Personal Finance Final Review

Mia’s renters insurance has a $15 premium, $250 deductible, and $100,000 coverage limit. Her $550 bike is stolen. Who pays?

• Mia pays $0; her insurance pays $550

• Mia pays $15, her insurance pays $535

• Mia pays $250; her insurance pays $300

• Mia pays $300; her insurance pays $250

It’s January and Tim is preparing to file his taxes. Which of the following steps is INACCURATE?

• Tim will receive his W-2 from his employer by the end of January

• Tim will complete the form 1040 to file his taxes

• Tim has until February 15th to file his taxes

• If Tim owes taxes, he must pay them by April 15th

All of the following would reduce Maria’s checking account balance, EXCEPT…

• Writing a check to pay her rent

• Using her debit card to buy groceries

• Receiving a direct deposit from her employer

• Setting up an automatic payment for her utility bill

All of the following strategies will reduce how much interest you pay on a loan, EXCEPT…

• Making additional payments to reduce the loan principal

• Putting down a larger down payment

• Extending the loan term

• Finding the lowest available interest rate

Which of the following is TRUE about a secured credit card?

• Secured credit cards have a spending limit equal to the deposit amount

• Secured credit cards do NOT build your credit history

• Secured credit cards are higher risk for a bank than other credit cards

• Secured credit cards usually have a higher credit limit than other cards

Which of the following is an example of a dark pattern?

• A social media app that clearly show you how to turn off notifications

• An online store that applies a discount with a valid coupon code

• A website that asks for confirmation before adding extra items to your cart

• A subscription service that requires you to call customer service to cancel

Which of the following is TRUE when taking out an auto loan?

• The total interest paid is the same regardless of the loan term

• The amount of money you borrow is called the loan principal

• The loan principal includes both the car's price and the interest you owe

• Choosing a shorter loan term will lower your monthly payments

To calculate the net price for a college, you...

• Add the cost of tuition to your room and board expenses

• Subtract any grants and scholarships from the sticker price

• Multiply the tuition by the number of years you plan to attend

• Divide the total cost of attendance by the number of semesters

How are student loans different from scholarships and grants (S&G)?

• • Loans need to be repaid; S&G do not

• • Loans are for everyone; S&G are only for students with 4.0 GPAs

• • Loans are interest-free; S&G have hidden fees

• • Loans do not require you to work part-time; S&G do

All of the following are common benefits of mobile banking, EXCEPT…

• Transfer money without visiting a bank branch

• Deposit checks using your phone’s camera

• Avoid all banking fees, like overdraft fees

• Check your account balance at any time