Semester Exam Fin Lit

You should always make sure you have a…

• Budget
• Credit Line
• Direct Deposit
• Credit Card

Personal finance is all the financial decisions a(n) ____________ must make in order to earn, budget, save, spend, and give money over time.

• Individual or family
• Company or organization
• Individual or company
• Bank

A money principle to keep in mind is to live on ________ you make

• Exactly 20% below what
• More than
• The same as
• Less than

Which of the following is NOT a component of a budget?

• Credit Score
• Saving
• Income
• Giving

What are the Four Walls?

• Utilities, college fund, restaurants, and car and insurance
• Cell phone bill, car insurance, shelter, and money for movies
• Food, utilities, transportation, and college fund
• Food, utilities, shelter, and transportation

Net income is the amount you get paid before taxes.

• True
• False

Which principle says that a certain amount of money today is worth more than the same amount in the future?

• Inflation
• Rate of return
• The time value of money
• Principal Interest

Banks and lenders use credit scores to determine . . .

• The likelihood that someone is able to repay debt
• A person's financial responsibility
• How much collateral someone has available to put up for a loan
• How successful someone is

When you finance a new car, you will end up paying more than the sticker price.

• True
• False

___________ require the borrower to put up collateral for the loan.

• Unsecured loans
• Revolving credit
• Interest rates
• Secured loans