Download Business Advance Studies - Financial Literacy Pretest

Business Advance Studies - Financial Literacy Pretest
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____
1. Rent, house payments, and installment loans are examples of _____.
a. fixed expenses
c. set-asides
b. flexible expenses
d. none of these
____
2. _____ are amounts of money that you accumulate in your budget for special purposes, such as birthdays and
holidays.
a. Fixed expenses
c. Set-asides
b. Flexible expenses
d. none of these
____
3. Most bills come due _____.
a. once a week
b. once a month
c. once a year
d. none of these
____
4. According to _____, a lender is required to notify you within 30 days after you have submitted a completed
loan application whether the application has been approved.
a. the Equal Credit Opportunity Act
c. the Truth in Lending Act
b. the Fair Credit Reporting Act
d. none of these
____
5. _____ requires that a credit agency show you your file if you are refused credit for a specific reason related to
your credit report.
a. The Equal Credit Opportunity Act
c. The Truth in Lending Act
b. The Fair Credit Reporting Act
d. none of these
____
6. _____ limits your liability for credit cards that are lost or stolen to $50 per card if you properly and promptly
notify the card issuer of the loss.
a. The Equal Credit Opportunity Act
c. The Truth in Lending Act
b. The Fair Credit Reporting Act
d. none of these
____
7. In the case of defective goods or services, you may withhold a credit card payment if _____.
a. you don’t like the product
b. the cost in dispute with a merchant totals more than $50
c. your money is needed for life-supporting items
d. none of these
____
8. Your total earnings before deductions are called _____.
a. commissions
c. gross earnings
b. overtime pay
d. salary
____
9. Taxes, insurance, pensions, and other miscellaneous items are _____.
a. wages
c. gross earnings
b. commissions
d. deductions
____ 10. The signature of a payee on the back of a check is a _____.
a. W-4 form
c. commission
b. pay stub
d. none of these
____ 11. _____ is usually referred to as Social Security.
a. The Equal Credit Reporting Act (ECRA)
b. The Truth in Lending Act (TLA)
c. The Federal Insurance Contributions Act (FICA)
d. none of these
____ 12. Payment based on a certain percentage of sales is called _____.
a. commission
c. wages
b. salary
d. none of these
____ 13. Payment according to what a worker produces is called _____.
a. salary
c. piecework
b. commission
d. none of these
____ 14. Payments that all citizens are required by law to make to help pay the costs of government services are called
_____.
a. deductions
c. taxes
b. commissions
d. none of these
____ 15. A legal statement that authorizes your employer to deduct taxes from your paycheck and to pay them to the
government for you is a(n) _____.
a. deduction
c. endorsement
b. W-2 form
d. W-4 form
____ 16. _____ are people who lend money.
a. Banks
b. Creditors
c. Credit unions
d. all of these
____ 17. The amount of debt that you can afford to repay each month is _____.
a. credit history
c. a multipurpose card
b. consumer finance
d. credit capacity
____ 18. A _____ is a record of how you’ve borrowed and repaid debts.
a. certificate of deposit
c. multipurpose card
b. bank
d. credit history
____ 19. _____ specialize in real estate loans.
a. Savings and loan banks
b. Commercial banks
c. Credit unions
d. Consumer finance companies
____ 20. _____ usually have stricter lending requirements than other lending institutions.
a. Banks
c. Consumer finance companies
b. Credit unions
d. none of these
____ 21. _____ specialize in making small loans to borrowers with poor or no established credit.
a. Banks
c. Credit unions
b. Consumer finance companies
d. Savings and loan companies
____ 22. _____ require membership in order to borrow money.
a. Banks
c. Credit unions
b. Consumer finance companies
d. Savings and loan companies
____ 23. _____ are accepted by most stores, restaurants, hotels, and other establishments to pay for goods and
services..
a. Credit unions
c. Credit capacities
b. Creditors
d. Multipurpose cards
____ 24. _____ entitles you, as a consumer, to a free credit report every year.
a. The Equal Credit Opportunity Act
b. The Fair and Accurate Credit Transaction Act
c. The Fair Credit Reporting Act
d. none of these
____ 25. MasterCard, Visa, and American Express are examples of _____.
a. single-purpose credit cards
c. multipurpose credit cards
b. revolving charge account cards
d. none of these
Business Advance Studies - Financial Literacy Pretest
Answer Section
MULTIPLE CHOICE
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22. ANS:
A
PTS:
budget | finances
C
PTS:
budget | finances
B
PTS:
budget | finances
A
PTS:
finances
B
PTS:
finances
C
PTS:
finances
B
PTS:
finances | conflicts
C
PTS:
finances
D
PTS:
finances | taxes
D
PTS:
finances
C
PTS:
taxes | finances
A
PTS:
finances
C
PTS:
finances
C
PTS:
taxes | finances
D
PTS:
taxes
B
PTS:
finances
D
PTS:
finances
D
PTS:
finances
A
PTS:
finances
A
PTS:
finances
B
PTS:
finances
C
PTS:
1
DIF: Medium
REF: Page 404
1
DIF: Medium
REF: Page 404
1
DIF: Easy
REF: Page 403
1
DIF: Difficult
REF: Page 401
1
DIF: Difficult
REF: Page 402
1
DIF: Difficult
REF: Page 402
1
DIF: Medium
REF: Page 400
1
DIF: Easy
REF: Page 388
1
DIF: Medium
REF: Page 388
1
DIF: Easy
REF: Page 388
1
DIF: Medium
REF: Page 390
1
DIF: Easy
REF: Page 389
1
DIF: Medium
REF: Page 389
1
DIF: Easy
REF: Page 389
1
DIF: Difficult
REF: Page 389
1
DIF: Medium
REF: Page 397
1
DIF: Medium
REF: Page 398
1
DIF: Easy
REF: Page 398
1
DIF: Medium
REF: Page 398
1
DIF: Difficult
REF: Page 398
1
DIF: Medium
REF: Page 398
1
DIF: Medium
REF: Page 398
KEY:
23. ANS:
KEY:
24. ANS:
KEY:
25. ANS:
KEY:
finances
D
PTS: 1
finances
B
PTS: 1
finances | consumer
C
PTS: 1
finances
DIF: Easy
REF: Page 399
DIF: Difficult
REF: Page 401
DIF: Easy
REF: Page 399