Which of the following is an example of diversification?

Purchasing shares of stock in a variety of companies and industries

All of the following are benefits of taking out a loan with a cosigner EXCEPT…

There are no penalties for late payments

If you can afford it, why is it a great idea to pay MORE than your amortized payment on a car, home, or other loan?

You will pay less money overall, You will pay your loan off faster, You will pay less total interest

What is the difference between gross pay and net pay?

Gross pay is before taxes & deductions are removed; Net pay is your pay

All of the following are benefits of taking out a loan with a cosigner EXCEPT…

There are no penalties for late payments

Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because

It keeps you from reacting to dips in the market: selling at a low price

Daisy reads her bank statement and finds an error. She should...

Call the bank and they will investigate the error

Which statement accurately describes the difference between a student loan and a scholarship or grant?

Student loans need to be repaid, while scholarships are "gift aid"

Which definition best describes the FAFSA?

The application you submit to determine eligibility for federal student aid

Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?

Her principal is the cost of the car, minus any down payment she makes

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

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

Why is mobile banking a good idea?

Its convient and you can deposite check by phone

All of the following are characteristics of a secured credit card EXCEPT…

They don’t have a spending limit.

When making a decision about a loan, savings account, credit card, which of these pieces of advice is LEAST valuable

Simply choose the option that your parents use

Zoe buys three new lipsticks from a store. Which payment method would reduce the amount of money in her checking account

Her debit card and says, "Credit" when the cashier asks, "Credit or debit?"

Syl is taking out a loan and is confused by the jargon (language).Which of the following explanations might help him?

INTEREST RATE: lender charges per year for the loan PRINCIPAL: loan amt

Which of the following will result in your paying the LARGEST amount of interest to the credit card company?

Making the minimum payment every month

Which person from this list is saving rather than investing?

Yvonne, who puts $750 per month into her bank account earning 1% interest

Which of the following scenarios accurately demonstrates the practice of comparison shopping?

Lina compares the price, reviews, and other factors for the same products

As the months progress on an amortized loan...

The payments stay the same, but the principal is paid down more quickly

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Questions 26

Answers

1
Which of the following is an example of diversification?
Putting the majority of your money in to savings acc and investing the rest
Purchasing shares of stock in a variety of companies and industries
Investing different amounts of money every month
Using multiple investment managers to get different opinions
2
Laura is a high school student who has a job. All of the following options will be deducted from her paycheck?
Medicare
Social Security
Federal taxes
Overdraft fees
3
All of the following are benefits of taking out a loan with a cosigner EXCEPT…
There are no penalties for late payments
Your interest rate might be lower
You gain access to loans you might not have been approved for on your own
Your credit score will be positively impacted by making timely payments
4
Maura has started a full-time job as an accountant organization. What tax paperwork will she to receive her first week?
A W-2 form
A W-4 form
A Medicaid enrollment form
A 1040 form
5
If you can afford it, why is it a great idea to pay MORE than your amortized payment on a car, home, or other loan?
You will pay less money overall
You will pay your loan off faster
You will pay less total interest
You will pay less total principal
6
What is the difference between gross pay and net pay?
Net pay is before taxes & deductions are removed; Gross pay istake-home pay
All of the above
There is no difference between gross pay and net pay
Gross pay is before taxes & deductions are removed; Net pay is your pay
7
Which type of retirement account is an investment option for ANY young person?
Traditional IRA
Pension
Social security
401(k)
8
All of the following are benefits of taking out a loan with a cosigner EXCEPT…
There are no penalties for late payments
Your interest rate might be lower
Your credit score will be positively impacted by making timely payments
You gain access to loans you might not have been approved for on your own
9
Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because
It allows your investments to earn more interest
You get a bonus from the company if you invest for five years
It keeps you from reacting to dips in the market: selling at a low price
Fees are waived for investments held for over five years
10
Daisy reads her bank statement and finds an error. She should...
Call the FDIC. She is insured up to $250,000
Assume its a transaction she forgot she made and do nothing.
Do nothing the bank will correct the error at the end of the month
Call the bank and they will investigate the error
11
Which statement accurately describes the difference between a student loan and a scholarship or grant?
All of the above
None of the above
Student loans need to be repaid, while scholarships are "gift aid"
Student loans always come from the Federal government.
12
Which definition best describes the FAFSA?
Paperwork you do to have part of or all of your student loan debt forgiven
The paperwork your bank has you di in order to take a personal student loan
The application you submit to determine eligibility for federal student aid
The amount of money the federal government offers you in student loans
13
Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?
Her monthly payment will be between 4-5% of the cost of the car
Her principal is the cost of the car, minus any down payment she makes
Interest rate = total cost paid after making principal and interest payment
Choosing a shorter term means it will take her longer to repay the loan
14
Which of the following is a method of accessing the money in your checking account?
Take money from the ATM using your credit card
Buy a prepaid card using cash
Insert your debit card at a store and sign electronic machine or receipt
Deposit a paycheck from your job
15
Why is mobile banking a good idea?
Mobile banking has an extra fee
It cannot be done on a computer
Its convient and you can deposite check by phone
mobile banking charges no extra fees
16
All of the following are characteristics of a secured credit card EXCEPT…
They don’t have a spending limit.
Lower the risk of banks when issuing credit to users with no credit history
Credit limit is depend on the amount of your security deposit
They help you build a credit history and improve your credit score
17
Each of the following represents an installment loan EXCEPT…
Home mortgage
Student loan
Credit card
Auto loan
18
When making a decision about a loan, savings account, credit card, which of these pieces of advice is LEAST valuable
Read the fine print of any disclosures so you understand the fees account
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
19
Zoe buys three new lipsticks from a store. Which payment method would reduce the amount of money in her checking account
Pays with cash she had in her purse
Uses her credit card and says, "Credit" to the cashier
Pays with a prepaid card she loaded earlier in the month
Her debit card and says, "Credit" when the cashier asks, "Credit or debit?"
20
Syl is taking out a loan and is confused by the jargon (language).Which of the following explanations might help him?
TERM is the length of the loan, INTEREST RATE: much total money he will pay
Monthly payment: how much interest costs him monthly, TERM: name of lender
INTEREST RATE: lender charges per year for the loan PRINCIPAL: loan amt
PRINCIPAL: how much he owes per month, and TERM is how much he owes overall
21
Mandatory government spending includes which of the following?
Education and agriculture
Healthcare and military
Infrastructure and science
Social Security and Medicare
22
Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
Paying 20% of your credit card balance every month
Paying off your balance every month
Making the minimum payment every month
Saying "credit" every time the cashier asks "Debit or credit?"
23
Which person from this list is saving rather than investing?
Daryl, who uses his $5000 end-of-year bonus to buy Treasury bonds
Danielle, who contributes 2% of her pay to her company's 401(k) plan
Alexis, who buys $100 worth of shares in an S&P 500 index fund every month
Yvonne, who puts $750 per month into her bank account earning 1% interest
24
Which of the following scenarios accurately demonstrates the practice of comparison shopping?
Anthony compares the quality of a backpack he bought the quality backpack
Zenya: the price of a shirt to the price of a pair of pants that she wants.
Lina compares the price, reviews, and other factors for the same products
Samir compares a laptop he bought a year ago to a new version available now
25
As the months progress on an amortized loan...
The payment sizes decrease, but the principal is paid down at the same rate
The payment sizes decrease, and the principal is paid down more quickly
The payments stay the same, but the principal is paid down more slowly
The payments stay the same, but the principal is paid down more quickly
26
What are two examples of Employer Contributions?
Federal and state taxes
Health insurance and 401(k)
Traditional and Roth IRA
401(k) and Roth IRA

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