Paige earns $150/week. With expenses of $650 per month, which is most correct?

Paige spends more than she makes

Which of the following should you take into consideration when deciding to buy or lease a car?

you should consider all of these

What does APR mean for credit card users?

refers to rate of yearly interest for your credit card

What does the "Rule of 72" tell an investor?

how long it will take for your money to double

In an accident, your 2009 Nissan Altima is totaled. Most auto insurers will pay:

the ACV minus any deductible you have on your policy

What are the responsibilities of a renter versus an owner?

owner has complete responsibility and control over property

Which of the following would not increase your APR on a credit card?

Asking for a lower interest rate

Which of the following types of saving accounts would benefit you most financially?

One that compounds interest daily

A significant advantage of a federal student loan is:

federal student loans have a fixed interest rate

Which of the following would be the worst candidate for a car lease?

a young driver that loves to drive and has minimum coverages

Which of the following is true about a federal government subsidized student loan?

gov't pays interest on loan until 6 mth after graduation

Good credit is required for which of the following:

all of these would require a credit check

Which is true of a 15-year mortgage as opposed to the normal 30-year mortgage?

higher monthly payments, but lower cost over time

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Financial Literacy: Part 2

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Questions 28

Answers

1
Which of the following would NOT impact your credit score?
Opening 3 credit cards at once
paying with a check returned for insufficient funds
canceling your oldest credit account
paying a speeding ticket
2
Paige earns $150/week. With expenses of $650 per month, which is most correct?
Paige spends more than she makes
Paige should spend more and work less
Paige makes more than she spends
Paige should work more and spend more
3
Which of the following should you take into consideration when deciding to buy or lease a car?
the down payment
your monthly budget
you should consider all of these
monthly loan payment
4
What does APR mean for credit card users?
refers to rate of yearly interest for your credit card
It means All Purchases will Result in interest charges
"Applicant Purchase Request; notifies provider of purchase
It means that your credit card limit will APReciate
5
Which is/are savings vehicle(s)?
Savings Account
Money Market Account
Certificate of Deposit (CD)
All are savings vehicles
6
What must you complete when applying for student aid?
Both Forms W-2 and W-4
FAFSA
Federal Student Aid for You (FSAFY)
FALAFAL
7
What does the "Rule of 72" tell an investor?
how much they will have at age 72
not to buy a stock that costs more than $72 per share
how long it will take for your money to double
none of these are correct
8
In an accident, your 2009 Nissan Altima is totaled. Most auto insurers will pay:
the "replacement value" of the vehicle when you bought it
the ACV minus any deductible you have on your policy
for a brand new 2017 Altima
the actual cash value (ACV) at time of loss
9
What are the responsibilities of a renter versus an owner?
renter has complete responsibility and control over property
owner has complete responsibility and control over property
government has responsibility over and control of the home
owner and renter have equal responsibility and control
10
Which of the following would not increase your APR on a credit card?
Asking for a lower interest rate
making your payment after the due date
paying less than the minimum payment due
paying 10x the minimum due, then nothing for next 9 months
11
While it depends on the policy of the bank, which of these typically offers no interest?
Certificate of Deposit
Checking Account
Savings Account
Money Market Account
12
To set up automatic payments on a loan directly from your bank, you need to know the
bank account #
bank's phone number
bank's routing #
all of these
13
Which of the following types of saving accounts would benefit you most financially?
One that compounds interest daily
One that compounds interest annually
One that compounds interest monthly
One that uses simple, vice compound, interest
14
Which of these typically has the highest fees?
payday lender
credit union
online bank
retail bank
15
The period before you have to begin repaying your student loans is known as the:
zero interest period
grace period
promotional period
default period
16
How much does Paul pay for each visit to the doctor if he has a $50/mth premium and $20 co-pay?
$70
$50
$20
$0
17
A significant advantage of a federal student loan is:
gov't doesn't require payback once you get full-time job
federal student loans have a fixed interest rate
your loan can be combined with other student loans for 0%
there is no "due date"; you can pay it back until you die
18
Which of the following would be the worst candidate for a car lease?
leasing is an idiotic move and NO ONE should do it
An older person who drives less than 12K miles annually
a young driver that loves to drive and has minimum coverages
a low-mileage driver with high insurance coverage limits
19
Per the rule of 72, how long will it take to double money at 8%?
3 years
9 years
1 year
12 years
20
Which of the following is true about a federal government subsidized student loan?
You don't have to pay any of that money back
gov't pays interest on loan until 6 mth after graduation
You only have to pay the interest back
the government pays nothing toward your college debt
21
Which of the following is NOT a company that keeps track of your credit and sells your score?
Experian
Equifax
Trans Union
Equifacts
22
Tax form you must fill out at the beginning of your employment with a new company
1040 EZ
W-2
W-4
1040
23
The term referring to the rate of yearly interest for a credit card is commonly known as:
grace period
APR
COD
default rate
24
Good credit is required for which of the following:
Purchasing a home
Renting an Apartment
Buying a new car
all of these would require a credit check
25
What is the first set of numbers at the bottom of each check?
your account #
the bank routing #
your member #
the check #
26
How often are you entitled to a free credit report from Experian, Equifax, and Trans Union?
Yearly
prior to making large purchases
Whenever you use credit
Monthly
27
The only source for your free credit reports authorized by federal law
freecreditreport.com
annualcreditreport.com
creditscoresRus.com
freescoreonline.com
28
Which is true of a 15-year mortgage as opposed to the normal 30-year mortgage?
lower monthly payments; lower cost overall
higher monthly payments, but lower cost over time
higher monthly payments; higher overall cost
Higher payment; higher payment over time

Financial Literacy: Part 2 Flashcards | StudBud