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WorksheetsFall 2019 MM Final Review
Total questions: 100
Worksheet time: 50mins
Which of the following is not a factor in determining a FICO score?
Using credit cards
Paying cash for all purchases
Taking out a mortgage on a house
Getting a personal loan from a bank
Which of the following is NOT a good idea for getting out of debt?
Borrow money from your parents to pay for the debt
Sell something
Quit borrowing money
Get a part-time job or work overtime
Which of the following things cannot be done with a debit card but can be done with a credit card?
Purchase an airline ticket
Purchase something online
Rent a car
Go into debt
Jake's credit application has been declined because of his negative credit history. Which statement is most likely to be true?
Jake has received 3 traffic tickets in the past 2 months
Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage
Jake pays his bills consistently and on time
Jake has applied for 4 credit cards and a car loan in the past 6 weeks
Which of the following is an act of identity theft?
Having the same name as another person
Receiving permission to use a parent's credit card for school clothes
Wrongfully acquiring and using someone's personal identification
Taking the identity of another individual as inspiration for a costume
Matt wants to guard his personal information. Which personal information is LEAST LIKELY to be used by scammers?
Phone numbers
Driver's license numbers
Credit card numbers
Bank account numbers
Which of the following actions will not make an individual vulnerable to identity theft?
Throwing mail in the garbage
Paying cash for a movie ticket
Responding to an email from your depository institution (bank)
Using a computer without updated spyware
What factors affect a credit score?
Type of debt
Duration of debt
New debt
All of these affect a credit score
Which of the following is NOT a recommended step in the Drive Free method of purchasing a car?
Start with an inexpensive car and gradually move up in car value as your savings increases.
Explore new car dealerships for the best interest rate.
Plan your purchase in advance using the sinking fun method of saving.
Place your savings in a mutual fund so that your money can make more money.
Which of the following is NOT recommended in the debt snowball method of getting out of debt?
Every extra dollar you get should be thrown at the largest debt first.
List your debts in order from smallest to largest balance and focus on paying the smallest debt off first.
Attack your debt with intensity.
Every time you pay off a debt, you add its old minimum payment to your next debt payment.
What is paycheck garnishment?
A legal procedure for dealing with debt problems of individuals and businesses.
Process of taking something back for failure to make payments.
A court-ordered attachment that allows a lender to take monies owed directly from a borrower's paycheck.
Process by which the holder of a mortgage sells the property of a homeowner who has fallen behind on payments.
Which of the following is NOT a credit myth?
Debt is a tool and should be used to create prosperity.
Borrowing money can have serious consequences and prevent you from building wealth.
The lottery and other forms of gambling will make you rich.
You have "arrived" financially once you get approved for a credit card.
A credit score is intended to measure . . .
the risk of your not repaying debt.
the amount of money you have in the bank.
your income level.
your financial success.
Which of the following is a sign that your identity may have been stolen?
A call from the collection agency about a debt you didn't incur.
Bank and billing statements don't arrive on time.
Your credit report shows accounts you didn't open.
All of these signs your identity has been stolen.
You must establish credit in order to buy a house.
True
False
There are 3 credit bureaus: Experian, TransUnion, & Equifax.
True
False
You can and should obtain a free copy of your credit report annually in order to check for any suspicious activity.
True
False
You need to have a credit card to rent a car or check in to a hotel.
True
False
It is okay to use a credit card if you pay it off every month.
True
False
Teens are a huge target of credit card companies today.
True
False
Co-signing a loan is a good way to help a friend or relative.
True
False
Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments.
Credit report
Depreciation
Loan term
Upside down
Debt snowball
A detailed report of an individual's credit history.
Lease
Upside down
Annual percentage rate (APR)
Credit card
Credit report
Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated.
Introductory rate
Lease
Loan term
Debt snowball
Annual fee
Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.
Annual Percentage Rate (APR)
Credit report
Upside down
Credit card
Depreciation
A decrease or loss in value.
Annual Percentage Rate (APR)
Upside down
Lease
Depreciation
Introductory Rate
A yearly fee that's charged by the credit card company for the convenience of the credit card.
Upside down
Depreciation
Lease
Credit Card
Annual fee
An interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time.
Debt snowball
Annual Percentage Rate (APR)
Credit Report
Upside down
Introductory rate
A long-term rental agreement on a car; a form of secured long-term debt.
Loan term
Lease
Credit card
Depreciation
Annual fee
When a person owes more on an item (like a car or house) than it is worth, the person is said to be ___ on the loan.
Credit card
Debt snowball
Introductory rate
Upside down
Lease
A card issued by a bank that allows users to finance a purchase.
Credit card
Credit report
Debt snowball
Annual fee
Loan term
Which of the following is NOT a use for a signature card?
To verify a signature to make sure it matches someone on the account.
To identify who all is on the account and can access the account.
To sign up to receive promotional bank emails.
To show the identifying and contact information of the account holders.
TRUE OR FALSE: If you deposit cash it will be available the same day.
TRUE
FALSE
Which number in the diagram represents the routing number?
3
9
10
11
How could the legal line in the diagram (marked "4") be better written?
Fifty and no/100---------------------------
Fifty Dollars
Fifty/100-----------------------------
Fifty Dollars and zero cents
TRUE OR FALSE: If you deposit a check it will ALWAYS be available the same day.
TRUE
FALSE
Which number in the diagram represents the account number?
9
10
11
12
Which is the best way to correct 50- in box "3" on the diagram.
50.XX
50.__
50/no
50.00
When a person intentionally invests money in a place where it can earn more money.
Wealth Building
Sinking Fund
Savings
Investment Capital
Save a $500 emergency fund.
the Fourth Foundation
the Third Foundation
the Second Foundation
the First Foundation
The five steps to financial success.
Five money myths
Five banking steps
Five Foundations
None of the above
Compares after-tax income to the money people spend on a variety of items.
Savings rate
Interest rate
Net income
Gross income
Interest paid on interest previously earned.
simple interest
compound interest
percentage interest
none of the above
Percentage paid to a lender for the use of borrowed money, or the percentage earned on invested principal.
credit card
principal
savings rate
interest rate
Saving money over time for a large purchase.
piggy bank
value of money
installment loan
sinking fund
Money set aside and left alone for a "rainy day."
credit card
emergency fund
checking account
savings account
You should hold off on investing for retirement until you have college or other post-secondary education paid for.
True
False
You should keep your emergency fund in the same account as your spending money.
True
False
Your income level greatly affects your savings habits.
True
False
The first thing you should save for is your retirement fund.
True
False
Why is having a fully funded emergency fund so important when it comes to your financial well-being?
As long as you have a good-paying job, you really don't need an emergency fund.
The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.
The purpose of an emergency fund is to have money set aside for large purchases, like vacations.
None of the above
Which of the following is NOT one of the three basic reasons for saving money?
Build wealth
Have money available to lend to friends
Large purchases
Emergency fund
Which of the following is a reason that people don't save money?
They lack focus
They do not live on a budget
They lack discipline
All of the above
Which of these is NOT a key to saving money?
Focus
Making saving a habit and a priority
Your income
Discipline
For which of the following should you save?
Emergency fund
Wealth building
Purchases
All of the above
What does it mean to have a negative savings rate?
Spending more money than you make and acquiring debt
Having no savings at all
Having a fully funded emergency fund
Saving for something that is a want instead of a need
Instead of borrowing money for large purchases, you should set money aside in a ____ over time and pay with cash.
Mortgage fund
Credit card fund
Sinking fund
Emergency fund
Which of the following steps is the First Foundation?
Get out of debt
Build wealth and give
Save a $500 emergency fund
Pay cash for your car
All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.
currency
personal finance
economy
consumerism
A debt evidenced by a "note", which specifies the principal amount, interest rate, and date of repayment.
bank fee
loan
interest
debt
A fee paid by a borrower to the lender for the use of borrowed money.
interest
debt
credit
bills
The knowledge and skill set necessary to be an informed consumer and manage finances effectively.
budgeting
banking knowledge
financial literacy
consumerism
The granting of a loan and the creation of debt; any form of deferred payment.
annual fee
asset
credit
consumer
An obligation of repayment owed by one party to a second party.
borrower
creditor
ownership
debt
A person or organization that uses a product or service.
creditor
Dave Ramsey
consumer
borrower
A person or business that offers loans at extremely high interest rates.
bank
consumer
creditor
loan shark
Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.
True
False
Expensive houses and new cars are a true indication of wealth.
True
False
Learning the language of money is not that important because you will be able to depend on financial planners to manage your money.
True
False
Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home.
True
False
Most Americans today are wealthy and will have financial security when they retire.
True
False
True financial security is achieved when your money begins to generate an income -- your money starts working for you.
True
False
When it comes to personal finance, the math is easy. What's challenging is managing your _____.
Bank account
Friends
Income
Behavior
When it comes to managing money, success is about ___% knowledge and ____% behavior.
50, 50
60, 40
80, 20
20, 80
Which of the following is a consequence of spending more than you make?
A cycle of debt
Stress
Missed opportunity to save and invest
All of the above
Which of the following statements BEST explains why income alone does not determine wealth?
How much money a person makes does not dictate his or her spending and saving behavior.
Only people who are natural savers can become wealthy.
Income alone does determine a person's wealth.
Investing is the only factor that contributes to wealth building.
Personal financial success is primarily the result of:
Inheriting money from your parents
Generous welfare and unemployment programs
Winning the lottery
Managing your money behavior
Key components of financial planning include all of the following except:
Regularly monitor and reassess your financial plan
Allow your financial planner to make all of your major money decisions
Replace money myths with money truths
Write out a detailed plan for accomplishing your goals
What color ink should checks be written in?
Any color, it doesn't matter as long as it's not pencil
Blue only
Black only
Blue or black are fine
How should you sign your name on a check?
Use your full name, signed in print or cursive
Using a nickname is fine as long as it's in cursive
You need your full legal name and it should be signed in cursive
You can just initial it in print or cursive
Which of the following is a blank endorsement?
Pay to the order of ABC Savings & Loan
Chandler Bing
For deposit only Chandler Bing
None of these
which of the following is a restrictive endorsement?
Pay to the order of ABC Savings & Loan
Chandler Bing
For deposit only Chandler Bing
None of these
What should you do if your checks are lost or stolen?
Notify the bank immediately
Close your bank account
File a police report
Wait and see if they turn up
How often should you reconcile your bank statement?
Once a year
Once every 6 months
Once a month
Never
When should you endorse a check that was written to you?
As soon as you get it
Never--just leave it blank
When you are inside the bank or sitting in the bank drive-thru line
None of these
The beginning balance (#1 on the image) represents
the amount you deposited to open the account
the amount when you began your bank reconciliation for the month.
the ending balance for the month of September.
none of these.
The ending balance (#2 on the image) should be the same as your checkbook balance (for the end of October).
True
False
The checking summary (#3 on the image) represents
the checks that have "cleared" the bank.
the checks that are outstanding.
the only checks that you wrote for the month of October.
all of these.
The service charge (#4 on the image) should be
entered on the top line of your checkbook register.
added as a deposit at the end of the month.
entered as a "check outstanding."
subtracted from your checkbook register at the end of the month.
What should be entered in the checks outstanding section (#5 on the image)?
The checks you wrote for the month of October.
The checks listed in the Checking Summary on the bank statement.
The checks you wrote for the month of October, plus any other checks in prior months, that have not cleared the bank
None of these
The amount for #9 on the image should be the same as
the ending balance in your checkbook register.
the amount listed as #1 on the image.
the amount listed as #2 on the image.
None of these.
The following is true for a Subsidized Student Loan:
The student is responsible for all accrued interest beginning from when the loan was taken out.
The government pays the accrued interest while the student is in college.
The parents must pay for the accrued interest while the student is in college.
The accrued interest is forgiven once the student graduates and finds employment.
All internships are paid and are for an unlimited amount of time.
True
False
When thinking about post-secondary education, __ should be a consideration.
the amount of time involved
the total cost
class sizes
all of these should be considered
Technical schools are considered "Institutions of Higher Learning."
True
False
Grants are another term for loans.
True
False
Angelo State is a
college.
university.
trade school.
work-study program.
What amount should be entered for #7 on the image?
$428.32
$0.00
$275.38
The total of deposits for October not showing on the bank statement
What amount should be entered for #8 on the image?
The total of #3 (on the image)
The total of #5 (on the image)
The total of checks written in October
None of these
When reconciling your bank statement, you must always place a check mark in your checkbook next to the amount that is listed on the bank statement.
True
False
