Finance final
Which represents the most accurate description of how credit cards differ from loans?
Credit card is a different amount every month; loans have a fixed amount
In which order do you want to apply for and accept aid to pay for college?
Scholarships & grants, work study, federal student loans, private student loans
Mia is opening her first checking account, and she's trying to decide whether she should sign up for overdraft protection. Which friend's advice is most accurate?
Frank says, "Overdraft protection is handy if you have an emergency (like needing gas to get to work) and don't have the funds right now."
Marcellus is going into his senior year, and he's not sure whether he intends to start college the fall after graduation or take a year off first. How should he approach the FAFSA this school year?
He should file this fall regardless of what he decides; that way he has an opportunity for financial aid just in case
Choose the BEST answer: Which of these represents a major convenience of using a mobile banking app?
You can deposit physical checks by using your phone to take a picture of the front and back and sending it through your mobile app
When you have liability coverage with your auto insurance policy...
Your insurance will cover the payment for your neighbor's fence repair if you crash into it backing out of the driveway
School A has sticker price of $52,000 and an average net price of $6,000 for families with income of less than $60,000. Meanwhile, School B has sticker price of $22,000 and an average net price of $11,000 for families with income of less than $60,000. If your number one factor in selecting a school was cost and your family income was under $60,000, which school would you choose?
School A
Hudson always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay?
one with highest interest rate
Which of the following would have the most positive impact on your credit score?
paying bills on time
Jennifer is trying to save up for an emergency fund of $3000. Which saving strategy would likely be most effective in helping her meet her goal?
Set up a direct deposit of $75 from each paycheck to automatically get put into her savings account instead of her checking account
Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?
Shorter time, less interest, more payment; Her principal is the cost of the car, minus any down payment she makes
Which of the following best describes the amount of money you'll have if you put $1000 into a savings account earning 1% annual compound interest for 10 years? You can ignore the impact of inflation in this question.
Slightly more than $1100
Your wealthy grandma gives you a $500 check for your middle school graduation, and you deposit it into your savings account which earns 1% compounding interest. You keep it there for 4 years until you're heading off to college and want to buy some dorm supplies. How much money do you have available? You can ignore inflation and assume no bank fees during this time.
Slightly more than $520
Which of the following is a method of spending the money in your checking account?
Write a check for your purchase
Which person from this list is saving rather than investing?
Yvonne, who puts $750 per month into her bank account earning 1% interest
Using Target Date Funds can be beneficial for beginner investors, because...
automatically reallocates funds for us to make it more protected
Fatima is looking forward to college graduation in the spring but knows she'll need to start thinking about how to pay her student loans. Which is the best approach for Fatima?
Choose the repayment plan that has the largest monthly payment she can realistically afford while also minimizing her interest payments
Suppose you are trying to switch banks or open a brand new credit card. Which strategy will likely lead to the WORST long-term outcome?
Choosing the one with the highest interest rate
Jay asks his friends for advice: "Should I start doing mobile banking now that I've got my new smartphone?" Which friend is correct in their statement on the benefits of mobile banking?
It's so convenient, because you can deposit your check using your phone's camera and the bank's app
You have $3000 per month to cover your expenses. You estimate your monthly costs to be rentof $1200, car expenses of $700, utilities of $200, insurance of $300, food of $400, student loans of $800,and going out with friends of $200. What is the end result?
$800 deficit
StayWell Health Insurance is offering a plan with a monthly premium of $250, a deductible of $3500, and maximum out-of-pocket expenses of $6000. If Sheldon chooses this insurance, what is the MOST he should pay in one calendar year?
$9,000
Which of these would represent a withdrawal you could see on your monthly checking account statement?
A debit card purchase for concert tickets you bought online
Which statement accurately describes the difference between a traditional savings account and a certificate of deposit?
A traditional savings account keeps your money safe and allows you to add to the balance regularly. A CD requires a fixed deposit amount for a fixed period of time.
Caleb is trying to select his first credit card, and he's got it narrowed down to two options he thinks would work really well for his circumstances. What should his final step be before making a choice between the two?
Choose one with lower interest rate and best benefits
When using online and mobile banking, which of these is a smart tip to keep your account safe?
Choose clever and secure usernames and passwords, and keep them secret
Marcia works a part-time job during her junior and senior years of high school. Although her main goal is to save enough for a really nice laptop, she'd also like to build up an emergency fund. She wants to have at least $500 to take with her in case she needs it during college. Which saving strategy is most likely to help Marcia meet her goal?
Determine how much she needs to save from every paycheck to afford the laptop and the emergency fund, and then auto-deposit that amount into a savings account so she can't spend it
You've just turned 16 and obtained your first part-time job. You want to open a checking account as well as a savings account. Which of these questions is LEAST important to ask?
Does the bank you're considering also have an investments division that can help you compound your money quickly?
Isaiah works at a technology company in the summer and earns $3000. After federal, state, andSocial Security/Medicare taxes are deducted, his take-home pay is $2,500. Which of the statements below is CORRECT?
Gross: $3000 ; Net: $2500
Igor receives his Financial Aid Award Letter and notices Federal Work-study in the amount of $2000. What does this mean?
He is eligible to take a paid work-study job while he attends college, with the expectation that he will use his earnings toward college-related costs
Which provides the BEST description of what a W-4 tax form is used for?
How much taxes your employer will take out from your paycheck for taxes
Which statement about student loans is TRUE?
It's financially better to pay for college using scholarships and grants than it is to use loans
Super Smarts University has a sticker price of $45,000 per year. Kyle is applying there and uses their online net price calculator, which calculates a net price of $38,000 per year based on the information he is provided. He's #1 in his high school class, and he's got great SAT scores; so he's pretty sure he'll get in. How much will Kyle pay to attend?
It's impossible to know how much he'll pay until he receives his financial aid package
Jaime is creating a budget for the first time and doesn't know which to use - NET PAY or GROSS PAY. What do you tell him?
Net pay
Which of the following would impact your credit score?
Not paying on time
Which one of the following strategies will result in your paying NO interest to the credit card company?
Pay the whole bill on time
Susie works two jobs so she can pay tuition without using loans, helps her sick mother with housework and errands, and is attending college. She knows she should be saving for retirement. Which strategy is best for Susie?
Put as much as you can afford in to start saving; set up an IRA, put 20-40 in it
Ryan has a major problem of overspending from each of his paychecks, even though his ultimate goal is to be saving money for college. His friend Sydney says Ryan's problem is that he's too worried about "keeping up with the Joneses." What does Sydney mean by this?
Ryan is buying too many material things or spending too much on experiences so that he feels on par with his peers
Which statement accurately describes the difference between a student loan and a scholarship or grant?
Student loans need to be repaid, while scholarships and grants are both "free money" that don't need to be repaid
Which definition best describes the FAFSA?
The application you complete in order to determine eligibility for federal student aid
Which statement about overdraft protection is true?
The average overdraft fee is $25 or more
These high school seniors each bought $1500 of stuff to bring to college with them in the fall.Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?
The one that pays the most and pays it in the shortest amount of time
If your auto loan is amortized over 5 years, you will pay ______.
The same size payment each month
Which item would you expect to find on your monthly bank statement?
The total amount of deposits you made during that month
Which deduction is LEAST likely to be taken out of a high school student's paycheck from his part-time job at a department store? Assume he lives in a state that collects income tax.
They won't take insurance or retirement
The purpose of a 1040 form is to
Used to file taxes
Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"
Maura has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is she likely to receive during her first week on the job?
W4 and I9
Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck EXCEPT.
insurance wont get taken out
Which of these statements best describes the reason identity theft is such a huge concern?
ruin credit score and could take a long time to get identity back
