COLLEGE AND EARLY CAREER - FINANCIAL LITERACY PRE-TEST - 3 of 3

MULTIPLE CHOICE - Part 3

Check the appropriate letter for each question listed below.

Question Title

* 1. Enter your Last Name and First Initial. Ex.(Trump, D.)

Question Title

* 2. Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

Young people don’t need health insurance because they are so healthy.

You continue to be covered by your parents’ insurance as long as you live at home, regardless of your age.

You are covered by your parents’ insurance until you marry, regardless of your age.

If your parents become unemployed, your insurance coverage may stop, regardless of your age.

Question Title

* 3. Cheryl and Jada work together in the finance department of the same company and earn the same pay. Cheryl spends her free time taking work-related classes to improve her computer skills; while Jada spends her free time socializing with friends and working out at a fitness center. After five years, what is likely to be true?

Cheryl will make more money because she is more valuable to his company.

Cheryl and Jada will continue to make the same money.

Jada will make more because she is more social.

Cheryl will make more because Jada is likely to be laid off.

Question Title

* 4. If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?

nothing

$50

$500

$1000

Question Title

* 5. Mavis has a good job on the production line of a factory in her home town. During the past year or two, the state in which Mavis lives has been raising taxes on its businesses to the point where they are much higher than in neighboring states. What effect is this likely to have on Mavis’s job?

Mavis’s company may consider moving to a lower-tax state, threatening Mavis’s job.

She is likely to get a large raise to offset the effect of higher taxes.

Higher business taxes will cause more businesses to move into Mavis’s state, raising wages.

Higher business taxes can’t have any effect on Mavis’s job.

Question Title

* 6. Kellie and Ty just had a baby. They received money as baby gifts and want to put it away for the baby’s education. Which of the following tends to have the highest growth over periods of time as long as 18 years?

A U.S. Govt. savings bond

A savings account

A checking account

Stocks

Question Title

* 7. Karen has just applied for a credit card. She is an 18-year-old high school graduate with few valuable possessions and no credit history. If Karen is granted a credit card, which of the following is the most likely way that the credit card company will reduce ITS risk?

It will charge Karen twice the finance charge rate it charges older cardholders.

It will start Karen out with a small line of credit to see how she handles the account.

It will make Karen’s parents pledge their home to repay Karen’s credit card debt.

It will require Karen to have both parents co-sign for the card.

Question Title

* 8. Maria worked her way through college earning $20,000 per year. After graduation, her first job pays $40,000. The total dollar amount Maria will have to pay in Federal Income taxes in her new job will:

Stay the same as when she was in college.

Be lower than when she was in college.

Double, at least, from when she was in college.

Go up a little from when she was in college.

Question Title

* 9. Which of the following best describes the primary sources of income for most people age 20-35?

Profits from business

Rents

Dividends and interest

Salaries, wages, tips

Question Title

* 10. If you are behind on your debt payments and go to a responsible credit counseling service such as the Consumer Credit Counseling Services, what help can they give you?

They can work with those who loaned you money to set up a payment schedule that you can meet.

They can force those who loaned you money to forgive all your debts.

They can cancel and cut up all of your credit cards without your permission.

They can get the federal government to apply your income taxes to pay off your debts.