Personal Finance Quiz

Which of the following is an obligation or responsibility of borrowing money?

• You must repay the loan

• You must repay the loan within the specified time

• You often must pay interest on the loan

• All answers are correct

Jake will soon turn 18 and wants to move into his own apartment in a few years, but he is worried that he won't be able to rent an apartment without any credit history. What can Jake do to start building a good credit history?

• Continue to use his debit card responsibly, being careful to not overdraw on the account.

• Get and use a store credit card or major credit card and pay off amounts due each month.

Of the following, which is the best strategy to eliminate credit card debt?

• use several small loans to pay off all of the other debts

• pay off loans with the highest interest rate first

What is the form you have to fill out to apply for college financial aid from the federal government?

• Free Application for Federal Student Aid (FAFSA)

• Federal Student Loan Application (FSLA)

What is money that is borrowed, usually with interest, that has to be repaid?

• loan

• check

• savings account

• checking account

Long term savings goals would include:

• buying a house

• a new phone

• buying a car

• vacation

What is an account that usually earns interest and is often used to hold money not needed right away?

• loan

• savings account

• transaction

• checking account

All of the following are financial institutions, which is NOT a financial institution?

• Bank

• Human Capital

• Saving & Loan

• Payday Loan Company