WorksheetsModule 2 review
Total questions: 21
Worksheet time: 11mins
Yashiro has been hired by a local fast food restaurant. His new boss tells him to bring a voided check with him to sign paperwork so that he can be paid. What bank product will he be signing up for?
Certificate of deposit
Savings account
Direct deposit
Credit check
The goal of budgeting is to make sure that you are spending money on things that you can afford. If you are spending more money than you earn, what economic situation exists for you?
Foreclosure
Surplus
Negative credit
Deficit
Eric recently graduated from college and has a goal of owning his own home by the time he is 30 years old. What tool should he be using him to help him plan how to spend his money?
Credit Card
Mutual Fund
Budget
Amortization calculator
What category would your electricity bill that varies each month fit in?
Fixed expenses
Variable expenses
Assets
Debt
Which of the following is a component that would MOST likely be found in a budget for a 65 year old but not for an 25 year old?
Long term care insurance
Mortgage
Student loans
Car insurance
Which of the following would you need if you decided to rent a place to live rather than purchase it?
Mortgage
Homeowner's insurance
Renter's insurance
Bank loan
If interest rates are currently at 3.5% and the bank offers you a loan that is guaranteed at 2.5% for the first 5 years that cannot go higher than 8%, what type of mortgage have you taken?
Adjustable rate mortgage
Fixed mortgage
Lease
Reverse mortgage
Which of the following is a characteristic of a responsible borrower
Allows other people to use their credit
Only uses approximately 30% of the credit that is available to them
Never makes monthly credit card payments on time
Opens a new credit card every time one is maxed out
What is an advantage of taking a 30 year fixed mortgage compared to other options?
Higher amount of principal paid each month
Less interest paid to the bank
Lower monthly payment
Lower homeowner's insurance costs
Which of the following is NOT a service provided by banks?
Sell groceries
Make car loans
Make personal schedules
Sell health insurance
What is the recommended percentage of your monthly income that should be devoted to housing?
30%
40%
20%
50%
What is the consequence of not writing a will and planning for your estate after your death?
The state will decide what happens to all of your assets.
All of your assets will be auctioned by your bank.
Your estate will be equally divided among all of your family members.
There will be a tax penalty levied on the estate.
Which of the following strategies is the best way to avoid paying extra fees to a bank?
Use out of network ATMs to withdraw cash.
Never worry about checking your balance because you know you have overdraft protection.
Allow your bank balance to dip below the minimum required balance
Set up online or phone notifications to let you know when your account balance is low
What is the best reason to avoid using overdraft protection offered by a bank?
Most banks don't offer overdraft protection
There are high fees associated with the use of overdraft protection.
Overdraft protection only covers savings accounts
Overdraft protection is only needed if you are writing checks.
WHat tool helps protect individuals from financially devastating events?
Insurance
Money market account
Credit card
Certificate of deposit
What is the best type of insurance to protect your personal belongings while living in a rental property?
Homeowner's insurance
Renter's insurance
Life insurance
Health insurance
Who should be consulted to help with estate planning and will writing?
Estate lawyer
Insurance agent
Real estate agent
Banker
What type of mortgage would be most likely to have the lowest monthly payment?
5 year adjustable rate mortgage
30 year fixed rate mortgage
10 year adjustable rate mortgage
15 year fixed rate mortgage
Akia wants to take out a loan to purchase her first car, a used Toyota Corolla. Where would you recommend she go to get the best interest rate and loan terms?
Car dealership
Payday loan store down the street
Pawn shop
Credit union
Brad's parents with a credit score of 750 added him to a credit card they had held for 20 years when he was 15 years old. When Brad turned 21, he wanted to open his own credit card. How did his parents' actions impact his credit score compared to applicants of the same age?
Brad's credit score was higher because he had already held a credit card for 6 years.
Brad's credit score was 0 because he had no established credit of his own.
Brad's credit score was lower because his parents had the account for 20 years.
Brad's credit score was lower because he had held a credit card for 6 years.
If you make all of your homeowner's insurance premium payments and a tornado hits your home during a bad thunderstorm, what will you need to do next to repair the damage?
File a claim with your insurance company
Prepare to pay for it with your own money because insurance won't pay
Take out a new insurance policy
Pay the deductible
