Personal Finance Final Exam

What is the only way to pay no interest on credit card purchases?

• Pay minimum payment on time every month.

• Pay the full balance on time every month.

• Staying under 50% of your maximum balance.

• Not making any new purchases if you have a balance.

If you cannot pay the full balance on a credit card you should ..

• Use another card to pay off the balance.

• Pay the minimum payment

• Pay as much as you can over the minimum

Credit card companies would prefer you pay off your balance​ (a)  

• slowly with low payments
• in full every month
• late with a few payments skipped evey now and then

A loan that is secured with collateral will generally have a ​ (a)   rate than an unsecured loan.

• lower
• higher
• riskier

In general, as your credit score increases, the interest rate you will be charged for a new loan .....

• Increases

• Decreases

• Stays the same

Put in order from least risky to most risky.

• Bank Account

• Mutual Fund or ETF

• Individual stocks

When it comes to investing, any risk is bad.

• True

• False

Why is it best to start investing when you are young?

• Because you don't have a lot of money yet

• Your money has a long time to grow, so even a smaller amount can get big.

• The government doesn't tax you as much when you are under 30.

What does the federal government do to encourage you to invest for your retirement?

• Gives you tax breaks.

• Gives you a good interest rate.

• puts extra money in your account.

• Texts you a reminder every 6 months

You can tell how a company's stock will perform in the future if you study how they have done in the past and lately.

• False

• True