Personal Finance End-Of-Year Test

Your friends are having a debate about student loan debt. Who is CORRECT? -"You should generally limit your borrowing to what you expect to earn as a starting salary when you graduate from college, and avoid private student loans." -"You should avoid student loans no matter what, even if that means you have to work long hours and can't take a full course load." -"You should borrow as much money as you can through private student loans, and then take out federal student loans."

"You should generally limit your borrowing to what you expect to earn as a starting salary when you graduate from college, and avoid private student loans."

In 2019, the maximum allowed Social Security monthly retirement benefit was approximately... $3,500 $1,500 $2,900 $1,800

$2,900.

Maya had $100 starting balance in her checking account. Over the month, she wrote two checks for $40.00 and $38.00. Maya also deposited a $225.00 paycheck and had a debit card purchase of $12.00. What is Maya's final balance for the month? -$35.00 $10.00 $235.00 $269.00

$235.00

Which statement accurately describes how to distribute your take-home pay with the 50/20/30 Rule? -50% needs, 20% on savings, and 30% on wants -50% on savings, 20% on needs, and 30% on wants -50% on savings, 20% on wants, and 30% on needs -50% on wants, 20% on savings, and 30% on needs

-50% needs, 20% on savings, and 30% on wants

Which of the following is an investment plan to help pay for college expenses? -Grants -FAFSA -Promissory note -529 Plan

-529 Plan

On social media, views and advertising are linked to buying. How many times each day does the average TikTok user in the United States open the app? -12 times -24 times -8 times -Once

-8 times

How is a bond different from a stock? -Bonds are best for earning high returns while stocks are best for providing a stable source of income. -Bonds are typically riskier than stocks but have the potential to earn higher returns. -Bonds are usually issued by smaller startup companies while stocks are issued by well established organizations. -A bond is a loan you give to an organization while a stock is partial ownership in a company.

-A bond is a loan you give to an organization while a stock is partial ownership in a company.

When renting an apartment, why is it important to have a written lease? -Without a lease, a renter won't know how much to budget for rent, food, insurance, or transportation. -It is against the law to live somewhere without a lease. -A lease clearly states the apartment costs and expectations for living there. -Signing a lease provides you with free or discounted renters insurance.

-A lease clearly states the apartment costs and expectations for living there.

Which is a good financial reason for buying a used car instead of a new one? -A new car quickly loses its initial value, but the loan payments will stay the same. -Styles change and buyers may want to buy another new car soon. -Payments remind people to take good care of their vehicles. -The interest amount paid on a car loan is the same if the vehicle is new or old.

-A new car quickly loses its initial value, but the loan payments will stay the same.

An influencer is... -An advertising agency that works with various organizations to promote their products on social media. -Any type of media (ad, article, picture) that convinces you to buy a product or service. -Someone who agrees to follow you back if you follow them on social media. -A person who can convince someone to buy a product or service by promoting it on social media.

-A person who can convince someone to buy a product or service by promoting it on social media.

Which is an example of the Roach Motel dark pattern? -A hotel reservation site tells you the number of deals you just missed by failing to book a room faster. -A mobile app uses green buttons throughout to select NO but then suddenly changes it to select YES. -A website automatically signs you up for a paid subscription when you create an account but there is no easy way to cancel it. -A banner ad has a fake speck of dust to trick users to click on it when they try to swipe the dust away.

-A website automatically signs you up for a paid subscription when you create an account but there is no easy way to cancel it.

Shira is trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which statement is true? -Debit cards and prepaid debit cards are the same. -Debit cards and credit cards are the same. -All three cards are completely different. -All three cards are completely the same.

-All three cards are completely different.

Which of the following is most likely to represent a fixed rate, secured debt? -An auto loan -A student loan -A credit card -A prepaid debit card

-An auto loan

How often should a student file the FAFSA? -Only in years when a student might need the aid -At the end of each college semester -Before each year of college -Once in the last year of high school

-Before each year of college

All of the following are ways to use social media more mindfully EXCEPT... -Delay the act of purchasing by adding something you'd like to buy from social media to a "wish list". -Make a budget and use it to track and adjust your spending from social media. -Unfollow or mute accounts that encourage you to spend more money than you'd like. -Check your social media accounts frequently throughout the day.

-Check your social media accounts frequently throughout the day.

Which of the following does not describe "The Perfect Identity Theft Victim"?--Does not check credit reports. -Rarely communicates with bank or credit union. -Checks account balances and statements at least monthly. -Seldom looks at account balance.

-Checks account balances and statements at least monthly.

A commonly used strategy to minimize investing risk is... -Investing in only one company. -Hiring an investment manager who promises to provide the largest returns. -Investing only when a stock's value is rising. -Choosing a diverse selection of investment vehicles.

-Choosing a diverse selection of investment vehicles.

Which statement is true about the Equal Credit Opportunity Act? -Creditors cannot ask questions on a loan application about race, color, religion, national origin, sex, marital status, age, or receiving public assistance. -Creditors cannot accept or deny an application based on race, color, religion, national origin, sex, marital status, age, or because you receive public assistance. -Creditors cannot deny an application on race, but they can deny it based on age.

-Creditors cannot accept or deny an application based on race, color, religion, national origin, sex, marital status, age, or because you receive public assistance.

Why is it important to understand how businesses use dark patterns? -Dark patterns are designed to help the public make wise shopping decisions. -Dark patterns can cause eye strain, which can add to medical expenses. -For people who are not good at comparison shopping, dark patterns walk them through comparing multiple items. -Dark patterns are intended to trick users into doing things they might not want to do, but which benefit the business instead.

-Dark patterns are intended to trick users into doing things they might not want to do, but which benefit the business instead.

You see an ad that says, "Enter a few pieces of information, pay $39.99 per month, and we guarantee to win you a scholarship! Sign up today with just your name, social security number, and an email address!" How should you proceed? -Don't sign up, because you should not pay money to win scholarships, and you should never enter your social security number into unknown websites. -Don't sign up, unless your parent says it's OK to use their credit card for the payments.

-Don't sign up, because you should not pay money to win scholarships, and you should never enter your social security number into unknown websites.

Which of the following is NOT one of the "big three" credit reporting agencies to contact about credit report errors? -Equifax -Transunion -Experian -Equifinance

-Equifinance

Giselle wants to send her sister money for her birthday. Her sister lives in another county. What is NOT an advantage to Giselle using a P2P app to send the money? -Exposes personal information to a possible data breach -Less time involved -Less additional costs involved -Easier currency exchange

-Exposes personal information to a possible data breach

Each of the following is an organization that can offer grants to college students EXCEPT... -private companies -FAFSA -colleges -the federal goverment

-FAFSA

Craig has heard that taking out federal student loans is preferable to taking out private student loans. Why is this true. -Federal student loans have higher credit standards than private loans and require a co-signer. -Federal student loans don't charge any interest for the entire term of the loan period. -Federal student loans do not need to be repaid. -Federal student loans generally have more flexible and affordable repayment options compared to private loans.

-Federal student loans generally have more flexible and affordable repayment options compared to private loans.

What types of money are used in paying for college and in what order should you use them? -Your money, borrowed money, free money -Free money, your money, borrowed money -Borrowed money, your money, free money -Your money, free money, borrowed money

-Free money, your money, borrowed money

Marcus wants access to his tax refund as soon as possible. Which of the following would best help him get his funds faster? -Having the IRS direct deposit his refund -Requesting a paper check from the IRS -Rolling the refund into next year's taxes -Receiving his refund as a prepaid card

-Having the IRS direct deposit his refund

When Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000 for the year. His family is $6000 short. Which of the following is NOT an option for them? -His parents can take out a federal Direct PLUS Loan for the $6000. -Emmanuel can call the financial aid office, explain, and ask them to review his materials again. -Emmanuel can apply for scholarships/grants from other organizations -His parents can take out a federal student loan in their name for $6000.

-His parents can take out a federal student loan in their name for $6000.

What does the balance on a bank statement indicate? -How much money is in the account at a specific point in time. -If the account holder is using a range of services, such as ATM, debit, deposits. -The number of deposits versus withdrawals. -Whether the statement has been reconciled against the account holder's records.

-How much money is in the account at a specific point in time.

Maya is married and not working. Which is a retirement investment option that Maya can use? -Pension -Social Security -IRA -401(k)

-IRA

In financial terms, when someone refers to the return on investment for a college education, the return refers to the ____ and the investment is the ____. -Increased earnings from attending college, cost of your education&the time spent pursuing your degree -Cost of your education&the time spent pursuing your degree, increased earnings from attending college -Decreased earnings from attending college, stock market returns -Increased earnings from attending college, time spent pursuing ur degree

-Increased earnings from attending college, cost of your education&the time spent pursuing your degree

All of the following are true about the impact of social media and influencers on a consumer's decisions EXCEPT... -Certain products may go out of stock in record time due to buying trends driven by social media. -Influencers always use credible sources when making recommendations and sharing information with their followers. -Consumers may decide to purchase something they don't necessarily need. -Social media can repeatedly show a consumer advertisements for products they were looking at o

-Influencers always use credible sources when making recommendations and sharing information with their followers.

With P2P apps, the highest cash-out fees are usually for -Standard transfer -Transfer to family -Instant transfer -Cashing to a checking account

-Instant transfer

For most P2P apps, a user can chose a "standard transfer" or an "instant transfer" to move funds into a bank account. What is the difference the fees for the two options? -Instant transfer has lower fees -Fees are the same -Instant transfer has higher fees -Standard option has higher fees

-Instant transfer has higher fees

Which of the statements below BEST describes the relationship between risk and return when considering an investment? -Investors expect to earn a higher return when they invest in a high risk asset. -Investors expect to earn a higher return when they invest in a low risk asset. -Investors expect to earn zero return when investing in a low risk asset. -Investors expect to earn a lower return when they invest in a high risk asset.

-Investors expect to earn a higher return when they invest in a high risk asset.

When shopping online, how does checking what is in your cart help you to avoid the "sneak into basket" scam? -It will prevent hackers from putting their items in your cart. -It makes sure you used the right credit card. -It will give you a chance to opt-out of future emails. -It can help you catch retailers automatically signing you up for additional items.

-It can help you catch retailers automatically signing you up for additional items.

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from? -Your credit card company provides you with a cash advance to cover the cost. -It is deducted directly from your checking account. -It is deducted directly from your savings account. -Your credit card company covers the cost.

-It is deducted directly from your checking account.

Which statement best describes the Social Security retirement program? -It is a retirement program where workers can choose to join, or opt-out for a private program instead. -It is managed by the federal government but funded by employees and employers. -Social Security is a privately managed bond program. -Social Security provides guaranteed retirement benefits for anyone who has been employed for at least one year.

-It is managed by the federal government but funded by employees and employers.

Which statement best describes the purpose of the Free Application for Federal Student Aid? -It enters students into a lottery for educational funds. -It is the first step in qualifying for federal assistance for school financing. -It provides a way to restructure student loan debt. -It applies students for private, non-government loans.

-It is the first step in qualifying for federal assistance for school financing.

Which of the following best describes a benefit of a 529 prepaid plan? -You pay lower taxes on the money you withdraw. -It is perfect for last-minute savings. -It locks in a lower tuition rate years before a child starts college. -It commits your child to going to college.

-It locks in a lower tuition rate years before a child starts college.

Which of the following is NOT true about comparison shopping? -It can help you be confident you're getting a good deal. -It should focus only on price. -It can help you make sure what you buy meets a variety of needs. -It can include comparing a variety of factors that are important to you.

-It should focus only on price.

All of the following are common types of social media scams EXCEPT... -Romance scams -Investment scam -Online shopping scam -Library fee scam

-Library fee scam

Which of the following is an example of protecting financial information against technology-based attacks? -Braden is on a news site and keeps getting a pop-up on the screen stating, "Security system has detected suspicious activity - click HERE now to stop attempt". Braden doesn't want to mess up his dad's computer, so he clicks the link in the pop-up. -Malaysia updates her passwords regularly by logging into the sites she uses and using the "change my password" option on those webs

-Malaysia updates her passwords regularly by logging into the sites she uses and using the "change my password" option on those websites.

How often do customers typically receive a bank statement for their checking account? -Monthly -Daily -Weekly -Annually

-Monthly

When factoring how much to budget for utilities, it is important to remember... -There is no way to find out ahead of time what the costs may be, so budget one-fourth of your rent costs for utilities. -Cable and internet are always provided by landlords. -Phone service is always covered by the landlord. -Monthly electricity and/or natural gas costs can vary depending on the time of year.

-Monthly electricity and/or natural gas costs can vary depending on the time of year.

Marise chose a credit union instead of a bank because the bank was going to charge her $5 a month just to have a checking account with them. What is the name for this type of fee? -Minimum balance fee -Paper copy of statement fee -Monthly service fee -ATM charge

-Monthly service fee

Which type of expense may only happen once or twice a year and can be challenging for people trying to get on a budget? -Whammy -Non-Recurring -Fixed -Recurring

-Non-Recurring

The first step to defeat hidden fees is to _____. -Complain online about it. -Contact your congressional representatives. -Stop the sale and start over. -Notice the fees are there.

-Notice the fees are there.

Samira had some unexpected costs and is struggling to make her monthly payments on her federal student loans. Which of the following is BEST for her to do? -Notify her student loan servicer immediately so she can discuss what options are available to her. -Declare bankruptcy so that her loans are forgiven. -Wait for 270 days so that her loans default. That way, she doesn't have to make any payments. -Miss a payment for this month, but then make sure she makes the next month's payment on time.

-Notify her student loan servicer immediately so she can discuss what options are available to her.

Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank? -Online savings accounts are less likely to make you the victim of identity theft. -Online savings accounts typically pay higher interest rates on deposits. -Online savings accounts are FDIC insured to a higher limit. -Online savings accounts are created specifically for people under age 25.

-Online savings accounts typically pay higher interest rates on deposits.

What is the purpose of Person-to-Person (P2P) payment services? -P2P is a way to post and organize charitable fundraisers. -P2P helps you to send and receive money using your mobile device or computer. -You can locate people willing to give micro-loans through P2P. -P2P enables you locate people you owe you money.

-P2P helps you to send and receive money using your mobile device or computer.

Denise took out a payday loan ($300) in August. By February she was able to pay it back, but she had spent a total of $750 doing so . How did this happen? -The minimum monthly payment for payday loans is usually only $10 or $15, so a lot of interested accumulated. -Payday loans must be paid in full within two weeks, and if not, the only option is to renew the loan for a high penalty fee, which she did approximately 12 times. -Denise not only paid the $300 she owed, but she prepaid an extra $450

-Payday loans must be paid in full within two weeks, and if not, the only option is to renew the loan for a high penalty fee, which she did approximately 12 times.

Why are payday loans easier to qualify for than traditional bank loans? -Payday loans are only used by affluent households, and the banks know they have enough money to cover them. -Payday loans are typically for such small dollar amounts that no one cares if you repay them or not. -Payday loans require proof of employment or other regular income but not a credit check. -Payday loans are just direct deposits & almost all employers offer their employees direct deposit instead of a paper paycheck.

-Payday loans require proof of employment or other regular income but not a credit check.

What are the two most important factors in calculating your credit score? -Length of credit history and new credit inquiries -Payment history and total debt -Payment history and types of accounts -Amounts owed and length of credit history

-Payment history and total debt

Why do companies sometimes add extra fees at the end of the buying process? -Those fees are always accidental and never intentional. -This is an example of a "roach motel" scheme. -People are likely to pay the fees anyway at that point . -The companies aren't very good at Web site building.

-People are likely to pay the fees anyway at that point .

Which is likely to be on the first transaction line on a checking statement? -Ending balance -Mid-statement balance -Previous balance -Interest earned

-Previous balance

Taylor is about to go car shopping, and she has $5000 saved for a down payment while still having emergency fund cash. She expects the car she's looking for to cost $35,000. If her top priority is having the lowest monthly payments possible, what should she do? -Put in $2500 for her down payment, and choose a loan with a short-term length. -Put in $3500 for her down payment, and choose a loan with a long-term length. -Put in $5000 for her down payment, and choose a loan with a long-term length

-Put in $5000 for her down payment, and choose a loan with a long-term length.

A savings account is useful for all of the following purposes EXCEPT... -Building an emergency fund -Putting aside money for retirement -Funding a future vacation -Saving for a new car

-Putting aside money for retirement

Bella is comparison-shopping boxes of granola bars. She notices the price per granola bar is cheaper if she buys the box of 48 for $8, instead of the box of 24 for $5. What factor is she comparing? -Quantity -Return Policy -Longevity -Brand Reputation

-Quantity

Which type of expense happens reliably throughout the month, though not always on the same date? -Whammy -Fixed -Recurring -Non-Recurring

-Recurring

Niko used his credit card to buy a new jacket. He still has not gotten a email of confirmation regarding the purchase & he suspects he was scammed. What is the BEST thing to do? -Report the fraudulent charge to his bank and ask them to reverse the transaction. -Wait for his bank to identify the fraudulent charge and reach out to him within 7 days. -Try to contact the vendor to see if they can reverse the transaction. -Wait to see if the transaction shows up on his next credit card statement.

-Report the fraudulent charge to his bank and ask them to reverse the transaction.

All of the following would show up on a credit report EXCEPT... -Payment history of your car loan -Salary of your current job -Student loan activity -Credit card payment history

-Salary of your current job

Lois is buying a boat. If she doesn't make her payments, the bank can seize the boat to sell and recover the loan balance. Which term best describes this type of loan? -Floating credit -Secured debt -Unsecured debt -Variable rate

-Secured debt

How does simple interest differ from compound interest? -Simple interest is calculated on the principal & the interest you've already earned; compound interest is calculated on just principal. -Simple interest is calculated on principal alone; compound interest is calculated on the principal & interest you've already earned. -You earn simple interest in a savings account & compound interest on an investment. -Simple interest rates are between 1-5% while compound interest rates are over 5%.

-Simple interest is calculated on principal alone; compound interest is calculated on the principal & interest you've already earned.

What is the general timeline to establish your first credit score? -As soon as you apply for a credit card or loan -Six months after you first actively use your credit -Once you turn 18 -Once you pay all of your credit balances in full

-Six months after you first actively use your credit

Which statement about ATM cards is correct? -All banks offer free ATM access to out-of-network providers. -Some banks may offer a refund for a specific amount of out-of-network ATM providers' charges. -ATM fees are based on a percentage of your withdrawal amount, so it is best to withdraw small amounts of money. -Banks are required to reimburse for all ATM fees.

-Some banks may offer a refund for a specific amount of out-of-network ATM providers' charges.

If you do not choose a specific repayment plan for your federal student loans, you are automatically put on the: -Non-Standard Repayment Plan. -Income-Driven Repayment Plan. -Graduated Payment Plan. -Standard Repayment Plan.

-Standard Repayment Plan.

Johnny is trying to calculate the NET PRICE of a school that he just got a financial aid offer from. Which of the following formulas should he use to calculate the net price? -Sticker Price - (Savings + Grants) -Sticker Price - (Grants + Scholarships + Loans) -Sticker Price - (Grants + Scholarships + Work-Study) -Sticker Price - (Grants + Scholarships)

-Sticker Price - (Grants + Scholarships)

Sean wants to buy a bookshelf for his room. Which of the following factors should he be LEAST concerned about when comparison shopping? -Reviews left by other consumers. -The quality of the bookshelf. -When the bookshelf was made. -The price of the bookshelf.

-When the bookshelf was made.

Which loan type am I? I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate. -Subsidized Federal Student Loan -Private Student Loan -Institutional Student Loan -Unsubsidized Federal Student Load

-Subsidized Federal Student Loan

Evelyn wrote checks for $300 over what she had in her acct. She is now facing fees&possible legal issues. What's a good tip to avoid this? -Reconcile paper statements, but don't reconcile electronic statements because the bank does that. -Take last month's account balance and every time she adds or removes money from the account, immediately add or subtract those funds from the balance. -Wait until a check "clears" the bank before subtracting it from the balance.

-Take last month's account balance and every time she adds or removes money from the account, immediately add or subtract those funds from the balance.

Which is true about FAFSA and state financial aid for education? -All states have the same deadline of April 15 for the FAFSA. -The FAFSA deadlines for different states are posted on the FAFSA Website. -Deadlines for applying for state aid can vary and are available at your state's Department of Revenue. -The FAFSA has no connection with state aid.

-The FAFSA deadlines for different states are posted on the FAFSA Website.

Zach receives a notification from the IRS that he owes money. Which of the following indicates that the notification is real and not a scam? -The IRS sends him a formal letter in the mail notifying him of taxes he owes. -The IRS calls and threatens to send local law enforcement today if he does not. -The IRS texts him from an unknown number. -The IRS send him a direct message on his social media account and demands he pay taxes he owes within 24 hours.

-The IRS sends him a formal letter in the mail notifying him of taxes he owes.

Relationship between FAFSA, a Student Aid Report, and a Financial Aid Package? -Submit a SAR to determine if youre eligible to file the FAFSA. If you are, you submit the FAFSA and then receive a FAP. -You receive a FAP first. Then, you file the FAFSA and get your SAR. -Schools use the answers you submitted in the FAFSA to create a FAP for you, which is then sent to you in a SAR. -The answers submitted in your FAFSA are reported in your SAR. Schools then use your SAR to create a FAP for you.

-The answers submitted in your FAFSA are reported in your SAR. Schools then use your SAR to create a Financial Aid Package for you.

Which best explains why it's a good idea to pay more than the monthly amount due on an amortized loan? -The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly. -Amortized loans typically have much higher interest rates than credit cards -Every time you pay extra, the lender will reduce the interest rate they're charging by a small amount. -The extra payment will be applied to owed interest, which will reduce the overall cost of your loan.

-The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly.

Patricia knows she can request a free copy of her credit report each year, but now that she has it, she's not sure where to start. Which of the following is something that could indicate an issue with her credit report? -An account she closed previously is listed as closed. -Her name is correct. -Payments are all on time. -The report lists accounts that she doesn't recognize.

-The report lists accounts that she doesn't recognize.

Sofia receives a text message from her bank. All of the following indicate that the text may actually be a scam EXCEPT... -The text message has a few spelling errors in the body of the text. -The text message includes a link that starts with "http". -The text message indicates that she will lose a significant amount of money if she does not respond within 1 hour. -The text message asks her to call the number that is on the back of her debit card.

-The text message asks her to call the number that is on the back of her debit card.

How are deferment and forbearance related to federal educational loans? -They are programs where you can have your loan balance erased. -They are programs where you can apply to STOP making payments towards your loans until you want to resume paying. -They are programs where you can apply to STOP making payments on your loans for a specific amount of time. -They are programs that allow you to stop paying your debt if you feel the money was a bad investment.

-They are programs where you can apply to STOP making payments on your loans for a specific amount of time.

Which is NOT a common characteristic of people who use predatory lenders? -They quickly need a loan of a few hundred dollars, but there are few options for small loans. -They have recently lost their jobs. -They have savings to use in case of an emergency. -They may struggle with determining their income from week to week.

-They have savings to use in case of an emergency.

Which statement best describes a checking account? -This account allows you to borrow money from the bank. -This account offers high interest rates. -This account is an excellent way to save money. -This account offers a convenient way to pay bills and access cash from an ATM .

-This account offers a convenient way to pay bills and access cash from an ATM .

Which statement best describes a savings account? -This account is automatically debited when you use a debit card. -This account offers a convenient way to pay bills and access cash from an ATM. -This account typically allows an unlimited number of transactions per month. -This account pays you interest on money you have put away for later to help your money grow.

-This account pays you interest on money you have put away for later to help your money grow.

Which of the following is considered a direct cost of attendance? -Food and entertainment -Tuition -Cell phone bill -Travel expenses

-Tuition

Haley wants to live in an area where she can get around easier without owning a car. What type of setting would most likely meet her requirement? -Country -Suburban -Urban -Rural

-Urban

Which of the following is the best way to avoid ATM fees? -Use a bank and not a credit union. -Find a bank with no paper statement fees. -Use only out-of-network ATMs. -Use only in-network ATMs.

-Use only in-network ATMs.

Which of these is NOT a P2P app? -PayPal -Venmo -Zelle -VISA

-VISA

Which type of expense can be frustrating and, for the most part, unpredictable? -Recurring -Non-Recurring -Fixed -Whammy

-Whammy

Which abt applying for grants and scholarships is TRUE? -Pell Grants are offered based on a student's academic performance. -Colleges only offer merit-based (based on your accomplishments) scholarships and grants. -While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored scholarships. -While some grants and scholarships are guaranteed for all 4 years of attendance, others expire & must be reapplied for yearly.

-While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for.

Which of the following statements comparing credit and debit cards is TRUE? -Credit card companies provide you with a monthly statement, while debit cards do not. -With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later. -Far more businesses accept credit cards than debit cards. -Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard.

-With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later. (UNSURE)

Which is a benefit of on-line bill pay? -You must manually send the payment each month. -Checks are never used. -You can receive and pay your bills all through your bank. -The fees are usually 10% of the bill amount.

-You can receive and pay your bills all through your bank.

Which description is most accurate for a Zero-Based Budget? -You pay every one of your debts down to $0 every month. -You spend your checking account balance down to $0 every month. -You spend your saving account balance down to $0 every month. -You put every dollar of your net pay into a budget category each month.

-You put every dollar of your net pay into a budget category each month.

Why is it important for you to understand your risk tolerance before you start investing? -It helps you decide if you want to participate in your employer's match program for your 401(k). -You should tailor your investment portfolio so that it assumes an amount of risk you are comfortable with. -If you have a high risk tolerance, you may be eligible for lower fees since you won't care if your portfolio drastically loses value.

-You should tailor your investment portfolio so that it assumes an amount of risk you are comfortable with.

Reading through a credit card's account details, you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true? -In this case, you want the highest APR in the range because you'll earn more -Your APR will be within that range, depending on the strength of your credit history -The APR on credit cards is usually fixed, so it won't be adjusted as long as you are a cardholder -When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed

-Your APR will be within that range, depending on the strength of your credit history

How can your credit score impact your financial well-being? -Only consumers with high scores are approved for credit -It generally has no impact on your financial situation -Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be -Consumers with low scores get lower interest rates on loans than those with high scores

-Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

The average APR for a payday loan is -a little higher than a credit card -the same as for a credit card -a lot less than a credit card -a lot higher than for a credit card

-a lot higher than for a credit card

A mutual fund is a -diverse group of investments, funded by a group of people and managed by a professional. -group-funding opportunity for new products. -bond that a group of investors manage. -stock that a group of economists mutually agree is a solid investment.

-diverse group of investments, funded by a group of people and managed by a professional.

Direct deposit typically refers to your ______ sending your ______ electronically to your bank account. -employer, paycheck -employer, bills -parents, allowance -state government, taxes

-employer, paycheck

Over time, the amount of your monthly payment applied to the principal on an amortized loan _____ -stops. -increases. -stays flat. -decreases.

-increases.

The Statement Period on a bank account statement refers to ... -the time frame that the statement covers. -the time period for making comments about errors. -the average daily balance for the account. -the deadline for reconciling the bank statement.

-the time frame that the statement covers.

All of the following should be considered when creating your investing strategy EXCEPT... -the amount of time your money will be invested before you start drawing from it. -your risk tolerance. -the amount of capital you have available to invest. -your credit score.

-your credit score.

Your credit report shows your credit history. Which phrase best describes "credit history"? -your relationship with credit in the past, such as loan payments over time, late payments, and bankruptcies -a list of all of your prior employers and copies of job evaluations -copies of your bank statements -a list of personal references

-your relationship with credit in the past, such as loan payments over time, late payments, and bankruptcies

Which best explains how unit pricing helps with cost cutting? -It helps shoppers compare the cost of items in different-sized packages. -It shows which item is healthier. -It helps consumers choose products with less waste. -It explains the price of one package of a product.

It helps shoppers compare the cost of items in different-sized packages.