General Financial Literacy State Practice Test

These questions are part of the practice quiz. Start practicing

• Which policy area is primarily responsible for controlling the money supply and interest rates?
• If the general price level rises, what happens to purchasing power?
• Which two forms of financial aid do not have to be repaid?
• Which investment is typically used for growth and diversification and includes many assets?
• What is phishing?
• Which loan is described as typically secured by a vehicle's title?
• In a typical amortization schedule, which statement is true?
• Which statement best describes installment loans?
• The largest total amount the insurance company will pay for covered losses is called
• GDP is best described as
• FAFSA stands for which of the following?
• Which term best fits this description: A certificate issued by a government or private company which promises to pay back with interest the money borrowed from the buyer of the certificate.
• Economic depression is characterized by
• Which of the following is NOT listed as a source of income?
• APR stands for?
• Which of the following is one of the 5 C's of creditworthiness?
• Which term describes life insurance that pays a death benefit if the policyholder dies within a specific time period?
• The law of supply and demand states that
• Which statement best describes the difference between fiscal policy and monetary policy?
• In a market economy, who primarily makes production and consumption decisions?
• Why should you use a credit card instead of a debit card for online shopping?
• Soft skills are best described as?
• A credit score helps determine what?
• Why should you compare income to the cost-of-living in different areas?
• How do marketing strategies and social media influence consumers?
• The person named to receive insurance proceeds is called what?
• How does a free market system and property rights correlate with economic prosperity?
• Which term best describes the concept of the tradeoffs faced when choosing how to allocate scarce resources?
• Which statement defines a pawn loan?
• What term refers to property such as land, houses and office buildings?
• Which term describes your total earnings before deductions?
• Which type of economy blends private enterprise with government regulation and promotion?
• Which statement best captures the advice for online shopping safety?
• What is a major interpersonal benefit of personal financial planning?
• What is the result of choosing an immediate reward over a planned expenditure?
• Which of the following are examples of financial contracts?
• Which saving discipline prioritizes setting aside money before paying other expenses?
• Under the 70-20-10 budgeting rule, which category is allocated 70%?
• What is entrepreneurship?
• ROI stands for which of the following?
• Which laws protect buyers and sellers?
• Which type of institution does the NCUA cover?
• What describes an economy in which private enterprise exists in combination with government regulation and promotion?
• Which statement best describes unsecured credit?
• Which of the following best summarizes the advised approach to online safety?
• Which investment type best describes a portfolio that includes multiple investments managed together?
• Which insurance product covers you if you are unable to work due to injury?
• Which groups are considered the primary participants in an economy?
• Which statement describes secured credit?
• If you save too much and prices rise (inflation), what happens to your purchasing power?
• Which statement best describes reducing risk?
• Which action aligns with protecting your identity?
• Which statement best defines scarcity in economic terms?
• What is a 401K or Roth 401K?
• When planning savings goals, which factor should you consider to preserve purchasing power over time?
• Which economic system relies on individuals or the open market to make economic decisions?
• What defines a non-profit school?
• What is revolving credit?
• To minimize identity theft when disposing documents, you should:
• Which term describes a set period of life insurance that pays a death benefit if the insured dies within that period?
• What describes coming to an agreement between buyer and seller on price?
• What is a grace period in an insurance policy?
• Which of the following is NOT one of the 5 C's of creditworthiness?
• What is phishing?
• Which term describes the act of reinvesting dividends to buy additional shares?
• Which retirement account allows tax-free growth using after-tax dollars?
• Which economy relies on customs and traditions and handed-down roles?
• At the beginning of an amortization schedule, which is higher: principal or interest?
• What describes identity theft?
• Inflation is defined as
• Scholarships are merit-based; don't have to pay back.
• What term refers to the maximum a policy will pay for covered losses during the lifetime of the insured?
• Pharming is best described as?
• Which type of school costs more on average, public or private?
• Which term best describes earnings from employment rather than passive income?
• What is the purpose of an amortization schedule?
• Economic recession is
• Disability insurance is intended to provide income in which scenario?
• Economic expansion occurs when
• Which form is used to prove you are legally eligible to work in the U.S.?
• What is pharming?
• Grants are need-based; don't have to pay back.
• Which option reflects a recommended practice to protect against identity theft?
• Which type of income is the amount you actually take home after taxes and deductions?
• What typically happens to employment during economic expansion?
• Which organizations are commonly referred to as the 'Big Three' credit bureaus?
• What is the money you 'earn' called before deductions are taken out?
• Which term best describes putting money aside to preserve capital for future needs?
• Bankruptcy is defined as a legal process to get out of debt when you can no longer make all your required payments.
• Which economic system is characterized by the government making all economic decisions?
• Which term describes a contract between a policyowner and an insurer that specifies payments for losses caused by certain events?
• What can happen if you mismanage your checking account (NSF)?
• What is Student loans?
• What does PYF stand for in personal finance?
• Understanding purchasing power helps you assess what?
• What term describes the relationship where higher risk can lead to higher potential returns?
• Which statement best describes the relationship between education and earnings?
• Which term describes a moderate but sustained downturn in the economy?
• Which term best describes investing in a startup with little data to inform decisions?
• Which action supports identity protection regarding online shopping and document disposal?
• Who is responsible for your purchasing decisions?
• What is the rational decision-making process where you compare gains and losses?
• Which term refers to a contract between a policyowner and an insurance company that pays the insured or beneficiary for losses caused by specific events?
• Which saving option typically has a fixed term and fixed interest rate?
• What is the role of the FDIC and NCUA?
• Which practice is aligned with protecting yourself from identity theft when shopping online?
• What is a non-profit school?
• Which of these is the most high-risk/unpredictable behavior: gambling, investing, or saving?
• Which form provides a summary of an employee's annual wages and taxes for the year?
• Which statement correctly describes a 529 plan?
• Which practice best aligns with protecting your identity when handling sensitive documents?
• Which form proves you are legally eligible to work in the United States?
• In a goals-based budget, what is the purpose of an emergency fund and typical starting amount?
• What is the W-4 form used for?
• What is a fixed budget category?
• Which statement best describes the recommended approach to identity protection?
• Which statement describes a title loan?
• With each payment in an amortization schedule, what goes down and what goes up?
• Which buying behavior is described as buying on the spot when you see merchandise?
• Which activity involves comparing products and prices in different stores before purchasing?
• What is the general relationship between risk and return?
• Three biggest expenses
• Which of the following best describes an installment loan?
• Which activity is aimed at increasing wealth over time by allocating resources?
• What is Medicare?
• What does a dividend reinvestment plan do?
• Which practice helps protect against identity theft when shopping online?
• Which action is recommended for protecting identity in general?
• Co-signer on a loan is used for?
• What does investing aim to achieve?
• What tool demonstrates the time value of money by considering principal, rate, and time?
• Which strategy involves moving risk to another party?
• Which of the following is a recommended practice to protect your identity while shopping online?
• Which form is filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes?
• Which statement best describes a derogatory remark on a credit report?
• Which type of investment is best for long-term planning?
• Which lenders are most associated with very high interest rates targeted at vulnerable borrowers?
• Which description matches a payday loan?
• What term describes the tradeoff—what we give up when we make a choice?
• What does the 70-20-10 rule in budgeting describe?
• What is a 529 plan?
• What does a credit score represent?
• What is the loan-to-value ratio?
• Which term describes life insurance kept for the insured's entire life and pays a death benefit when they die?
• Which action aligns with protecting identity when disposing of sensitive documents?
• Which option describes the premium payment in insurance?
• Which of the following are items of personal interest to collectors that can increase in value over time?
• Which statement best describes accepting risk?
• What is an amortization schedule?
• Which savings option generally offers liquidity with access to funds, often with lower yields than a CD?
• Which of the following is a source of income commonly earned from employment?
• What is a derogatory remark on a credit report?
• Which description best captures networking?
• How is simple interest calculated?
• To protect yourself when shopping online, you should:
• What is a Ponzi scheme?
• The four factors of production are
• An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next is known as what?
• Which term describes the fraudulent acquisition and use of a person’s private identifying information?
• If purchase price 100,000 and loan 80,000, what is the loan-to-value ratio?
• Which statement best describes the liability of a co-signer on a loan?
• Which of the following best represents the basic components of the domestic economy?
• Which two components make up FICA taxes?
• What is a mutual fund?
• What ratio do lenders use to qualify someone for a home loan?
• Which term describes a debt instrument issued by a borrower that promises to repay with interest?
• Which option best describes a mortgage?
• Which institutions are insured up to $250,000 by the FDIC and NCUA?
• Which statement describes a mutual fund?
• What is Social Security?
• Which loan involves property held by the lender until repayment?
• Who should be at the top of your list of expenses?
• Which of the following is a raw material that can be bought and sold, such as cotton, wheat, or eggs?
• Which statement best describes the debt-to-income ratio?
• Which investment type represents ownership in a company?
• Which term refers to fees and charges associated with the purchase of a property?
• Which action supports identity protection when shopping online?
• What is the purpose of credit?
• What is a W-2 form?
• Which form is used to file annual federal income tax returns?
• Who are the 'Big Three' credit bureaus?
• What is the price paid for the use of borrowed money?
• Which term describes a legal agreement between an insurer and the insured?
• What is networking?
• The maximum amount an insurance policy will pay for all losses over the life of the policy is known as the
• FAFSA is described as which of the following?
• What is an insurance premium?
• Which statement best describes the link between a free market system, property rights, and economic prosperity?
• What is the correlation between education and earning potential?
• What is the purpose of saving?
• On average, which type of college tends to have higher tuition?
• What is an insurance deductible?