Financial Literacy - Fall Final Review #2

A credit card and a debit card are the exact same thing.

• True

• False

What's the most important factor in your FICO credit score?

• Amount of Debt

• Payment History

• Amount of new debt

• How you use your debit card

How often should you check your credit report?

• Every 10 years

• Once a month

• Every year

• Every 2 years

Which of the following is NOT a good idea for getting out of debt?

• Borrow money from someone to pay for the debt

• Sell something

• Quit borrowing money

• Get a part-time job or work overtime

Which of the following is the most cost-effective option for purchasing a home?

• Get a 30-year mortgage with 5% down payment

• The most ideal way to buy a house is with 100% down; if that is not an option you should get no more than a 15 year fixed rate mortgage with a down payment of at least 10%

• Get a 30-year mortgage so you can can get the lowest possible payments

• Get a 15-year mortgage with no down payment

A credit score is intended to measure:

• Your financial success

• The amount of money you have in the bank

• The risk of your not repaying debt

• Your income level

What are some potential consequences of not repaying debt?

• Foreclosure

• Repossession

• Bankruptcy

• All of the above

Debt refers to money that you owe to someone else.

• True

• False

Almost ________ of Americans are living pay check to pay check.

• 10%

• 70%

• 25%

• 50%

An item that is bought without previous planning or consideration of the long-term effects.

• impulse purchase

• monthly bills

• delayed purchase

• budget purchase