Semester Test Review Dollars & Sense 2nd half

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.

• Exactly $1100

• Slightly more than $1100

• $2000

• Exactly $11,000

You're scheduled for your first interview, and your relatives are each providing "tips" for getting the job. Who is offering the WORST advice?

• Grandma: "Be on time and make sure you've ironed your clothes."

• Aunt Margie: "Make a list of questions you'd like to know about the company or job -- it will show you're interested."

• Uncle Rich: "Bring a copy of your resume and cover letter and a list of reference, typed and ready to submit if requested."

• Cousin Kayla: "Ask if they have additional vacancies so your friends can apply and work there, too."

When applying for a loan, which of these pieces of advice is LEAST valuable?

• Inflate your salary or savings account balances on your loan application so they will give you a larger loan

• Look for a low interest rate to minimize the total cost of the loan

• Choose a longer repayment term if you can only afford small monthly payments in your budget (but know that you will pay more interest)

• Be sure to pay your full monthly payment on time to avoid damaging your credit history

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?

• At the end of the month put any leftover money in her checking account into her savings instead

• Set up a direct deposit of $75 from each paycheck to automatically get put into her savings account instead of her checking account

• Wait until she's paid off all of her credit card and student loan debt, and then start saving for an emergency fund

• Every month, after she's paid for rent, student loan and credit card debt, utilities, and groceries, put $50 or $100 into savings

Which definition best describes the FAFSA?

• The amount of money the federal government offers you in student loans

• The paperwork your bank has you complete in order to take out a personal student loan

• Paperwork you complete in order to have part of or all of your student loan debt forgiven

• An application you complete in order to determine eligibility for federal student aid

Which of the following would have the most positive impact on your credit score?

• Close any credit cards you're no longer using

• Spend more money on each of your credit cards

• Take out a car loan for $18,000 or more

• Make all payments on time, and focus on paying down any credit cards that are close to their credit limits

When you have liability coverage with your auto insurance policy...

• If you are pulled over for speeding, you won't get "points" on your license

• You cannot be found liable or guilty of causing an accident

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

• Your medical bills will be covered if you're in an accident, even if you are at fault

Which response below best describes the relationship between a resume and a cover letter?

• Your cover letter states the same things as your resume, but in sentence form instead of bullets

• Your resume should be one page, but your cover letter should be at least 2-3 pages

• Your resume needs to be 100% accurate, but you can embellish or tell small lies on your cover letter and get away with it

• Your cover letter can highlight one or two particular experiences, skills, or passions you have related to the job, while your resume is an overview of all accomplishments

Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?

• Pays with a prepaid card she loaded earlier in the month

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

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

• Pays with cash she had in her purse

Which person from this list is saving rather than investing?

• Yvonne, who puts $750 per month into her savings account earning 1% interest

• Danielle, who contributes 2% of her pay to her company's 401(k) plan

• Daryl, who uses his $5000 end-of-year bonus to buy Treasury bonds

• Alexis, who buys $100 worth of shares in an S&P 500 index fund every month