Question 1

The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:

Accepted Answer

Board of Governors

Answer

Secretary of State

Answer

Department of the Treasury

Answer

United States Mint

Question 2

What is "APR"?

Accepted Answer

Annual Percentage Rate

Answer

Approximate Payment Returns

Answer

Average Percentage Rate

Answer

Actual Percentage Requirement

Question 3

Savings accounts usually offer _________ interest rates than checking accounts. It is _________ to access your money in a savings account than in a checking account.

Accepted Answer

higher; harder

Answer

higher; easier

Answer

lower; harder

Answer

lower; easier

Question 4

What percentage of Americans are living paycheck to paycheck?

Accepted Answer

70%

Answer

20%

Answer

50%

Answer

80%

Question 5

Which of the following is a unique feature of credit unions?

Accepted Answer

Credit Unions are both owned by their members and limit membership to certain people.

Answer

Credit unions limit membership to certain people or groups.

Answer

Credit unions are typically owned and run by their members.

Answer

Credit unions offer a wide variety of banking services.

Question 6

Which of the following is NOT one of the responsibilities of the Federal Reserve?

Accepted Answer

Establishing the federal budget

Answer

Supervising the Reserve banks

Answer

Maintaining a stable banking system

Answer

Setting the nation’s monetary policy

Question 7

Which type of account is typically the MOST liquid?

Accepted Answer

Checking account

Answer

Savings account

Answer

Certificate of Deposit

Answer

Exchanged Traded Fund

Question 8

Interest is:

Accepted Answer

the amount owed for borrowing money

Answer

a charge for the convenience of accessing money stored in your bank account

Answer

a charge for lending money to a bank

Answer

the amount added into your savings when opening a bank account

Question 9

Which of the following accounts will give you the LEAST access to your money?

Accepted Answer

Certificate of Deposit (CD)

Answer

Cash

Answer

Checking account

Answer

Simple savings account

Question 10

The purpose of a budget is to:

Accepted Answer

help you plan how you will spend the money you earn or receive

Answer

tell you how much you owe the government in taxes

Answer

stop you from spending too much money

Answer

increase the balance of your savings account

Question 11

Which of the following is generally true about savings vehicles?

Accepted Answer

All of the above

Answer

Savings vehicles are only useful for long-term investments

Answer

Savings vehicles are never insured

Answer

People should evaluate different forms of savings vehicles based on their needs

Question 12

What’s the purpose of balancing or monitoring your checking account?

Accepted Answer

To help you calculate how much money you have in your account

Answer

To find out which checks you have bounced

Answer

To keep an estimation of how many checks you write

Answer

To stop identity theft from occurring

Question 13

What is the most important thing to remember when setting a goal and pursuing it?

Accepted Answer

Never give up, no matter how hard and how much you stumble. You only fail when you quit

Answer

It takes money to reach your goals. Only people with money already can succeed

Answer

If you don't reach your goals, it's okay to give it up

Answer

Only set goals that are easy and you know you can make

Question 14

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

Accepted Answer

Compounding daily

Answer

Compounding monthly

Answer

Compounding 1 time a year

Answer

Compounding 4 times a year

Question 15

Which of the following is a type of savings vehicle?

Accepted Answer

Certificate of Deposit

Answer

Piggy Bank

Answer

Cash

Answer

Checking Account

Question 16

Which of the following accounts will give you the LEAST access to your money?

Accepted Answer

Certificate of Deposit (CD)

Answer

Cash

Answer

Simple savings account

Answer

Checking account

Question 17

Which of the following is a MYTH about credit cards?

Accepted Answer

You must have a credit card to buy items online

Answer

Credit card use is increasing in America

Answer

You can build credit without a credit card

Answer

Using a credit card is a more expensive way to buy an item

Question 18

What is FICO?

Accepted Answer

A score to determine your credit worthiness

Answer

Financial Institution Corporation

Answer

The Federal agency that monitors the stock market

Answer

A high yield savings account

Question 19

In terms of credit cards, what is the balance?

Accepted Answer

The amount you owe on the credit card

Answer

The amount of interest that you pay per year

Answer

How much you owe on the card compared to how much cash that you have

Answer

The number of credit cards that you have

Question 20

What is another term for APR?

Accepted Answer

Interest

Answer

Late Fee

Answer

Annual Principle Reduction

Answer

Introductory Rate

Question 21

What is a disclosure form in regards to credit cards?

Accepted Answer

The terms that you are agreeing to when opening a credit card account

Answer

The form that you fill out to apply for a credit card

Answer

The form that you fill out to cancel your credit card

Answer

The form that allows you to add additional cards to your account

Question 22

What does it mean to make the minimum payment?

Accepted Answer

Pay the lowest amount accepted by your credit card company

Answer

Pay the smallest interest rate

Answer

Pay the smallest late fee

Answer

Pay the most amount accepted by your credit card company

Question 23

The following can only be purchased with a credit card

Accepted Answer

All can be purchased without a credit card

Answer

Hotels

Answer

Plane tickets

Answer

Rental Cars

Question 24

What is "Negative Marketing"?

Accepted Answer

Creating a demand for a product by making it hard to get

Answer

Marketing a product by talking about how bad it is

Answer

Creating a product that costs more to produce than it will make in profit

Answer

Creating a demand for a product by producing more than people will need

Question 25

What is the difference between paying towards the principle and paying towards interest?

Accepted Answer

Paying towards the principal is paying what you've borrowed. Paying towards interest is paying the additional cost for borrowing money.

Answer

There is no difference

Answer

Paying towards the principle is paying the bank directly. Paying towards interest is paying through a 3rd party

Answer

Paying the principle is paying off a mortgage, paying interest is paying off a credit card

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