Take the financial literacy quiz
Comments 
3
Published: September 27, 2009
1.
Emily works full-time at Handy Dandy Hardware. Who pays the FICA (Social Security) contributions on Emily’s wages?
a. Emily only.
b. Her employer only.
c. Emily and her employer.
d. The federal government.
2.
About how many years would it take for $1,000 to become $2,000 if $1,000 is deposited in a savings account with an interest rate of 7.2 percent?
a. 7.2
b. 10.0
c. 14.4
d. 20.0
3. Which type of insurance protects a person from loss from lawsuits?
a. Liability
b. Casualty
c. Term life
d. Collision.
4.
Which of the following is NOT a required payroll deduction?
a. FICA
b. Health insurance
c. State income tax
d. Federal income tax
5. Which of the following taxes is regressive?
a. Sales tax
b. Federal income tax
c.
Oklahoma state income tax
d. A tax where the amount paid depends on income
6.
If you have an IRA, you are required to start drawing income from it at age
a. 50.
b. 55.
c. 59
d. 62
7. Bank charters are issued by
a. The state government only.
b. The federal government only.
c. Both state and federal governments.
d. A private company.
8. The HIGHEST percentage of income for people over age 65 comes from
a. Employment benefits.
b. Retirement accounts.
c. Social Security.
d. Other assets.
9. All of the following are major reasons for filing bankruptcy EXCEPT
a. Divorce.
b. Failing to pay personal income tax.
c. Student loans.
d. Gambling.
10. In Oklahoma, MOST consumer protection laws are enforced by the
a.
Oklahoma Bankers Association.
b.
Oklahoma Department of Treasury.
c.
State Office of Personal Finance.
d. State Attorney General’s Office.
11.
Stocks and bonds are similar in that both
a. Have a guaranteed rate of return.
b. Provide ownership in a business.
c. Have relatively high levels of risk.
d. Are tied to the rate of inflation.
12. What does a credit bureau do?
a. Extends credit to qualified buyers.
b. Provides advice on how to use credit.
c. Track the bill-paying habits of consumers.
d. Sends warnings to people in credit trouble.
13. Liquidity is defined as
a. How easy it is to turn an item into cash without losing any money.
b. How easy it is to lose money when you invest in a risky business.
c. The ability of savings to earn interest.
d. The potential loss from rising prices.
14. Money market mutual funds
a. Are always federally insured from
FDIC.
b. Are only available from banks or stock brokers and are primarily designed for high risk investors.
c. By design provide lower rates of return than savings accounts because the money is invested in very short-term investments with a low risk.
d. Are designed to provide higher rates of return than savings accounts as the money is invested in very short-term investments with a low risk.
15. One of the advantages of filing bankruptcy is that
a. You do not have to pay any of your bills.
b. Creditors are required to stop calling you about late payments.
c. Creditors will close the overdue accounts and open new ones for you.
d. Creditors can only call you at work after your bankruptcy is accepted.
16. Compound interest is calculated
a. On the principal plus any interest they have already paid you.
b. On the principal minus the amount you are paid annually.
c. On the principal but not on the interest earned.
d. Using a complex formula that prorates interest over the life of an investment.
17. The difference between an annuity and a 401(k) is
a. Annuities provide a guaranteed amount each month after retirement and income from a 401(k) is based on the earnings.
b. A 401(k) provides a guaranteed amount each month after retirement and annuities pay only what was earned from investments.
c. Most annuities generate more retirement income than most 401(k)s.
d. Annuities are insured by the federal government and 401(k)s are not.
18. The primary difference between a bank and a credit union is
a. There is no primary difference between a bank and a credit union.
b. A credit union provides financial services for individuals and a bank provides financial services for businesses.
c. A bank is a for-profit financial service provider and a credit union is a nonprofit financial service provider.
d. A credit union provides services to anyone who wants to use it and a bank requires you to have a membership.
Now it's time to check your answers
Leave a Comment
Business Photo Galleriesview all
Prev
Something to say about this topic? Submit a Letter to the Editor online
Thank you for joining our conversations on newsok. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Log in below or sign up (it's free).
More here:
http://blog.newsok.com/thebusiness/
Don Mecoy
Business Writer
2-b;
3-a;
4-b;
5-a;
6-c;
7-c;
8-c;
9-c;
10-d;
11-c;
12-c;
13-a;
14-d;
15-b;
NEWSOK RELATED ARTICLES
Take the financial literacy quiz
09/27/2009 Financial literacy quiz 1. Emily works full-time at Handy Dandy Hard- ware. Who pays the FICA (Social Security) con- tributions on Emily’s wages? a....
Oklahoma schools require students be financially...
09/27/2009 Many Oklahoma public schools have launched now-required financial literacy education, with instruction beginning as early as seventh grade. By 2014,...
16-a;
17-a;
18-c.
Read more: http://newsok.com/article/3404393#ixzz0SHfoqQTY