Consumer Sem1 Exam - Everfi: MnyMvs, FinHghEd, FnLit:BB,Bud,C&D,

Front

What is a federal grant?

Back

A federal grant is free money provided by the government to individuals based on financial need, which does not need to be repaid.

Front

What is a best practice for social media safety?

Back

Do not share personal details unless your account is private and you only connect with people you know.

Front

What are common methods used by criminals to obtain personal information?

Back

Criminals may use methods such as phone calls, emails, or fake websites to get someone's money or personal information.

Front

How does defaulting on a loan affect your credit score?

Back

Defaulting on a loan can lower your credit score, making it difficult to borrow money for significant purchases like a house or car.

Front

Why are P2P payments not protected by the FDIC or NCUA?

Back

P2P payments are not protected because these organizations only protect money held in a financial institution's account, not transfers.

Front

What is the purpose of a budget?

Back

A budget is a financial plan that helps individuals track income and expenses to manage their money effectively.

Front

What is the difference between a scholarship and a grant?

Back

A scholarship is typically awarded based on merit, while a grant is based on financial need.

Front

What is a debt-to-income ratio?

Back

The debt-to-income ratio is a measure of an individual's monthly debt payments compared to their monthly income, used by lenders to assess creditworthiness.

Front

What is identity theft?

Back

Identity theft is the unauthorized use of someone else's personal information, usually for financial gain.

Front

What are the benefits of having a good credit score?

Back

A good credit score can lead to lower interest rates on loans, better chances of loan approval, and more favorable terms on credit.