Many people around Central Oregon often lament how students don’t get taught financial education in school as in the past. The are efforts being made today, such as Junior Achievement and others, aimed at giving our youth a better chance at financial success. Mid Oregon is involved in and supports JA and other local endeavors. But how financially literate are you?

Do you have the skills and knowledge to spend money wisely, save for emergencies, use credit cards sensibly, and protect your identity from being stolen? Why not take a quick, 8 question test to start to answer that question?

Financial Literacy Quiz

This short quiz will help you test your financial literacy to see where you need to focus to improve your financial future. Just click on your choice to each question to reveal the answer.

1. A credit report is:

a. A list of your financial assets and liabilities

1. The correct answer is (C),  A credit report is a loan and bill payment history.

It is kept by a credit bureau and used by financial institutions and other creditors to determine how likely you will repay a future debt. Information in your credit report can affect your ability to get a job, a loan, a credit card, or insurance.

A list of financial assets and liabilities is commonly a “Balance Sheet”.

b. Your monthly credit card statement

1. The correct answer is (C), A credit report is a loan and bill payment history.

It is kept by a credit bureau and used by financial institutions and other creditors to determine how likely you will repay a future debt. Information in your credit report can affect your ability to get a job, a loan, a credit card, or insurance.

c. A loan and bill payment history

1. Correct! (C) A credit report is a loan and bill payment history.

It is kept by a credit bureau and used by financial institutions and other creditors to determine how likely you will repay a future debt. Information in your credit report can affect your ability to get a job, a loan, a credit card, or insurance.

d. Your credit line with your financial institution

1. Sorry, this is incorrect. (C) A credit report is a loan and bill payment history.

It is kept by a credit bureau and used by financial institutions and other creditors to determine how likely you will repay a future debt. Information in your credit report can affect your ability to get a job, a loan, a credit card, or insurance.

2. In terms of credit, what does APR stand for?

a. Annual Percentage Rate

2. Correct! (A) It stands for Annual Percentage Rate.

The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually, the lower the APR, the better for you

b. Annual Penalty Rate

2. Sorry, (A) is correct. APR stands for Annual Percentage Rate.

The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually, the lower the APR, the better for you.

c. Annual Payment Rate

2. Incorrect. (A) APR stands for Annual Percentage Rate.

The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually, the lower the APR, the better for you.

d. Annual Payoff Rate

2. Sorry, but the correct answer is (A)- It stands for Annual Percentage Rate.

The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually, the lower the APR, the better for you.

3. The type of car you own affects the price you pay for auto insurance.

a. True

3. True is correct!

Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that enhance safety or prevent theft. These include air bags, antilock brakes, daytime running lights, and antitheft devices. Some states require insurers to give discounts for cars equipped with air bags or antilock brakes.

b. False

3. No, the correct answer is True.

Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that enhance safety or prevent theft. These include air bags, antilock brakes, daytime running lights, and antitheft devices. Some states require insurers to give discounts for cars equipped with air bags or antilock brakes.

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4. If your credit card is lost or stolen and used to charge items you didn’t authorize, how much are you responsible for?

a. Up to $50

4. Correct! (A) You are responsible for up to $50.

Under the Fair Credit Billing Act, your maximum liability for unauthorized use of your credit card is $50. If you report the loss or theft before your credit cards are used, the FCBA says you are not responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card.

b. Up to $100

4. (B) is incorrect. (A) is right: You are responsible for up to $50.

Under the Fair Credit Billing Act, your maximum liability for unauthorized use of your credit card is $50. If you report the loss or theft before your credit cards are used, the FCBA says you are not responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card.

c. Up to $500

4. No, the correct answer is (A): You are responsible for up to $50.

Under the Fair Credit Billing Act, your maximum liability for unauthorized use of your credit card is $50. If you report the loss or theft before your credit cards are used, the FCBA says you are not responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card.

d. All unauthorized charges

4. Sorry, but fortunately, (A) is correct: You are responsible for up to $50.

Under the Fair Credit Billing Act, your maximum liability for unauthorized use of your credit card is $50. If you report the loss or theft before your credit cards are used, the FCBA says you are not responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card.

5. Negative financial information (excluding bankruptcy) can stay on your credit report for:

a. 2 years

5. (A) is incorrect. (C) 7 years is right..

Late payments can stay on your report for 7 years; a Chapter 7 bankruptcy remains for 10 years.

b. 5 years

5.  5 Years is incorrect, as (C) 7 years is right.

Late payments can stay on your report for 7 years; a Chapter 7 bankruptcy remains for 10 years.

c. 7 years

5. Right! (C) 7 years.

Late payments can stay on your report for 7 years; a Chapter 7 bankruptcy remains for 10 years.

d. 10 years

5. (C) 7 years is the right answer.

Late payments can stay on your report for 7 years; a Chapter 7 bankruptcy remains for 10 years.

6. By using unit pricing at the grocery store, you can easily compare the cost of any brand and any package size.

a. True

6. True is correct!

While the package price tells you the cost of the whole item, the unit price tells you the price of each unit in a package. A unit can be an ounce, a pound, a square foot, or an individual piece in a package. Unit pricing helps you compare costs of different brands and various sizes without doing arithmetic.

b. False

6. Sorry, the correct answer is True.

While the package price tells you the cost of the whole item, the unit price tells you the price of each unit in a package. A unit can be an ounce, a pound, a square foot, or an individual piece in a package. Unit pricing helps you compare costs of different brands and various sizes without doing arithmetic.

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7. The “Rule of 72” tells you how long it will take to double your money.

a. True

7. Right! (A) True is correct.

The “Rule of 72” tells you how long it will take to double your money. To use the “Rule of 72,” divide 72 by the interest rate you’re getting. For example, if you deposit $3,000 into an account with a 2% interest rate, divide 72 by 2. The answer–36–tells you that you will double your money in 36 years; in 36 years, you will have $6,000.

b. False

5.  False is incorrect, as (A), true, is right.

The “Rule of 72” tells you how long it will take to double your money. To use the “Rule of 72,” divide 72 by the interest rate you’re getting. For example, if you deposit $3,000 into an account with a 2% interest rate, divide 72 by 2. The answer–36–tells you that you will double your money in 36 years; in 36 years, you will have $6,000.

8. In financial transactions, a CD is a:

a. Certificate of Debt

5. (A) is incorrect. In financial transactions, a CD is a (B) Certificate of Deposit.

A CD is a type of savings account that earns a fixed interest rate over a specified period of time. At a credit union it is called a share certificate of deposit, which earns dividends.

b. Certificate of Deposit

5. (B) In financial transactions, a CD is a Certificate of Deposit. You are correct.

A CD is a type of savings account that earns a fixed interest rate over a specified period of time. At a credit union it is called a share certificate of deposit, which earns dividends.

c. Citizens Deposit

5.  Sorry, (B) is right: In financial transactions, a CD is a Certificate of Deposit.

A CD is a type of savings account that earns a fixed interest rate over a specified period of time. At a credit union it is called a share certificate of deposit, which earns dividends.

d. 10 years

5. (D) is incorrect. (B) A CD is a Certificate of Deposit in financial transactions, .

A CD is a type of savings account that earns a fixed interest rate over a specified period of time. At a credit union it is called a share certificate of deposit, which earns dividends.

Ace the Test?

So, how did you do? If you got six or more correct, perhaps you have good knowledge and skills to manage your finances. But the real test is your financial life, right now. Do you have an adequate emergency fund? Are you sure you have the best interest rates on your loans. Do you have a monthly budget that not only determines where your money goes, but that supports achieving your long-term goals?

If not, maybe Mid Oregon can help. You can get information on our website, sign-up to receive monthly member and informational emails, or stop by one of our branches to learn more about how we can assist. There is probably more you can do than you think!