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Financial Literacy Quiz

In addition to bringing rain showers, April also means that it is Financial Literacy Month. This month is used to highlight the importance of understanding money and MBT Bank wants to use this opportunity to teach our customers how to handle their money and establish healthy financial habits.

 MBT Bank has set up a quiz to test your basic knowledge about managing finances.

  1. How much of your income should you spend on monthly housing expenses?
    1. 55%
    2. 47%
    3. 31%
  2. The color of your car is a factor that affects your auto insurance rates.
    1. True
    2. False
  3. Contributions to a Roth IRA are not tax-deductible.
    1. True
    2. False
  4. Never buy a house that costs more than 2.5 times your annual income.
    1. True
    2. False
  5. How much money should you keep in your emergency fund?
    1. $1,800
    2. Six months of living expenses
    3. Four months of rent or mortgage payments
  6. By adjusting your tax withholdings on a new Form W-4 you can increase your paycheck.
    1. True
    2. False
  7. Which of the following items is not part of your credit report?
    1. Your income
    2. Your current credit card balance
    3. Your payment history
  8. You only need life insurance if you have someone depending on you financially (spouse, children, etc.).
    1. True
    2. False
  9. Closing a credit card account you no longer use will lower the amount of credit you have available, and that can put a black mark on your record resulting in a lower credit score.
    1. True
    2. False

 

 

 

So how did you do? If you answered most of them correct, way to go! You have a pretty firm grasp on financial issues. But if you missed some, don’t worry, MBT Bank is here to offer a helping hand and answer any questions you may have.

 

Celebrate National Literacy Month with MBT Bank as we take this month to help members become smarter consumers.

 

Key: 1=3, 2=2, 3=1, 4=2, 5=2, 6=1 7=1, 8=1, 9=1