GFL Financial Literacy Practice Test

These questions are part of the practice quiz. Start practicing

• Which organization manages the NCUSIF, the insurance fund for deposits in credit unions?
• Credit is the provision of money or goods with the expectation of payment in the future.
• Which term refers to the amount of money borrowed on a loan?
• Which statement about the two main types of IRAs mentioned is true?
• Which form must be completed when getting a job so your employer can withhold the correct federal income tax from your pay?
• APR stands for what and what does it represent?
• Long Term Disability is intended to provide income in which situation?
• What is FAFSA?
• Which term is a profession or field of employment for which one trains, such as financial services or medicine?
• Short-term Financial Goals are best described as goals that are achievable in which timeframe?
• In overdraft processing, if funds are insufficient to cover a payment, the bank may either honor the payment or decline it, and an overdraft fee will be charged either way. What may happen?
• The Truth in Savings Act was designed to do what?
• The Right to Financial Privacy Act primarily protects customers from what?
• If supply increases and demand decreases, what generally happens to price?
• Which statement correctly differentiates a Job from an Occupation?
• Expansion in the business cycle is best described as which of the following?
• Regulation D contains rules that provide what in relation to securities offerings?
• Which term best matches the description 'Money put aside for profit with potential risk'?
• What best defines a customer loyalty program?
• Phishing is a high‑tech scam that uses spam or pop‑up messages to deceive consumers into disclosing personal information by pretending to be from a business or organization with which the consumer deals. Which description best defines phishing?
• What is comparison shopping?
• Which statement differentiates unsecured credit cards from secured loans?
• Which statement about short-term investments is true?
• What is true about the Utah Educational Savings Plan (UESP)?
• Lifetime Limit in health insurance refers to what?
• Endorsements in advertising typically involve?
• Which statement best describes revolving credit usage?
• Which statement describes a Ponzi scheme's returns mechanism?
• When was the Federal Reserve created?
• What is product placement?
• Taxes (federal, state, local) are defined as?
• Which statement best describes variable expenses?
• The Federal Reserve System is the central banking system of which country?
• Which statement about periodic expenses is true?
• Health Insurance covers which type of expenses?
• Which term refers to money given to a charitable organization that exists to benefit society as a whole?
• Compound Interest means...
• What happens when there are insufficient funds to cover a check?
• Which of the following best describes a long-term investment profile?
• What did the Dalbar study titled 'Quantitative Analysis of Investor Behavior' conclude about average investors?
• Which of the following is a correct example of multiple limits in a policy?
• Which benefits are commonly offered by customer loyalty programs?
• Which description best fits long-term financial goals?
• The W-2 Form is an employment form used for what purpose?
• Regulation E, also known as the Electronic Funds Transfer Act, protects consumers in what activity?
• Which statement best distinguishes saving from investing?
• Are private post-secondary institutions in Utah necessarily for profit?
• Which statement best distinguishes a premium from a deductible?
• Who uses default rates to assess risk exposure and evaluate the health of the overall economy?
• The Right to Financial Privacy Act is designed to limit government access to what?
• Which statement best describes how employees contribute to a 401(k) plan?
• What triggers bankruptcy?
• Which statement defines the cost of money borrowed?
• Which feature may be included in many 401(k) plans?
• Regulation E provides a means to correct errors in what type of transactions?
• The FDIC provides deposit insurance up to how much per ownership category in each insured bank?
• What is the purpose of 529 college savings plans?
• Automobile Insurance provides protection against which of the following?
• What is the term for the rate of borrowers who fail to remain current on their loans?
• Entrepreneurship is defined as?
• Which statement best describes the purpose of comparison shopping?
• Long-term Financial Goals are goals that usually take more than what time frame to accomplish?
• Which term describes the Chex-Systems network that shares information on closed checking and savings accounts among member institutions to assess risk?
• Which term refers to the act of signing for another person's debt which involves a legal obligation to make payment should that person default?
• Mobile Payments allow you to pay bills with a mobile device using services like Apple Pay and Google Wallet.
• Investment is best described as?
• The Home Mortgage Disclosure Act requires certain financial institutions to do what?
• What is the typical amount for a first late payment on a credit card?
• What is a Grace Period in loan and insurance contracts?
• Consumer to Consumer (C2C) payments are payments through services such as PayPal, Popmoney, or Square Cash.
• What is a commission in the context of investing?
• What does Premium refer to in an insurance contract?
• Which of the following describes Simple Interest?
• IRA: Which statement is true?
• What best defines a For Profit Post-Secondary Institution?
• Which of the following statements about Limits of Coverage is true?
• In supply and demand theory, if supply is low and demand is high, what happens to price?
• What term describes the process of automatically routing savings from each paycheck before living expenses?
• Which describes a Job?
• Which term describes the fees paid at the closing of a real estate transaction?
• Which term is money given to a charitable organization to support its mission?
• Finance is a subset of Economics and describes what?
• Which statement about public post-secondary institutions is true?
• What does the Equal Credit Opportunity Act prohibit?
• Which term refers to a notice sent to a borrower when non-payment may lead to collection actions?
• What is an amortization table?
• Insurance companies may sell policies directly to individuals or through what channel?
• Pay Yourself First (PYF) is best described as...
• Using the Rule of 72, approximately how many years would it take for an investment to double at an annual rate of 4%?
• What term describes fees charged when a payment overdraws an account?
• Which statement about financial goals is correct?
• Finance is defined as which field?
• Which best defines an Occupation?
• Which term describes the act of signing for another person's debt, creating a legal obligation to pay if they default?
• How do earnings in a 401(k) grow?
• Which statement about 529 plans is true?
• What does FAFSA4Caster do?
• Which statement best describes the Law of Supply and Demand?
• Which description best defines a Ponzi scheme?
• Retirement Planning involves...
• Missed Payments are best described as what?
• Which term is associated with the basic economic problem that arises because people have unlimited wants but resources are limited, requiring decisions to allocate resources efficiently?
• Homeowner/Renter Insurance protects the insured property against loss from which of the following?
• What does the Truth in Lending Act require?
• What is Insurance as defined in the material?
• Which statement describes Limits of Coverage?
• Which term describes money saved with an insured, fixed-term deposit at a bank?
• An Intermediate-term Financial Goal takes between how many years to achieve?
• Which statement accurately describes the Grace Period?
• Which pair represents private post-secondary institutions in Utah?
• In what year was the Home Mortgage Disclosure Act enacted, and what does it require?
• Simple Interest is defined as...
• A private post-secondary institution is defined as a post-secondary school owned and operated by private entities and not necessarily for profit.
• Green Dot and American Express Serve are examples of reloadable prepaid debit cards.
• Chex Systems is used to share information among member banks about closed accounts to assess the risk of opening new accounts. Which statement best describes its purpose?
• The primary purpose of advertising is to do what?
• What is the purpose of an emergency fund?
• Economics is defined as which of the following?
• Which term describes a security pledged for the payment of a loan, such as stocks or bonds?
• Which statement best defines a long-term investment?
• In Whole/Term Life Insurance, what happens to the premium amount over time?
• Savings are best described as...
• Unsecured Credit: Unsecured credit cards are not secured by collateral.
• How is the risk/reward ratio defined in investing?
• Interest is best described as...
• Which term represents a savings instrument that bears interest and is commonly insured by the FDIC, with a maturity date?
• Which statement about a Roth IRA is true?
• Direct Deposit and Direct Debit refer to what in consumer banking?
• Which description characterizes a recession?
• Whole/Term Life Insurance is best described as what?
• Some types of income can be non-salary. Which term describes money received from labor, business, or property?
• Long-term disability benefits typically begin after how many days of disability?
• The National Credit Union Administration (NCUA) regulates and supervises what type of financial institutions?
• Reloadable prepaid debit cards allow you to add money to the card for future purchases.
• What is inflation?
• Short-term Financial Goals are goals achievable in what timeframe?
• Which term best defines an institution that provides money for borrowers?
• The Truth in Savings Act was implemented to help consumers compare which aspects of deposit accounts?
• Online Bill Pay is a service that lets you schedule and make payments over the internet.
• Time Value of Money (TVM) reflects which core idea?
• Short-term investments are typically held in which portion of the balance sheet and are expected to liquidate within one year?
• Income/Revenues are defined as?
• A Financial Goal is?
• Remote Check Deposit enables you to image and deposit a check using a smartphone.
• What does a Deductible mean in an insurance policy?
• NSF stands for what in banking?
• The I-9 Form requires an employee to show documentation to prove what?
• Which description best defines a Credit Union?
• The Community Reinvestment Act aims to encourage depository institutions to do what?
• Which scenario illustrates product placement rather than a traditional advertisement?
• Which term describes security pledged for the payment of a loan?
• Saving is defined as?
• NCUSIF is managed by which agency?
• Who is a beneficiary in an insurance policy?
• Which statement about Certificate of Deposit (CD) is true?
• What best describes merchandising?
• Which groups are eligible to participate in a 403(b) plan?
• Which statement best defines Salary?
• What does the Fair Debt Collection Practices Act regulate?
• Which statement best describes the FDIC?
• Wages are defined as?
• What are benefits in employment terms?
• Which term describes a savings certificate entitling the bearer to receive interest, with a maturity date, a fixed interest rate, and FDIC insurance?
• What is a resume?
• Opportunity Costs are defined as?
• The FDIC was created by which law?
• Revolving Credit is a line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed.
• Which term refers to a savings instrument with a fixed term and interest rate, typically issued by banks?
• Which asset class is commonly associated with a long-term investment strategy and might include real estate, stocks, or cash?
• Which term is defined as a financial plan used to forecast and track income and expenses?
• Long Term Disability insurance is designed to offer income payments when what occurs?
• What is the purpose of late fees in credit card terms?
• Penetration pricing is a strategy used to?
• Inheritance refers to?
• What are endorsements in advertising?
• Salary is best described as?
• A Collection Notice is a notification sent to a borrower when what occurs?
• Which term describes a person who starts and runs their own business venture to earn a profit?
• Phishing scams typically attempt to obtain which type of information?
• Which term describes the ability to put off something mildly fun now in order to wait for something greatly fun later?
• Which statement best describes the effect of inflation on doubling time using the Rule of 72?
• Which statement about banks is true?
• Diversification is best described as which of the following?
• Late Fees are assessed under what condition?
• What does a Lifetime Limit specify in health insurance?
• Non-Profit Post-Secondary Institutions are defined as?
• NSF is colloquially known as what?
• Merchandising involves which activities?
• Which statement best defines deflation?
• Dividend Reinvestment, or DRIP, involves which of the following?
• Online commerce refers to what?
• Which description best defines income?
• Investment is defined as...