Finance Quiz

Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?

• Her principal is the cost of the car, minus any down payment she makes

• Her interest rate is the total cost she’ll pay after making all of her principal and interest payments

• Choosing a shorter term means it will take her longer to repay the loan

• It’s likely that her monthly payment will be between 4-5% of the cost of the car

Tags

CCSS.7.RP.A.3

Jaime is creating a budget for the first time and doesn’t know which to use - NET PAY or GROSS PAY. What do you tell him?

• Use net pay, because it’s the total amount you’ve earned minus taxes and other deductions.

• Use gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month.

• Use net pay, because it’s the total amount you’ve earned for the month.

• Use gross pay, because that is the amount that is reported to the government for taxes.

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CCSS.7.RP.A.3

All of the following are characteristics of a secured credit card EXCEPT...

• Your credit limit is dependent on the amount of your security deposit

• They lower the risk of banks when issuing credit to users with no credit history

• They help you build a credit history and improve your credit score

• They don’t have a spending limit, so you have to be very mindful of how much you buy with them

Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?

• Pays with a prepaid card she loaded earlier in the month

• Uses her credit card and says, "Credit" when the cashier asks, "Credit or debit?"

• Uses her debit card and says, "Debit" when the cashier asks, "Credit or debit?"

• Pays with cash she had in her purse

Which of the following best describes the amount of money you'll have if you put $1000 into a savings account earning 1% annual compound interest for 10 years? You can ignore the impact of inflation in this question.

• Exactly $1100

• Slightly more than $1100

• $2000

• Exactly $11,000

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CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

All of the following can be found in your credit report EXCEPT...

• Your credit payment history

• Your checking account balance history

• The average age of your credit accounts

• Your total number of active credit accounts

Suppose you are trying to switch banks or open a brand new credit card. Which strategy will likely lead to the WORST long-term outcome?

• Look for sign-up bonuses or introductory offers that will make the product a good deal

• Read online reviews carefully, and consider those that align most closely to what you value

• Spend some time comparison shopping before finalizing your decision

• Review the fine print closely, paying close attention to fee structures and interest rates

These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?

• Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0

• Jasmine, who had saved the $1500 previously and pays off the whole balance once her bill comes

• Nelson, who makes the minimum monthly payment each month until the debt is $0

• Robert, who makes $300 payments per month until the debt is $0

Which statement accurately describes the difference between a student loan and a scholarship or grant?

• Student loans always come from the Federal government, while scholarships and grants always come from the college

• Student loans need to be repaid, while scholarships and grants are both 'gift aid' that don't need to be repaid

• Student loans are a result of completing your FAFSA, while scholarships and grants are a result of winning contests

• Student loans are only available to a select few college students each year, while scholarships and grants are plentiful and easy to get

Which person from this list is saving rather than investing?

• Yvonne, who puts $750 per month into her bank account earning 1% interest

• Danielle, who contributes 2% of her pay to her company's 401(k) plan

• Daryl, who uses his $5000 end-of-year bonus to buy Treasury bonds

• Alexis, who buys $100 worth of shares in an S&P 500 index fund every month

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CCSS.HSF.BF.A.2