Module 2 review

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?

• Certificate of deposit

• Savings account

• Direct deposit

• Credit check

The goal of budgeting is to make sure that you are spending money on things that you can afford. If you are spending more money than you earn, what economic situation exists for you?

1. 
   

• Foreclosure

• Surplus

• Negative credit

• Deficit

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?

• Credit Card

• Mutual Fund

• Budget

• Amortization calculator

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

• Fixed expenses

• Variable expenses

• Assets

• Debt

Which of the following is a component that would MOST likely be found in a budget for a 65 year old but not for an 25 year old?

• Long term care insurance

• Mortgage

• Student loans

• Car insurance

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

• Mortgage

• Homeowner's insurance

• Renter's insurance

• Bank loan

If interest rates are currently at 3.5% and the bank offers you a loan that is guaranteed at 2.5% for the first 5 years that cannot go higher than 8%, what type of mortgage have you taken?

• Adjustable rate mortgage

• Fixed mortgage

• Lease

• Reverse mortgage

Which of the following is a characteristic of a responsible borrower

• Allows other people to use their credit

• 1. Only uses approximately 30% of the credit that is available to them

• Never makes monthly credit card payments on time

• Opens a new credit card every time one is maxed out

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

1. 
   

• Higher amount of principal paid each month

• Less interest paid to the bank

• Lower monthly payment

• Lower homeowner's insurance costs

Which of the following is NOT a service provided by banks?

• Sell groceries

• Make car loans

• Make personal schedules

• Sell health insurance