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2nd Nine Weeks CBA Review

Total questions: 54

Worksheet time: 41mins

Name
Class
Date
1.

People who are unbanked are most likely to...

a)

Use a mobile banking app

b)

Receive a monthly statement of their transactions

c)

Deposit their checks at the ATM

d)

Incur lots of fees at Check Cashers to access their money

2.
You can access the money in your checking account by...
a)
Using the cash grandma gave you to pay at the grocery store
b)
Paying bills with a pre-paid debit card
c)
Transferring money though your online account
d)
Using your credit card to Venmo a friend
3.

Overdraft protection...

a)

is a service offered only for premium checking accounts.

b)

brings in a few hundred dollars each year to banks.

c)

is a fee-free service that prevents you from overdrawing.

d)

can keep you from overdrawing but charges a fee.

4.
Which of the following fee(s) may banks charge you?
a)
Online Statement Fee
b)
Monthly Maintenance Fee
c)
In-Network ATM Fee
d)
Sufficient Funds Fee
5.

Mobile or email alerts for your checking account can notify you of...(hint: choose 3 correct answers)

a)

Low balances

b)

Unusual activity

c)

Deposits

d)

Credit Card transactions

6.

Which of the following will DEFINITELY show up on your bank statement at the end of July? (hint: choose 2 correct answers)

a)

Ice cream bought with your debit card on July 16th

b)

A salad bought with cash on July 5th

c)

A birthday check you gave to your brother on July 18th

d)

An ATM withdrawal you made on July 21st

7.
What feature is LEAST important for a college student to look for in a checking account?
a)
Low minimum balance requirement
b)
Interest rate
c)
Fees
d)
ATM availability
8.

How can you protect your checking account when using online and mobile banking? (hint: choose 2 correct answers)

a)

Use a strong password

b)

Sharing your pin # with only 1 person in case you forget it

c)

Connect to a secure WiFi network

d)

Opt-out of alerts to notify you of unusual activity

9.
You have $30 in your acct. How can a bank reorder 4 checks written today to MAXIMIZE your fees?
a)
$7.50 check, $15 check, $5 check, $35 check
b)
$35 check, $7.50 check, $5 check, $15 check
c)
$15 check, $5 check, $35 check, $7.50 check
d)
$5 check, $7.50 check, $35 check, $15 check
10.
How is wealth defined?
a)
How much money you have in your Checking and Saving accounts
b)
Debts - Assets
c)
All assets, including money in the bank + retirment
d)
Assets - Debts
11.
What is a general rule of thumb on how much you should save?
a)
5% of your income
b)
10% of your income
c)
20% of your income
d)
30% of your income
12.
What is a good strategy to help you save?
a)
1st, spend money on all expenses; put the rest into saving
b)
Tap into your savings on a regular basis to purchase small items, like snacks
c)
Pay yourself first - set aside money for savings each month
d)
Keep your spending and saving money together in 1 account
13.
How does the 50-20-30 rule distribute your income?
a)
50% expenses, 20% flexible spending, 30% saving
b)
50% expenses, 20% saving, 30% flexible spending
c)
50% flexible spending, 20% saving, 30% expenses
d)
50% saving, 20% flexible spending, 30% expenses
14.
How is compound interest different than simple interest?
a)
It is simple interest - interest earned on that interest
b)
It is double the simple interest earned on an investment
c)
It is simple interest + interest earned on that interest
d)
It's not different; they are one and the same
15.
Assuming a rate of growth of 8%, in how many years will your $ double?
a)
3 years
b)
6 years
c)
9 years
d)
12 years
16.

At what rate does your $ need to grow in order to double in 18 years?

a)

2%

b)

4%

c)

6%

d)

8%

17.

Which of the following is NOT a typical type of credit?

a)

Mortgage

b)

Overdraft

c)

Credit Card

d)

Pre-Paid Debit Card

18.

Which of the following could be a SECURED loan? (hint: choose 2 correct answers)

a)

Auto loan

b)

Student loan

c)

Mortgage

d)

Overdraft

19.

What may NOT impact the interest rate on your loans?

a)

Your relationship with the financial institution

b)

Your credit score

c)

The loan amount

d)

Your level of education

20.

True or False: A cosigner's credit history can be affected by the loan they are cosigned on.

a)

True

b)

False

21.

What information on a Schumer Box should you focus on when choosing a credit card? (hint: choose 3 correct answers)

a)

The term of the credit card

b)

Annual Percentage Rate (APR)

c)

Grace Period

d)

Fees

22.

Which is TRUE when you make only the minimum payment each month?

a)

You are charged interest on the remaining balance

b)

Your credit line is restored to its maximum amount

c)

Credit card companies have permission to sell your information

d)

It is the fastest way to pay off your debt

23.

Which is TRUE about Payday loans?

a)

You can pay them back in installments

b)

You are charged a 1-time fee for the loan

c)

Most people successfully pay these loans back

d)

You need a credit card account to get one

24.

How do federal student loans differ from private student loans?

a)

Fed loans have fewer and less flexible repayment options

b)

Fed loans generally have higher interest rates

c)

Private loan repayment may start while you're in school

d)

Private loans don't require a cosigner, fed loans do

25.

When repaying your Federal student loans...(hint: choose 2 correct answers)

a)

repayment begins the day after you graduate

b)

a loan servicer will contact you before repayment begins

c)

you are required to begin with the Standard Repayment Plan

d)

you can choose from different repayment plans

26.

Which of the following situations is an example of responsibly taking on debt?

a)

Get a credit card but don't use it to avoid more debt

b)

Spend up to your credit limit each month

c)

Become an authorized user on an adult's card

d)

Make only the minimum payment each month

27.

How can you build a positive credit history as a college student?

a)

Get a credit card but don't use it to avoid more debt

b)

Spend up to your credit limit each month

c)

Become an authorized user on an adult's card

d)

Make only the minimum payment each month

28.

Your net worth...(hint: choose 2 correct answers)

a)

is what you owe minus what you own

b)

is your assets - your liabilities

c)

is your liabilities - your assets

d)

is what you own minus what you owe

29.

T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.

a)

True

b)

False

30.

Which of the following is TRUE about a credit report?

a)

It is a complete history of one type of credit you have

b)

Credit reports are maintained by the 5 main credit bureaus

c)

You can get a copy of your credit report for free

d)

You can get a credit report only when you're 21 years old

31.

Which of the following does NOT contribute to your credit score?

a)

Your payment history

b)

Which banks issued your credit cards

c)

Your debt-to-credit ratio

d)

Length of credit history

32.

How are a credit score and credit report related?

a)

A credit report is determined by the factors in your score

b)

A credit score is determined by the factors in your report

c)

Credit reports are less important than your credit score

d)

They're not related at all

33.

Q13:Using the debt snowball method, you make...

a)

minimum payments on all of your loans

b)

one large payment on one loan

c)

minimum payments on small loans; pay extra on large loans

d)

minimum payments on large loans; pay extra on small loans

34.

Using the High Rate Method, you...

a)

pay off all your loans in the least amount of time

b)

put extra money towards loans with the lowest interest rate

c)

put extra money towards loans with the highest interest rate

d)

make one large payment on the loan with the highest rate

35.

Which types of debt usually CANNOT be erased or reduced?

a)

Federal student loans

b)

Credit card debt

c)

Medical bills

d)

None of these types of debt can be erased or reduced

36.

What information can you find on a credit report?

a)

Your medical insurance information

b)

Your parents' and siblings' contact information

c)

Your education level

d)

Inquiries you've made on new lines of credit

37.

All of the following may access your credit report EXCEPT...

a)

A landlord

b)

A future employer

c)

Colleges and universities

d)

Insurance companies Insurance companies

38.

Jim is 23 and has 1 credit card. What would be the best way to improve his credit score? (hint: choose 2 correct answers)

a)

Get 4 more credit cards in the next 3 months

b)

Diversify his credit - get an loan for the car he needs

c)

Make sure he makes his payments in full & on time

d)

Increase his credit utilization rate

39.

All of the following are costs of going to college EXCEPT...

a)

Tuition and fees

b)

Room and board

c)

Textbooks and school supplies

d)

Scholarships and grants

40.

Which is TRUE about sticker price and net price? (hint: choose 2 correct answers)

a)

Net price is the published cost of going to a school

b)

Sticker Price is the published cost of going to a school

c)

Net price is the sticker price minus scholarships & grants

d)

Sticker price is the net price minus scholarships & grants

41.

When does the FAFSA filing period open every year?

a)

January 1st

b)

June 1st

c)

October 1st

d)

December 1st

42.

Why should you file the FAFSA as early as possible?

a)

It can help your chances of being accepted into schools

b)

Aid is given out on a first-come, first-serve basis

c)

You're guaranteed to get more merit-based scholarships

d)

You'll get a lower interest rate on federal student loans

43.

What kinds of aid are you eligible for by filing the FAFSA? (hint: choose 3 correct answers)

a)

Grants and Scholarships

b)

Private Student Loans

c)

Work-Study

d)

Federal Student Loans

44.

How do scholarships and grants differ?

a)

Scholarships are need-based; grants are merit-based

b)

Grants are private forms of aid; scholarships are federal

c)

Grants are need-based; scholarships are merit-based

d)

They're not different; they are one and the same

45.

Which is TRUE about the FAFSA?

a)

You only need to file the FAFSA 1x in your college career

b)

Your parents must earn below a set amount for you to apply

c)

You need to file it at the start of every quarter/semester

d)

There is no cost to file the FAFSA

46.

Which is TRUE about the EFC?

a)

It's the cost of filing the FAFSA

b)

It's how much you & your family are expected to pay for college

c)

It's another term for "net price"

d)

It's how much your parents must contribute towards college

47.

Which of the following is the correct flow of submitting/receiving these documents?

a)

SAR > FAFSA > Financial Aid Package

b)

Financial Aid Package > SAR > FAFSA

c)

FAFSA > Financial Aid Package > SAR

d)

FAFSA > SAR > Financial Aid Package

48.

What are two things you will need to do if you accept a Federal student loan?

a)

Agree to an official credit check by the government

b)

Complete entrance counseling

c)

Pay a refundable deposit to secure your loan

d)

Sign a Master Promissory Note

49.

Which of the following is TRUE about how you get your financial aid?

a)

All financial aid is paid directly to you in one payment

b)

All financial aid is paid to you in installments

c)

Aid is 1st applied to your account; you get the rest

d)

The school receives all of your financial aid

50.

Which of the following is TRUE about federal and private student loans?

a)

Private loans may be subsidized; federal ones are not

b)

Both types offer the same repayment plans

c)

Private loans always offer fixed interest rates

d)

Fed. loans don't have prepayment penalties; private ones may

51.

How can you lower the total amount you in pay in student loans?

a)

Choose a repayment plan with a longer term

b)

Accept private loans first, then federal ones

c)

Make interest payments during your grace period

d)

Accept loans with variable interest rates, not fixed ones

52.

What can happen if you don't make payments towards your student loans? (hint: choose 2 correct answers)

a)

You will owe all interst in full after 270 days

b)

Your loan balance may become due in full, but no interest

c)

Your loan servicer will contact you via phone, email, etc.

d)

Your credit score may suffer

53.

When looking at a financial aid award letter, which type(s) of aid would you have to pay BACK?

a)

Federal Pell Grant

b)

Direct Subsidized Loan

c)

Merit Scholarship

d)

Federal Work-Study

54.

In what order should you accept different types of financial aid?

a)

Work-study, scholarships, federal loans, private loans

b)

Private loans, scholarships, work-study, federal loans

c)

Scholarships, work-study, federal loans, private loans

d)

Scholarships, work-study, private loans, federal loans