PF Final Review A

You are putting together your first post-graduation budget. Your take-home pay will be $2,500 per month. You estimate your monthly costs to be rent of $800, car payment of $350, car insurance of $150, car maintenance of $50, entertainment of $500, food expense of $250, mobile phone of $75, student loan payment of $225 and other expense of $300. How would you describe your budget after analyzing all of your income and expenses?

• You have a surplus of $200
• You have a deficit of $200
• You have a deficit of $2,700
• You have a surplus of $5,200

How is gross pay different than net pay?

• Gross pay is for hourly workers, while net pay is for salaried employees
• Gross pay is always lower, while net pay is always higher
• Gross pay is the total you earned, while net pay has taxes deducted
• Gross pay is used for spending, while net pay is used for budgeting

Which one of these expenses most likely represents a VARIABLE cost in someone's budget?

• Electricity bill
• Rent
• Car insurance premium
• Student loan payment

One way the grocery store tricks you into spending more money than you budgeted for is...

• Being open early in the morning and late at night
• Paying their cashiers and baggers more
• Putting high priced items at eye level and lower cost items above or below eye level
• Accepting digital and print coupons

What are the two most important factors in calculating your credit score?

• Payment history and type of account
• Amounts owed and length of credit history
• Payment history and amounts owed
• Length of credit history and new credit inquiries

You find an error on your credit report. Your credit card account indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments. What should you do FIRST?

• Contact the credit card company to have them fix it
• Contact the credit reporting agency
• Wait a few weeks to see if it gets resolved
• Contact the bank to let them know that the credit card company is disputing payment

Which type of identity theft is MOST prevalent for those ages 20-39?

• Tax fraud
• Credit card fraud
• Government documents fraud
• Utilities fraud

Price matching is when…

• A store sends you a coupon for an item in your cart to encourage you to buy it sooner
• A store agrees to match the lower price of an identical item that is being offered at another retailer
• A store lets you know ahead of time that an item you’re interested in will be on sale in the next week
• A store agrees to match the lower price you bought an item at in the past

What is a hidden cost of using installment plans to pay for items?

• You might not be paying enough each time to cover the full price of your items and get hit with a fee
• You may be tempted to purchase more than you otherwise would have because the costs appear lower
• You can face legal issues because installment payments are not considered legitimate payments in some states
• You can only use installment plans for large, expensive items, so you have to pay more for the items you want

Which of these students is doing a POOR job of protecting themselves against identity theft?

• Wynn: “I just requested copies of my annual credit report.”
• Beatrice: “I have a calendar reminder to check my bank account balance once a week for charges.”
• Allison: “I use the same login credentials for all my bank accounts to keep my finances organized together.”
• Sonia: “I use 2-factor authentication on my mobile device for all my logins.”