FL Final

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

Maria is new to budgeting. Maria’s friend advises them that they should “pay themselves first.” What does that mean?

• Maria should automate monthly transfers to their savings account
• Maria should take more risk in their investments to get higher returns
• Maria should pay only the minimum due on their credit card bills

Why is sending a personalized thank you after a job interview important?

• You can apologize for any mistakes you made in the interview
• It gives you the opportunity to leave a good impression by expanding on an answer you gave or a topic you discussed
• It shows that you want the job even if you don’t really like the company

What do you need to subtract from a college’s cost of attendance in order to find the net price?

• Student Aid Index
• Application fees
• Your grants and scholarships

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

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 debit card and says, "Credit" when the cashier asks, "Credit or debit?"
• Pays with cash she had in her purse

Which definition best describes the FAFSA?

• The amount of money the federal government offers you in student loans
• The paperwork your bank has you complete in order to take out a personal student loan
• The application you submit in order to determine eligibility for federal student aid

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
• Exactly $11,000

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

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