Financial Literacy Final Exam Review

What is the main purpose of the FAFSA?

• It helps banks and other lenders know what interest rate to charge you for student loans

• It helps the government and colleges determine whether you are eligible for academic scholarships

• It helps colleges and universities determine whether you can afford on-campus housing

• It helps the government and colleges determine the level of aid for which you qualify

Which is the potential advantage of community college over private colleges and state universities?

• They offer more scholarships and grants.

• They offer more programs.

• They are easier to apply to.

• They are less expensive.

When you start paying back loans, what's the first thing you should pay?

• the principle

• the interest

• the FASFA

• the work study

An academic scholarship is an example of

• merit-based financial aid

• need-based financial aid

• a federal government loan program

• a work study program

The federal government offers subsidized loans to students with

• good grade

• low credit scores

• unusual interests

• financial need

Which of these best describes a bond?

• a diversified investment

• low risk, low reward

• high risk, high reward

• a savings account

What is a shareholder?

• someone who owns stock in a company

• someone who diversifies their investments

• someone who researches investments

• someone who sets the value of a company's stock

Your mom takes you to a fast food restaurant for a burger and fries. She pays with a card and the price of the meal shows up on her monthly bill. Which card did she use?

• Credit Card

• Debit Card

A budget is an organized plan for spending and saving money.

• True

• False

When you put money into your checking account, you are making a deposit.

• True

• False