Module 2 Review

Eric recently graduated from college and has a goal of owning his own home by the time he is 30 years old. What tool should he be using him to help him plan how to spend his money?

• budget

• credit card

• mutual fund

• insurance

What is the recommended percentage of your monthly income that should be devoted to housing? 

• 20%
• 50%
• 40%
• 30%

What category would your electricity bill that varies each month fit in?

• Recurring Expenses
• Monthly Expenses
• Variable Expenses
• Fixed Expenses

Which of the following would you need if you decided to rent a place to live rather than purchase it?

• Mortgage deed
• Renter's Insurance

• Rental deed

• Title insurance

What is an advantage of taking a 30 year fixed mortgage compared to other options? 

• Lower interest rates
• Flexibility in payment terms
• Lower monthly payments

• Higher chance of approval

Yashiro has been hired by a local fast food restaurant. His new boss tells him to bring a voided check with him to sign paperwork so that he can be paid. What bank product will he be signing up for?

• Cashback Rewards
• Certificate of Deposit
• Money Order
• Direct Deposit

What is the best reason to avoid using overdraft protection offered by a bank?

• High fees and interest charges
• Guaranteed financial security
• Low fees and interest charges
• Convenient access to extra funds

What tool helps protect individuals from financially devastating events?

• Retirement plan
• Insurance
• Savings account
• Credit card

Who should be consulted to help with estate planning and writing wills?

• Estate planning attorney

• Banker

• Hairdresser or personal trainer
• Dentist or veterinarian

If you make all of your homeowner's insurance premium payments and a tornado hits your home during a bad thunderstorm, what will you need to do next to repair the damage?

• Contact the local fire department for assistance
• Wait for the tornado to pass before assessing the damage
• Start repairing the damage without informing the insurance company
• File a claim with your homeowner's insurance company.