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Can You Pass This Financial Literacy Quiz?

Posted: April 21, 2016 in Advice & Tips, Education, Everyone, Ideas & Info for:, Topics, Your Money
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Think you know everything about how to manage money successfully? For example, do you know the difference between different types of bank accounts? What about the fees associated with a credit card? Take this financial literacy quiz and prove it!

Q1: Uh oh, you forget to pay your cell phone bill and get a late notice. What kind of repercussions can you likely expect?

  • A. Your phone will be shut off
  • B. You’ll be charged a late fee
  • C. Your next bill will be double the price

Q2: Which type of account allows you to make an unlimited number of withdrawals without a fee?

  • A. Certificate of deposit
  • B. Checking account
  • C. Savings account

Q3: Your auto insurance plan has a $600 deductible. Driving home from work, you get into an accident and cause $800 worth of damage to your car and $1,500 to the other person’s car. How much of the cost do you have to cover?

  • A. $200
  • B. $1,700
  • C. $600

Q4: Which of the following is incorrect about using an ATM?

  • A. ATMs are usually open 24 hours a day.
  • B. You can get information about your account at an ATM machine.
  • C. You can get cash anywhere in the world without a fee.

Q5: What does APR stand for?

  • A. Annual Perpetual Rate
  • B. Annual Percentage Rate
  • C. Annuity Per Refund

Q6: How much should be in your emergency fund?

  • A. $1,000
  • B. Two months worth of rent or mortgage payments
  • C. Six months worth of living expenses

Q7: What is the recommended max percentage of your take-home income you should spend on monthly housing expenses?

  • A. 30 percent
  • B. 45 percent
  • C. 50 percent

Q8: You earn $8 an hour at your job at the mall and worked 11 hours this pay period. When you get your check, you notice it’s less than the $88 you expected. Why is that?

  • A. Your employer has the right to withhold money from your paycheck at will.
  • B. The store you work at is allowed to take money out at will.
  • C. State and federal taxes have been taken out of your paycheck.

Q9: Student loan borrowing is at an all-time high, and so is the default rate on making student loan payments. What kind of relief should you expect on your student loans if you file for bankruptcy?

  • A. Significant relief—all debts are wiped clean so you can have a fresh start.
  • B. Moderate relief—usually payments and amount owed are adjusted to match your ability to pay.
  • C. No relief—it’s extremely rare to get any relief for student loans from bankruptcy

Q10: What does a FICO score determine?

  • A. Your credit rating
  • B. Your interest rate
  • C. The fee you will be charged when taking out a loan

Check your answers below! How’d you do? Do you need to brush up on your financial literacy knowledge or do you have what it takes to have a successful financial future? Let us know in the comments section.

 

 

 

Answers:

  1. B
  2. B
  3. C
  4. C
  5. B
  6. C
  7. A
  8. C
  9. C
  10. A

32 thoughts on “Can You Pass This Financial Literacy Quiz?

  1. According to your key, the answer to question number 4 is C, ‘You can get cash anywhere in the world without a fee’. I think you might want to double check that.

      1. I can tell you that my ATM is NOT open 24 hours a day. Some banks do close to prevent robberies during early morning hours. Just saying.

    1. Q3
      Assumes it’s My Fault and I have Full Coverage? $600 would be MY Cost…

      It would be, Zero; out-of-pocket, if the Accident were their fault…

      AND….

      It would be $1700, If I had Liability Only Coverage and it was MY Fault?

      Questions, People! LOL
      FYI – Total = 90% (and I got 3 Right, I Used Option 1 (HRB LOGIC)

  2. This is a good quiz. I like it very much and I learned a few things I did not know, like the lack of protection for defaulting student loans in bankruptcy.

  3. I took your little test and passed by 100%, but I am no spring chicken. I should know all these answers and am still having trouble paying all of my bills, not making enough to support myself.

    1. We’ve all been there, James. Who doesn’t need a quick money management refresher from time to time, right?

  4. this is a good learning tool for both parents and children. I wish all schools in all states would teach classes like this. I mean these children are the future and some day will be running this country.

  5. The answer to your first question is wrong, or at least partly wrong. My cell phone Metro PCS will shut off at 12 noon the day after it is due, if not paid. There is no late fee. It will simply turn on within 5 minutes after it is paid.

  6. The answer to question #2 is not strictly correct. There are some banks that charge a fee if you write more than a set number of checks per month.

  7. I have to agree with Moe and John about questions 1 & 2/. The test presents some valid questions for financial advice and over all I think it would be a good first step.

  8. Good quiz. Question 2 says checking accounts allow unlimited withdrawals. I thought some checking accounts have a maximum number of withdrawals in any month.

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