Perhaps you know quite a bit about managing your finances, planning for financial security and such...but take the following quiz to see where you score on 'financial finesse' according to www.savingadvice.com!
1. Who is Ben Bernanke?
Ben Bernanke is the 14th and current Chairman of the Board of Governors of the Federal Reserve. The Federal Reserve is the official bank of the United States and is a major factor in the economic system for the entire United States. Does this matter to you? Yes. The Fed sets the interest rate for loans between banks; this in turn affects the interest rate you will pay for that new car.
2. What is net worth?
Net Worth is a measure of your financial strength and is usually defined as your total assets minus your total liabilities. Many people calculate Net Worth each year as part of tax preparations.
3. Many savings programs are protected by the Federal government against loss. Which of the following is not?
- A. A bond issued by one of the 50 States
- B. A U.S. Treasury Bond
- C. A U.S. Savings Bond
- D. A certificate of deposit at the bank
The correct answer was A: "A bond issued by one of the 50 States"
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?
- A. When some clothes you like go on sale.
- B. When the interest on the loan is greater than the interest you get on your savings.
- C. When you need to buy a care to get a much better paying job.
- D. When you really need a week vacation.
The correct answer was C: "When you need to buy a car to get a much better paying job"
5. Which of the following statements best describes your right to check your credit history for accuracy?
- A. All credit records are the property of the U.S. Government and access is only available to the FBI and Lenders.
- B. You can only check your record for free if you are turned down for credit based on a credit report.
- C. Your credit record can be checked once a year for free.
- D. You cannot see your credit record.
The correct answer was C: "Your credit record can be checked once a year for free"
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?
- A. Federal income tax, social security and Medicare contributions
- B. Federal income tax, sales tax, and social security contribution
- C. Social security and Medicare contributions
- D. Federal income tax, property tax, and Medicare and social security contributions
The correct answer was A: "Federal income tax, social security and Medicare contributions"
7. Retirement income paid by a company is called:
- A. Rents and profits
- B. Social Security
- C. 401K
- D. Pension
The correct answer was D: "Pension"
8. Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?
- A. Young people don’t need health insurance because they are so healthy.
- B. You continue to be covered by your parents’ insurance as long as you live at home, regardless of your age
- C. You are covered by your parents’ insurance until you marry, regardless of your age
- D. If your parents become unemployed, your insurance coverage may stop, regardless of your age
The correct answer was D: " If your parents become unemployed, your insurance coverage may stop, regardless of your age"
9. If your credit card is stolen and the thief runs up a total debt 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?
- A. Nothing
- B. $50
- C. $500
- D. $1000
The correct answer was B: "$50"
10. Karen has just applied for a credit card. She is an 18-year-old high school graduate with few valuable possessions and no credit history. If Karen is granted a credit card, which of the following is the most likely way that the credit card company will reduce ITS risk?
- A. It will charge Karen twice the finance charge rate it charges older cardholders
- B. It will start Karen out with a small line of credit to see how she handles the account
- C. It will make Karen’s parents pledge their home to repay Karen’s credit card debt
- D. It will require Karen to have both parents co-sign for the card
The correct answer was B: "It will start Karen out with a small line of credit to see how she handles the account"
11. If you are behind on your debt payments and go to a responsible credit counseling service such as the Consumer Credit Counseling Services, what help can they give you?
- A. They can work with those who loaned you money to set up a payment schedule that you can meet
- B. They can force those who loaned you money to forgive all your debts
- C. They can cancel and cut up all of your credit cards without your permission
- D. They can get the federal government to apply your income taxes to pay off your debts
The correct answer was A: "They can work with those who loaned you money to set up a payment schedule that you can meet"
Resource: Jump$tart financial literacy quiz posted on www.savingadvice.com/quiz