Question

Which of the following situations describes the use
of an ATM?
A Abby purchased an item and paid for it when
the bill came in the mail.
B Abby wrote out an amount for an item and gave
it to a cashier.
C Abby entered a PIN to begin a transaction and
received an amount of cash.
D Abby balanced her checkbook.

Answer 1

Which of the following would have a negative
effect on your credit score?
A getting a promotion at work
B making late payments on a car loan
C paying credit card balances in full
D having a low debt-to-income ratio

Answer 2

Which of the following can have a positive effect
on your credit score?
A owing more money than you earn
B losing your job
C paying your bills on time
D having a high debt-to-income ratio

Answer 3

1 Which of the following situations describes the use
of an ATM?
A Abby purchased an item and paid for it when
the bill came in the mail.
B Abby wrote out an amount for an item and gave
it to a cashier.
C Abby entered a PIN to begin a transaction and
received an amount of cash.
D Abby balanced her checkbook.
2 Which of the following would have a negative
effect on your credit score?
A getting a promotion at work
B making late payments on a car loan
C paying credit card balances in full
D having a low debt-to-income ratio
3 Which of the following can have a positive effect
on your credit score?
A owing more money than you earn
B losing your job
C paying your bills on time
D having a high debt-to-income ratio
4 The annual median income for a veterinarian
is $82,040. The annual median income for a
veterinarian assistant is $22,040. Over 10 years,
how much more than a veterinarian assistant can a
veterinarian earn?
A $20,000
B $60,000
C $500,000
D $600,000

5 Eddie has an annual salary of $47,300. He works
40 hours a week, 52 weeks a year. How much
money does Eddie earn per hour?
A $22.74
B $27.15
C $31.46
D $48.91
6 Which statement would have a positive effect on a
credit score?
A “I made six late car payments last year”
B “I borrowed more than I can repay.”
C “I make all of my student loan payments on
time.”
D all of the above
7 The table shows the monthly fees for the checking
accounts at two banks.

Which statement is best supported by the informa-
tion in the table?

A The fee at Bank Fargo will always be more than
the fee at Bank Citizens.
B The fee at Bank Fargo will always be less than
the fee at Bank Citizens.
C The fee at Bank Fargo will be more than the
fee at Bank Citizens only when the checking
account balance is less than $200.
D The fee at Bank Fargo will be more than the
fee at Bank Citizens only when a customer’s
balance is more than $200.

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2020 Personal Financial Literacy TEST MA:6
8 Devin’s bank charges $1.75 for nonbank ATM

withdrawals and $0.30 for each debit card trans-
action. Last month, Devin paid $8.25 in ATM

and debit card fees. He made 3 nonbank ATM
withdrawals. How many times did Devin use his
debit card last month?
A 2
B 5
C 7
D 10
9 Which statement about a credit report is true?
A My credit report cannot affect my future ability
to obtain a loan.
B A credit report is always correct and doesn’t
contain any errors.
C Negative actions on a credit report generally
remain for 7-10 years.
D College grades are used in credit reports.
10 Which method of paying for college needs to be
paid back?
A Grants
B Loans
C Scholarships
D Work-study programs
11 Which statement best describes purchases made
with a credit card?
A Purchases made with this card are withdrawn
directly from a bank account.
B Purchases made with this card require a PIN
number.
C If you don’t record your purchases, you may
have to pay a overdraft fee.
D Purchases made with this card are subject to
interest.

12 Which is an advantage of using a credit card over
a debt card?
A You must have enough money in your account
to cover your purchases.
B You don’t have to carry cash.
C Used responsibly, it can help build a positive
credit history.
D You pay interest on the unpaid balance.
13 The choices I make today affect my future success.
Which choice would affect my ability negatively to
get a loan?
A Continuing my education after graduating
from high school.
B Getting a credit card that I pay off each month.
C Having a high debt ratio.
D Saving some of my earnings each month.
14 Which is a feature of both writing a check and
using a credit card?
A Make payments online
B Signature required
C Funds are transferred immediately
D Late fees
15 Which job is NOT a typical work-study job?
A working in your own business
B working at campus library or bookstore
C off-campus job related to your course study
D serving in the dining hall

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2020 Personal Financial Literacy TEST MA:6
16 If the surgeon and the pharmacist each worked 30 years, how much more money
does the surgeon make in lifetime income?

A $1,154,620
B $924,720
C $3,467,700
D $115,590
17 Which is an advantage of using a debit card?
A Maintaining a minimum balance
B Delaying payment on items
C Paying monthly maintenance fees
D Faster than writing a check
18 To build a credit history, a person could:
A Establish a steady employment record
B File his or her federal income taxes on time
C Use an ATM several times a month
D Request to view her or his credit file
19 A credit report maintains negative financial
information for how many years?
A 2 years for credit inquiries
B 7 years for late payments
C up to 10 years for bankruptcy
D All of the above

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2020 Personal Financial Literacy TEST MA:6
20 Patty has a checking account at a local bank.
· the monthly checking fee is $10
· $0.30 for each check she writes
· Nonbank ATM withdrawals cost $2.50
· her beginning balance was $2,740.50
· she deposited $1,325.00
· withdrew $475.00 in cash from a nonbank ATM
· she wrote a check for $125.00
· transferred $500.00 to her savings account

What is her checking account balance at the end of the month?
A $2,422.30
B $2,952.70
C $3,401.20
D $3,520.50

Answer 4

11 Which statement best describes purchases made
with a credit card?
A Purchases made with this card are withdrawn
directly from a bank account.
B Purchases made with this card require a PIN
number.
C If you don’t record your purchases, you may
have to pay a overdraft fee.
D Purchases made with this card are subject to
interest.

Answer 5

13 The choices I make today affect my future success.
Which choice would affect my ability negatively to
get a loan?
A Continuing my education after graduating
from high school.
B Getting a credit card that I pay off each month.
C Having a high debt ratio.
D Saving some of my earnings each month.
14 Which is a feature of both writing a check and
using a credit card?
A Make payments online
B Signature required
C Funds are transferred immediately
D Late fees
15 Which job is NOT a typical work-study job?
A working in your own business
B working at campus library or bookstore
C off-campus job related to your course study
D serving in the dining hall

Answer 6

16 If the surgeon and the pharmacist each worked 30 years, how much more money
does the surgeon make in lifetime income?

A $1,154,620
B $924,720
C $3,467,700
D $115,590
17 Which is an advantage of using a debit card?
A Maintaining a minimum balance
B Delaying payment on items
C Paying monthly maintenance fees
D Faster than writing a check
18 To build a credit history, a person could:
A Establish a steady employment record
B File his or her federal income taxes on time
C Use an ATM several times a month
D Request to view her or his credit file
19 A credit report maintains negative financial
information for how many years?
A 2 years for credit inquiries
B 7 years for late payments
C up to 10 years for bankruptcy
D All of the above
20 Patty has a checking account at a local bank.
· the monthly checking fee is $10
· $0.30 for each check she writes
· Nonbank ATM withdrawals cost $2.50
· her beginning balance was $2,740.50
· she deposited $1,325.00
· withdrew $475.00 in cash from a nonbank ATM
· she wrote a check for $125.00
· transferred $500.00 to her savings account

What is her checking account balance at the end of the month?
A $2,422.30
B $2,952.70
C $3,401.20
D $3,520.50