which of the following is NOT a common feature of a financial institution?
answer
access to investment products, investment trading, access to investment advice
question
which of the following statements about check cashing companies is TRUE?
answer
they charge high fees
question
which of the following financial institutions typically have the highest fees?
answer
check cashing and payday loan companies
question
which of the following statements about check cashing companies is FALSE?
answer
they charge low fees
question
which type of bank account typically offers the least (if any) interest?
answer
checking account
question
savings accounts typically offer more interest than what type of account?
answer
checking account
question
which type of bank account is best for everyday transactions?
answer
checking account
question
t/f: a savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily
answer
true
question
which savings account will earn you the least money?
answer
one that earns simple interest monthly
question
which savings account will earn you the most money?
answer
one that compounds interest daily
question
why is it important to reconcile your bank statements?
answer
to avoid spending more than what is in your account, to detect any errors in your account, and to determine if you were charged any fees
question
how can you avoid spending more than what is in your bank account?
answer
keep your own records to compare with your financial institution's records
question
how would you reconcile your bank account to avoid spending more than you have?
answer
compare your own records of your spending with your financial institution's records
question
what should you do before you withdraw money from the ATM?
answer
inspect the ATM to make sure it wasn't tampered with
question
what should you do before you approach an ATM?
answer
check for any suspicious people lurking nearby
question
what should you do before you use an ATM?
answer
inspect the ATM and its surroundings to make sure it is safe to use
question
which of the following statements about savings account is FALSE?
answer
savings accounts allow an unlimited amount of withdrawals each month
question
which of the following statements about savings accounts is FALSE?
answer
savings accounts don't usually require a minimum balance, savings accounts don't usually pay interest on the money you deposit
question
which of the following statements is TRUE?
answer
if there is a mistake on your bank account, you should contact your financial institution immediately
question
if there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
answer
your financial institution
question
if there is an issue with your bank statement or account balance, who should you contact to resolve the issue?
answer
your bank
question
t/f: your financial institution can't help you if there is a mistake on your bank account statement
answer
false
question
which of the following statements about investing is TRUE?
answer
investing is riskier than putting money in a savings accounts
question
investing is best for...
answer
long term financial goals like paying for retirement
question
which of the following statements about investing is FALSE?
answer
investing is a guaranteed way to grow your money
question
a stock is...
answer
a share of ownership in a company
question
a mutual fund is...
answer
a type of investment that invests in a mix of different types of investments
question
which of the following statements about stocks is TRUE?
answer
a stock is a share of ownership in a company
question
t/f: generally, the more education you receive, the higher your lifetime earnings will be
answer
true
question
t/f: there is no relationship between the level of education received and lifetime earnings
answer
false
question
for most careers, which degree will most likely result in the highest lifetime earnings?
answer
bachelor's degree
question
what is net pay?
answer
the amount of money you're paid after all taxes and deductions are taken out of your paycheck
question
net pay is NOT...
answer
your gross pay plus any bonuses
question
which of the following is a possible tax or deduction that they may show up on your paycheck?
answer
federal income tax, contributions to retirement savings, and FICA
question
which of the following is NOT a possible tax or deduction that could show up on your paycheck?
answer
sales tax
question
which of the following is NOT a possible tax or deduction that could come out of your paycheck?
answer
overtime pay
question
what is the purpose of the W-4 form?
answer
to inform your employer of how much federal income tax to withhold from your paychecks to send to the IRS
question
when you start a new job, you fill out a W-4 form to...
answer
to determine how much federal income tax your employer should withhold from your paychecks
question
your employer sends you a ___ form that tells you how much you've made and how much you've paid in taxes in the last year
answer
W-2
question
which of the following statements is true about taxes?
answer
they pay for schools and government departments, for roads and emergency services, and are often used at the federal, state, and local levels
question
how does the government pay for roads, schools, and emergency services?
answer
they are funded through taxes
question
the ___ is a flexible market that allows you to work short-term, independent jobs
answer
gig economy
question
what do you need in order to fill our your 1040?
answer
your W-2, your routing and bank account number, and a record of any other supplemental income
question
what do you NOT need in order to fill out your 1040?
answer
your employer benefits documentation
question
t/f: when considering a job offer, you should only consider how much you're being paid before you accept the offer
answer
false
question
t/f: when considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer
answer
true
question
t/f: how much you're being paid is the only thing you need to consider when considering a job offer
answer
false
question
which of the following is NOT considered part of your benefits package available from your employer?
answer
free technology equipment
question
all of the following may be a part of your benefits package available from your employer, except:
answer
FICA
question
healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of ___ available from your employer
answer
benefits
question
which of the following is a benefit of using a budget?
answer
helps to keep track of the money you receive, prioritize your spending, and reach short and long term financial goals
question
which of the following is NOT a benefit of using a budget?
answer
it can help you purchase anything you want
question
which of the following should NOT be considered when setting current budget?
answer
future income
question
which of the following should you consider when setting a budget?
answer
your financial goals, needs and wants, and savings
question
___ are good places to look to find your current expenses when building your budget
answer
bank and credit statements
question
in addition to needs, what should you plan for first when creating a budget?
answer
recurring expenses
question
the envelope method, notebook and pencil, and online software are all methods of ___
answer
tracking your spending
question
what is NOT true about emergency funds?
answer
they are used for anything listed on the budget
question
which of the following is TRUE regarding unexpected expenses?
answer
they should be planned for
question
how can you ensure you don't go over your budget?
answer
round up our expense estimates to add a buffer
question
using a loan could help with the purchase of which of the following?
answer
a house
question
which item is important to consider when selecting a credit card?
answer
both APR and fees
question
what is a benefit of having a good credit score?
answer
when you need a loan, you'll have more loan offers to pick from
question
secured loans are less costly than unsecured loans because ___
answer
they usually have a lower interest rate, require collateral, and they are less risky for the financial institution
question
to maintain a good credit score you must ___
answer
manage your debt wisely
question
recommended methods to protect yourself from identity theft and fraud include ___
answer
placing a credit freeze with the credit bureaus
question
which of the following will help you protect yourself from identity theft and fraud?
answer
regularly monitor your credit report, contact lenders and credit bureaus to address incorrect information, and freeze your credit
question
what is NOT a recommended method to protect you form identity theft?
answer
expensive specialty locking or monitoring service
question
paying only the minimum balance on your credit card can lead to...
answer
paying more interest
question
when looking for pre-approval on a car loan you should...
answer
compare pre-approval offers and select the one that is best for you
question
what option will NOT be available if you are behind on loan payments?
answer
you can ask to get out of your loan
question
what could be a good option available to you if you are behind on loan payments?
answer
a financial institution may offer for you to pay a little now and pay the rest after your next pay day
question
what is a positive reason for using a credit card to finance purchases?
answer
paying it off on time can help build your credit history
question
what is the best option for affording a BachelorÅ› degree?
answer
attend a local community college whose courses transfer to the public four-year college
question
what is NOT considered an additional cost beyond tuition for higher education?
answer
academic counseling
question
textbooks, transportation and room and board are all...
answer
additional costs for attending a college or university
question
preparing to pay for higher education can start in 9th grade or earlier by...
answer
opening a 529 plan
question
a 529 plan can help you ave more money than a traditional savings account because...
answer
it is a tax free
question
what is NOT true about the Free Application for Federal Student Aid (FASFA)?
answer
the earliest you can submit your FASFA is January 1st of each year
question
what is true about the FASFA?
answer
you can submit it at the earliest of October 1 each year, the form is available online or paper, and sates may have different deadlines for applying state aid
question
list the 4 year colleges from least to most expensive...
answer
in-state public university, out-of-state public univerisity, private university
question
what can affect whether a public or private university is affordable
answer
the amount of financial aid that the university offers
question
what type of federal funding is free money, but is based on financial need only?
answer
federal grants
question
everyone interested in post secondary education should complete the FASFA because...
answer
it allows you to be eligible for federal student aid and other scholarships and grants
question
what is NOT a reason to compelete the FASFA?
answer
it allows you to be eligible for early admission
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