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WorksheetsBusiness Final
Total questions: 20
Worksheet time: 2hrs 36mins
Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?
Her principal is the cost of the car, minus any down payment she makes
Her interest rate is the total cost she'll pay after making all of her principal and interest payments
Choosing a shorter term means it will take her longer to repay the loan
It's likely that her monthly payment will be between 4-5% of the cost of the car
Jaime is creating a budget for the first time and doesn't know which to use - NET PAY or GROSS PAY
"Use net pay, because it's the total amount you've earned minus taxes and other deductions"
"Use gross pay, because it's the total amount you've earned minus any recurring bills you owe for the month"
"Use net pay, because it's the total amount you've earned for the month"
"Use gross pay, because that is the amount that is reported to the government for taxes"
Jennifer is trying to save up for an emergency fund of $3000. Which saving strategy would likely be most effective in helping her meet her goal?
At the end of the month put any leftover money from her checking account into her savings instead
Set up direct deposit of $75 from each paycheck to automatically get put into her savings account instead of her checking account
Wait until shes paid off all of her credit card and student loan debt and then start saving for an emergency fund
Every month, after she's paid for rend, student loan and credit card debt, utilities and groceries, put $50 or $100 into savings
Super Smarts University has a sticker price of $45,000 per year. Kyle is applying there and uses their online net price calculator, which calculates a net price of $38,000 per year based on the information he is provided. He's #1 in his high school class, and he's got great SAT scores; so he's pretty sure he'll get in. How much will Kyle pay to attend?
The exact net price
Within a range of $5000
$0 because he'll likely get a full ride due to his high school achievements and scores
It's impossible to know how much he'll pay until he receives his financial aid package
Which of the following would have the most positive impact on your credit score?
Close any credit cards you're no longer using
Spend more money on each of your credit cards
Take out a car loan for $18,000 or more
Make all payments on time, and focus on paying down any credit cards that are close to their credit limits
Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
Pays with a prepaid card she loaded earlier in the month
Uses her credit card and says, "credit" when cashier asks, "credit or debit?"
Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"
Pays with cash she had in her purse
Which definition best describes the FAFSA?
The amount of money the federal government offers you in student loans
The paperwork your bank has you complete in order to take out a personal student loan
The paper work you complete in order to have part of or all of your student loan debt forgiven
An application you complete in order to determine eligibility for Federal government student aid
Which of the following best describes the amount of money you'll have if you put $1000 into a savings account earning 1% annual compound interest for 10 years? You can ignore the impact of inflation in this question.
Exactly $1100
Slightly more than $1100
$2000
Exactly $11,000
Which of the following would impact your credit score?
The number of times you choose "credit" when given a choice between "debit and Credit" at a register
Your debt-to-credit ratio
If you buy items at full price or at a discounted price when using credit
The types of items you're buying using credit
Suppose you are trying to switch banks or open a brand new credit card. Which strategy will likely lead to the WORST long-term outcome?
Look for sign-up bonuses or introductory offers that will make the product a good deal
Read online reviews carefully, and consider those that align most closely to what you value
Spend some time comparison shopping before finalizing your decision
Review the fine print closely, paying close attention to fee structures and interest rates
These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?
Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0
Jasmine, who had saved the $1500 previously and pays off the whole balance once her bill comes
Nelson, who makes the minimum monthly payment each month until the debt is $0
Robert, who makes $300 payments per month until the debt is $0
Which statement accurately describes the difference between a student loan and a scholarship or grant?
Student loans are only available to a select few college students each year, while scholarships and grants are plentiful and easy to get
Student loans are a result of completing your FAFSA While scholarships and grants are a result of winning contests
Student loans always come from the Federal government while scholarships and grants always come from the college
Student loans need to be repaid, while scholarships and grants are both "free money" that don't need to be repaid
Which person from this list is saving rather than investing?
Yvonne, who puts $750 per month into her bank account earning 1% interest
Danielle, who contributes 2% of her pay to her company's 401k plan
Daryl, who uses his $5000 end-of-year bonus to buy treasury bonds
Alexis, who buys $100 worth of shares in an S&P 500 index fund every month
Mia 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?
Jordan says "with overdraft protection, you never have to worry about how much money is in your account"
Donnie says "Yes, you'll have to pay a fee for each over draft, but you DON'T have to pay the bank back the money you overdrew your account by"
Frank says, "Overdraft protection is handy if you have an emergency (like needing gas to get to work) and don't have the funds right now."
Alex says " if you don't get overdraft protections, and you TRY to withdraw more than whats in your account, you pay a fee anyway"
Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck EXCEPT...
Medicare
Federal Taxes
Overdraft fees
Social Security
Jay asks his friends for advice: "Should I start doing mobile banking now that I've got my new smartphone?" Which friend is correct in their statement on the benefits of mobile banking?
It's so convenient, because you can deposit your check using your phone's camera and the bank's app
One major pro of mobile banking is that they typically waive all of the normal fees like overdraft fees, ATM fees, insufficient funds fees
One inconvenience is that once you set up mobile banking on your phone you cant use online banking on your computer any more
A con of mobile banking is that typically banks charge you a $10-15 set-up fee in addition to a small monthly fee (~$3) for mobile banking privileges
You have $3000 per month to cover your expenses. You estimate your monthly costs to be rent of $1200 car, expenses of $700 utilities of $200, insurance of $300, food of $400, Student loans of $800, and going out with friends of $200. What is the end result?
A budget deficit of $800
A budget surplus of $800
A total budget of $6800
$0
Susie works two jobs so she can pay tuition without using student loans, helps her sick mother with housework and errands, and is attending college. She knows she should be saving for retirement. Which strategy is best for Susie?
Auto-Invest a small fixed amount in a Roth IRA every month
Buy shares of the top 5 preforming stocks every month. Switch which companies she's investing in based on their monthly performance
Wait until she's got more disposable income to invest -- if she starts now, she won't be investing enough to make it worthwhile
Pick one company's stock -- maybe her favorite store or restaurant -- and invest the same amount every month
Hudson always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay?
His car loan with 6.9% interest rate
His credit card with a 19.7% interest rate
His private student loans with an 11.8% interest rate
His Federal student loans with a 3.76% interest rate
Which of the following most accurately describes robo-advising?
It uses software to automatically adjust your asset allocation based on your preferences
It requires a human fund manager to actively manage your investments
If used, you'll be charged higher fees but you're guaranteed to outperform the stock market
It is a relatively old investing tool that is quickly becoming outdated
