Financial Literacy Post Test

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SENIORS: Please complete this financial literacy post test. You took the pre test sophomore year. We keep these scores in the Upward Bound office to show your progress.

What is your name? *

Taxes, Social Security, and insurance can affect your take-home pay. *

1 point

TRUE

FALSE

You should start thinking about retirement when you get your first job. *

1 point

TRUE

FALSE

Self-employed people don't pay taxes. *

1 point

TRUE

FALSE

You are guaranteed a "cost of living" raise every year by the law. *

1 point

TRUE

FALSE

There is never a fee for using an ATM. *

1 point

TRUE

FALSE

Because the monthly payment will be less, you should always lease, rather than buy, a car. *

1 point

TRUE

FALSE

Money market accounts usually pay higher interest than traditional savings accounts. *

1 point

TRUE

FALSE

You should have at least three to six months' living expenses saved for emergencies. *

1 point

TRUE

FALSE

All forms of debt should be avoided. *

1 point

TRUE

FALSE

As long as you pay the monthly minimum balance on your credit card, the credit card company will not charge you interest. *

1 point

TRUE

FALSE

A "fixed interest rate" on a credit card can never change. *

1 point

TRUE

FALSE

You do not pay interest on purchases made with a debit card. *

1 point

TRUE

FALSE

The Annual Percentage Rate (APR) is always higher than the Annual Percentage Yield (APY). *

1 point

TRUE

FALSE

Homes usually increase in value over time. *

1 point

TRUE

FALSE

It is generally safer to buy lots of stock in one company than to buy some stock in lots of different companies. *

1 point

TRUE

FALSE

The federal government insures most bank accounts. *

1 point

TRUE

FALSE

In general, more-expensive health insurance plans have higher deductibles or provide less coverage. *

1 point

TRUE

FALSE

Losses from identify theft are covered by the federal government. *

1 point

TRUE

FALSE

Collision auto insurance covers the cost of the other motorist's damages and personal injury. *

1 point

TRUE

FALSE

You are legally require to have auto insurance when driving in most states. *

1 point

TRUE

FALSE

Having dependent children has no impact on your income tax. *

1 point

TRUE

FALSE

Your net pay will never be more than your gross pay. *

1 point

TRUE

FALSE

All income is taxable. *

1 point

TRUE

FALSE

The minimum wage is the same in every state. *

1 point

TRUE

FALSE

A bank account can help you avoid the fees associated with check cashing centers. *

1 point

TRUE

FALSE

It is generally more costly in the long run to buy rather than rent a home. *

1 point

TRUE

FALSE

The first step to budgeting your money is determining your needs versus your wants. *

1 point

TRUE

FALSE

Discretionary income is the money you use to pay bills. *

1 point

TRUE

FALSE

You can check your credit report for free once a year. *

1 point

TRUE

FALSE

Banks are not permitted to share the credit history of borrowers with other banks. *

1 point

TRUE

FALSE

Having credit is the same as having extra cash. *

1 point

TRUE

FALSE

The lower your credit score, the better your chances of securing a loan. *

1 point

TRUE

FALSE

401(k) plans are retirement plans where the employer often matches a percentage of your contributions. *

1 point

TRUE

FALSE

Stocks are normally riskier than bonds. *

1 point

TRUE

FALSE

You can lose money that you invest in a savings account. *

1 point

TRUE

FALSE

You should try to save at least 5 to 10 percent of every paycheck. *

1 point

TRUE

FALSE

Health insurance plans often limit which doctors and office you can use. *

1 point

TRUE

FALSE

The Federal Trade Commission helps protect your rights as a consumer. *

1 point

TRUE

FALSE

If you rent an apartment and your possessions are stolen or damaged, the property owner is responsible for that loss. *

1 point

TRUE

FALSE

The deductible is the amount you pay weekly, biweekly, or monthly for an insurance policy. *

1 point

TRUE

FALSE

The income tax rate is the same for everyone. *

1 point

TRUE

FALSE

In general, the more education you have, the more you are likely to earn. *

1 point

TRUE

FALSE

Money earned from tips, bonuses, and commissions is not taxed. *

1 point

TRUE

FALSE

In general, people who set financial goals save more money. *

1 point

TRUE

FALSE

Car payments, rent, and insurance are examples of fixed expenses. *

1 point

TRUE

FALSE

In the short term, it is usually easier to increase your income rather than cut your expenses. *

1 point

TRUE

FALSE

Credit unions are not-for-profit organizations that work much the same as banks. *

1 point

TRUE

FALSE

Online banking is extremely risky and should be avoided. *

1 point

TRUE

FALSE

Your house can be taken from you if you don't make your mortgage payments. *

1 point

TRUE

FALSE

You should always pay off the loan with the lowest interest rate first. *

1 point

TRUE

FALSE

Bad credit can affect your ability to get a job. *

1 point

TRUE

FALSE

Having a cosigner usually decreases your chances of getting a loan. *

1 point

TRUE

FALSE

The mandatory retirement age in the United States is 65. *

1 point

TRUE

FALSE

A certificate of deposit (CD) is considered a high-risk investment. *

1 point

TRUE

FALSE

In general, the higher the risk, the higher the potential return on an investment. *

1 point

TRUE

FALSE

Money withdrawn from a Roth Individual Retirement Account (IRA) generally will not be taxed. *

1 point

TRUE

FALSE

A copayment is the money you pay to an insurance company for coverage. *

1 point

TRUE

FALSE

Medicaid can help cover health costs for low-income families. *

1 point

TRUE

FALSE

Life insurance is generally cheaper for those with severe health problems. *

1 point

TRUE

FALSE

If you are fired, you automatically qualify for unemployment benefits. *

1 point

TRUE

FALSE

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