PF Final Exam Review

Which of the following is true about auto loans?

• Your principal is the cost of the car, minus any down payment you make

• Your interest rate is the total cost you'll pay after making all of your payments

• Choosing a shorter terms means it will take you longer to repay the loan

• It's likely that your monthly payment will be between 4-5% of the cost of the car

Which of the following could be a SECURED loan? (hint: choose 2 correct answers)

• Auto Loan

• Student Loan

• Mortgage

• Debit Card

Which of the following best describes the FAFSA?

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

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

• The paperwork you must completed in order to have part of your student loan debt forgiven

• The application your complete in order to determine eligibility for federal student aid

A key difference between saving and investing is...

• Saving is for everyone, investing is for the wealthy

• Your money in insured when investing, it is not when saving

• Investing has a guaranteed return, savings does not

• Savings is for emergencies & goals, investing is for long-term wealth

How are credit and debit cards different?

• They're both linked to a checking account in different ways

• With a credit card, you are borrowing from yourself

• Some debit cards say VISA on them, credit cards don't

• A credit card can offer perks such as purchase protection

You have an interview coming up and your relatives and each providing "tips" for getting the job. Who is offering the WORST advice?

• Grandpa: "Be on time and iron your clothes"

• Uncle John: "Make a list of questions about the company to show you're interested"

• Aunt Lynn: "Bring a copy of your resume and cover letter to submit if requested"

• Cousin Alex: "Ask if they have additional openings so your friends can work there too!"

What is the best advice to prevent identity theft?

• If you check your three credit reports every year, it's almost impossible to become a victim of identity theft

• Avoid buying online as that's how 90% of identity theft occurs

• Be careful with your credit and bank account numbers, create strong passwords and beware of phising emails

• Use a debit card instead of a credit card

The amount of pay you take home after taxes and other deductions are paid is called...

• Gross Pay

• Salary

• Net Pay

• Post-Tax Pay

Which of the following statements is TRUE about filing your taxes?

• You must file by April 15th of the following year

• If your employer takes out taxes from your paycheck you don't need to file a tax return

• You need to file your return by the end of the year (Dec 31st)

• You only need to file your taxes if you owe the government money

What form am I? I am received whenever you start a job. You list information about yourself and your family on me. I determine how much taxes are withheld from your paycheck.

• W-2

• W-4

• 1099

• I-9