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Quiz Yourself!

You’re smart—but how much do you know about money matters? Answer these five questions and find out!

The answers are at the bottom of the page.

1. Which of the following statements is NOT correct about most (Automated Teller Machine) ATM cards?

a. You can generally get cash 24 hours-a-day.
b. You can generally obtain information concerning your credit union balance at an ATM machine.
c. You can get cash anywhere in the world with no fee.
d. You must have a bank account to have an ATM Card.

2. Which of the following is true about sales taxes?

a. The national sales tax percentage rate is 6%.
b. The federal government will deduct it from your paycheck.
c. You don’t have to pay the tax if your income is very low.
d. It makes things more expensive for you to buy.

3. Sandy saved $12,000 for her college expenses by working part-time. She plans to start college next year and she needs all of the money she saved. Which of the following is the safest place for her college money?

a. Locked in her closet at home
b. Stocks
c. Corporate bonds
d. A savings account at a financial institution such as a credit union

4. Under which of these situations would it be financially beneficial to you (that is, a good idea) to borrow money to buy something now and repay it with future income?

a. When you need to buy a car to get a much better paying job
b. When you really need a week vacation
c. When some clothes you like go on sale
d. When the interest on the loan is greater than the interest you get on your savings.

5. Which of the following is NOT typically associated with spending?

a. Debit card
b. Certificate of deposit
c. Cash
d. Credit card

Answers

1. c – Many ATMs charge a fee; however, many credit unions belong to a surcharge-free network of ATMs!

2. d – The sales tax adds a certain percentage to the cost of the goods that you are buying. When you're budgeting to buy something, remember to include the sales tax.

3. d – Credit union savings (or share) accounts are a safe place to save your money—and earn interest. Savings are insured by the National Credit Union Administration.

4. a – This answer almost needs no explanation. You don't want to go into debt for clothes or a vacation. However, a vehicle that will help you get to and from a job that pays well is a good use of money.

5. b – A certificate of deposit is a time deposit with a fixed maturity date, usually from three months to five years. It usually pays higher interest than a savings account and a penalty is charged for withdrawing funds before the maturity date.