Test Your Financial Literacy

1. A credit report is:

A list of your financial assets and liabilities

Your monthly credit card statement

A loan and bill payment history

Your credit line with your financial institution

All of the above

None of the above

2. In terms of credit, what does APR stand for?

Annual Percentage Rate

Annual Penalty Rate

Annual Payment Rate

Annual Payoff Rate

None of the above

3. Who insures your stocks in the stock market?

The Federal Deposit Insurance Corporation

The Securities and Exchange Commission

The U.S. Department of the Treasury

No one

4. Federal law gives you three days to cancel the purchase of a new or used car from a dealer, and a creditor has 90 days to acknowledge your written complaint about a billing error?

True

False

5. The type of car you own affects the price you pay for auto insurance.

True

False

6. Negative financial information (excluding bankruptcy) can stay on your credit report for:

2 years

5 years

7 years

10 years

7. What do "points" refer to in the home mortgage application process:

One point equals 1% of the purchase price, paid to the seller

One point equals 1% of the purchase price, paid to the lender

One point equals 1% of the loan amount, paid to the seller

One point equals 1% of the loan amount, paid to the lender

8. In financial transactions, a CD is a:

Certificate of Debt

Certificate of Deposit

Citizens Deposit

Certificate of Collateral

9. Cosigning for a friend who needs a cosigner because they don’t have great credit, doesn’t affect my credit score:

True

False

Test Your Financial Literacy

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