Unit 4 Test 1 Corrections

Thomas needs to balance his checkbook. How much money does he have in his account after writing check #1198 on 2/7?

• $1,702.91

• $1,251.92

• $691.25

• $51.92

Answer explanation

After writing check #1198 on 2/7, Thomas's account balance is $1,251.92. After adding all deposits and subtracting all withdrawals and fees, this amount reflects the remaining funds.

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TEKS.MATH.6.14C

Which of the following ways to finance college listed below must be paid back? Select the TWO correct answers.

• Federal Student Loan

• Grant

• Personal Loan from a Local Bank

• Scholarship

• Work-Study

Answer explanation

Federal Student Loans and Personal Loans from a Local Bank must be repaid after graduation. In contrast, Grants, Scholarships, and Work-Study do not require repayment.

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TEKS.MATH.6.14G

Which of the following is a reason to establish a positive credit history?

• Having a low credit score means better interest rates on loans.

• Colleges will check credit history before accepting students.

• Banks will check credit history before offering a loan.

• Loans will be harder to get with a positive credit history.

Answer explanation

A positive credit history is crucial because banks will check credit history before offering a loan. A good credit history increases the likelihood of loan approval and better interest rates.

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TEKS.MATH.6.14D

Which of the following is NOT included in a credit report?

• Payment history

• Number of open accounts

• License plate numbers

• Previous addresses

Answer explanation

A credit report includes details like payment history, number of open accounts, and previous addresses. However, it does not contain personal identifiers like license plate numbers, making it the correct answer.

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TEKS.MATH.6.14E

Tanya wants to open a checking account at one of the four banks in the table. At which bank would Tanya pay the least in monthly fees if she makes one ATM withdrawal per month and uses online bill pay?

• Bank A

• Bank B

• Bank C

• Bank D

Answer explanation

Tanya would pay the least in monthly fees at Bank D, as it offers the lowest total fees for monthly fee, one ATM withdrawal, and online bill pay compared to the other banks.

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TEKS.MATH.6.14A

How long does negative information stay on a credit report?

• 3 to 6 years

• 7 to 10 years

• 11 to 14 years

• 15 to 18 years

Answer explanation

Negative information typically remains on a credit report for 7 to 10 years. This includes late payments, bankruptcies, and other derogatory marks, making '7 to 10 years' the correct choice.

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TEKS.MATH.6.14E

Marie’s parents have been depositing money into a special account for her to use for college when she gets older. Which of the following words best describe what Marie’s parents have done?

• Scholarship

• Work-Study

• Savings

• Grant

Answer explanation

Marie’s parents have been depositing money into a special account, which is a form of saving for her college. Therefore, the best word to describe their actions is 'Savings', as it reflects the accumulation of funds for future use.

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TEKS.MATH.6.14G

Mrs. Gill is moving to a new apartment and is signing up for a new internet plan. The internet company says they’ll need to do a credit check before offering Mrs. Gill service. Which of the following statements describes the importance of Mrs. Gill’s credit report to the internet company?

• The report will show that Mrs. Gill has paid other bills on time.

• The report will show Mrs. Gill’s highest level of education she’s reached.

• The internet company may require a deposit if Mrs. Gill has a high credit score.

• The internet company will know what to charge Mrs. Gill’s neighbors by checking her credit report.

Answer explanation

The correct choice highlights that Mrs. Gill's credit report will indicate her history of paying bills on time, which is crucial for the internet company to assess her reliability as a customer.

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TEKS.MATH.6.14D

The average starting salary of those who graduated with a bachelor’s degree in 2021 was $58,862, while those with a master’s degree earned $72,105. How much more money would someone with a master’s degree earn at these rates than someone with a bachelor's degree over 5 years? Express your answer in dollars and cents.

Answer explanation

To find the difference in earnings over 5 years, calculate: (72,105 - 58,862) * 5 = 13,243 * 5 = 66,215.00.

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TEKS.MATH.6.14H