40 Questions — multiple choice Passing Score: 80%

Use this as your final exam page.

SECTION 1 — Money Basics (Module 1)

1. What is a budget? A. A list of debts B. A plan for how you use money C. A type of loan D. A savings account Correct: B
2. What is the difference between needs and wants? A. Wants are required for survival B. Needs are optional C. Needs are essential; wants are optional D. They are the same Correct: C
3. What is income? A. Money you owe B. Money you earn C. Money you borrow D. Money you spend Correct: B
4. What is an emergency fund? A. Money for vacations B. Money for unexpected expenses C. Money for shopping D. Money for entertainment Correct: B
5. How much should you ideally save in an emergency fund? A. 1 week of expenses B. 1 month of expenses C. 3–6 months of expenses D. 1 year of expenses Correct: C

SECTION 2 — Banking & Saving (Module 2)

6. What is the main purpose of a checking account? A. Long‑term savings B. Daily spending and bill payments C. Investing D. Borrowing Correct: B
7. What does FDIC insure? A. Investments B. Credit cards C. Bank deposits up to $250,000 D. Loans Correct: C
8. What is APY? A. Annual Payment Yield B. Annual Percentage Yield C. Average Payment Year D. Annual Personal Yield Correct: B
9. What is the benefit of a high‑yield savings account? A. Lower interest B. Higher interest C. More fees D. No online access Correct: B
10. What is compound interest? A. Interest only on the original amount B. Interest on interest C. Interest paid once a year D. Interest paid only on loans Correct: B

SECTION 3 — Credit & Credit Cards (Module 3)

11. What is a credit score? A. Your income B. Your bank balance C. A number showing how trustworthy you are with borrowed money D. Your yearly expenses Correct: C
12. Which factor impacts your credit score the most? A. Age B. Payment history C. Number of credit cards D. Job title Correct: B
13. What is credit utilization? A. Number of loans B. Percentage of credit you’re using C. Number of debit card transactions D. Your income Correct: B
14. What is a good credit utilization percentage? A. 80% B. 50% C. Under 30% D. 100% Correct: C
15. What does APR mean? A. Annual Payment Rate B. Annual Percentage Rate C. Average Payment Return D. Annual Personal Rating Correct: B
16. What happens if you only make minimum payments? A. Debt disappears B. No interest C. You stay in debt longer and pay more interest D. Credit score increases automatically Correct: C
17. Which is a benefit of responsible credit card use? A. More fees B. Lower credit score C. Building credit and earning rewards D. Higher debt Correct: C

SECTION 4 — Loans & Debt Management (Module 4)

18. What is a personal loan typically used for? A. Buying groceries B. Large purchases or consolidating debt C. Daily spending D. Entertainment Correct: B
19. What is a mortgage? A. A loan for a car B. A loan for a house C. A loan for school D. A loan for credit cards Correct: B
20. What is a student loan? A. A loan for vacations B. A loan for education C. A loan for business D. A loan for home repairs Correct: B
21. What is DTI (Debt‑to‑Income Ratio)? A. Your savings divided by income B. Your debt compared to your income C. Your credit score D. Your monthly bills Correct: B
22. Which is an example of bad debt? A. Mortgage B. Student loan C. High‑interest credit card debt D. Auto loan Correct: C
23. What is refinancing? A. Closing a bank account B. Getting a new loan to replace an old one C. Paying off debt with cash D. Borrowing more money Correct: B

SECTION 5 — Investing Fundamentals (Module 5)

24. What is investing? A. Spending money B. Saving money C. Using money to grow wealth D. Borrowing money Correct: C
25. What is a stock? A. A loan B. A piece of ownership in a company C. A savings account D. A type of debt Correct: B
26. What is a bond? A. A loan you give to a company or government B. A type of stock C. A savings account D. A credit card Correct: A
27. What is diversification? A. Putting all money in one investment B. Spreading investments to reduce risk C. Only investing in stocks D. Only investing in bonds Correct: B
28. What is a retirement account? A. A checking account B. An account for long‑term investing C. A loan D. A credit card Correct: B
29. What is risk tolerance? A. How much debt you have B. How comfortable you are with investment ups and downs C. Your credit score D. Your income level Correct: B

SECTION 6 — Protecting Your Financial Future (Module 6)

30. What is insurance? A. A savings account B. Protection against financial loss C. A loan D. A credit card Correct: B
31. What is a deductible? A. A fee B. The amount you pay before insurance kicks in C. A monthly premium D. A tax Correct: B
32. What is identity theft? A. Losing your wallet B. Someone stealing your personal information C. Forgetting your password D. A computer virus Correct: B
33. Which is a way to protect your identity online? A. Weak passwords B. Sharing login info C. Strong passwords, MFA, credit monitoring D. Ignoring alerts Correct: C
34. What is cybersecurity? A. Protecting your home B. Protecting your digital information C. Protecting your car D. Protecting your credit score Correct: B
35. Where can you check your credit for free? A. IRS.gov B. AnnualCreditReport.com C. Social Security website D. DMV Correct: B
36. What is credit monitoring? A. Watching your bank balance B. Tracking changes to your credit report C. Checking your email D. Checking your debit card Correct: B
37. What is phishing? A. Fishing with a rod B. Fake emails or messages trying to steal information C. A type of loan D. A credit score Correct: B
38. What is multi‑factor authentication (MFA)? A. One password B. Two or more verification steps C. A type of insurance D. A savings tool Correct: B
39. Why is updating your devices important? A. It makes them look nicer B. It improves cybersecurity C. It increases your credit score D. It lowers your bills Correct: B
40. Why should you monitor your accounts regularly? A. To find fraud early B. To increase your income C. To lower your taxes D. To get more rewards Correct: A