Ever Fi Final Test

What should you do before you withdraw money from the ATM?

Inspect the ATM to make sure it wasn't tampered with

Which fact supports the idea that renting is a good option for living in a place for a short period of time?

Landlords take care of most maintenance.

What do taxes pay for?

Schools, government departments, roads, and emergency services

Which is NOT an advantage of owning a car?

Smaller down and monthly payments than leasing a car

When is it ok not to have health insurance?

Never - you should always have health insurance

When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer.

TRUE

Which is a positive reason for using a credit card to finance purchases?

Paying it off on time can help build your credit history

What is the purpose of the W-4 form?

To inform your employer of how much federal income tax to withhold from your paychecks

An example of an independent event is

flipping a coin

When looking for pre-approval on a car loan you should NOT...

get a loan from the car dealer directly to keep things simple (not great because they typically offer higher interest rates)

Everyone interested in post secondary education should complete the Free Application for Federal Student Aid (FAFSA) because...

it allows you to be eligible for federal student aid and other scholarships and grants.

How is a post from a social media influencer different than a comment from a regular consumer?

the influencer is paid to post

Which of these items is NOT important to consider when selecting a credit card?

the look of the card

Bankruptcy stays on your credit file for?

10 years

What is the gig economy?

A flexible market that allows you to work short-term, independent jobs.

For most careers, which degree will most likely result in the highest lifetime earnings?

Bachelor's Degree

What should you do before you approach an ATM?

Check for any suspicious people lurking nearby

What is net pay?

The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

What is the best reason for why someone would want to lease a house instead of buy one?

They are planning on living there for a short period of time.

Are casino games set up so the casino wins more than the players?

Yes

Using a loan could help with the purchase of which of the following?

a house

An emergency fund should NOT be used for...

a last minute school trip

What should you NOT use a loan to purchase?

airline tickets for dream vacation

When you are deciding what to buy, you should not...

assume that buying the cheapest item is the smartest choice

___________ are good places to look to find your current expenses when building your budget.

bank and credit card statements

What are possible red flags or signs of a scam when buying a car?

being told your financing fell through and charging of excessive fees

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.

benefits

Credit cards can help _____________ when paid off on time regularly.

build credit history

Which payment option is not accepted online?

cash

Which is good advice to follow when evaluating a charitable organization?

check out an organization's mission before donating

Savings accounts typically offer more interest than what type of account?

checking account

Which type of bank account is best for everyday transactions?

checking account

Which forms of payment is linked to a bank account which limits the amount of money you can spend to balance in your account?

checks and debit card

Which is not a game of chance?

chess

Generally, _____________ you receive, the higher your lifetime earnings will be

education

You can go online to check out charitable organizations at:

guidestar.org

Federally-funded grants require the student to...

have financial need only

Which of the following is a benefit of using a budget?

helps to track the money you receive, helps prioritize spending; helps reach short and long term financial goals

Probability is defined as

how likely it is something will happen

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

insurance

If you get into a car accident, your _______________ may increase because you will be considered riskier for insurance companies to cover.

insurance premium

A 529 plan can help you save more money than a traditional savings account because...

it is a tax free.

The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.

it requires collateral

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called...

liability insurance

Investing is best for ________.

long-term financial goals, like paying for retirement

Before volunteering for an organization,

make sure you can keep your commitment to them.

To maintain a good credit score you must ______.

manage your debt wisely

What should be considered when setting a budget?

needs, wants, and savings

Benefits to paying the full balance of your credit card each month include:

not having late fees

Which of the following statements about savings accounts is FALSE?

savings accounts don't usually charge interest on the money you deposit

Which of the following is a way to track your spending?

spreadsheet, envelope method, an app

Gambling is best described as

taking risks with your money or assets in hopes of winning

How is an advertisement different from a comment from a regular consumer?

the advertisement is likely one-sided

An insurance premium is...

the amount of money you pay for an insurance policy

An insurance deductible is...

the amount you owe before insurance will cover the rest of the bill.

Charitable donations, entertainment expenses, and financial goals are all examples of...

things to consider when creating a budget

Why is it important to reconcile your bank statements?

to avoid spending more that what is in your account, to detect any errors, and to determine if you were charged any fees

The price of a single item within a group of items is known as the ______________ of the item.

unit price

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

your financial institution

Which of the following should NOT be considered when setting a current budget?

your future income

It does not make sense to avoid post secondary education because of its cost since in the long run:

The salary you will earn with a degree will pay back the cost of college over your career.

What could be a good option available to you if you are behind on loan payments?

A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

Cutting down on costs by earning an Associate's degree first and then transferring to a four-year college or university can be done by going to what type of higher education institution?

A local community college.

A stock is ________.

A share of ownership in a company

A mutual fund is _________.

A type of investment that invests in a mix of different types of investments.

Which item is important to consider when selecting a credit card?

Both APR and fees

Your salary is one thing to consider when reviewing a job offer but benefits are also important. Which of the following would NOT be a part of your benefits package? (disablity ins, matching retirement contributions, FICA, healthcare insurance)

FICA

Earning a degree can be expensive but which example shows why it might be worth it?

Individuals with a bachelor's degree typically earn a higher annual salary than those without one.

Which of the following statements about investing is TRUE?

Investing is riskier than putting money in a savings accounts.

What is an advantage of owning a car over leasing one?

No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

True

Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year.

W-2

When you are deciding what to buy, you should...

compare the price of similar items you want to buy

Which payment option can offer additional security like fraud protection? (cash, check, debit card, credit card)

credit card

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.

net pay

An organization that is more focused on the service it provies than on making money is a _________ organization.

non-profit

Paying only the minimum balance on your credit card can lead to...

paying more interest.

Which is a true statement about bankruptcy:

people who file bankruptcy pay higher interest because they are a higher risk to lenders

Which choice or choices best describes the purpose of an emergency fund?

prepares you for unexpected expenses; keeps you from borrowing money from friends or family; removes worry about expenses not in your budget

In addition to needs, what should you plan for first when creating a budget?

recurring expenses

Deductions and credits can _______ what you owe in taxes each year.

reduce

Which of the following expenses would be a good reason to spend money from an emergency fund?

repair your laptop that you use for homework

Buying a home security system is an example of protecting your home against________.

risk

How can you ensure you don't go over your budget?

round up your expenses (overestimate) to add a buffer

A deductible is paid by...

the policyholder

What is NOT true about unexpected expenses?

they do NOT occur if you have a budget

When are loans a good option to use?

when paying for higher education

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

risk management strategies.

Which of these additional costs will most likely be the most expensive? (textbooks, counseling, room and board, transportation)

room and board

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck? (state income tax, FICA, Federal tax, retirement contributions, sales tax)

sales tax

Having a great credit score will make it easier for you to get into a better educational institution.

False

What do you need in order to fill out your 1040?

W-2, Your routing and bank number, A record of any other supplemental income

What is a benefit of having a good credit score?

When you need a loan, you'll have more loan offers to pick from.

Which payment option could have interest charged to you?

credit card

Which payment option takes money out of your bank immediately?

debit card

What is NOT a good way to prevent unnecessary spending?

buy all of your wants at one time

Which housing option gives you more freedom and more responsibility?

buying a house

Insurance that covers damage to your car from an accident is called...

collision insurance

Which method of payment actually is a form of borrowing money that needs to be paid back later? (cash, credit card, debit card, check)

credit card

Which of the following is NOT a recommended method to protect you from identity theft?

Expensive specialty locking or monitoring service.

What has the biggest impact on whether a 4 year university is affordable?

The amount of financial aid that the university offers.

What is a consequence of not having health insurance?

You must pay all costs for health care and medical emergencies.

When you file bankruptcy,

you seek legal protection from your creditors