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Finances for Independent Living Flashcards | StudBud
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Finances for Independent Living
Finances for Independent Living
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A review for the Finances for Independent Living test
Flashcards
35 cards
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Practice quiz
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Questions
35
Answers
1
Which is considered to be a disadvantage of credit
Obtain an education
High interest rates
Increase of privacy
Gain financial freedom
2
How can you avoid paying a finance charge on your credit card?
Pay half of the balance
Pay off the balance in full by the due date
Make a late payment
Make your payment on time
3
Which of the following is the highest FICO credit score?
None of these
950
1050
850
4
In the
tracking step
of the spending plan process you should
Look at future spending
Keep receipts and track where your money went
Average percentage of spending in different categories
Decide if you overestimated or overspent
5
An individual's FICO score weights the importance of
Types of Credit Used
at
15%
35%
10%
30%
6
FICA includes which
2
taxes
Medicaid
Payroll
Medicare
Social Security
7
Evaluating the purpose of credit is an important consideration to using credit responsibly
False
True
8
The maximum amount of charges allowed to an account
Credit Limit
Annual Percentage Rate (APR)
Credit Score
Late Payment Fee
9
A payroll card is the most common method for paying an employee
False
True
10
The I-9 form verifies a person's employment eligibility
True
False
11
The Fair Credit Report Act requires that credit reports contain
Social Security Number, FICO Score, and Phone Number
Accurate, relevant information
None of these
Only personal information that can't be found easily
12
An individual's FICO score weights the importance of
Payment History
at
10%
15%
30%
35%
13
Credit history as reported by a credit bureau
Credit Limit
Credit Score
Spending Plan
Credit Report
14
All of the following are a Credit Bureau except for
Transunion
Equalcred
Equifax
Experian
15
Medicare deductions are based on a percentage of your:
Net Gains
Gross Income
Net Losses
Net Income
16
A Schumer Box
Is given with your credit card statement
Is used to determine your FICO score
Is given when you are offered credit
Is given to you when getting a pawn shop loan
17
Incorrect information in your Credit Bureau File is generally not reportable after a period of
2 years
14 years
7 years
10 years
18
When reconciling the bank's records to your records you should
add ______
to the bank balance
:
Interest Earned
Outstanding Deposits
Outstanding Checks
Bank Fees
19
Budgets don't contribute to obtaining goals, but to managing your money
True
False
20
Commonly, how old must an individual be to be eligible for a credit card?
16, with parental consent
25
21
18
21
When evaluating a persons creditworthiness, which of the following is not considered
Character
Conditions
Convenience
Capacity
22
An individual's FICO score weights the importance of
Amounts Owed
at
30%
10%
15%
35%
23
Which of the following is considered to be an advantage of credit?
All of these
Make reservations
For emergencies
Convenience
24
In the Personalize step of the spending plan process you
Track where your money is going and look at past records.
Analyze your past spending and average percentages.
decide how to keep track, create categories, look at time.
Keep records on your cell phone or on paper.
25
An individual's FICO score weights the importance of
Length of Credit History
at
35%
30%
10%
15%
26
Net pay can be defined as
Total amount of deductions from a paycheck
Total amount of money earned before deductions are taken out
Actual amount of money received in the paycheck
Length of time for which an employee's wages are taken out
27
Which of the following is not one of the four main forms of credit
Open-Ended Loans
Alternative Loans
Checking Accounts
Closed-Ended Loans
28
When balancing your records with the bank's you should
start with:
The total of all your deposits for the month
The bank's ending balance on the statement
The total from last month
Your check register ending balance
29
When balancing your records with the bank's you should
subtract ______
from the bank balance:
Bank Fees
Interest Earned
Outstanding Deposits
Outstanding Checks
30
Filing for bankruptcy will erase all types of debt
False
True
31
The cost of credit on a yearly basis as a percentage rate.
Late Payment Fee
Annual Percentage Rate (APR)
Interest Rate
Credit Cost Rate (CCR)
32
Only making minimum payment on a credit card every month is the best method of money management
True
False
33
An individual's FICO score weights the importance of
Taking on More Debts
at
30%
35%
15%
10%
34
Gross pay is calculated by multiplying number of hours worked by hourly rate
True
False
35
A tool to help manage how you spend your money
Impulse Buy
Spending Plan
Credit Limit
Cash Flow
