What could be a good option available to you if you are behind on loan payments?
What could be a good option available to you if you are behind on loan payments everfiA: A financial institution may offer for you to pay a little now and pay the rest after your next pay day.
B: You can ignore your payments until the financial institution asks about them.
C: You can take out a payday loan.
D: Ask your financial institution to get out of the loan contract.
Show or Reveal the Answer
A financial institution may offer for you to pay a little now and pay the rest after your next pay day.
Which is a positive reason for using a credit card to finance purchases?
A: You will get charged high interest.B: Paying it off on time can help build your credit history
C: You won't have to budget for your credit card expenses.
D: You'll be able to spend a lot of money without paying it back
Show or Reveal the Answer
Paying it off on time can help build your credit history
Which is NOT a positive reason for using a credit card to finance purchases?
A: Paying it off on time can help build your credit historyB: You can get rewards and discounts.
C: You can buy something you need now and pay for it after pay day.
D: You will get charged high interest.
Show or Reveal the Answer
You will get charged high interest.
Credit cards can help _____________ when paid off on time regularly.
A: build credit historyB: act as a form of identification
C: lower your debt
D: balance your checking account
Show or Reveal the Answer
build credit history
Using a loan could help with the purchase of which of the following?
A: a new telivisionB: a dream wedding
C: a house
D: airline tickets to your dream vacation
Show or Reveal the Answer
a house
When are loans a good option to use?
When are loans a good option to use everfi A: To pay for airline tickets to your dream vacationB: When paying for higher education
C: To buy that new television
D: For a dream wedding
Show or Reveal the Answer
When paying for higher education
What should you NOT use a loan to purchase?
A: A houseB: Tuition for higher education
C: Airline tickets to your dream vacation
D: A car
Show or Reveal the Answer
Airline tickets to your dream vacation
Which item is important to consider when selecting a credit card?
A: Annual Percentage Rate (APR)B: Fees
C: The look of the credit card
D: Both APR and fees
Show or Reveal the Answer
Both APR and fees
Which of these items is NOT important to consider when selecting a credit card?
A: Annual Percentage Rate (APR)B: The look of the credit card
C: Credit limit
D: Penalties and Fees
Show or Reveal the Answer
The look of the credit card
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
A: Choosing a financial advisorB: Choosing a credit card
C: Looking at your credit score
D: Selecting a financial institution
Show or Reveal the Answer
Choosing a credit card
What is NOT a benefit of having a good credit score?
A: When you need a loan, you'll have more loan offers to pick from.B: You'll get better interest rates on your loans.
C: It will be easier to get an apartment.
D: You'll get accepted to better education institutions.
Show or Reveal the Answer
You'll get accepted to better education institutions.
What is a benefit of having a good credit score?
A: Loan sharks will be less likely to bother you.B: You'll get accepted to better education institutions.
C: You'll get more job offers.
D: When you need a loan, you'll have more loan offers to pick from.
Show or Reveal the Answer
When you need a loan, you'll have more loan offers to pick from.
Having a great credit score will make it easier for you to get into a better educational institution.
A: TRUEB: FALSE
Show or Reveal the Answer
FALSE
Secured loans are less costly than unsecured loans because _________.
A: They usually have a lower interest rate.B: They require collateral.
C: They are less risky for the financial institution.
D: All of these are true.
Show or Reveal the Answer
All of these are true.
The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.
A: it requires collateral.B: the loan takes longer to get.
C: it has high interest rates.
D: your parents will make sure you pay it back.
Show or Reveal the Answer
it requires collateral.
Which of the following is NOT a feature that makes a secured loan less costly than an unsecured loan?
A: A high interest rateB: Collateral
C: Less risk for the financial institution
D: All of these are correct
Show or Reveal the Answer
A high interest rate
To maintain a good credit score you must ______.
A: manage your debt wisely.B: check your credit score every week.
C: have credit monitoring.
D: have many open credit cards.
Show or Reveal the Answer
manage your debt wisely.
What will happen to your credit score if you do not manage your debt wisely?
A: You won't be able to track your credit scoreB: Your credit score will go up
C: Your credit score will go down
D: It will not affect your credit score
Show or Reveal the Answer
Your credit score will go down
Not managing your debt wisely can result in ________.
A: An increase in your credit scoreB: A decrease in your credit score
C: Inaccessible credit score
D: No change in your credit score
Show or Reveal the Answer
A decrease in your credit score
Recommended methods to protect yourself from identity theft and fraud include_______.
A: Placing a credit freeze with the credit bureaus.B: Monitoring your credit report every 2-3 years.
C: Allowing inaccurate information to be removed from your report after 7 years.
D: Utilizing a specialty locking or monitoring service.
Show or Reveal the Answer
Placing a credit freeze with the credit bureaus
Which of the following will help you protect yourself from identity theft and fraud?
A: Regularly monitor your credit report.B: Contact lenders and credit bureaus to address incorrect information.
C: Freeze your credit.
D: All of the above.
Show or Reveal the Answer
All of the above.
Which of the following is NOT a recommended method to protect you from identity theft?
A: Expensive specialty locking or monitoring service.B: Place a credit freeze with the credit bureaus.
C: Regularly monitoring your credit report.
D: Contacting lenders and credit bureaus to report inaccurate information.
Show or Reveal the Answer
Expensive specialty locking or monitoring service.
Paying only the minimum balance on your credit card can lead to...
A: an increase in your credit scoreB: paying more interest.
C: late fees
D: All of the above
Show or Reveal the Answer
paying more interest.
All of the following are benefits to paying the full balance on your credit card each month EXCEPT:
A: Your credit score can decrease.B: You won't have to pay interest.
C: You won't have to pay any late fees.
D: Your credit score can increase.
Show or Reveal the Answer
Your credit score can decrease.
Benefits to paying the full balance of your credit card each month include:
A: Paying more in interestB: Decreasing your credit score
C: Not having late fees
D: Increasing your credit score
Show or Reveal the Answer
Not having late fees
When looking for pre-approval on a car loan you should...
A: get a loan from the car dealer directly to keep things simple.B: get a loan from the car dealer directly to keep things simple.
C: select the loan that has the longest repayment period.
D: compare pre-approval offers and select the one that is best for you.
Show or Reveal the Answer
compare pre-approval offers and select the one that is best for you.
When looking for pre-approval on a car loan you should NOT...
A: get a loan from the car dealer directly to keep things simple.B: look for the lowest interest rates you can find.
C: select the loan that has right repayment period for you.
D: compare pre-approval offers and select the one that is best for you.
Show or Reveal the Answer
get a loan from the car dealer directly to keep things simple.
Going directly to a car dealer for a loan to keep things simple is a...
A: great idea because they want you to get the car so it'll be the best offer.B: not great because they typically offer higher interest rates.
C: great idea because you don't have to deal with another lender.
D: not great because car dealers don't offer loans.
Show or Reveal the Answer
not great because they typically offer higher interest rates.
What option will NOT be available if you are behind on loan payments?
A: A financial institution may offer for you to pay a little now and pay the rest after your next pay day.B: You can borrow money from friends and family.
C: You can ask to get out of your loan.
D: Your financial institution might allow you to defer the loan but you'll have to pay the interest.
Show or Reveal the Answer
You can ask to get out of your loan.
Generally, the more education you receive, the higher your lifetime earnings will be.
A: TRUEB: FALSE
Show or Reveal the Answer
TRUE
What is net pay?
A: The amount of pay earned for the total number of hours worked.B: The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
C: The amount of money you're paid before all taxes and deductions are taken out of your paycheck.
D: Your gross pay plus any bonuses.
Show or Reveal the Answer
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.
A: Gross payB: Net pay
C: Total pay
D: Year-to-date pay
Show or Reveal the Answer
Net pay
Which of the following is a possible tax or deduction that they may show up on your paycheck?
A: Federal income taxB: Contributions to retirement savings
C: FICA
D: All of the above
Show or Reveal the Answer
All of the above
Which of the following is NOT a possible tax or deduction that could show up on your paycheck?
A: State income taxB: Contributions to retirement savings
C: FICA
D: Sales tax
Show or Reveal the Answer
sales tax
What is the purpose of the W-4 form?
A: To file your tax return.B: To determine how much your gross pay should be.
C: To inform your employer of how much federal income tax to withhold from your paychecks.
D: To avoid paying income taxes on your paychecks.
Show or Reveal the Answer
To inform your employer of how much federal income tax to withhold from your paychecks.
to inform your employer of how much federal income tax to withhold from your paychecks to send to the IRS
to inform your employer of how much federal income tax to withhold from your paychecks to send to the IRS
The W-4 tax form is used to ___________.
A: tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.B: determine how much your gross pay should be
C: file your tax return.
D: avoid paying income taxes on your paychecks
Show or Reveal the Answer
tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.
Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year.
A: 1040B: W-2
C: W-4
D: W-9
Show or Reveal the Answer
W-2
The gig economy offers
A: Total availability of employment and labor in the economy.B: Flexible, short-term, and independent jobs.
C: An economic system in which assets or services are shared between individuals.
D: Migration of workers to high-tech jobs.
Show or Reveal the Answer
Flexible, short-term, and independent jobs.
The W-2 form is a form that tells you _______.
A: how often you will be paid.B: how much taxes you owe to the federal government.
C: how much taxes to withhold from your paycheck.
D: how much taxes you've paid in the last year based on how much you've earned.
Show or Reveal the Answer
how much taxes you've paid in the last year based on how much you've earned.
Which of the following statements is true about taxes?
A: Taxes pay for schools and government departments.B: Taxes pay for roads and emergency services.
C: Taxes are often used at the federal, state, and local levels.
D: All of the above
Show or Reveal the Answer
All of the above
What do taxes pay for?
A: Schools, government departments, roads, and emergency servicesB: Privately-owned businesses
C: Operation of financial institutions
D: None of the above
Show or Reveal the Answer
Schools, government departments, roads, and emergency services
What do you NOT need in order to fill out your 1040?
A: Your W-2B: Your routing and bank account number
C: A record of any other supplemental income
D: Your employer benefits documentation
Show or Reveal the Answer
Your employer benefits documentation
What do you need in order to fill out your 1040?
A: Your W-2B: Your routing and bank account number
C: A record of any other supplemental income
D: All of the above
Show or Reveal the Answer
All of the above
What do you need in order to fill out your 1040?
A: Your W-2B: Your employer benefits documentation
C: Your credit card statement
D: Your job offer
Show or Reveal the Answer
Your W-2
When considering a job offer, you should only consider how much you're being paid before you accept the offer.
A: TRUEB: FALSE
Show or Reveal the Answer
FALSE
When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer.
A: TRUEB: FALSE
Show or Reveal the Answer
TRUE
How much you're being paid is the only thing you need to consider when considering a job offer.
A: TRUEB: FALSE
Show or Reveal the Answer
FALSE
Net pay is NOT ________.
A: The money that you take home on your paycheck.B: Your gross pay plus any bonuses.
C: less than gross pay.
D: The amount of money you're paid after all taxes and deductions are taken out of your paycheck
Show or Reveal the Answer
Your gross pay plus any bonuses.
What is the gig economy?
A: The number of people in the economy who have full-time employment jobs.B: The total availability of employment and labor in the economy.
C: An economic system in which assets or services are shared between individuals.
D: A flexible market that allows you to work short-term, independent jobs.
Show or Reveal the Answer
A flexible market that allows you to work short-term, independent jobs.
The ___________ is a flexible market that allows you to work short-term, independent jobs.
A: gig economyB: labor market
C: employee workforce
D: sharing economy
Show or Reveal the Answer
gig economy
Which of the following is NOT considered part of your benefits package available from your employer?
A: Free technology equipmentB: Disability Insurance
C: Paid time off
D: Healthcare insurance
Show or Reveal the Answer
Free technology equipment
All of the following may be a part of your benefits package available from your employer, except:
A: disability insuranceB: matching contributions to a retirement account
C: FICA
D: healthcare insurance
Show or Reveal the Answer
FICA
There is no relationship between the level of education received and lifetime earnings.
A: TRUEB: FALSE
Show or Reveal the Answer
FALSE
For most careers, which degree will most likely result in the highest lifetime earnings?
A: High school degreeB: Associate's degree
C: Licensure or certification
D: Bachelor's Degree
Show or Reveal the Answer
Bachelor's Degree
How can you avoid spending more than what is in your bank account?
A: check your bank statement once a month
B: ask your financial institution to notify you when you are close to $0 in your account
C: keep your own records to compare with your financial institution's records
D: none of the above
Show or Reveal the Answer
keep your own records to compare with your financial institution's records
How would you reconcile your bank account to avoid spending more than you have?
A: Contact your financial institution to read your transactions for the past month
B: compare your own records of your spending with your financial institution's records
C: review your bank statement once at the end of the month
D: none of the above
Show or Reveal the Answer
compare your own records of your spending with your financial institution's records
What should you do before you withdraw money from the ATM?
A: share your pin number with trusted friends so you don't forget it
B: ask someone nearby for help using the ATM
C: inspect the ATM to make sure it wasn't tampered with
D: Find a hidden ATM so no one will see you withdraw money
Show or Reveal the Answer
inspect the ATM to make sure it wasn't tampered with
Your financial institution can't help you if there is a mistake on your bank account statement.
A: TRUE
B: FALSE
Show or Reveal the Answer
FALSE
Which of the following statements about investing is true
A: On average, putting money in a savings account earns a higher return than investing money in the stock market
B: investing is best for short-term financial goals
C: Investing is riskier than putting money in a savings accounts
D: Investing is a guaranteed way to make money
Show or Reveal the Answer
investing is riskier than putting money in a savings accounts
Which of the following statements about investing is FALSE?
A: investing is a guaranteed way to grow your money
B: investing is best for long-term financial goals, like paying for retirement
C: investing is riskier than putting money in a savings account
D: on average, investing money in the stock market earns a higher return than putting money in a savings account
Show or Reveal the Answer
investing is a guaranteed way to grow your money
___ are good places to look to find your current expenses when building your budget
A: your bank representative
B: bank and credit statements
C: your wallet
D: ask your parents
Show or Reveal the Answer
bank and credit statements
Everfi Tax Test Answers
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