Answer Key HIGH SCHOOL PRE TEST FINAL - Infusionomics

Infusionomics Financial Literacy Lessons
ANSWER KEY: Financial Literacy Pre‐Test for HIGH SCHOOL
1. True
2. True
3. True
4. False
5. CDs
Bonds
Mutual Funds
Precious Metals
6. Gross income is the total amount of money earned (from salaries, wages, etc.) before
taxes and other deductions are withheld. Net income is wages and salary after
deductions for taxes and other purposes have been taken out.
7. Annual Percentage Rate
8. A Security Deposit is money paid by a tenant to a landlord to protect the landlord
against damages to the apartment caused by the tenant. (Note – students might add: If
the tenant leaves the apartment in essentially the same condition as when he/she first
rented it, the landlord is obligated to return the Security Deposit.)
9. Acceptable answers include:
‐ helps you keep track of where your money is going
‐ may help you to save money
‐ may help you to avoid wasting money on impulse buys
‐ may help you ensure you meet your needs before your wants
‐ may help you to plan out large purchases so you can avoid putting those on a
credit card
‐ it can help you achieve your financial goals
10. a and c

11. The check should be properly dated, signed by the student on the lower right‐hand
line. It should made payable to ABC Property Management Company and be written for
$850, with that amount spelled out.
12. d
13. Acceptable answers include: For convenience (these stores are open on nights,
weekends); because they are afraid of banks; because they don’t have a bank account;
because there is not a bank nearby; because they can do other financial transactions
there (payday loan, wire money)
14. washer and dryer
15. furnished
16. Acceptable answers include: follow a budget; buy used goods when possible; don’t
misuse credit cards; have a rainy day fund for emergencies; pay as often as you can with
cash rather than credit; practice delayed gratification; save up for major purchases
rather than putting them on a credit card; look for bargains; live within your means;
don’t make a habit of borrowing; avoid excessive consumerism/materialism; seek out
additional ways to earn income when you need money, rather than borrowing the
money or getting a cash advance on your credit card
17. (c) WITHDRAWAL = To take money out of a bank account
18. (a) “AFFORDABLE” HOUSING COST = 30% of your gross income
19. (d) OVER THE LIMIT FEE = Fee imposed when you charge more on your credit card
than your allowable credit line
20. (b) OVERDRAFT = another word for a “bounced” check
21. (e) LIQUIDITY = the ease with which an investment can be turned into cash
22. no right answer, we hope they say (a)
23. no right answer, we hope they say (c)
24. no right answer, we hope they think it is important
25. no right answer, just record