Financial Literacy EXAM I

Question 1

If I owe $10,000 in students loans and delay my payments, my total loan amount will....

Accepted Answer

Increase due to interest

Question 2

What expense would be easiest to track?

Accepted Answer

How often I pay for gas in my car

Question 3

I should view my credit report ....

Accepted Answer

Monthly

Question 4

If I make the minimum payment on my credit cards I will pay back my debt

Accepted Answer

Slowly with interest

Question 5

If I want to build credit history what kind of Credit Card would I get?

Accepted Answer

Secured Credit Card

Question 6

What is the most effective method to pay monthly bills?

Accepted Answer

Set up automatic payment

Question 7

What is a positive outcome of using my credit card for all purchases

Accepted Answer

I may get discounts for using it on various items, trips, airfare, etc, If someone steals my credit card and uses it it's the banks money not mine, I can begin building my credit, You avoid interest payments

Question 8

How long after you graduate college do you usually need to begin paying back student loans?

Accepted Answer

6 months

Question 9

If I have a$3000 limit on my credit card and I spend $1500 on a vacation my credit score at the end of the month will ..

Accepted Answer

Go Down

Question 10

Why is it important to create a budget in college?

Accepted Answer

It builds healthy financial habits and helps avoid debt

Question 11

How would you figure out your budget in college?

Accepted Answer

Know my academic schedule and when I'll be receiving loans, grants, etc.

Question 12

What is the most important aspect of your credit score?

Accepted Answer

Payment History

Question 13

What is the most important thing to know about paying student loans?

Accepted Answer

Understanding the repayment terms and making payments on time

Question 14

What is the benefit of having a joint credit account?

Accepted Answer

If they have good credit History it will reflect on your credit score

Question 15

If I keep my credit card Utilization under 30 my credit score will ....

Accepted Answer

Improve

Question 16

What does credit utilization refer to?

Accepted Answer

The ratio of credit card balance and your total credit card limit

Financial Literacy EXAM I

Questions 16

Financial Literacy EXAM I

Questions 16