Question 1

What is a savings account primarily used for?

Accepted Answer

to save money and earn interest

Answer

to make investments

Answer

to borrow money

Answer

to pay bills

Question 2

What is typically the main benefit of having a savings account?

Accepted Answer

earning interest on deposited funds

Answer

accessing credit easily

Answer

having unlimited transactions

Answer

immediate cash withdrawals without fees

Question 3

What is one common feature of most savings accounts?

Accepted Answer

Limited number of withdrawals per month

Answer

Builds credit score

Answer

Unlimited check writing

Answer

High-interest loans

Question 4

The 3 C's of credit are Capacity, Character, and ________

Accepted Answer

Collateral

Answer

Calculations

Answer

Commission

Answer

Cash

Question 5

The biggest factor, representing 35% of your credit score, is ________

Accepted Answer

Late or missed payments

Answer

Using too much credit (credit utilization)

Answer

Too many requests for new lines of credit

Answer

A short credit history

Question 6

Which of the following earns the highest interest, without limiting your ability to withdrawal your funds?

Accepted Answer

Money market account

Answer

Savings account

Answer

CD (Certificate of Deposit)

Answer

Checking account

Question 7

What is one key difference between credit unions and banks?

Accepted Answer

Credit unions are nonprofit organizations, while banks are for-profit institutions.

Answer

Credit unions serve only public sector employees.

Answer

Banks only offer loans, while credit unions do not.

Answer

Credit unions have higher fees than banks.

Question 8

Which of the following best describes the membership requirement for credit unions?

Accepted Answer

Membership is often based on a common bond, such as employment or community.

Answer

Membership requires a minimum deposit of $1000.

Answer

Anyone can join regardless of location or affiliation.

Answer

Only individuals with excellent credit can become members.

Question 9

What is a debit card primarily used for?

Accepted Answer

Making purchases using funds from a bank account

Answer

Investing in stocks

Answer

Borrowing money from the bank

Answer

Earning interest on savings

Question 10

What is a common benefit of using a credit card?

Accepted Answer

Building a credit history

Answer

Avoiding all debts

Answer

Paying with cash

Answer

Getting free money

Question 11

What is the minimum payment on a credit card?

Accepted Answer

The lowest amount you can pay to keep the account in good standing

Answer

The total balance owed

Answer

The monthly fee for the card

Answer

The amount needed to earn rewards

Question 12

What is the term for the interest charged on unpaid credit card balances?

Accepted Answer

APR (Annual Percentage Rate)

Answer

Account Fee

Answer

Transaction Fee

Answer

Service Charge

Question 13

What best describes term life insurance?

Accepted Answer

It provides coverage for a specific period of time.

Answer

It has a cash value that accumulates over time.

Answer

It is only available to people over the age of 50.

Answer

It covers the insured for their entire life.

Question 14

Which of the following statements is true about whole life insurance?

Accepted Answer

It provides lifetime coverage as long as premiums are paid.

Answer

It is always cheaper than term life insurance.

Answer

It only pays out if the insured dies within the term.

Answer

It has no cash value accumulation.

Question 15

Which type of insurance would you claim if your car is damaged by a hailstorm?

Accepted Answer

Comprehensive insurance

Answer

Health insurance

Answer

Liability insurance

Answer

Collision insurance

Question 16

Which insurance type is mandatory for drivers in most states, covering damages to others in an accident?

Accepted Answer

Liability insurance

Answer

Collision insurance

Answer

Comprehensive insurance

Answer

Uninsured motorist coverage

Question 17

What does collision insurance typically cover?

Accepted Answer

Damages to your vehicle from a car accident

Answer

Injuries to passengers in your car

Answer

Theft of the vehicle

Answer

Damage caused by natural disasters

Question 18

How often do customers typically receive bank statements for their checking accounts?

Accepted Answer

Monthly

Answer

Yearly

Answer

Weekly

Answer

Daily

Question 19

Experts recommend that you have enough in your emergency fund to cover _________ of expenses

Accepted Answer

3-6 months

Answer

30 days

Answer

3 years

Answer

1 week

Question 20

The 50-30-20 rule indicates that you should put _____ into your wants

Accepted Answer

30%

Answer

50%

Answer

20%

Question 21

If you're okay with getting a guaranteed interest rate AND you don't need to access your funds for a specified period of time (several months to years), then a/the ________ may be a good place to invest.

Accepted Answer

Certificate of Deposit (CD)

Answer

Savings account

Answer

Checking account

Answer

Stock market

Question 22

If you fail to pay your federal student loans, which of the following could occur?

Accepted Answer

Wages or tax refunds could be garnished (taken by the government)

Answer

Your drivers license could be suspended

Answer

Your passport could be revoked

Answer

You could be fired from your job

Question 23

What is the primary goal of the debt snowball method?

Accepted Answer

To pay off debts from smallest to largest

Answer

To ignore all debts until they grow larger

Answer

To pay off debts with the highest interest rate first

Answer

To consolidate all debts into one payment

Question 24

What is the primary goal of using the debt avalanche method (Also called high rate method)?

Accepted Answer

To pay off debts with the highest interest rates first

Answer

To pay off the smallest debts first

Answer

To ignore interest rates completely

Answer

To consolidate all debts into one

Question 25

What is the primary purpose of the 3 main credit reporting agencies (Equifax&#44; Transunion&#44; & Experian)?

Accepted Answer

To collect and maintain credit information about consumers

Answer

To provide insurance services

Answer

To manage bank accounts

Answer

To issue loans directly to consumers

Question 26

What is the general timeline to establish your first credit score?

Accepted Answer

6 months after you first actively use your credit

Answer

As soon as you apply for a credit card or loan

Answer

Once you turn 18

Answer

Once you play all of your credit balances in full

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