Post-test

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Your account statement arrived. You had a balance of -$52.79. After the $307.74 deposit from Roland's Bookstore, what is your new account balance? Hint: Click on the image to zoom in.

$254.95

You charged $500 to your credit card to buy a new TV and paid it off after 6 months. With interest, you paid back a total of $600. Which of the following is the principal in this situation?

$500

What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)?

20 percent

What is double-entry accounting?

A budgeting method where you record your earnings twice: once to track where your money is going, and once to decide what it is for.

Which of these is not identity theft?

A scammer poses as a representative from a charity and asks for money.

What is a 401(k)?

An employer sponsored retirement plan where you contribute some of your paycheck.

What does APR stand for?

Annual Percentage Rate

There are many costs associated with owning a car. Which of these is not something you'll need to pay for?

Arbitration

Why should you stay away from borrowing up to your credit limit?

Because it reflects poorly on your credit score.

If you wanted to know what factors contributed to your credit score, how could you find out?

Check your credit report.

You hit a deer while driving. The deer is fine but your car isn't. What kind of insurance must you have in order for the damage to be covered?

Comprehensive

In order to qualify for a mortgage with good rates, you have to have a high enough .

Credit score.

What is the best way to create a budget?

Divide your income into categories and plan how much you'll spend on each.

When buying something with a loan, you can lower the amount you pay each month by paying a higher .

Down payment.

Someone broke into your apartment and stole all of your stuff. Luckily, you have renter's insurance. How do you request that your insurance pay for the lost items?

File a claim.

When moving to a new rental, you'll likely need to pay a security deposit. How much is this often?

First and last month's rent.

What's the difference between net pay and gross pay?

Gross pay is your total paycheck and net pay is what you take home after taxes.

Which of the following factors will show up on your credit report?

How many open accounts you have. Your debt-to-income ratio. Your payment history.

Which of the following is true about credit cards?

If you don't pay your balance off in full each month, you'll accrue interest.

How does a debit card work?

It lets you pay with the money in your checking account.

Why would you want to claim an exemption on your pay stub?

It will lower the amount of taxable income you have.

If you decide to rent a place to live, you'll need to sign a .

Lease

If you pay off only the amount owed on your credit card each month, but don't pay it off completely, what's that called?

Making your minimum payment.

Your is the amount you own in assets minus everything you owe.

New Worth

How often are you required to make payments on an auto loan?

Once a month.

What is the name of the document that comes with your paycheck and shows you what you were paid and how much was taken for taxes?

Paystub

You got $200 from your grandma for your birthday. What should you do first?

Record it as income in your budget.

You walk outside only to find that your car has been towed because you were parked illegally. You paid the towing company with a check and took this unexpected expense from which budget?

Reserves

Which of the following deductions are you most likely to see on your pay stub?

Social Security deduction.

Why wouldn't every purchase you made show up on your account statement?

Some take time to clear.

What is the name of the document that tells you what you need to pay on your credit card?

Statement

You find evidence that your identity has been stolen. Who should you contact first?

The Federal Trade Commission.

What is a health insurance copay?

The amount you pay when you visit a doctor.

Which of the following is true about tax returns?

The number of exemptions you declare will affect if and how much you get on your return.

What is a debt-to-income ratio?

The ratio of your debt compared to your annual income. Something that lenders look at on your credit report. A percentage that helps lenders decide your ability to pay back a loan.

Which of the following is true about car loan terms?

The shorter the term, the lower the interest rate.

Your employer withholds money from each paycheck. What is this money used for?

To pay for federal and state taxes.

What is the main purpose of the dual accounting method?

To record every transaction twice, reflecting them in accounts and in your budget.

What is the best protection against uninsured drivers?

Uninsured motorist coverage.

What's a "hard inquiry"?

When a financial institution requests information about your credit history for the purpose of extending more credit.

You decide to stop at the ATM and get money out of your account before going to the store. You're a making a(n):

Withdrawal

You don't have dependents. Do you still need life insurance?

Yes; it can pay for medical and funeral costs.

What would be the main benefit of paying in cash for a car instead of taking out a loan?

You don't have to pay interest because you won't have a loan.

On January 8th your account was charged $30.00 for an overdraft fee. Why did that happen?

You spent more than what was in your account.

Your new health insurance has a $4,000 deductible. What does that mean?

You'll need to pay $4,000 on medical expenses each year before your insurance will kick in.

What happens if you go into debt?

You'll need to pay back a minimum amount every month. You'll likely pay more than you borrowed due to interest. Your net worth will be negatively affected.

You bought $230 in clothes and charged it to your credit card. What happens if you don't pay the balance off by the end of the month?

You'll start to accrue interest on your credit card balance.

You got in a car accident and repairs will cost $3,000. After filing your insurance claim, you only paid $500. Why?

Your deductible is $500.

Which of the following would you budget for in "Utilities"?

Your electric and heating bills.

When you apply for a mortgage, the lending institution will likely use your gross income to help decide if you qualify. What is that?

Your income before taxes are taken out.


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