Final Exam Review

Front

Gina is going to finance her car purchase using an auto loan. Which statement below is accurate? Her principal is the cost of the car, minus any down payment she makes, Her interest rate is the total cost she’ll pay after making all of her principal and interest payments, Choosing a shorter term means it will take her longer to repay the loan, It’s likely that her monthly payment will be between 4-5% of the cost of the car

Back

Her interest rate is the total cost she’ll pay after making all of her principal and interest payments.

Front

What does it mean to "pay yourself first" in budgeting?

Back

Automate monthly transfers to savings account.

Front

All of the following are characteristics of a secured credit card EXCEPT…
Options: Your credit limit is dependent on the amount of your security deposit, They lower the risk of banks when issuing credit to users with no credit history, They help you build a credit history and improve your credit score, They don’t have a spending limit, so you have to be very mindful of how much you buy with them

Back

They don’t have a spending limit, so you have to be very mindful of how much you buy with them

Front

Which payment method would reduce the amount of money in her checking account?

Back

Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"

Front

How much will Mitch pay and how much will the insurance pay to replace his items after a theft of $2200 worth of possessions, given a monthly premium of $15 and a deductible of $500?

Back

Mitch pays $500; insurance company pays $1700.

Front

All of the following can be found in your credit report EXCEPT…
Options: Your credit payment history, The average age of your credit accounts, Your total number of active credit accounts

Back

Your checking account balance history

Front

Which strategy will likely lead to the WORST long-term outcome when switching banks or opening a new credit card? Options: Look for sign-up bonuses or introductory offers that will make the product a good deal, Read online reviews carefully, and consider those that align most closely to what you value, Spend some time comparison shopping before finalizing your decision, Review the fine print closely, paying close attention to fee structures and interest rates

Back

Look for sign-up bonuses or introductory offers that will make the product a good deal

Front

Who will pay the LEAST interest for their purchases? Dwayne, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0; Clifford, who had saved the $1500 previously and pays off the whole balance once her bill comes; Calvin, who makes the minimum monthly payment each month until the debt is $0; Shawn, who makes $300 payments per month until the debt is $0

Back

Clifford, who had saved the $1500 previously and pays off the whole balance once her bill comes

Front

When you have liability coverage with your auto insurance policy…

Back

Your insurance will cover the payment for your neighbor's fence repair if you crash into it backing out of the driveway.

Front

Which person from this list is saving rather than investing? LaTavia, who puts $750 per month into her bank account earning 1% interest; Michelle, who contributes 2% of her pay to her company's 401(k) plan; Kelly, who uses his $5000 end-of-year bonus to buy Treasury bonds; Beyonce, who buys $100 worth of shares in an S&P 500 index fund every month

Back

LaTavia, who puts $750 per month into her bank account earning 1% interest