Financial Literacy Pre test

One disadvantage of obtaining furniture or appliances from a Rent-to-Own store instead of

purchasing it outright is that with a Rent-to-Own store, the consumer:

• pays much more for the furniture.

• must use a credit card to make the purchase.

• cannot take possession of the furniture until it is totally paid for.

• usually receives used furniture and not new items.

If you cannot make your monthly debt payments, you should:

• let the creditor turn your debt over to a collection agency.

• declare personal bankruptcy as soon as possible.

• skip a payment this month and hope next month is better.

• contact your creditors to try to work out a modified payment plan.

The lower a person’s FICO score, the more likely it is that he or she:

• has not declared bankruptcy in the past 10 years.

• does not need a co-signer to obtain a bank loan.

• may have benefited from having no credit history.

• will pay a higher interest rate on a loan.

Bonnie wants to cash her paycheck. The easiest and least costly way to do this is at:

• a local convenience store.

• a check cashing company.

• a credit union where she has an account.

• a bank where she does not have an account.

The first step in creating a spending plan is to:

• determine where to invest your retirement savings.

• track and record your payments in the appropriate categories.

• buy the necessities first.

• record your insurance premiums in the record book.

Which of the following is an advantage of using a credit card?

• Interest is charged for the use of a credit card.

• Consumers can purchase things now, and pay for them later in the event of an emergency.

• You could be a victim of identity theft.

Which of the following will make it less likely for you to be approved for a car loan?

• having a steady job

• late credit card payments

• a high credit score

• having a low debt-to-income ratio

True or False: Negative information stays on your credit report for 7-10 years.

• True
• False

Besides tuition, most colleges also charge their students for...

• room & board
• extra fees
• books
• all of the above

Tags

CCSS.6.RP.A.3B

Scholarships and grants are available for many college students, and they...

• have deferred payment
• give students a job to help pay
• don't have to be paid back
• have a low interest rate