TEST YOUR FINANCIAL IQ

Just how financially savvy are you? Are you sufficiently knowledgeable about personal finances as well as making smart money decisions? Test your Financial I.Q. (FIQ) by completing the following true (T) and false (F) exercise:

1.The lower your FICO score, the better are your chances of getting a loan and credit.TrueFalse
2.All bank ATMs charge a fee.TrueFalse
3.You should avoid all types of debt.TrueFalse
4.There are no interest payments on debit cards.TrueFalse
5.Most individual savings accounts are insured by the federal government for up to $250,000.TrueFalse
6.The federal government insures you against identity theft.TrueFalse
7.Few states require you to have auto insurance.TrueFalse
8.It's better to pay the minimum balance on your credit card than to pay in full the total due.TrueFalse
9.Money market accounts pay higher interest rates than savings or checking accounts.TrueFalse
10.Net pay is higher than gross pay.TrueFalse
11.Bonds are riskier than stocks.TrueFalse
12.If you rent an apartment, you are bound by the terms of the rental agreement or lease.TrueFalse
13.People with higher educations earn more than those with lower educations.TrueFalse
14.Military credit unions usually offer better interest rates than commercial banks.TrueFalse
15.A bad credit rating can prevent you from getting a job.TrueFalse
16.Individuals who are fired qualify for state unemployment benefits.TrueFalse
17.Insurance is cheaper for those who choose to have a lower rather than higher deductible.TrueFalse
18.Online banking is riskier and more expensive than other forms of banking.TrueFalse
19.You can lose your car or house if you don't make timely loan payments.TrueFalse
20.Car payments, insurance, utilities, rent, and a home mortgage are examples of fixed expenses.TrueFalse
21.Servicemembers are not required to pay state income and/or sales taxes.TrueFalse
22.A Thrift Savings Plan (TSP) lets servicemembers defer taxes for investment and retirement.TrueFalse
23.Your base allowance for housing (BAH or BHA) is taxable.TrueFalse
24.Pay for hardship duty is not taxable.TrueFalse
25.Per diem pay for temporary duty (TDY) is taxable.TrueFalse
26.As a servicemember, you and your family receive free medical care through TRICARE.TrueFalse
27.You don't need life insurance in the military.TrueFalse
28.A co-pay is the money the government gives you to pay for your health insurance.TrueFalse
29.Discretionary income is what you use for savings.TrueFalse
30.Your "take home pay" is your gross income.TrueFalse
31.Every year you automatically receive a "cost of living" increase.TrueFalse
32.It's always cheaper to shop at a military base exchange than to shop elsewhere.TrueFalse
33.You cannot "shop around" for loan terms.TrueFalse
34.Buying a home is always a good investment.TrueFalse
35.Payday loan rates are usually cheaper than credit card interest rates.TrueFalse
36.People who claim they can "repair your credit" work for government or nonprofit organizations.TrueFalse

The correct responses can be found by clicking here.

 

SOURCE: Adapted from Trudy S. Woodring and Ronald L. Krannich, Ph.D., The Military Personal Finance Pocket Guide (Impact Publications) pages 2-3. Copyright 2010. All rights reserved.