1. A. False U.S. money is NOT backed by gold U.S. money has value based on the confidence in and strength of the U.S. Government

2. A. A check that cannot bounce Correct! A cashiers check is prepaid to the bank B. Withdrawn from your checking account Wrong  Cashier checks and money orders are prepaid

3. A. High interest rates Correct Payday loans charge exceptionally high interest rates B. They are fine Wrong  Payday loans charge exceptionally high interest rates

4. A. Diversifying your investment portfolio Wrong  “Don’t put all your eggs in one basket.” is the reference to keeping spreading your money out in different securities B. Advice to develop the habit of saving and building savings into the budget Correct step #1 when you get a paid is to invest in some savings or investment

5. A. Determining how much credit you are eligible for Wrong! That’s the three C’s of Credit Character Capacity Collateral/Capital B. Putting together your budget Correct One must be realistic, responsible and show restraint in balancing their budget

6. A. Surplus/Extra money left over after all expenses are paid Correct Discretionary income is surplus money in your budget B. Amount by which spending exceeds income Wrong  A Deficit is when your spend more than your income

7. A. Monetary Policy Correct The FED regulates the money supply and interest rates B. Fiscal Policy Wrong  Fiscal Policy relates to how Congress and the President spend government money and what taxes

9. A. The yearly cost of a loan Correct APR is how much you pay on any loan per year B. The rate of return on an investment for one year Wrong  APY (Annual Percentage Yield) is how much you earn on an investment over one year

10. A. FDIC Correct Federal Deposit Insurance Corp. protects your $ in banks C. SEC Wrong  Securities and Exchange Commission regulates the stock market B. Federal Reserve Wrong  The FED regulates banks, monetary policy D. IRS Wrong  Internal Revenue Service collects taxes

11. ABA Routing Number Checking Account Number Check Number Endorsement/Signature

12. A. Type of bank that is for profit and is owned by many individuals Wrong  Commercial Banks are for profit and are owned by many individuals through stocks B. Type of bank that is non-profit and owned by its members Correct Credit Unions provide banking services to its members and is not for profit

13. Gross Pay Mandatory Deductions NET PAY Optional Deductions

14. A. Federal Reserve Bank Wrong  Fed does monetary policy C. Comptroller of the Currency ( OCC ) Correct the OCC regulates Credit Cards B. IRS Wrong  Internal Revenue Service collects taxes D. FDIC Wrong  FDIC insures your bank deposits

15. A. FICA Wrong  Federal Insurance Contributions Act is your Social Security tax B. Excise tax Correct excise taxes, also known as “sin” taxes, are placed on consumer goods.

16. A. A loan repaid with a fixed number of equal sized payments Correct examples are car loan and mortgage B. a consumer credit line that can be used up to a certain limit or paid down at any time Wrong  This is open end credit. Example: credit cards

17. A. Annualcreditreport.com Correct Site created by the big three credit reporting agency to comply with the Fair and Accurate Credit Transactions Act, part of the Fair Credit Reporting Act (FCRA) B. Freecreditreport.com Wrong! They have a catchy song, but not a free service. This is not attached to federal law in which you are allowed to see your credit report once a year. Been sued repeatedly for fraud.

18. A. Credit Cards can charge you whatever the market will bear Wrong  but, there IS now a limit to interest rate hikes B. Being late on ANY bill can trigger an increase in your credit card interest rate Correct **New rule however, NO LONGER Permitted.

19. A. The higher your APR Wrong  if your credit score is low, you pay more for loans B. The lower your APR Correct The better your credit score the less you pay for loans

20. A. Contacting the Consumer Credit Counseling Services (CCCS) Correct There is always a way out, the CCCS is a govt. agency that can help you create a plan B. Declaring bankruptcy Wrong  This is a worst case scenario after exercising all other avenues

21. A. The amount you pay when a claim is filed Correct the deductible is the amount you pick up when filing a claim. The more you are willing to pay the less your insurance will cost B. The regular payment made to have insurance coverage Wrong  This is called the premium.

22. A. Is less expensive Wrong  Term Life insurance is cheaper C. Is for a set amount of time Wrong  that is Term B. Has cash value Correct! D. Has no cash value Wrong  Term Insurance has no cash value( its like renting)

23. A. Coverage to the policyholder if they are unable to work Correct If unable to work you are covered B. Coverage for people who you injure Wrong  This is Liability insurance

24. A. Governs the process of reorganization of a debtor Wrong  This is Chapter 11 and 13 bankruptcy. The govt. puts you on a plan to pay down your debts. B. Governs the process of liquidation of a debtor’s assets Correct Everything you own will be turned into cash to pay your creditors.

25. A. You lose the money you have accumulated Wrong  the accumulated money does not get wiped B. You must roll it over into your new jobs 401K Correct Just move the old 401K or IRA into the new one

26. A. Never Wrong  you pretty much have to pay a tax for everything at some point C. Not until 65 Correct B. Always Wrong 

27. A. Gender Wrong  Nope, Females pay less, they get in less accidents B. Driving record Wrong  If you have had accidents/tickets you will pay more C. Where you live Wrong you pay more if you live in the city D. Race/Ethnicity Correct You cannot be discriminated against for anything based on race/ethnicity

28. A. US Treasury Bills ( T- Bills) Wrong  These are issued by the federal govt. B. Corporate Bonds Wrong  These are issued by companies C. Series EE US Savings Bond Wrong  Issued by Federal Govt. D. Municipal Bonds Correct If Mayor Daley needs some money he will issue these types of bonds

29. A. Blue Chips Maybe:} Blue chips are stocks that consistently do well over time B. Speculative Stocks Maybe:} to speculate is to guess, these carry the most risk C. Growth Stocks Maybe:{ Stocks expected to experience large growth D. Income Stocks MOST CORRECT! ALL Income Stocks have a dividend ( you get a check in the mail!! Or you can roll it over into buying more stock

30. A. S+P 500 Wrong  Measures top 500 companies B. NASDAQ Composite Correct C. Russell 2000 Wrong  this measures top 2000 companies D. Dow Jones Wrong  measures top 30 companies