To decide about a financial product(loan, savings account, credit card)which of these pieces of advice is least valuable

Simply choose the option that your parents use

Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him?

INTEREST RATE = lender charge for loan, and PRINCIPAL = INITIAL loan amount

Which statement is wrong?

Once you turn 18, it will be really easy to get approved for a credit card.

Which of the following is a method of accessing the money in your checking account?

Insert your debit card at a store and sign the electronic machine or paper

Which of the following people is MOST likely to be a victim of identity theft?

Ann who checks her bank account while connected to wifi at a cafe

In a new job, why would your take-home pay be substantially less than the rate you were offered when hired?

Taxes, social security, and Medicare are being deducted from her pay

Which should you use when creating a budget - your NET PAY or GROSS PAY?

Net, it’s the total amount you’ve earned minus taxes and other deductions

When it comes to paying for college, your best option is

a grant or scholarship, because you don't repay them

Which description of the difference between saving and investing is MOST accurate?

Savings account have a stated rate of return while investing is riskier

Which of the following statements about car insurance is TRUE?

If you cause an accident, it will pay for portions of their medical bills

Tahira wants to put a small portion of every paycheck into a low-risk investment. Which would be her best option?

Invest in an S&P 500 index fund

Which of the following is TRUE about a Target Date Fund (TDF)?

Automatically adjusts assets for you as you get closer to retirement

Each of the following is a benefit of using online and mobile banking EXCEPT...

You can eliminate overdraft fees

Which would result in paying the largest amount of interest to the credit card company?

Making the minimum payment every month, Making the minimum payment every month

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Consumer Ed 2019

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Questions 20

Answers

1
To decide about a financial product(loan, savings account, credit card)which of these pieces of advice is least valuable
Simply choose the option that your parents use
Compare products based on the factors you personally find most important
Do research to learn more about each of the options
Read the fine print of any disclosures so you understand the fees and terms
2
If you open a checking account that will have an average balance of $450, what feature should you care the LEAST about?
Overdraft fee
The annual fee
The interest rate
ATM fees
3
When deciding which college has the lowest cost of attendance, which is the most important for students to consider?
sticker price
FAFSA
net price
4
Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him?
TERM = length of the loan, INTEREST RATE = how much total money
INTEREST RATE = lender charge for loan, and PRINCIPAL = INITIAL loan amount
PRINCIPAL how much he owes per month, TERM is how much he owes overall
5
Which statement is wrong?
establish credit early to have a long credit history to apply for mortgage
Paying off your credit card every month is a great way to boost your score
The record of a closed account stays on a credit report for years
Once you turn 18, it will be really easy to get approved for a credit card.
6
Which of the following is a method of accessing the money in your checking account?
Deposit a paycheck from your job
Buy a prepaid card using cash
Insert your debit card at a store and sign the electronic machine or paper
Take money from the ATM using your credit card
7
Which of the following people is MOST likely to be a victim of identity theft?
Ann who checks her bank account while connected to wifi at a cafe
Mo who shreds all documents containing personal information before tossing
Abby no posts on social media of topics that could be used as secutity ?'s
Joe who uses different, strong passwords for various accounts
8
In a new job, why would your take-home pay be substantially less than the rate you were offered when hired?
The company is downsizing and has decided to pay you less without notice
Taxes, social security, and Medicare are being deducted from her pay
payroll fee
businesses typically pay high school students less than minimum wage
9
Which should you use when creating a budget - your NET PAY or GROSS PAY?
Net, reported to the government by your employer for tax purposes
Net, it’s the total amount you’ve earned minus taxes and other deductions
Gross pay, because it’s the total amount you’ve earned that month
10
When it comes to paying for college, your best option is
a private loan - they are tailored specifically for you and your family
a grant or scholarship, because you don't repay them
a Federal student loan, because they offer low, fixed interest rates
work-study, because it comes with low, fixed interest rates
11
The amount of money you'll have if you put $1000 into a CD earning 2% annual compound interest for 10 years?
Exactly $1200
$2000
Slightly more than $1200
The same $1000 you started with
12
Which description of the difference between saving and investing is MOST accurate?
Savings account have a stated rate of return while investing is riskier
Saving and investing are the exact same thing
Investing is for short-term/emergencies while saving is best for long-term
13
In a new job, what form do you fill out to make sure the right amount of taxes will be withheld from you paycheck?
Complete an I-9 form
Buy a copy of TurboTax and file her taxes
Complete a 1040 form
Complete a W-4 form
14
Which of the following statements about car insurance is TRUE?
it protects you from points when caught speeding
If you cause an accident, it will pay for portions of their medical bills
If in an accident, the other driver can't sue you
If pay on time you won't have to pay extra in an accident
15
Tahira wants to put a small portion of every paycheck into a low-risk investment. Which would be her best option?
Buy shares of a super profitable tech company
Pick 2 individual stocks and invest half of her money in each
Invest in an S&P 500 index fund
Pick 12 stocks and invest in one company each month for a year
16
Which of the following is TRUE about a Target Date Fund (TDF)?
1-2% Management fee
Only invests in stocks
Automatically adjusts assets for you as you get closer to retirement
Can only sign up for the TDF that aligns with projected retirement year
17
Each of the following is a benefit of using online and mobile banking EXCEPT...
You can check your balances before you make a purchase
You can transfer money electronically between accounts
You can eliminate overdraft fees
You can keep an ongoing record of your deposits and withdrawals
18
In order to qualify for financial aid, prospective college students must file their _____________.
FAFSA
Financial aid letter
Parent's credit score
PSAT, SAT, or ACT scores
19
Which would result in paying the largest amount of interest to the credit card company?
Making the minimum payment every month
Paying 20% of your credit card balance every month
Saying "credit" every time the cashier asks "Debit or credit?"
Making the minimum payment every month
20
How can you improve your credit score?
Spend more money on each of your credit cards
Pay off and then close all of your credit cards
Pay off and then close all of your credit cards
Pay all of your bills on time

Consumer Ed 2019 Flashcards | StudBud