The zero based budget is the best method of budgeting because:

zero-based ensures that every dollar you make is assigned

Which of the following is not a recommended step in the drive free method of purchasing a car?

explore new car dealerships for best interest rate

Which of the following is NOT a record-keeping feature you can expect from your bank?

customer service reconciles your account

Which of the following is NOT recommended in the debt snowball method of getting out of debt?

every extra dollar should be thrown at target debt

The following guidelines for budgeting with an irregular income except:

budgeting irregular income is no different

Which of the following is something that a typical millionaire would do?

spend less money than he or she makes

What is paycheck garnishment?

court ordered allows lender to take monies from paycheck

Which of the following is not a credit myth?

borrowing money can have serious consequences

Which best summarizes credit card purchase vs cash purchase changing behavior

consumers spend more when using credit cards

Which of the following statements is false?

budget is meant to summarize saving and spending

Which of the following is the most cost effective option to purchase a home?

100% down; 15 year mortgage with 10% down

Which of the following statements is false?

FCRA, consumers all allowed to receive 1 free credit report

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Fall Semester Review Part 2

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Questions 30

Answers

1
The zero based budget is the best method of budgeting because:
zero-based ensures that every dollar you make is assigned
sicking to zero-based requires less discipline
this budget is less complicated than other types of budgets
zero-based allows less money for wants
2
A written budget, if followed, removes ____ from your finances.
overspending
management by crisis
all of the above
guilt
3
What factors affect a credit score?
duration of debt
all of the above
new debt
Type of debt
4
Which of the following is not a recommended step in the drive free method of purchasing a car?
place savings in mutual fund so money can make money
explore new car dealerships for best interest rate
start with inexpensive car and move up
plan our purchase in advance use sinking fund
5
Which of the following is NOT a record-keeping feature you can expect from your bank?
customer service reconciles your account
an account register
a reconciliation sheet
a monthly account statement
6
Which of the following is NOT recommended in the debt snowball method of getting out of debt?
when you pay off debt, add old minimum to net debt payment
every extra dollar should be thrown at target debt
list debts in order smallest to largest pay smallest first
attack your debt with intensity
7
Eating out is a:
discretionary expense
variable expense
intermittent expense
Fixed expense
8
The following guidelines for budgeting with an irregular income except:
budgeting irregular income is no different
prioritize the list in order of importance
make a list of all of your expenses for the month ahead
this type of budget is less complicated
9
Percentage of American living paycheck to paycheck
40
50
70
25
10
Which of the following is something that a typical millionaire would do?
spend less money than he or she makes
replace things that are not broken
carry debt
lease a new car
11
Which of the following is a sign of your identity may have been stolen?
credit report shows accounts you did not open
call from a collection agency about debt you did not incur
bank and billing statement don't arrive on time
All of the above
12
When you file Ch. 7 bankruptcy stays on credit report
1 year
10 years
20 years
5 years
13
Which of the following is NOT a good idea for getting out of debt?
Borrow money from your parents
Quit borrowing money
get a part-time job or work overtime
sell something
14
Doing a budget does not:
make overspending more likely
make your money go further
show if you are overspending in an area
remove guilt and shame associated with a purchase
15
What is paycheck garnishment?
legal procedure for dealing with debt problems of a business
court ordered allows lender to take monies from paycheck
holder of mortgage sells property when homeowner is behind
taking something back for failure to make payments
16
Groceries are a :
variable expense
discretionary expense
fixed expense
intermittent expense
17
Car repairs are a
discretionary expense
variable expense
fixed expense
intermittent expense
18
A credit score is intended to measure
amount of money you have in the bank
risk of your not repaying debt
your income level
your financial success
19
Your monthly budget should include:
fixed expenses
variable expenses
discretionary expenses
all of the above
20
Which of the following things cannot be done with a debit card but can be with a credit card?
go into debt
rent a car
purchase something online
purchase an airline ticket
21
Which of the following is not a credit myth?
lottery and other forms of gambling will make you rich
debt is a tool and should be used to create prosperity
you have "arrived" financially once you get approved
borrowing money can have serious consequences
22
Which best summarizes credit card purchase vs cash purchase changing behavior
behavior does not matter as long as you pay off card
no change in spending behavior whether cash or credit
consumers spend more when using credit cards
people typically spend less when they are earning "rewards"
23
Which of the following statements is false?
cash flow statement is reflective of what has happened
budget is meant to summarize saving and spending
cash flow statement summarizes all income and spending
a budget is a written plan for saving and spending
24
Rent is a:
fixed expense
intermittent expense
variable expense
discretionary expense
25
Which of the following is not a factor in determining a FICO score?
using credit cards
paying cash for all purchases
getting a personal loan from a bank
taking out a mortgage on a house
26
Which of the following is the most cost effective option to purchase a home?
100% down; 15 year mortgage with 10% down
15 year mortgage 5% down payment
30 year mortgage
30 year mortgage 20% down
27
If you do not have a fido score, what factors will determine if you qualify for a mortgage.
A and B
you cannot get a mortgage without a credit history
Amount of down payment and employment history
history of rental and utility bills
28
Which of the following is a consequence of overdrawing your checking account.
bounced check fee from the store
all of the above
stress from money mismanagement
overdraft fee from your bank
29
Which of the following statements is false?
FCRA, creditors must notify consumers if they deny credit
prior to FCRA, consumers could not challenge errors
FCRA, consumers all allowed to receive 1 free credit report
US Congress enacted the Fair Credit Reporting Act
30
Which of the following account records would have the most current balance?
Your monthly bank statement
all of these records will have accurate balances
Account balance statement from ATM
Your own account register

Fall Semester Review Part 2 Flashcards | StudBud