Financial Literacy

Which of the following is NOT a common feature of a financial institution?

• Paper checks

• Access to investment products

• Access to ATMS

• Direct deposit

Why is it important to reconcile your bank statements?

• To avoid spending more than what is in your account.

• To detect any errors in your account.

• To determine if you were charged any fees

• All of the above

What should you do before you approach an ATM?

• Share a picture of your debit card with your friends.

• Make sure it is hidden so no one will see you withdraw money.

• Check for any suspicious people lurking nearby.

• Ask someone nearby for help using the ATM.

Which of the following statements about savings accounts is FALSE?

• Savings accounts pay interest on the money you deposit.

• Savings accounts limit the number of withdrawals that can be made each month.

• Savings accounts don't usually require a minimum balance.

• Savings accounts are best used to store money for longer-term goals.

Investing is best for ________.

• short-term financial goals, like building an emergency fund.

• earning a little interest while keeping your money safe.

• long-term financial goals, like paying for retirement.

• guaranteed fast growth on your money.

A mutual fund is _________.

• A type of debt investment that acts like a loan.

• A share of ownership in a company.

• A type of savings account that pays interest based on current interest rates in the money market.

• A type of investment that invests in a mix of different types of investments.

Which of the following statements is true about education and lifetime earnings?

• . Generally, the more education you receive, the higher your lifetime earnings will be.

• There is no relationship between the level of education received and lifetime earnings.

• Generally, the less education you receive, the higher your lifetime earnings will be.

• Generally, the more education you receive, the lower your lifetime earnings will be.

What is the difference between gross and net pay?

• .Gross pay is after taxes are subtracted but net pay is before taxes are taken out.

• Gross pay is before taxes are subtracted but net pay is after taxes are taken out.

• Gross and net pay are basically the same things.

• Net pay is a salary and gross pay is from hourly wages.

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• Contributions to retirement savings

• Federal income tax

• FICA

• Overtime pay

When you start a new job, you fill out a W-4 form to _________.

• determine how much your gross pay should be.

• file your tax return

• to determine how much federal income tax your employer should withhold from your paychecks.

• avoid paying income taxes on your paychecks.