Econ-Semester 2- Study Guide

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

• Payment history and types of accounts
• Payment history and total debt

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

• Make on-time payments
• Check his credit score

Who tracks all of your credit information?

• Credit reporting agencies (Equifax, Experian and TransUnion)
• Federal government

The federal government makes interest payments on __________ while you’re enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.

• Subsidized federal loans
• Unsubsidized federal loans

Which of the following would show up on a credit report?

• Salary of your current job
• Credit card payment history

Which of the following statements is TRUE about the value of a college degree?

• A high school graduate can expect to earn about the same as a college graduate
• A college graduate can expect to earn, on average, more than a high school graduate over a career

Which of these options lists the types of financial aid from MOST attractive to LEAST attractive?

• Grants/Scholarships, Work-study, Federal loans, Private loans
• Federal loans, Grants/Scholarships, Work-study, Private loans

In order to qualify for financial aid, which application must you submit?

• FAFSA
• SAVE

Which of the following accurately describes the envelope budgeting strategy?

• Putting cash for different spending categories into separate envelopes and only spending what's in each envelope
• Regularly buying investments like stocks or bonds with a certain amount of money each month

Which best describes the Debt Snowball method for paying off debt?

• Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the highest balance
• Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the lowest balance