WorksheetsFinal Exam Part 1 Review
Total questions: 25
Worksheet time: 25mins
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
It is deducted directly from your checking account
Your credit card company covers the cost
Your credit card company provides you with a cash advance to cover the cost
It is deducted from your credit card account
Jaime gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
Wait a week as it is fairly common for the bank to catch mistakes like this
Wait until your monthly statement arrives so you can check to see if those withdrawals are still there
Check your wallet to be sure your debit card has not been stolen. If you still have it, then you should not worry.
Contact your bank immediately as it appears that your account may have been hacked
FDIC Insurance is…
Optional coverage consumers can purchase so that their bank deposits remain safe.
Insurance bank branches can buy to protect their business against fraud and scams.
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.
Required if you want to do online or mobile banking.
Sam is opening her first checking account, and she's trying to decide whether she should sign up for overdraft protection. Which friend's advice is MOST accurate?
Kristie says, "With overdraft protection, you never have to worry about how much money is in your account."
Bryson says, "Overdraft protection may seem handy if you have an emergency (like needing gas to get to work) but you might pay lots of overdraft fees if you don't keep track of your account closely."
Kirk says, "Yes, you'll have to pay a fee for each overdraft, but you DON'T have to pay the bank back the money you overdrew the account by."
Scott says, "If you say "No" to overdraft protection, and you TRY to withdraw more than what's in your account, the bank will contact you to see if you want them to cover it."
Which of the following transactions may be missing when you go online to review your checking account balance?
The check that you mailed to your cousin for his birthday today
ATM cash withdrawal from yesterday
Automatic payment for your car loan paid two days ago
Debit card transaction from purchasing snacks at a local convenience store today
Which of the following best describes monetary value?
An item’s worth in comparison to something else
The price at which an item is bought or sold for
The value an individual gives an item for personal reasons
The extent to which a person wants or needs an item
The budgeting process includes three important aspects. Which of the following describes the most important aspect?
Categorizing spending habits to know which habits to break
Categorizing spending wants because they result in dangerous spending
Assigning limits to categories because budgets are built on limitations
Committing to the limits and categories decided on
Which of the following is a common non-monthly expense that could be included in a monthly budget?
Gasoline
Oil Changes
Rent
Insurance
Which of the following is NOT true for the envelope budget?
It utilizes the psychological advantages of paying with cash.
Most, if not all, discretionary spending is done with cash.
If a person uses a credit or debit card, he will most likely spend less money than if he used cash.
Using cash instead of a card naturally limits spending.
Budgeting is not just about monitoring spending. More than anything else, effective budgeting involves ______.
Building savings
Managing credit
Breaking old habits
Behavior modification
Government student loans can be subsidized and unsubsidized. Which of the following best describes the primary difference between them?
Unsubsidized loans charge interest while the student is in school, but subsidized loans do not.
Subsidized loans will always have smaller payments than unsubsidized loans.
They both charge interest, but the government pays the interest on subsidized loans while the student is in school.
If a student receives grant money, their loans are considered subsidized by the grant itself.
Making the choice to spend money on postsecondary education pays off in the long run because:
You or your parents can write it off your taxes.
You can get grants and scholarships to pay for post secondary education while you are there.
The salary you will earn with a degree will pay back the cost of college over your career.
There are less expensive options for obtaining a post secondary education.
What does the acronym FAFSA stand for?
Federal Association for Financing Student Academics
Free Application for Federal Student Aid
Free Aid for Financial Student Assistance
Federal Application for Free Student Aid
Armani was awarded approximately $25,000 in scholarships. He also received $1,000 in Pell Grant money. Assuming his tuition and fees totaled around $16,000, what amount of money will Armani receive as a return from his unused scholarships?
$45,000
$13,000
$10,000
$42,000
Which of the following is NOT a factor that affects when the student no longer has to share parents’ income on the FAFSA
Marriage
24 Years Old
Veteran Status
The fact that you're paying
The first step to financial freedom is to stop digging a pit. This represents ________.
Not getting into more debt
Getting out of debt
Creating a safety net for major issues
Making sure that old, negative habits are unavailable
Which of the following best describes the snowball method for paying off debts?
Debt is paid off faster, as all the extra money is evenly spread out over each debt.
The principal amount of debt gets bigger as each debt is consolidated into a new one.
The amount of extra money paid toward debts gets bigger as each debt is paid off, and the payment amount is added to the next debt.
Paying off the biggest debt takes a long time, but the amount of money available for the next debt becomes greater and momentum increases.
How much money should you have in your EMERGENCY fund (not crisis fund)?
$1,000
$5,000
3-6 Months of Expenses
1-2 Months of Expenses
Which of the following would most likely NOT be considered a financial emergency?
Replacing the refrigerator
Buying a new TV
Replacing a broken window
Fixing a Car
When it comes to loans, which of the following best describes principal?
The amount that you borrow
The extra amount you pay on what you borrow
The amount of time you have the loan out for
The minimum due every month
Loretta was recently preapproved for a car loan. Which of the following will her approved interest rate be based off of?
Her income and down payment
Her credit report/score
Her down payment
Her credit report/score and income
Which of the following is not a major cost of vehicle ownership?
Insurance
Fuel
Repairs
Cleaning and detailing
Maintenance
What does upside down mean in reference to car loans?
It means a person owes less on a car than it is worth.
It means a person owes more on a car than it is worth.
It means a car a person is trading in is worth less than the car she is buying.
It means a car a person is trading in is worth more than the car she is buying.
Which of the following maintenance issues is most likely going to be the responsibility of the tenant not the landlord?
Changing burned out light bulbs
Replacing the carpet
Painting the walls
Installing blinds on the windows
Which of the following up-front lease expenses is most likely to be refunded?
First month’s rent
Last month’s rent
Security deposit
Application fees
