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Personal Finance Final Review Flashcards | StudBud
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Personal Finance Final Review
Personal Finance Final Review
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Answers
1
Which statement best describes NEEDS vs WANTS?
NEEDS are expenses for your family, WANTS are expenses for you personally.
NEEDS are monthly bills you must pay, WANTS are bills you love to pay
NEEDS are expenses the government pays, WANTS are expenses you must pay
NEEDS are required expenses, WANTS are optional items you choose to buy.
2
1. What are the 3 things we can do with money?
Buy, purchase, get
Spend, spend, spend
Give, save, spend
Spend, invest, save
3
Which type of financial aid must be paid back with interest?
Scholarship
Grant
Loan
Work Study
4
What is the range for a credit score?
300-800
1-100
500-1000
300-850
5
Brian does a lot of work and shopping online. What can he do when he is online to protect himself from identity theft?
Send important personal and banking information only via email
Share his account numbers and passwords with one trusted source.
Use the same password for all of his accounts
Conduct banking or online shopping on a secure wifi network.
6
What does a Truth in Lending Disclosure Statement tell you?
How much interest you will pay
The truth about what's wrong with the house.
What the comparable homes in the neighborhood are selling for.
How much the realtor will make on the sale.
7
How much should you tip if a member of the house keeping staff brings you more towels?
$2
$5
50%
$10
8
Which action would INCREASE the money in Shirley's checking account?
She uses a person-to-person app to pay a friend for dinner.
She uses her debit card to buy a holiday gift.
She uses her smartphone to deposit a check from her grandpa.
She uses a prepaid card to pay for a month of movie streaming.
9
Which of these things happen during escrow?
Contingencies
House Hunting
Prequalification letter
Appraisal
10
How do credit card companies make most of their money?
From charging customers interest
From charging over-the-limit fees
From charging customers fees to open an account
From charging customers annual fees
11
With a new job and an apartment, Rita decides to create a budget. What are the two main categories that she will have.
Insurance and investments
Credit cards and debit cards
Income and expenses
Paycheck and taxes
12
How much should you tip a server in a restaurant?
10%
$2
15-20%
$5
13
All of the following are reasons why digital citizenship is important EXCEPT...
It encourages digital health and wellness.
It promotes online safety.
It aids in building financial independence.
It helps prevent cyber bullying.
14
If John deposits this entire paycheck into his checking account, how much money will go into his account?
$30,494.81
$2,000.00
$1,524.74
$40,000.00
15
What is the method we use to knock out our debts one-by-one?
The debt snowball method
The debt disintegration method
The debt consolidation method
None, we keep our debts around like a pet.
16
What is the purpose of setting up and putting money into an emergency fund?
You invest the stock market and make a huge profit to use for emergencies.
To use for common monthly expenses like your rent, insurance, and bills.
You use it to pay for college tuition or a major expense like a house.
In case an unexpected expense comes up that you must pay for.
17
Which type of interest will earn you more money?
Simple Interest
Compound Interest
18
Ronny uses his credit card to buy new bluetooth headphones. Where will the money come from this purchase?
The money will come straight from Ronny's checking account.
The money will come out of Ronny's savings account.
Ronny will take the money out of an ATM.
Credit card company will pay, and then he will repay credit card company.
19
Kellen is saving for a new video game system, which costs $300. If he saves $15/month, how long will it take to save up?
30 months
12 months
10 months
20 months
20
What is the type of loan used to buy a home?
401(k) loan
student loan
car loan
mortgage
21
All of these are good tips for responsible credit card use EXCEPT:
Use your credit card to pay for as many things as possible during the month
No borrowing. Use your card only for purchases you can afford with cash.
No Interest. Paying off your balance each month.
Using your credit card for emergencies only.
22
In which of these countries is a tip NOT expected?
Japan
Mexico
Canada
USA
23
What's the best way to buy the car you really want?
Buy a new car.
Buy a cheap, used car and save the money you'd spend on a car payment.
Sell your parent's car
Lease the car you want.
24
Which statement best describes the purpose of insurance?
Insurance helps manage and build credit.
Insurance helps manage risk and protect against financial loss.
Insurance helps build wealth over time.
Insurance helps manage your monthly income and expenses.
25
Lana wants a better plan for her money. What tool would you encourage her to use?
A credit card
A budget
A checking account
An insurance policy
26
Which is the most inexpensive way to go to college?
Go to an out-of-state university
Go to a community college, then transfer to a private university
Go to a community college, then transfer to a school in your home state.
Go to an out-of-state private university
27
Your monthly debt payments divided by your monthly income is called what?
what you have left.
Debt-to-income ratio
Your debt score
Your income score
28
What is a financial benefit of obtaining a college degree?
It will be easier to be approved for loans.
You have higher potential lifetime earnings.
You will possibly have a larger amount of debt.
You have a higher credit score.
29
Which of these is a key benefit of having a high credit score?
You will have an easier time getting into a good college.
You will qualify for better rates on loans or credit cards.
You will earn more money from your employer.
You will have more money in your checking and savings accounts.
30
Which of these should you base your tip on?
looks of the server.
taste of the food
the comfiness of the chairs
the service
31
What is the length of a typical escrow?
24 hours
30 days
6 months
1 year
32
What is a listing for a house that a realtor has not put on the market yet called?
Pocket Listing
Home inspection
Comps
Prequalification letter
33
Phillip purchased a share of Microsoft. What type of investment did Phillip purchase?
Bond
Index Fund
Stock
Mutual Fund
34
How does simple interest differ from compound interest?(Pick 2)
Simple interest is calculated on principal alone.
Simple interest offers a guaranteed return.
Simple Interest is earned on low risk investments
Compound Interest includes the principal and the interest you’ve earned.
35
True or False: Your credit score is an indication of how much money you have and how wealthy you are.
False
True
36
True or False: Everyone needs credit to buy a car or buy a house.
False
True
37
Which of these is not a tax advantage of owning a home?
Mortgage interest deductions
Deductions for real estate taxes
Savings on your student loans
Capital Gains Tax
38
What is the 3rd baby step?
Save 3-6 months of expenses in a fully funded emergency fund
Fund kids college fund
Pay off all your debt
Save for retirement
39
Which of these is an example of comparison shopping?
Buying all your clothes at the same discount outlet
Researching which online store has the best price on a tent
Paying for items in cash so you don't spend as much money
Cutting coupons before you go grocery shopping each week
40
What is a CEO of a company?
Copy Exams Off One Another
Chief Experience Officer
Chief Executive Officer
Chief Executive Owner
