EverFi Financial Literacy for High School Practice Test

These questions are part of the practice quiz. Start practicing

• Why is retirement planning considered important?
• What government agency insures bank deposits up to $250,000 in case of bank failure?
• What type of account is used for short- or long-term savings goals or emergencies?
• What is a benefit of short-term disability insurance?
• Which program provides financial aid by allowing students to work part-time while studying?
• Which insurance type pays for damage to the insured person's vehicle caused by an uninsured driver?
• What is a type of loan that requires collateral from the borrower?
• Which term describes temporary or freelance work done by an independent contractor?
• What term describes money in the form of coins or notes?
• What is a prepaid card primarily characterized by?
• Which term describes what a person feels they need to acquire in order to improve their quality of life?
• Which type of financial institution is federally licensed to accept deposits and issue loans?
• Which insurance type covers damages to an insured person's home and belongings?
• Which term describes the educational outcome achieved per dollar spent on education?
• When should a person regularly review their balance sheet?
• What term describes money spent on goods or services?
• Which of the following is an example of a short-term financial goal?
• What is the difference between an asset and a liability?
• What are variable expenses?
• What defines a credit union?
• Which of the following is considered a financial income source?
• What is the primary function of Social Security tax?
• What does the term 'liquidity' refer to in finance?
• What budgeting method focuses on allocating money to pay for various categories until no funds are left?
• Why is it crucial to compare financial products before selecting one?
• What is the purpose of a budget?
• What is a savings account?
• Why is it important to review your credit report regularly?
• Which of the following best describes a credit card's interest rates?
• What does the term "interest rate" refer to in financial contexts?
• What is referred to as merchandise or items you own?
• What is an amount paid by an insured person toward the cost of medical treatment or health services?
• What banking feature allows access to an individual's account via a smartphone or tablet?
• What is the key feature of a secured loan?
• What type of grant is awarded only to undergraduate students with notable financial need?
• What type of insurance provides payout upon death or after a certain period?
• Which term refers to the total amount of money in a savings account including interest?
• What is the significance of financial independence?
• Which academic program is typically completed after 2 years of undergraduate study?
• Which type of insurance would cover medical expenses for an accident?
• What is one main purpose of the Social Security program?
• Which document shows an individual's driving history, including any accidents or violations?
• What is a tax deduction?
• What is the purpose of the FAFSA application?
• Which financial aid does not need to be repaid and is awarded based on academic excellence or financial need?
• Which institution typically leads to an associate degree, certificate, or diploma?
• What is the term for the nine-digit number used for identification purposes?
• What does it mean to have a fixed interest rate?
• Which of the following is a benefit of attending trade school?
• What is characterized as a financial goal that will take more than five years to achieve?
• What type of insurance should a driver ideally have to protect against damages caused by underinsured drivers?
• Which characteristic is true for a short-term financial goal?
• What is the eligibility criterion for an unsecured loan?
• What type of financial assistance must students repay with interest after they cease attending school?
• What do you call a card or token that can be exchanged for a specific cash value at a particular business?
• What is the primary benefit of being 'vested' in your retirement plan?
• What is a loan that provides a specific amount of money to be paid back over time called?
• What is the term for the money paid for the use of borrowed money or delaying debt repayment?
• What is the purpose of a routing number?
• What do mutual funds invest in?
• What does the term "Take-Home Pay" refer to?
• What is budgeting software used for?
• What are additional perks offered to employees beyond their salary called?
• How can one protect against identity theft?
• What is a financial literacy program designed to achieve?
• Which of the following describes unfair and abusive loan terms imposed on borrowers?
• What is a Cash Flow Statement?
• What does it mean if you have a low credit score?
• Which term describes funds specifically set aside for future educational expenses?
• What term describes money earned from work or investments?
• What are fixed expenses?
• What are interest rates?
• What program allows students to take military science courses while enrolled in regular college classes?
• What is direct deposit?
• Why is creating a budget important?
• What is a benefit of negotiating your salary?
• What is a plan for managing income and expenses during a certain period called?
• What distinguishes a checking account from a savings account?
• Which of the following is NOT a type of financial aid?
• Which type of financial aid often involves students earning an hourly wage to fund their education?
• What type of insurance do homeowners typically carry to protect their property?
• What is the initial payment made when purchasing something on credit called?
• What is an example of a financial penalty for exceeding the balance in a checking account?
• How does inflation impact purchasing power?
• Who is defined as a person who buys or receives goods or services?
• What is the function of a down payment?
• What type of insurance covers some or all medical expenses in exchange for a monthly premium?
• What describes a paid position of employment?
• What is a common use for a money market account?
• What type of insurance protects a renter's personal property?
• What type of university exclusively offers online learning opportunities?
• What is a 529 plan?
• What type of auto insurance covers medical expenses and lost wages for the insured and passengers in an accident?
• What kind of loan does not require immediate repayment while the borrower is still in school?
• What is the definition of financial literacy?
• What budgeting method allocates 50 percent to needs, 30 percent to wants, and 20 percent to savings?
• What is commonly referred to as a paid time off that employees receive when they are not working?
• Which auto insurance coverage helps repair or replace a car damaged in a collision?
• What is meant by debt?
• What degree is awarded after typically 4 years of college study?
• What type of insurance provides protection for lost wages when an individual cannot work due to illness or injury?
• Why is it important to plan for taxes?
• What is the effect of paying off your credit card balance every month?
• What is the main function of a savings account?
• What is the primary difference between a loan and a grant?
• What does it mean to make a deposit?
• What is a diversified portfolio?
• What does negotiating a salary involve?
• What is a form of financial aid for college that does not require repayment?
• Which type of account allows for money deposits and from which checks can be written?
• What type of financial account typically pays higher interest rates than standard savings and checking accounts?
• What does a credit score indicate?
• Which money management approach emphasizes saving money before addressing other expenses?
• Being financially responsible means:
• What does an unsecured loan lack as a requirement for borrowing?
• What do taxes represent in terms of government services?
• Which insurance coverage helps to pay for the personal items of the insured in case they are stolen or damaged?
• What does a credit score measure?
• Why is it important to understand the terms of credit before applying?
• What type of financial product involves a sum of money deposited for a specified time period?
• What is the term for a payment method that transfers funds electronically?
• Which of the following is a main type of insurance people should consider?
• Which type of insurance helps pay for medical care if one causes a car accident?
• What type of insurance protects vehicle owners against financial loss due to accidents or theft?
• What are short-term financial goals?
• Which federal program provides grants for students pursuing teaching careers?
• What is the significance of a will?
• Why is it important to set up automatic savings?
• What might happen if a borrower exceeds their credit limit?
• Which document primarily affects withholding taxes based on an employee’s financial situation?
• Which term describes a specialized continuing educational course of study?
• What term refers to a health issue that the insured person had before the health insurance policy started?
• What does the term 'price per unit' refer to?
• Which number is used by schools to determine student financial aid eligibility?
• When applying for a loan, which aspect of a borrower's profile is most crucial for credibility?
• What type of insurance covers medical bills and lost wages when involved in an accident with an uninsured driver?
• What financial document helps track individual expenses over time?
• What is identity theft?
• What is the purpose of an investment portfolio?
• What is an emergency fund?
• What does "vesting" refer to in terms of a retirement plan?
• What does a balance sheet provide an overview of?
• What is the term for the amount of money someone pays for an insurance policy over time?
• What is a credit limit?
• What federal benefit provides retirement income for American workers?
• What term refers to a scholarship that is awarded based on financial need?
• What is the primary purpose of the 'Pay Yourself First' budgeting method?
• Which of the following is a characteristic of a grant?
• What is a certificate of deposit (CD)?
• What is the quickest way to describe "gig work"?
• What is it called when an employer covers educational costs for employees?
• What does it mean to refinance a loan?
• What is the term for an organization that offers financial services to individuals and businesses?
• What is defined as an act completed for payment?
• What is net worth?
• What does financial tracking involve?
• What type of institution offers specialized training for a specific job field?
• What is an example of an asset?
• What is the minimum payment that an insured person makes for a service known as?
• What is an annual percentage rate (APR)?
• What arrangement allows account holders to withdraw more than their available balance without penalties?
• Why is it important to diversify investments?
• Which form is used by employers to determine how much federal income tax to withhold from an employee's pay?
• What type of insurance provides payments if a person becomes too sick or injured to work?
• What is a written, dated, and signed draft that directs a bank to pay a specific sum of money?
• Which grant is awarded to undergraduate students who demonstrate exceptional financial need and does not require repayment?
• Which type of university receives funding from tuition and private donations?
• What type of insurance provides prescription drug coverage through a private company?
• Which agency is responsible for regulating and overseeing federal credit unions?
• What type of federal student loan has low interest rates and does not accrue interest while the student is in school?
• A financial goal that can typically be achieved in one to five years is known as what?
• What budgeting method involves using cash in different envelopes for each spending category?
• What is a retirement plan that allows employees to contribute from their paycheck?
• What is the purpose of insurance?
• What does owning a stock represent?
• What is the function of a credit card?
• What does the envelope method primarily aim to control?
• What are deductibles in insurance?
• The concept of "goods" primarily revolves around which aspect?
• What tax is levied on wages and funds the Social Security program?
• What does it mean to be 100% vested in a retirement plan?
• Why are financial goals important?
• Why is it important to consider fees when choosing financial products?
• What is compound interest?
• What type of savings is recommended to cover unanticipated needs, with a suggestion of 3-6 months’ worth of living expenses?
• What does credit history refer to?
• What is the significance of a 401(k) plan?
• What charge is applied by financial institutions when an account holder spends more than their account balance?
• What does a budget variance indicate?
• What is defined as something an individual would like to have?
• What defines a personal loan?
• Which of these is typically considered a variable expense?
• What is the term for optional auto insurance coverage that protects against non-collision damage to a vehicle?
• What kind of benefits provided by an employer cannot be quantified in monetary terms?
• What is defined as something an individual must have to survive?
• Which type of insurance helps cover costs associated with car accidents?
• What type of insurance is designed to protect individuals from costs related to living with a disability?
• What is meant by the term 'credit limit'?
• What type of account is FDIC-insured and offers regular access to funds while earning interest?
• Why should you avoid high-interest debt?
• What is a common feature of credit unions compared to traditional banks?
• What is the primary role of a financial advisor?
• What type of university provides higher education programs primarily via the Internet?
• What is the term for the net pay received by an individual after all deductions from their paycheck?
• Which financial goal is expected to be achieved within one year?
• What is the purpose of a W-2 form?
• What term refers to a profession, occupation, trade, or vocation?
• Which factor does NOT typically impact your credit score?
• What does understanding interest rates help borrowers do?
• How does a debit card function?
• Which type of insurance provides coverage for damages other than collisions?
• Which coverage helps pay for damage caused to your vehicle in an accident?
• What does FDIC insurance provide?
• What term refers to something you pledge to a lender in case of payment failure?
• What does an increase in a person's net worth indicate?
• What is a characteristic feature of personal injury protection insurance?
• What is the primary purpose of a budget?
• Which statement about debit cards is true?
• What does it mean to live within your means?
• What kind of payment method involves the physical transfer of cash?
• Which university type is primarily funded by government sources?
• What is the primary feature of peer-to-peer lending?
• Which financial product typically offers a higher interest rate than standard savings accounts?