Solarek Final

People who are unbanked are most likely to...

• 
  Have a high credit score

• 
  Have a college degree

• 
  Have a low income

• 
  Have a mortgage

Which of the following is TRUE about banks and credit unions?

• Banks are for-profit institutions, while credit unions are non-profit

• Banks offer higher interest rates on savings accounts than credit unions

• 
  Credit unions are insured by the FDIC, while banks are not

• Banks are owned by their customers, while credit unions are owned by shareholders

How does the 50-20-30 rule distribute your income?

• 
  50% for wants, 20% for savings, 30% for needs

• 
  50% for needs, 20% for wants, 30% for savings

• 
  50% for savings, 20% for needs, 30% for wants

  
  

• 
  50% for needs, 20% for savings, 30% for wants

Saving accounts differ from checking accounts in that...

• 
  Saving accounts have unlimited transactions

• 
  Saving accounts have higher interest rates

• 
  Saving accounts have more fees

• Saving accounts have overdraft protection

How do banks make money off of the credit they issue?

• They charge a large, one-time fee at the start of the loan

• 
  They take out a small fee each month from your checking account

• 
  They charge a high interest rate on the loan

• This is a trick question - they DON'T make money!

Which of the following is NOT a typical type of credit?

• 
  Mortgage

• 
  

  Overdraft

• 
  Credit Card

• 
  Pre-Paid Debit Card

What may NOT impact the interest rate on your loans?

• 
  Your level of education

• The loan amount

• Your credit score

• 
  Your relationship with the financial institution

A key factor influencing credit scores is:

• 
  Recent inquiries

• 
  Monthly expenses

• 
  Martial status

• 
  Education level

Failing to pay federal student loans may result in:

• Reduced student loan interest

• 
  Higher credit score

• 
  Tax refund garnishments

• 
  Revocation of your degree

A cosigner on a loan can help by:

• 
  Reducing monthly payments

• False

• Offering collateral for the loan

• 
  Boosting approval odds