is not a piece of personal identification information that is contained in a credit report?
ANSWER: date of birth
10Emily’s bank statement shows a current balance of $153.22 but her own account register shows a balance of $193.22. All the deposits during this statement cycle are included in the bank statement. Which of the following reasons is the most likely explanation for the discrepancy (differing amount)?
A Emily forgot to record an ATM withdrawal of $40.00.
BEmily forgot to record a checking deposit of $40.00.
C The bank did not add up all of Emily’s deposits correctly.
D One of the deposits Emily made was $40 in cash.
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Personal Financial Literacy Test Review2012-2013
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Personal Financial Literacy Test Review2012-2013
11What is not a form of financial aid a student can received while in college?
ANSWER:a checking account
12In order to qualify for financial aid, what is the name of the application you must fill out?
ANSWER:Free Application for Federal Student Aid
13How are Pell grant similar to work-study?
ANSWER:Pell grants is a form of financial aid AND Pell grants are awarded based on financial need.
14 How are Academic grants and scholarships similar?
ANSWER: You may receive them in additional to any Pell grant you get AND they are awarded based upon your grades or other kinds of
achievements.
15Which of the following statements about student loans is true?
ANSWER: Private loans tend to have higher interest rates than federal student loan.
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Personal Financial Literacy Test Review2012-2013
16How can students afford to go to college?
ANSWER: Work part-time, Save money early or get scholarships, AND Apply for financial aid.
17What is a true statement about attending college is true?
ANSWER:On average, the more years of education you have, you more money you will make.
18Which of the following is an important reason to establish a positive credit history?
AIn hiring decisions, your potential employer may check your credit history to see if you are a responsible person.
BLandlords can check your credit history in order to decide whether or not you are allowed to rent an apartment.
CPositive credit history allows you to receive lower rates on loans.
DUtility companies check your credit history to determine whether or
not to provide you electric, gas, or water service.
EAll of the above are correct.
19If you have filed for bankruptcy, that information stays on your credit history for -
ANSWER:10 years.
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Personal Financial Literacy Test Review2012-2013
20Lenders always want to know the ______of people who ask them for credit cards and loans.
ANSWER:credit history
21What does a credit score indicate?
ANSWER:How reliable you are at paying back your debts
22What is not a factor in determining your credit score?
ANSWER:how long you have been employed at your current place of work
23What is a statement regarding balancing a check register that is not correct?
ANSWER:Transfers from your account always increase your checking balance.
24What statement BEST describes a debit card?
ANSWER:a plastic payment card used in place of cash
25A blank check with its parts labeled is shown below.
Which of the following labels identifies #3?
ADescription or purpose of the check
BThe name and address of account holder
CThe signature of the account holder
DThe person who is receiving the payment
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Personal Financial Literacy Test Review2012-2013
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