Which of the following is NOT an option when you attend a community college?

to graduate with a bachelor's degree

Which of the following BEST describes why you should AVOID an investment that promises a "guaranteed profit every year"?

Because no legitimate invesment opportunity manages to eliminate risk

The total cost of the "Tulsa Achieves" program is . . . . .

free for high school students in Tulsa County

One of the main differences between buying 'stock' and buying cryptocurrency (Bitcoin, etc.) is that cryptocurrency. . .

represents only computer code and nothing that actually produces 'value'

When deciding how to spend on housing (rent / mortgage), a safe guideline for affordability is to spend. . . . .

no more than 30% of your NET income

When you are "pre-approved" for a car loan, you will know what interest rate you will pay as well as . . . . .

how much you can borrow and over what time period you must pay it back

If you have a chance to invest in a private company (not listed on a stock exchange), you should FIRST find out . . . .

information about the company's income, profits, debt, and risk level

When you rent a house or apartment, your monthly payments go to . . . . .

pay the landlord and provide maintenance and upkeep for the rental unit

In order to get "pre-approved" for a car loan, you must visit . . . . .

your local bank or credit union

When you budget for a mortgage payment, you need to make sure you can afford.... (3 parts of your mortgage)

homeonwers insurance, property taxes, and principal / interest

Which of the following is NOT an indicator that a lender specializes in extremely high interest-rate loans?

asking for six months of work history to qualify for a loan

The graduation rate of "for-profit" colleges is _____ compared to in-state universities and community colleges

lower than both community colleges AND universities

Which of the following BEST describes why people choose payday lenders?

Poor or non-existent credit forces them to the only remaining lenders

The concept of "equity" can BEST be described as . . . . .

a percentage of ownership you have in your home before you pay off the loan

Which of the following BEST describes the "risk profile" of sub-prime auto loan customers?

they are extremely high-risk borrowers

When you rent, you are NOT building 'equity' because . . . .

you are not working toward ownership of the property-- you just live there

When you apply for a car loan, how does extending the loan's "term" affect your monthly payments?

it decreases your monthly payments

Which of the following BEST describes what happens to the value of a NEW car over time?

a new car loses 10% of its value almost immediately and continues over time

Which of the following BEST describes the advantages of buying a USED car over a new car?

someone else has had to experience the 'depreciation' and now it is yours!

Which of the following BEST describes the goal of a "trade school" such as Tulsa Tech?

to prepare their students to enter specific jobs as soon as they graduate

"For Profit" colleges tend to be . . . . .

more expensive than in-state universities

Which of the following is TRUE about real estate (home prices / apartment rents) in large cities on the East/West Coast?

their average prices are MUCH higher than in Oklahoma and neigboring states

When you have a mortgage (home loan), your monthly payments go to . . . .

the bank who provided the loan and you build "equity" value in the property

Which of the following BEST describes the difference between 'scholarships' and 'grants' for college?

Grants are based on your achievement but scholarships are based on income, Grants are based on income but scholarships are based on achievement

Which of the following BEST explains why a pay raise might end up feeling like a "pay-cut" when you get a new job?

The job might require you to move to a city with a higher cost of living

Which of the following BEST describes the financial impact of a "payday" loan?

the interest rates on the loan will be financially crippling ( > 15% )

Which of the following BEST describes the concept of "depreciation"?

an object losing value over time

A common 'rule of thumb' for financing (borrowing money) a car is to spend . . . . .

no more than 50% of your gross salary

studbud

Financial Literacy Unit 3 Review Quiz-- "Common Money Mistakes And How to Avoid Them"

33 termsStudBud Administration172 plays

We will be covering some common money mistakes-- everything from falling for scams to paying too much for a house.

Flashcards33 cardsFPractice quizPHost liveL

Questions 33

Answers

1
Which of the following is NOT an option when you attend a community college?
to finish a two-year degree and find a job
to transfer to an in-state public university to finish your degree
to take classes at the same time that you're in high school
to graduate with a bachelor's degree
2
Which of the following BEST describes why you should AVOID an investment that promises a "guaranteed profit every year"?
Because the government will start to monitor your bank accounts
Because you want to wait and see what kinds of profits other people earn
Because once you make so much money you will owe a huge amount in taxes
Because no legitimate invesment opportunity manages to eliminate risk
3
The total cost of the "Tulsa Achieves" program is . . . . .
Less than $1,000
Approximately $10,000 per year
free for high school students in Tulsa County
Less than $4,000
4
Which of the following BEST describes the TOTAL costs of an in-state public university in Oklahoma (for all 4 years)?
$10,000 - $20,000
$20,000 - $30,000
$50,000 - $75,000
greater than $100,000
5
One of the main differences between buying 'stock' and buying cryptocurrency (Bitcoin, etc.) is that cryptocurrency. . .
is far less volatile than the stock market
cannot be stolen
represents only computer code and nothing that actually produces 'value'
is more valuable than the entire German and British stock markets combined
6
When deciding how to spend on housing (rent / mortgage), a safe guideline for affordability is to spend. . . . .
no more than 15% of your NET income
no more than 25% of your GROSS income
no more than 50% of your GROSS income
no more than 30% of your NET income
7
If you think you might be a victim of identity theft, which of the following is NOT a source that could confirm this?
Your social media accounts
your checking account statement
your credit card statement
your credit report
8
When you are "pre-approved" for a car loan, you will know what interest rate you will pay as well as . . . . .
how much you can borrow and what kind of car you can afford to buy
how much you can borrow and when your interest rate will increase
how much you can borrow and over what time period you must pay it back
your updated credit score and when your interest rate will increase
9
If you have a chance to invest in a private company (not listed on a stock exchange), you should FIRST find out . . . .
more information about the CEO's educational background
what the company's "mission statement" might be
information about the company's income, profits, debt, and risk level
the number of employees and location of the company
10
When you rent a house or apartment, your monthly payments go to . . . . .
pay the landlord and provide maintenance and upkeep for the rental unit
support local schools and other public community institutions
pay for security and surveillance around your rental unit or apartment
help you build "equity' and improve your credit score
11
In order to get "pre-approved" for a car loan, you must visit . . . . .
the financing department of a car dealership
your county's Department of Motor Vehicles
your local bank or credit union
a credit counselor and personal finance coach
12
When you budget for a mortgage payment, you need to make sure you can afford.... (3 parts of your mortgage)
Homeowners insurance and interest
Principal, interest, and utilities
property taxes, renters insurance, and utility bills
homeonwers insurance, property taxes, and principal / interest
13
Which of the following is NOT an indicator that a lender specializes in extremely high interest-rate loans?
asking for six months of work history to qualify for a loan
offering loans for "bad credit-no credit" customers
aggressively marketing to people who have already declared bankruptcy
signs outside the storefront reading "EVERYONE IS APPROVED!"
14
The graduation rate of "for-profit" colleges is _____ compared to in-state universities and community colleges
higher than universities, lower than community colleges
higher than universities and community colleges
higher than community colleges, lower than universities
lower than both community colleges AND universities
15
Which of the following BEST describes why people choose payday lenders?
People feel like they must have a new car
the US government agreed to 'back up' the loans if the borrowers defaulted
Lack of financial literacy prevents them from understanding their loan
Poor or non-existent credit forces them to the only remaining lenders
16
Used car loans will have _______ interest rates compared to loans for a new car
lower
stable
higher
the same
17
The concept of "equity" can BEST be described as . . . . .
The value of your home if you sold it within 30 days
The total amount you owe on your home
a percentage of ownership you have in your home before you pay off the loan
The value of your home minus any "wear and tear" from use
18
Which of the following BEST describes the "risk profile" of sub-prime auto loan customers?
their risk-level is equivalent to someone with moderate credit card debt
they are the lowest-risk customers in the entire world of finance
they are a fairly high-level of risk but have been thoroughly screened
they are extremely high-risk borrowers
19
When you rent, you are NOT building 'equity' because . . . .
The government restricts equity appreciation to homes of only certain value
renters typically have bad credit and cannot qualify for an equity stake
you are not working toward ownership of the property-- you just live there
Rental values don't increase as quickly as traditional houses
20
When you apply for a car loan, how does extending the loan's "term" affect your monthly payments?
it increases your monthly payments
it decreases your monthly payments
it has no effect on your monthly payments
it allows you to pick a monthly payment that is "right for you"
21
Which of the following BEST describes what happens to the value of a NEW car over time?
New cars tend to hold their value well unless they are seriously damaged
a new car will gain value if it is American-made or a collectible
a new car will remain stable in value until it is about 3 years old
a new car loses 10% of its value almost immediately and continues over time
22
Which of the following BEST describes the advantages of buying a USED car over a new car?
used cars qualify you for a tax deduction
Used cars are easier to repair after accidents
used cars are always cheaper than new cars
someone else has had to experience the 'depreciation' and now it is yours!
23
Which of the following BEST describes the goal of a "trade school" such as Tulsa Tech?
to help their students transfer to an in-state public university
to give their students basic literacy and numeracy skills
to prepare their students to enter specific jobs as soon as they graduate
to help their students get their high school diploma
24
Which of the following is likely to be the MOST EXPENSIVE type of school to attend?
a "trade school" such as Tulsa Tech
a private university
A "community college" such as TCC
A public university where you pay out-of-state tuition
25
"For Profit" colleges tend to be . . . . .
cheaper than community college
about the same cost as in-state universities
free for the first two years
more expensive than in-state universities
26
Which of the following is TRUE about real estate (home prices / apartment rents) in large cities on the East/West Coast?
they are more affordable because of government "subsidies" for low-incomes
they have a certain minimum amount of "affordable housing" units
their average prices are MUCH higher than in Oklahoma and neigboring states
they tend to be more affordable than in Oklahoma and our bordering states
27
When you have a mortgage (home loan), your monthly payments go to . . . .
a bank that will provide periodic maintenance and upkeep for your property
a landlord who then invests some of the money to earn excess profit
a landlord who uses the money to provide maintenace for the house
the bank who provided the loan and you build "equity" value in the property
28
Which of the following BEST describes the difference between 'scholarships' and 'grants' for college?
Grants are based on your achievement but scholarships are based on income
Scholarships have to be paid back but grants do not
Grants have to be paid back but scholarships don't
Grants are based on income but scholarships are based on achievement
29
Which of the following BEST explains why a pay raise might end up feeling like a "pay-cut" when you get a new job?
The job might require you to move to a city with a higher cost of living
You will have to spend a large part of that pay raise on moving expenses
You will probably spend more than you should because you "feel rich"
You could end up in a higher 'tax bracket' and pay more income taxes
30
Which of the following BEST describes the financial impact of a "payday" loan?
Their extremely long loan-term will keep you in debt for at least a decade
the interest rates on the loan will be financially crippling ( > 15% )
You will end up with a car that doesn't run well and requires many repairs
It will lower your credit score
31
Which of the following BEST describes the concept of "depreciation"?
the decline in the purchasing power of a dollar over time
an object losing value over time
an increase in the purchasing power of a dollar over time
an object gaining value over time
32
Which of the following is NOT degree program offered at a traditional four-year university?
Mechanical Engineering
Welding
History
Accounting
33
A common 'rule of thumb' for financing (borrowing money) a car is to spend . . . . .
no more than 40% of your gross salary
no more than 25% of your gross income
no more than 70% of your gross salary
no more than 50% of your gross salary

Financial Literacy Unit 3 Review Quiz-- "Common Money Mistakes And How to Avoid Them" Flashcards | StudBud