Life skills test

 

1. A record of income and expenditures for a given period of time is called a/an

• Credit

• investment

• budget

• interest

2. When budgeting, the first categories to consider are those that meet your:

• Wants

• Discretionary funds

• Needs

• Important expenses

 3. In what category of a typical family budget do people spend most of their money?

• Food

• Entertainment

• Housing

• Transportation

4.  Jason went to the grocery store to buy a gallon of milk for his mother. While waiting in the checkout line, he saw a display for a new chocolate-caramel candy bar, so he bought it, too. The candy bar purchase is an example of a/an

• Special treat

• Need

• Payment for running an errand for his mom.

• Impulse buy

5. Discretionary Income is money available to spend on goods and services that are not essential.

       

• True

• False

7.   Which action will not protect your credit?

 

             

       

        

• Reviewing credit reports yearly.

• Considering a credit freeze.

• Applying for multiple loans.

• Disputing errors.

6.        ___________________ is considered  a good practice for maintaining good credit.

           

               

                

• Keeping a HIGH debt-to-credit ratio.

• Lowering  your balances

•  Opening many credit accounts.

•  Making numerous applications for credit.

 

   5.  The lower an applicant's credit score, the lower the risk to the lender.

• True

• False

4. Your credit score does not affect your:        

        

                   

          

•  yearly income

• ability to get a car loan

• ability to rent an apartment.

• chances of   landing a new  job

3.  What influences  your credit score  more  than  any other  factor?

        0          

        0          

        0          

0            

• Types of  credit

• Length of credit  history

• Amount owed

• Payment history