A general rise in prices over a period of time

To actually receive college financial aid funds, you must:

Be admitted and enrolled in school

Any beneficiaries of a 529 college savings plan must:

Be a U.S. citizen with a Social Security or Tax ID number

Assets pledged to guarantee a loan

Decreases the real value of money

A fall in the general price level of goods and services

When you have direct deposit:

Your paycheck goes directly into your bank account

A credit card grace period refers to:

The time between your statement date and due date

Which is NOT an effective way to prevent fraud?

Spreading purchases over various accounts

If you have an older credit card that you only use occasionally:

Keep it open to lengthen your credit history

Require you to pledge an asset as collateral

"Rate Shopping" for a mortgage:

Enables you to find the best rate

Contributions to a 401(k) retirement savings plan:

Provide a tax shelter for income you save

The primary role of the Federal Reserve is to:

Control inflation while avoiding a recession

Someone's wages may be garnished if:

They have a history of not meeting financial obligations

Gross National Product (GNP) refers to the:

value of all products & services made by a country in a year

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Personal Finance Challenge Prep Quiz!

43 termsStudBud Administration640 plays

Preliminary test to prepare students for success in the Personal Finance Challenge Quiz Bowl!

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Questions 43

Answers

1
Borrowers who haven't lived up to all loan or credit agreement requirements are in:
Litigation
Compliance
Transition
Default
2
Inflation is:
A general rise in prices over a period of time
The result of a healthy economy
A general rise in wages over a period of time
An indication of the country's GNP
3
Which is NOT a way to improve your credit score?
Paying bills on time
Using only one type of credit
Consolidating debt
Keeping credit card use to a minimum
4
A summary of everything a company owes and owns is called:
A balance sheet
A checklist
A derivative
A register
5
Student loans typically offer:
All of the above
Repayment deferment
Low interest rates
No pre-payment penalties
6
To actually receive college financial aid funds, you must:
Be admitted and enrolled in school
Apply with a $50 fee
Have a credit history
Be over 18
7
Any beneficiaries of a 529 college savings plan must:
Be awarded a scholarship before age 18
Be a U.S. citizen with a Social Security or Tax ID number
Regularly report to their financial aid office
Maintain a 3.5 GPA in high school
8
Tax deductions for charitable contributions:
Require an appraisal for non-cash items worth over $5000
Are only allowed if you itemize your deductions
All of the above
Require a receipt from the organization you donated to
9
Collateral is:
Damage caused by theft, fire, or vandalism
The taxes levied on a loan
The amount due on a loan
Assets pledged to guarantee a loan
10
Inflation generally:
Lowers prices of goods and services
Decreases the real value of money
Means the prices of goods and services will stay the same
Is taken into account when calculating any country's GNP
11
An example of a "need" expense rather than a "want" expense is:
A new watch
Apartment rent
Downloading a new ringtone
Going to a movie
12
Which of these applicants would likely require a co-signer?
Richard and Jessica
Arthur and Richard
Joanie
Arthur
13
You can file for Chapter 7 Bankruptcy once every:
3 Years
Year
12 Years
6 Years
14
Deflation is:
A downturn in the stock market
Another term to describe a recession
Something that occurs when the stock market crashes
A fall in the general price level of goods and services
15
What % of Americans say they can't cover a $400 emergency expense without borrowing money?
12%
77%
47%
23%
16
Which credit card would be the best overall option if you paid off your balance every month?
Bank B
Bank C
Bank A
Bank D
17
When you have direct deposit:
It means you can use an ATM
Your paycheck goes directly into your bank account
Your bills are automatically paid
You are transferring money from account to another
18
$100 in a bank account earning 10% APY will be worth how much after two years if not removed?
$110
$120
$121
$131
19
A 529 college savings plan can be opened for someone at what age?
18
15
13
Any age
20
Local school districts often get funding through:
Property Taxes
Luxury Taxes
Import Taxes
Inheritance Taxes
21
Which option(s) to pay for college don't need to be repaid?
Personal Loans
ROTC Service
Federal loans
Grants and scholarships
22
A credit card grace period refers to:
The period of time when you don't use your card
The time between your statement date and due date
None of the above
The 24 hours you have to void an on-line purchase
23
Which is NOT an effective way to prevent fraud?
Only shopping on-line at secure sites that you know
Spreading purchases over various accounts
Shredding documents that contain credit card information
Keeping your PIN written down in a safe place
24
To reduce the risk of identity theft:
Shred mail with personal information
All of the above
Share your credit card number only when making purchases
Photocopy cards and keep copies in a safe place
25
Most need-based financial aid is based on:
The student's grades
The parents' income and assets
The parent and student's state or country
The student's essays
26
Which of the following would be considered a discretionary expense?
Rent
Electric bill
Car Insurance
A triple latte
27
Mobile banking is less safe than on-line banking:
It depends on one's password and number of accounts
True
False
It depends where the mobile device is being used
28
Social Security benefits are based on ________ earnings during one's lifetime:
Average
Net
Gross
Quarterly
29
If you have an older credit card that you only use occasionally:
None of the above
Charge up to its credit limit to avoid cancellation
Keep it open to lengthen your credit history
Close it immediately
30
The two general types of distributions for 401(k) plans are:
Debits and credits
Loans and withdrawals
Loans and wire transfers
Debits and rollovers
31
What % of gross income does the average American pay toward loan & credit card interest?
49%
23.7%
55%
34.5%
32
Which of the following does not affect cost of living?
Salary
Food
Utilities
Rent
33
A common and dangerous form of email fraud is called:
Dishing
Phishing
Grifting
Spamming
34
To offer something of value in exchange for a loan is called:
Putting up a front
Putting down a deposit
Putting up collateral
Putting up a promise
35
College grants are available from:
State governments
All of the above
Private organizations
The federal government
36
To pay back a student loan, it's important to know:
The original loan amount
The annual interest rate for the loan
Your anticipated income after you graduate
All of the above
37
Secured Loans:
Do not impact your creditworthiness
Require you to pledge an asset as collateral
Have higher interest rates than unsecured loans
Are also known as signature loans
38
"Rate Shopping" for a mortgage:
Is performed by your accountant
Is a waste of time
Lowers your access to credit
Enables you to find the best rate
39
Contributions to a 401(k) retirement savings plan:
Can be withdrawn at any time
Provide a tax shelter for income you save
Cannot lose value
Can come from your parents
40
The primary role of the Federal Reserve is to:
Manage the U.S.'s role in the global economy
Protect the nation's gold treasury and print money
Control inflation while avoiding a recession
Make sure every dollar is backed by gold
41
Someone's wages may be garnished if:
They live in another country
They have a history of not meeting financial obligations
They work for the government
They work in the restaurant industry
42
Renters insurance only covers possessions when the owner is home:
False
True
It depends on one's home
It depends on the state of residence
43
Gross National Product (GNP) refers to the:
value of all products & services made by a country in a year
amount of money earned by a country in a year
amount of disgusting food consumed by a country in a year
value of personal assets owned by a country in a year

Personal Finance Challenge Prep Quiz! Flashcards | StudBud