PF Final Review 3

DJ is going to purchase a rental property with a mortgage. Which statement below is FALSE?

• The principal is the price of the house minus any down payment.

• A longer term will make her monthly payments lower.

• A larger interest rate will make her monthly payments higher.

• A longer term means the house will cost her less overall.

Which should be used when creating a budget?

• Net Pay

• Gross Pay

FAFSA is application you submit in order to determine eligibility for federal student aid.

• True

• False

Which of the following best describes the amount of money you'll have if you put $1000 into a savings account earning 2% annual compound interest for 10 years? You can ignore the impact of inflation in this question.

• $1200

• A little more than $1200

• $2000

• $20000

Which person has a diversified investment portfolio?

• Devaeh who has all of her money in her savings account.

• Makaylee who invests her money in mutual funds, bonds, certificates of deposit, and real estate.

• Cris who invests exclusively in cryptocurrency.

• Bronwyn who keeps her money in two different checking accounts and a savings account.

A person's spending is less than their net income.

• Budget surplus

• Budget deficit

Comparison shopping is...

• Comparing various factors of the same product offered by different retailers before making a purchasing decision

• Making a purchase based solely on the lowest unit price, the most important factor.

All of the following will help protect you from identity theft, EXCEPT...

• Monitoring your credit report monthly.

• Freezing your credit.

• Using all of the same passwords online so you remember them.

• Shop on websites that begin with https not just http.

Liam received his tax refund of $600 and wants to use it to pay off some of his debt. Where should he use it?

• To pay on his car loan of $15,000 with a 5.16% interest rate.

• To pay on his student loan of $65,000 with a 5.8% interest rate.

• To pay on his credit card balance of $3,000 with a 22.1% interest rate.

• To pay on his jet ski loan of $2,000 with a 4.7% interest rate.

A checking account is best used for...(hint: choose 2 correct answers)

• Saving money

• Storing money to spend

• Investing money

• Placing money you earn