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Unit 14 - Personal Finance Flashcards | StudBud
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Unit 14 - Personal Finance
Unit 14 - Personal Finance
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Questions
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Answers
1
Which one is a way to keep a good credit score?
borrow money from the bank and not pay it back
max out several credit cards each month - more credit cards = more credit
pay off your credit card each month and make all yours payments on time
file for bankruptcy
2
You buy a car for $20,000 at 3% for 60 mo. After 60 mo. you pay back $1562 more than the $20K. What is that called?
sales tax
interest
income tax
property tax
3
What is the
MAIN
reason a person should have a budget?
save for long-term financial goals
to afford a nice vacation
to be able to invest in the economy
to measure a person's net wealth
4
Which of the following is true?
you earn money when you are in debt to the bank
you earn money when you borrow money
you pay interest when you borrow money
you pay money when you loan money
5
Which investment is high risk but also high reward?
30 year municipal bond
buying stock in the stock market
setting up a 30 year retirement account
60 month certificate of deposit
6
What is the
BEST
benefit of a savings account?
savings can be used for unexpected emergencies
saving makes more money in a short period of time
savings increases a person's earnings
saving is a safe way of preparing for the future
7
What is a positive of having 3 months of expenses in your savings account?
makes your credit score dropped
savings lets you have more stuff now
allows you to have more financial security later in life
saving money makes you more educated
8
What is a result of mishandling your credit each month?
getting 0% interest on a car loan
getting lower interest rates on loans
receiving more credit card offers
borrowing money from the bank at higher interest rates
9
Which one is
NOT
an example of investing?
$15,000 in a certificate of deposit
buying rental property
buying municipal bonds
buying clothes with a credit card
10
What happens if you can't pay your credit card bills each month?
the credit card company lowers your balance
you owe less than you charged
you owe more than you charged thanks to interest
the items you charged now below to the county government
11
How should your parents have enough money for your college education?
start saving when you are young
charge it on several credit cards
hoping the stocks you bought make money in 18 years
go to Vegas.... 'nuff said
12
What do budgets allow people to do?
encourage people to spend more money
it allows people to earn more money
allows them to track where their money goes and set financial goals
it allows people to break even each month
13
If Tristan and Trina spend more each month on a home, what is the obvious result?
they can't establish a household budget
they are unable to save for emergencies
they would have fewer job offers
they can't have a credit card
14
What
two
things are compared in a budget?
investing vs. savings
expenses vs. savings
income vs. savings
income vs. expenses
15
Which one is an example of an item in the discretionary fund?
car loan
paying the water bill
buying groceries
buying a new pair of Jordans
16
After income and expenses, what is the
MOST
important part of a budget?
debt consolidation
credit card spending
savings
investing
17
Daniel can't pay off his credit card. What is the extra money he will pay next month?
income tax
stocks
sales tax
interests
18
Which one below will get you a lower credit score?
paying off all your debt on time
setting up a budget and following it responsibly
filing for bankruptcy and foreclosure
refusing to give in to impulse buying
19
How should a teen and an adult's budget be the same?
teens and adults spend their money on the same things
both should have the same amount of money in savings
save money by earning less than you spend
they both should have more money coming in than going out
20
What is the
BEST
way to avoid credit card debt?
don't spend or charge more than you can afford
only pay the minimum payment each month
open up more credit cards
only use credit cards for things you cannot afford
21
What is the first step toward financial management?
income
savings
expenses
investing
22
When is the
BEST
time to take out a loan from the bank?
when the risk of bankruptcy is high
when interest rates are high
when interest rates are low
when expenditures are high
23
Best reason for a budget of someone whose yearly earnings have declined (decreased).
use your credit card to make up the difference in pay
get a bank loan to make up the difference in pay
get a better job
form a budget and reduce expenses
24
Home loan, car loan, credit card balance, education loan
all are forms of investing
all are forms of financial security
all are forms of debt
all examples of bad debt
25
How is using a credit card like getting a loan from the bank?
you borrow money from the store to pay the credit company
the store sends money to the credit card company
the credit card company sends money to the store to cover your purchases
you get the money from the ATM to pay off the credit card company
26
What is a good benefit of making a budget?
makes it easier to set financial goals and reach them
motivates a person to quit their job
makes people have more efficient investments
decreases spending on necessary items
27
Tristan and Trina are married and want to start a family. What is the
BEST
use of debt for them?
Tristan buys a new motorcycle without telling Trina - its over now.
they use their credit card to buy a better entertainment center
they take a bank loan out to purchase a larger house
they borrow money from the bank to go on vacation
28
Which are examples of Retirement Savings?
IRA and a 401(K)
Mortgage and Credit
Credit and Debt
18 year CD and Stock Market investments
29
From the videos that you watched, which one is an example of essentials (making a budget)?
eating at Chick-fil-A, buying new shoes
Netflix, beach trip, Hawks game
gas, rent, electricity
playing the slots in Vegas
30
Which one is good debt?
taking out a loan for a house
watching QVC and using your credit card to make you feel better
credit card interest payments
buying a one of a kind petrified french fry from Mr. Voyles' van ($2000)
31
A new college graduate should ....
open up several credit card applications
apply for a loan so he can buy a really nice sports car
create a budget and start a savings account
rent his apartment out to more roommates
32
Sam wants to go on a vacation, but he never has money at the end of the month. What should he do?
make a budget in order to increase his salary
charge it on a credit card and hope for the best
borrow the money from the bank at 9% interest
develop a budget and start saving
33
Which one is
NOT
an example of income?
Timmy bags groceries at Publix
Sam sells land that he inherited
Ally buys a new purse and dress
Chris sells all of his stock in a company
