Unit 2 PFL Test

What is FAFSA?

• Fast Application for Free Student Aid

• Federal Application for free Student Assistance

• Fundamental Approach to Financial Student Assistance

• Free Application for Federal Student Aid

How are interest rates expressed?

• As a negative number

• As a fraction

• As an equation

• As a percentage

Why does a person complete FAFSA?

• The application is required for students who wish to receive financial aid to help pay for college

• Only students who complete the application get free money

• Everyone who completes the application receives free money

• College students that complete the application receive stimulus checks

Which of the following is a universally accepted criteria on a Rational Decision Model?

• Making money

• Getting a good education

• Making your parents happy

• There are no universally accepted criteria

What is the most common cause of personal bankruptcy in the United States?

• Student loan debt

• Home foreclosures

• Medical expenses

• Unemployment

When using a rational Decision Model to make choices, what are alternatives?

• All the things that are important to you

• All the viable options you can choose from

• All the options you don't want to pursue

• All the options that your parents picked for you

How are credit unions different from banks?

• Credit unions charge fees to use

• Credit unions will not let you join without a referral

• Credit unions offer unique options for loans that banks do not

• Credit unions aren't insured

What website is authorized by federal law and will give you a free credit report every 12 months?

• Creditkarma.com

• Freecreditreport.com

• Annualcreditreport.com

• Freecreditscore.com

What service does a payday lender provide?

• Short term loans that will be repaid at your next paycheck

• Loans in exchange for collateral being put up

• Checking and savings accounts

• Financial products like bonds or CD's

What has the most weight in determining your credit score?

• Payment history

• Amount of money owed

• Length of credit history

• Amount of available credit