Final Exam

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

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.

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

• It shows that you want the job even if you don’t really like the company

• 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 allows you to boast about your accomplishments one last time

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

• Personal expenses

• 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

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

In the United States, why is it often considered a good financial decision to go to college, even though a college degree is expensive?

• College graduates always hold higher-paying jobs than high school graduates

• College graduates have higher average lifetime earnings than high school graduates

• Most people don’t graduate with student debt

• After paying tuition, students will have a partial ownership stake in a valuable university

Which description is most accurate for a Zero-Based Budget?

• You put every dollar of your net pay into a budget category each month

• You spend your checking account balance down to $0 every month

• You spend your saving account balance down to $0 every month

• You pay every one of your debts down to $0 every month

You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?

• Groceries and eating out

• Rent

• Cell phone bill

• Furniture

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, "Credit" when the cashier asks, "Credit or debit?"

• Pays with cash she had in her purse