mop test

Carla's financial aid package from Magna University includes a grant as well as unsubsidized and subsidized Federal student loans. Her parents said they're also willing to cosign on her taking out a private student loan, if needed. Carla goes to her guidance counselor for help deciding which of these funding options to use first. Which of the following options will likely be MOST expensive for Carla? a. Private loan b. Grant c. Unsubsidized federal student loan d. Subsidized federal student loan

a

Carson is a college freshman and wants to build his credit score so that, when he graduates at age 22, it's easier for him to rent an apartment and take out a car loan. Which strategy would likely result in the HIGHEST credit score? a. Have his mom co-sign for a credit card this year, and then Carson pays all of bills on-time and in full every month b. Wait until he turns 21 at the start of senior year and open his own credit card then, which he'll pay off every month c. Use his debit card responsibly all four years, but every time the cashier asks, "Debit or credit?" choose "credit" so it goes toward his score. d. After proving he can be responsible freshman and sophomore years, become an authorized user on his mom's credit card during junior year

a

Each of the following is a good strategy to use when discussing auto financing with a dealership EXCEPT: a. Tell the dealer the maximum payment you can afford, and refuse to pay more than that. b. Use an online auto loan calculator before you visit the dealer, so you're informed about what you can and can't afford. c. Visit your bank or other direct lenders before visiting the dealership, and tell the dealer if you're already pre-approved for a lower APR. d. Research current offers online or at other dealerships for the vehicle type you want, and go in with this information in writing.

a

Isaac and his family want to take a trip to Disney World. They start charging all their monthly expenses on a credit card that gives them airline miles, in hopes of earning one or two free flights by next summer. In the month of February alone, they charge $2500 on the card. When the bill comes, Isaac pays the full balance. Which figure best estimates the interest he paid, given that his card has a 12% APR? a. $0 b. $25 c. $300 d. $2525

a

Laura has a substantially higher credit score than her sister, Caroline. They are both shopping for new cars and plan to pay for them over 4 years. Which statement is likely TRUE? a. Laura's APR and monthly payments will both be lower b. Laura's APR and monthly payments will both be higher c. Laura's APR will be lower but her monthly payment will be higher d. Laura's APR will be higher but her monthly payment will be lower

a

Nancy and her friends are talking about personal finance after class. Which friend is confused about personal loans? a. Carla says, "Personal loans are informal loans you take from your family or friends." b. Esther says, "Personal loans are sometimes a good alternative to opening a credit card." c. Adria says, "You can apply for a personal loan to start a business, repair your car, or pay off your credit card debt." d. Lisa says, "You should try to get a personal loan before you ever consider taking out a payday loan."

a

Newton gets bored easily and likes to relocate to a new neighborhood or even a new city every 2-5 years. Which of the following would be the BEST use of his financial resources? a. Renting a home or apartment b. Buying a home using an adjustable-rate mortgage c. Buying a home using a fixed-rate mortgage d. Buying a home using an interest-only mortgage

a

Pretend you take out a 30-year fixed rate mortgage for $250,000. Which of the following statements would be true? a. The payment amount you owe every month will be the same b. The amount of interest you pay every month will be the same c. The amount of principal you pay every month will be the same d. You will not be allowed to pay more than the amount due every month

a

Ramon and Stephen are each considering taking out a $1200 loan so they can buy dirt bikes to enjoy on the weekend. Ramon's bank is offering him a 4.3% interest rate, while Stephen's is offering him a 2.4% interest rate. Which of the following statements is TRUE. a. If each loan has a term of 3 years, Ramon's monthly payments will be higher b. If they both make $300 payments a month, Ramon will pay off his loan faster c. Both men would likely get a better interest rate if they used a credit card, rather than a personal loan, to make their purchases d. If Ramon applies to Stephen's bank, instead, for his loan, he's guaranteed to get the same 2.4% interest rate that Stephen's been offered

a

Spencer is a recent graduate who finds a dream car that costs $45,000. Even better, there's a 0% APR for 36 months offer from the dealership, so he figures he'll rush in this weekend to buy it! Why is this deal probably "too good to be true" for Spencer? a. The 0% offer is most likely for those with OUTSTANDING credit. As a 22-year old, he may not qualify. b. If the dealership is offering 0% for 36 months, his bank would probably give him 0% for 72 months -- twice as good! c. After the initial 36 months of 0% interest, Spencer's interest rate is likely to surge to 20% or higher! d. Any dealership offering 0% APR is running a scam! Spencer will likely be the vicitm of identity theft or fraud if he takes the deal!

a

Susie is considering a graduated repayment plan, which means ________ a. Her monthly payments will start lower and end higher. b. She won't be charged any interest until she successfully graduates. c. Her payments will fluctuate with how much money she's earning every month. d. She will receive loan credits based on how high her GPA is when she graduates.

a

Which of the following does NOT represent an advantage of leasing a car? a. After the lease ends, you sell your car back to the dealer and get most of your payments back in equity. b. Leases only last a short number of years, so leasing allows you to regularly upgrade your car to newer, safer, more modern vehicles c. Because your car is covered under warranty for the duration of your lease, you're less likely to be liable for costly repairs or maintenance. d. If you really love the car, you're often able to buy it from the dealer at the end of the lease.

a

Which of the following is a TRUE statement describing the benefits of an installment loan? a. An installment loan allows you to make one large purchase, even if you don't have all the money for it up front b. An installment loan does not require a credit check, so they are easy to obtain c. An installment loan allows you to make many small purchases as you need them, as long as you're under your credit limit d. An installment loan does not require monthly payments, so they can be paid back when the borrower is ready

a

Which of the following statements is TRUE? a. In general, if you choose a repayment plan with a longer term, the total interest you pay will be higher b. In general, if you choose a repayment plan with a longer term, you will pay off your loan more quickly c. In general, if you choose a repayment plan with a longer term, the total cost of your loan will be lower d. In general, if you choose a repayment plan with a longer term, you will probably damage your credit score

a

Which of these represents a positive reason to borrow from your own 401(k) rather than a bank? a. The interest you are paying on the loan goes back into your own account, rather than to a bank. b. If you decide you'd rather just keep all the money without paying it back, there's no penalty for that with a 401(k) loan. c. The interest rate on a 401(k) loan will always be lower than the rate on a bank loan, so your monthly payments will always be smaller. d. If you decide to leave your job before your 401(k) loan is completely paid off, your company repays the remainder of the loan on your behalf.

a

Which statement about car leases is TRUE? a. Leases typically have lower monthly payments than you'd pay to purchase the same car using a loan. b. Leases typically have higher monthly payments than you'd pay to purchase the same car using a loan. c. Leases are always the better option when getting a car, especially if you have a downpayment. d. Leases are never the better option when getting a car, especially if you have a downpayment.

a

Which statement accurately describes the terms of a 10/1 ARM with a term of 30 years? a. Your interest rate will stay the same for the first 10 years and then change once per year b. Your interest rate will stay the same for the first year of the loan and then change once every 10 years c. Your interest rate can only be adjusted once, but not until the 10th year of the loan d. Your interest rate can only be adjust 10 times, but not until the 1st year of the loan

a

Which statement has the bolded words in the correct place? a. A debit card pulls money from your checking account. A credit card has a minimum monthly payment. A prepaid card is loaded with a set amount of money. b. A debit card pulls money from your checking account. A prepaid card has a minimum monthly payment. A credit card is loaded with a set amount of money. c. A credit card pulls money from your checking account. A prepaid card has a minimum monthly payment. A debit card is loaded with a set amount of money. d. A credit card pulls money from your checking account. A debit card has a minimum monthly payment. A prepaid card is loaded with a set amount of money.

a

Which statement includes one real benefit from shopping with a credit card? a. You may earn cash back, travel rewards, or other perks for each dollar you spend b. Most stores will give you a discount if you pay with credit instead of cash or debit c. It pulls money directly from your bank account, preventing you from overspending d. If you do not have the money to pay your monthly bill, you can just wait a few months and pay the same amount then

a

a. low loan interest, low card interest, high account interest b. low loan interest, high card interest, low account interest c. high loan interest, low card interest, low account interest d. high loan interest, high card interest, high account interest

a

If Fabrice has a $1200 balance on his credit card this month and an APR of 20%, his interest charge for the month will be... a. $2 b. $20 c. $120 d. $200

b

Janelle sees two different financing options, for the same brand new car, advertised online. She uses a loan calculator and finds that option 1 would give her monthly payments of $435/mo. Option 2 would give her monthly payments of $625/mo. Which statement is the most likely explanation for the difference in the payments? a. Option 1 has a higher APR b. Option 1 has a larger down payment c. Option 1 did not check her credit score d. Option 1 has a shorter term

b

Kelsey wants to open a credit card and has narrowed her choice down to three possible options. Which factor is MOST important in determining which card she should get? a. Which card does her best friend have? b. Is there an annual fee with each card? c. Is each card FDIC insured? d. Which card has the most recognizable brand?

b

Which of the following is a TRUE statement and an advantage of credit cards over personal loans? a. Credit cards typically have higher interest rates than personal loans b. Credit cards sometimes offer free extended warranties on large purchases made with the card c. Credit cards can have variable interest rates, so you know you are getting the best deal d. Credit card rates are typically non-negotiable, unlike personal loans

b

Which of the following is likely to INCREASE your monthly payment? a. Increasing the size of your down payment b. Decreasing the number of months in your term c. Qualifying for a lower APR d. Applying the trade-in value of your old car toward your new car purchase

b

Which of the following is usually a secured debt? a. Student loan b. Auto loan c. Credit card d. Personal loan

b

Which of the following might be a likely Adjustable Rate Mortgage offer that a new home buyer could receive from their bank? a. A fixed rate of 5.4% for a term of 15 years b. A fixed rate of 4.3% for a term of 5 years, which then adjusts yearly for the next 25 years c. A fixed rate of 0% for a term of 10 years, which then adjusts yearly for the next 20 years d. A fixed rate of 4.2% for a term of 7 years, which then adjusts weekly for the next 23 years

b

Which of the following statements is TRUE? a. A home equity loan is only available once you've completely paid off your house b. A home equity loan typically has a fixed interest rate c. A home equity loan is typically interest free d. A home equity loan does not need to be paid back until you've paid off your house

b

Which of the following statements is TRUE? a. Most people would consider a fixed-rate mortgage to be riskier than an adjustable-rate mortgage. b. Most people would consider a fixed-rate mortgage to be less risky than an adjustable-rate mortgage. c. Regardless of your circumstances, you should always pick a fixed-rate mortgage over an adjustable-rate mortgage. d. Regardless of your circumstances, you should always pick an adjustable rate mortgage over a fixed rate mortgage.

b

Mia doesn't have any credit history, so she's going to open a secured credit card to begin building her credit. She puts down an $800 security deposit. What feature of an unsecured credit card is Mia's security deposit most like? a. the APR b. the term c. the credit limit d. the annual fee

c

Which statement accurately describes the relationship between interest, payments, and amortization? a. With a typical fixed-rate mortgage amortization table, your house payments are higher at the beginning of the loan because you owe more in interest then. As you pay down the interest, your payment size decreases. b. With a typical fixed-rate mortgage amortization table, your house payments stay the same throughout the loan. As you pay down the loan, less goes towards interest and more towards the principal. c. With a typical fixed-rate mortgage amortization table, your house payments are higher at the beginning of the loan because you have a higher interest rate then. As you pay down the interest, your payment size decreases. d. With a typical fixed-rate mortgage amortization table, your house payments stay the same throughout the loan. As you pay down the loan, your interest rate and payment amount decreases.

b

Which statement below accurately describes how peer-to-peer lending works? a. Large banks loan money to smaller "peer" banks in their community, so those smaller banks can afford to give people loans. b. Peer-to-peer businesses link investors to personal loan requests. The interest paid by the borrower provides the lender's investment income. c. When an individual needs a loan, they find friends/family willing to lend the money, and the peer-to-peer service arranges the legal aspects. d. Potential borrowers compete in a series of peer-to-peer challenges, and the winners receive loan funding.

b

Which statement best describes the basic relationship between savers and borrowers at a traditional bank? a. The bank pays interest to the savers and gives loans at the SAME interest rates to the borrowers, so it all balances out. b. The bank pays interest to the savers and gives loans at a HIGHER interest rate, so that the bank makes money. c. The bank pays interest to the savers and gives loans at a LOWER interest rate, so the bank makes money. d. The bank makes no money from savers or borrowers.

b

Which statement best distinguishes the difference between a secured credit card and a prepaid card? a. A secured card is for people with bad credit, and a prepaid card is for people with no credit. b. A secured card requires a deposit, but the user still pays monthly; a prepaid card requires a deposit onto the card, which the user then spends from. c. A secured card is accepted at far more locations than a prepaid card. d. A secured credit card and a prepaid card are two words for the same thing.

b

Yun is trying to remember the difference between subsidized and unsubsidized student loans. He asks his friends at lunch, and they give the following answers. Which friend is right? a. Cara: On subsidized loans, you never pay any interest; you pay interest on unsubsidized loans. b. Liz: On subsidized loans, the government pays the interest while you're in college, and then you pay the interest once you're no longer enrolled. c. Bill: With subsidized loans, if you don't graduate and earn a diploma, you don't have to pay those loans back. All unsubsidized loans must be repaid. d. Clare: Subsidized loans come from private banks, while unsubsidized loans come from the Federal government.

b

Bonnie is trying to decide between standard repayment and income-based repayment for her $30,000 student loans. Her job pays $29,500 per year. Which of the following statements is likely TRUE? a. Bonnie will likely pay less, total, if she goes with the standard repayment. b. It's best for Bonnie to choose standard repayment, even if that means she's delinquent on some of her monthly payments. c. Bonnie's monthly payments on the income-based plan will likely be lower than on the standard repayment plan. d. Bonnie makes too much money to qualify for income-based repayment.

c

Choose the option that BEST completes this sentence: Personal loans are called "personal loans" because... a. you apply for them in-person, at your own bank branch or at a competing branch (if they offer better rates). b. you apply for them in-person or online, but whether you are given the loan depends on your personal credit score. c. they are lent based on your personal credit history rather than secured by an asset like a house or car. d. they are given to someone based on their personal familiarity with their banker.

c

Choose the option that best completes this sentence: When using a credit card... a. you will pay interest whether or not you pay your bill every month. b. you are transferring money from your savings account directly to another party. c. you are getting a short-term loan to allow you to purchase an item now which you can pay for later. d. you always have the option to wait to make a payment because late payments don't affect your credit.

c

If you do not contact your loan servicer to select another option, your Federal student loans will default to standard repayment, which has a term of a. 1 year b. 5 years c. 10 years d. 25 years

c

If you take out an auto loan and then realize later that you cannot afford it, which is NOT a viable option for dealing with this problem? a. Add more money to your total income, either by working more hours or by taking on a second job, so you can make your payments on-time. b. Refinance to create lower monthly payments, either by calling your current lender or by finding a different creditor with more favorable terms. c. Cease making your payments until you have more money saved up; it's unlikely they'll repossess your car, and you get to keep driving it. d. Cut other aspects of your budget so you can devote that money toward your car payments.

c

Kurt is a college student, living on campus, who wants to open a credit card in order to start building his credit history. He plans to charge no more than $100 per month, and he will pay it off every month using his part-time job income. Which card offer makes the MOST sense for Kurt? a. A card offering 5% cash back with an annual fee of $100. b. A card offering 1 airline mile for every dollar charged. A free flight costs 35,000 miles. c. A card offering 2% cash back with no annual fee. d. A card offering free balance transfers and 0% interest for the first 6 months.

c

Look at the credit card payment provided. If Teresa wants to avoid owing a late payment fee this month, what's the minimum on-time payment she must make? a. $0 b. $25 c. $35 d. $523.20

c

Stephanie's credit card has a limit of $10,000. She charges $3000 in car repairs and makes the minimum monthly payment until she's debt free. Based on the sentences above, each of the following statements is true, EXCEPT: a. Stephanie will be making credit card payments for many years to pay off this debt b. Stephanie could still charge more on her card if she needed or wanted to. c. Stephanie has ruined her credit score by using her credit card for such a large purchase. d. Stephanie will owe less total money if she increases each monthly payment by $50.

c

Suppose you have a typical 30-year fixed mortgage on a home that costs $200,000; you've got a good credit score. While every mortgage is different, which statement below BEST describes the amount of interest you'll likely pay? a. As long as you pay off the mortgage within the 30-year time frame, you won't pay any interest. b. Your total interest will be approximately $15,000. c. Your total interest will be approximately $150,000. d. Your total interest will be approximately $400,000.

c

What is one benefit of consolidating Federal student loans? a. Interest-free deferment b. Loan cancellation c. Having only one bill to pay each month d. Being able to add to your student loans, even though you are no longer a student

c

When signing up for a new card, a low APR would be an important factor to consider for each of the following EXCEPT: a. Rupa, who is charging many of her day-to-day purchases, and paying her monthly minimum, until she can find a job. b. Christopher, who is transferring balances from his 3 other cards in order to simplify his payments each month. c. Carlos, who is opening the card to receive the 50,000 bonus points for signing up and then using/paying off the card only once. d. Maggie, who is buying a new laptop, 2 weeks worth of professional attire and shoes, and a new haircut so she can start her first job out of college.

c

Which of the following is one potential danger of taking advantage of a "0% APR for 1 year" deal? a. After the first year you will no longer be able to use the card b. Having such a low rate for so long might decrease your credit score c. One late payment may cancel the 0% introductory rate d. After the first year you will pay interest on every purchase, even if you pay them off right away

c

Which of the following pieces of information should you expect to provide to a lender on loan applications? a. Your race or ethnicity b. Which elementary school you went to c. How much money you make d. How many friends you have lent money to

c

Which of the following statements about auto leases is TRUE? a. A typical term on an auto lease is 10 years b. Dealerships conduct credit checks for auto loans but not for auto leases c. If your leased car gets damaged, you will probably be obligated to fix the damage d. At the end of your lease, you will officially own your vehicle

c

Which of the following statements about payday loans is TRUE? a. The average payday loan amount in the US is $1000 b. The typical term for a payday loan is 5 years c. Payday loans do not require a credit check, so they are available to borrowers even with bad credit d. Payday loans are easy to repay because the lender takes a small portion of every paycheck until the loan is paid off

c

Which of the following statements best explains the purpose of a Schumer box? a. Gives the lender a clear report of your credit history and creditworthiness for a new card b. Calculates the total interest you will be charged on your previous month's purchases c. Gives the borrower a clear description of the APR, fees, and other major conditions of their credit card d. Provides a list of all purchases made on a credit card and the price of each item, for the benefit of the lender and the borrower

c

Which of the following statements is TRUE? a. If you have a low credit score, your mortgage interest rate will be lower. If you have a high credit score, your mortgage interest rate will be lower. b. If you have a low credit score, your mortgage interest rate will be lower. If you have a high credit score, your mortgage interest rate will be higher. c. If you have a low credit score, your mortgage interest rate will be higher. If you have a high credit score, your mortgage interest rate will be lower. d. If you have a low credit score, your mortgage interest rate will be higher. If you have a high credit score, your mortgage interest rate will be higher.

c

Which of the following statements is TRUE? a. Private student loans will build a student's credit while federal students loan will not b. Private student loans typically have more flexible repayment plans than federal loans c. Private student loans are best for students who have already received all possible federal loans but still have a funding gap d. Private student loans are almost always taken out by parents because the federal government doesn't offer loans to parents

c

Which of the following statements is TRUE? a. To avoid appearing biased, a bank or other lender must offer the same interest rate to all of its borrowers. b. To avoid appearing biased, a bank or other lender must offer the same loans to any borrower. c. Banks can pick both the interest rate and the borrowers they lend money to. d. Banks can pick the borrowers they lend money to, but must set the same interest rate for everyone.

c

Which of the following statements is TRUE? a. You can typically reduce your loan costs by finding the highest interest rate b. You can typically reduce your loan costs by finding the longest term c. You can typically reduce your loan costs by making a large down payment d. You can typically reduce your loan costs by making a small down payment

c

Which of the following will likely affect the total amount of interest you will end up paying on a home loan? a. How many other homes in your neighborhood are also for sale b. The median cost of homes in your neighborhood c. Your credit score d. The type of car you drive

c

Which statement offers the BEST advice on dealing with your student loans once you're out of school? a. Your student loan servicer will automatically contact you once your grace period is over. Until they contact you, you don't need to worry about your loan repayment. b. Making sure you pay your loan is the responsibility of your loan servicer. If they do not ask you to pay back the money you don't need to worry about it at all. c. Most student loans have a 6 month grace period before payments start. This means that you can start paying right away to reduce your total interest payments or wait for up to 6 months after you graduate. d. Most student loans have a 6 month grace period before payments start. This means that you cannot start paying right away but must start paying once the grace period is over.

c

Based on the Schumer box provided, which of the following statements is TRUE. a. The lowest interest rate you are eligible for on this card is 0% b. The lowest interest rate for this card is available to all cardmembers, regardless of their credit score c. This card has a different APR range for balance transfers and new purchases d. This card has a variable-rate APR

d

Chelsie, who typically bikes, is buying her first car this winter, before the cold weather hits. Which friend's advice is most useful about financing? a. Matt: Always go with dealer financing. It's so much simpler because they're right onsite at the dealership. b. Jamie: Always go with financing through your bank. They're more reputable and will offer you a better deal. c. Jared: Go with an online financing site. They understand bad credit and will get you an auto loan, no matter what! d. Kayla: You need to price out all options for financing your car. It's too much money to settle for a bad deal.

d

Denise buys a $100,000 condo using a $20,000 down payment on a 30-year fixed-rate loan. After 5 years of payments, she's made approximately $24,000 in payments and still owes approximately $75,000. How much equity does Denise have in her house? a. $100,000 because she owned all of the house as soon as she signed the mortgage papers. b. $20,000 because, until she pays off the house fully, Denise's down payment is her only equity. c. $44,000 because that's the total amount she's paid so far. d. $25,000 because she still owes $75,000.

d

Joyce sees a credit card offer, advertising 0% APR. Which of the following is least likely true? a. 0% offer is introductory and lasts only 6 months. b. 0% offer is only available to those with high credit scores. c. 0% offer is good on new purchases only, not cash advances. d. 0% offer lasts indefinitely, as long as you always make at least your minimum monthly payment.

d

Mustapha needs a $3000 loan to buy a used car so he can take a job not accessible by public transportation. Which loan structure would result in the HIGHEST TOTAL COST? a. Make a $500 down payment, then pay $500 per month from his paychecks until the debt is paid off. b. Make a $1500 down payment, then pay $500 per month from his paychecks until the debt is paid off. c. Make a $500 down payment, then pay the $150 minimum monthly payments required until the debt is paid off. d. Don't make a down payment, but pay the $150 minimum monthly payments required until the debt is paid off.

d

Omar is about to start his final semester of college, and he doesn't have enough money saved to afford the $750 he needs in books. He's 21, so he's going to open his own credit card to pay for the books, and then not use it again. His plan is to pay $100 per month toward his bill, until it's paid off. Which credit card offer is the best offer for Omar? a. Free balance transfers, APR of 12.99% with $150 annual fee b. 0% APR for the first 6 months, then an APR of 20.99%, with no annual fee c. Free balance transfers, APR of 13.99% with no annual fee d. 0% APR for the first 6 months, then an APR of 14.99%, with no annual fee.

d

Select the choice that accurately completes the following sentence: If a credit card advertises 1% cashback on all purchases... a. you will receive 1% of your transaction back, in cash, at the store. b. 1% worth of your credit card transactions will be transferred directly to your savings account for your convenience. c. you will receive 1% of the total value of your transactions at the end of each year. d. 1% worth of your monthly credit card will be available for your bill or other purchases when each bill becomes due.

d

The following 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. Which student will end up paying the MOST for their purchases. a. Robert, who makes $300 payments per month until the debit is $0 b. Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0 c. Nelson, who makes the minimum monthly payment each month until the debt is $0 d. Joan, who can't afford to make any payments and plans to put off the debt until she gets a summer job next year

d

Which choice BEST completes the following sentence: If you don't anticipate needing another loan any time soon, being late with your unsecured loan payments... a. doesn't have any real consequence because there's no tangible item to repossess. b. doesn't have any real consequence because your loan may have a grace period for late payments. c. can have real consequences because your car or home can be repossessed. d. can have real consequences because borrowing money will become much more difficult.

d

Which description best fits what is meant when someone talks about their credit card APR? a. The total amount of purchases they charge on an annual basis b. The remaining balance left on a credit card once the minimum monthly payment is made c. The average credit score each person is assigned based on their payment history d. The percent the credit card company charges you for the benefit of receiving a temporary loan from them

d

Which of the following is an example of credit? a. Getting a certificate of deposit (CD) from the bank b. Paying for college with money your parents helped save c. Splitting the cost of a meal with a friend d. Taking out a mortgage to buy a home

d

Which of the following represents a "rule of thumb" for how much student loan debt you should be willing to incur to pay for college? a. Borrow no more than one year of your parents' annual salary b. Determine the sticker price for the school, and then refuse to pay any more than half that amount c. One year of student loan debt should be no more than the starting salary in your anticipated career d. Your total student loan debt should be no more than the starting salary in your anticipated career

d

Which statement about Small Business Association (SBA) loans is accurate? a. These loans, which are designed to jump-start brand new companies, only need to be repaid if your business makes money. b. Businesses receive SBA loans directly from the Federal government, which offers them extremely low interest rates. c. SBA loans do not require a credit check, so they're a great option for borrowers with bad credit. d. Because the Federal government is involved in SBA loans, they come with extra paperwork and can take longer to process and fully fund.

d