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WorksheetsPersonal Finance Debt Review
Total questions: 20
Worksheet time: 11mins
Name
Class
Date
1.
Which of the following is true about using a credit card?
a)
It's the same as using cash.
b)
When you use a credit card, one spends less
c)
When you use a credit card, one spends more
d)
Studies show it registers as pain
2.
Payday lending and cash advance services are
a)
A thing of the past that no one uses today
b)
Highly effective at cutting down debt
c)
Huge Ripoffs
d)
the best way to build a credit score
3.
Who is the number one target of credit card companies?
a)
People without a high school diploma
b)
Teenagers
c)
The elderly
d)
Middle Aged Adults
4.
Kevin has the following debts: Home Equity Loan, $24,000; Visa, $1,200; Student Loan, $5,000; Car, $12,000. How should he prioritize his debt snowball?
a)
Home Equity Loan, Visa, Student Loan, Car
b)
Visa, Car, Student Loan, Home Equity Loan
c)
Visa, Student Loan, Car, Home Equity Loan
d)
Cannot prioritize the debt snowball without knowing the interest rates on
5.
What is the best way to buy a car?
a)
O% interest for 36 months on new or used
b)
Leasing
c)
Purchasing new at the end of the year
d)
purchase used and pay cash
6.
What type of mortgage is best when buying a home?
a)
Fixed Rate 30 year mortgage
b)
Fixed Rate 15 year mortgage
c)
Adjustable Rate Mortgage
d)
Balloon Mortgage
7.
Which of the following is NOT a step out of debt?
a)
Consolidate the debt
b)
Quit borrowing money
c)
Sell Something
d)
Use the debt snowball method
8.
The key to building wealth is
a)
drive reliable used cars
b)
get excellent interest rates
c)
get a good education and income
d)
to stay debt free
9.
When buying a new car it will lose ____% driving it off the lot, and _____% after 4 years.
a)
10, 40
b)
20, 55
c)
25, 70
d)
40, 90
10.
The main difference between a credit card and debit card is
a)
A debit card requires that you have the cash available in the account; a credit card doesn't
b)
A credit card has the Visa or MasterCard logo; a debit card doesn’t
c)
A debit card does not offer the same protections as a credit card.
d)
A credit card requires that you have the cash available in the account, a debit card doesn't
11.
What is the danger in co-signing a loan?
a)
The bank wouldn’t give that person a loan without your help.
b)
If the person doesn’t pay, you become responsible for the debt.
c)
It automatically lowers both of your credit scores
d)
It could cause them to have a higher interest rate.
12.
True or False: Living today debt free requires a paradigm shift, which is a completely different way of thinking.
a)
True
b)
False
13.
True or False: Bankruptcy and foreclosure are both good financial things.
a)
True
b)
False
14.
Studies have shown that the largest group to play the lottery is
a)
Current Millionaires
b)
People with college degrees
c)
People without a high school diploma
d)
People who have taken a finance course
15.
When buying a home, how much should you put as a down payment on the home?
a)
None, finance the whole thing
b)
10% (20% if possible)
c)
50%
d)
100% (no one should have a mortgage)
16.
A process where you make monthly payments on a car for a certain period of time and then either buy out the remainder of the car or return it to the dealership. It is the most expensive way to finance a car.
a)
Leasing
b)
Loaning
c)
Forclosing
d)
Bankruptcy
17.
Process by which the holder of a mortgage (bank) sells the property of a homeowner who has not made payments on the mortgage.
a)
Payday lending
b)
Loaning
c)
Bankruptcy
d)
Forclosure
18.
A legal procedure for dealing with debt when and individual cannot repay what they own. It is the worst financial thing that can happen to a person.
a)
Loan
b)
Bankruptcy
c)
Forclosure
d)
Rent To Own
19.
A plan to eliminate debt by making minimum payments on all debt but paying off the smallest one first and then putting that money towards larger debts. It is Ramsey's main strategy for getting out of debt.
a)
Windmill of finance
b)
Debt Snowball
c)
Title Pawning
d)
Leasing
20.
The process of new items going down in value over time. This mainly affects the purchase of a new car but involves other things as well like video game systems, computers, and cell phones.
a)
Inflation
b)
Forclosure
c)
Depreciation
d)
Bankruptcy
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