Financial Literacy Quiz Survey

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* 1. Which of the following is true about sales taxes?

The national sales tax percentage rate is 6%

The federal government will deduct it from your paycheck

You don't have to pay the tax if your income is very low

Taxes make things more expensive to buy

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* 2. Rebecca has saved $12,000 for her college expenses by working part-time. Her plan is to start college next year and she needs all the money she saved. Which of the following is the safest place for her college money?

Locked in her closet at home

Stocks

Corporate bonds

A credit union/bank savings account

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* 3. Which of the following types of investment would best protect the purchasing power of a family's savings in the event of a sudden increase in inflation?

A 10-year bond issued by a corporation

A Certificate of Deposit (CD) at a bank or credit union

A 25 year corporate bond

A house financed with a fixed-rate mortgage

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* 4. Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

When you need to buy a car to get a much better paying job

When you really need a week's vacation

When some clothes you like go on sale

When the interest on the loan is greater than the interest you get on your savings

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* 5. Which of the following statements best describes your right to check your credit history for accuracy?

Your credit record can be checked at least once a year for free

You cannot see your credit record

All credit records are the property of the U.S. Government and access is only available to the FBI and Lenders

You can only check your record for free if you are turned down for credit based on a credit report

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* 6. Your take home pay from your job is less than the total amount you earn. Which of the following best describes what is taken out of your total pay?

Social security and healthcare contributions

Federal income tax, property tax, healthcare and social security contributions

Federal income tax, social security and healthcare contributions

Federal income tax, sales tax and social security contributions

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* 7. Many people put aside money to take care of unexpected expenses. If Juan and Elva have money put aside for emergencies, in which of the following forms would it be of LEAST benefit to them if they needed it right away?

Invested in a down payment on the house

Checking account

Stocks

Savings Account

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* 8. David just found a job with a take-home pay of $2,000 per month.He must pay $900 for rent and $150 for groceries each month. He also spends $250 per month on transportation. If he budgets $100 each month for clothing, $200 for restaurants and $250 for everything else, how long will it take him to accumulate savings of $600?

3 months

4 months

1 month

2 months

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* 9. Sarah and Joshua just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?

Checking account

Stocks

U.S. Government Savings bond

Savings account

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* 10. Barbara has just applied for a credit card. She is an 18 year old High School Graduate with a few valuable possessions and no credit history. If Barbara is granted a credit card, which of the following is the most likely way that the credit card company will reduce IT'S risk?

It will make Barbara's parents pledge their home to repay Barbara's credit card debt

It will require Barbara to have both parents co-sign for the card

It will charge Barbara twice the finance charge rate it charges older candidates

It will start Barbara out with a small line of credit to see how she handles the account

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* 11. If you are behind on your debt payments and go to a responsible credit counseling service such as Consumer Credit Counseling Services, what help can they give you?

They can cancel and cut up all of your credit cards without your permission

They can get the federal government to apply your income taxes to pay off your debts

They can work with those who loaned you the money to set up a payment schedule that you can meet

They can force those who loaned you the money to forgive your debts

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* 12. Rob and Mary are the same age. At age 25 Mary began saving $2,000 a year while Rob saved nothing. At age 50, Rob realized that he needed money for retirement and started saving $4,000 per year while Mary kept saving $2,000. Now they are both 75 years old. Who has the most money in his or her retirement account?

They would each have the same amount because they put away the same

Rob because he saved more each year

Mary because she put away more money

Mary, because her money has grown for a longer time at compound interest

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* 13. Devon and Corey work together in the finance department of the same company and earn the same pay. Corey spends his free time taking work-related classes to improve his computer skills, while Devon spends his free time socializing with friends and working out at the fitness center. After 5 years, what is likely to be true?

Devon will make more because he is social

Devon will make more because Corey is likely to be laid off

Corey will make more money because he is more valuable to his company

Devon and Corey will continue to make the same money

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* 14. If your credit card is stolen and the thief runs up a total of $1,000 but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal Law?

$500

$1000

Nothing

$50

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* 15. Which of the following statements is NOT correct about using most ATMs (Automated Teller Machines)?

You can generally get cash 24 hours-a-day

You can generally obtain information concerning your bank balance at an ATM

You can get cash anywhere in the world with no fee

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* 16. Scott and Eric are young men. Each has a good credit history. They work at the same company and make approximately the same salary. Scott has borrowed $6,000 to take a foreign vacation. Eric has borrowed $6,000 to buy a car. Who is likely to pay the lowest interest charge?

Eric will because the car is collateral for the loan

They will both pay the same because the rate is set by law

Scott will pay less because people who travel overseas are better risks

They will both pay the same because they have almost identical financial backgrounds

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* 17. Which of the following instruments is NOT typically associated with spending?

Debit card

Certificate of deposit

Cash

Credit Card

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* 18. Which of the following credit card users is likely to pay the GREATEST dollar amount in finance charges per year, if they all charge the same amount per year on their cards?

Jessica who pays at least the minimum payment each month and more when she has the money

Vera who generally pays off her credit card in full, but occasionally will pay the minimum when she is short of cash

Megan who always pays off her credit card bill in full shortly after she receives it

Erin who pays the minimum amount each month

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* 19. Which of the following statements is true?

Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed

People have so many loans that it is very unlikely that one bank will know your history with another bank

Your bad loan payment record with one bank will not be considered if you apply to another bank for a loan

If you missed a payment 2 years ago it cannot be considered in a loan decision

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* 20. If you had a savings account at a credit union or bank, which of the following would be correct concerning the interest that you would earn on this account?

Earnings from savings account interest may not be taxed

Income tax may be charged on the interest if your income is high enough

Sales tax may be charged on the interest you earn

You cannot earn interest until you pass your 18th birthday

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* 21. Please indicate your gender

Male

Female

Prefer not to answer

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* 22. Please indicate your age range

Under 12

12-17

18-24

25-34

35-44

45-54

55-64

65-74

75 years or older