WorksheetsFinal Exam - NGPF Assessment
Total questions: 50
Worksheet time: 1hrs 6mins
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. What do you tell him?
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.
Why is sending a personalized thank you after a job interview important?
It shows that you want the job even if you don’t really like the company
You can apologize for any mistakes you made in the interview
It gives you the opportunity to leave a good impression by expanding on an answer you gave or a topic you discussed
It allows you to boast about your accomplishments one last time
What do you need to subtract from a college’s cost of attendance in order to find the net price?
Student Aid Index
Application fees
Personal expenses
Your grants and scholarships
All of the following are characteristics of a secured credit card EXCEPT...
Your credit limit is dependent on the amount of your security deposit
They lower the risk of banks when issuing credit to users with no credit history
They help you build a credit history and improve your credit score
They don’t have a spending limit, so you have to be very mindful of how much you buy with them
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 the 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
The monthly premium for Kevin’s renters insurance is 15,andhisdeductibleis 500. During the month of April, someone breaks into his apartment and steals or destroys $2200 worth of his possessions. How much will Kevin pay and how much will the insurance pay to replace his items?
Kevin pays 0//insurancecompanypays 2200
Kevin pays 15//insurancecompanypays 2200
Kevin pays 500//insurancecompanypays 2200
Kevin pays 500//insurancecompanypays 1700
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 paperwork you complete in order to have part of or all of your student loan debt forgiven
The application you submit in order to determine eligibility for federal 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
All of the following can be found in your credit report EXCEPT...
Your credit payment history
Your checking account balance history
The average age of your credit accounts
Your total number of active credit accounts
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 1000usinggraduationmoneyandthenpays 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 300paymentspermonthuntilthedebtis 0
Using Target Date Funds can be beneficial for beginner investors, because...
A fund manager customizes your asset allocations for you
It guarantees that you will have enough money for retirement and doesn’t require a lot of management
It will automatically adjust your assets for you over time
It minimizes risk by investing 50% in stocks and 50% in bonds
Which statement accurately describes the difference between a student loan and a scholarship or grant?
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 "gift aid" that don't need to be repaid
Student loans are a result of completing your FAFSA, while scholarships and grants are a result of winning contests
Student loans are only available to a select few college students each year, while scholarships and grants are plentiful and easy to get
When you have liability coverage with your auto insurance policy...
Your insurance will cover the payment for your broken windshield if your car gets broken into
You cannot be found liable or guilty of causing an accident
Your insurance will cover the payment for your neighbor's fence repair if you crash into it backing out of the driveway
Your medical bills will be covered if you're in an accident, even if you are at fault
All of the following scenarios are examples of dark patterns EXCEPT...
Mihir makes an unintended in-app purchase due to confusing buttons in the app
Jessica books a hotel room before reading its reviews due to a countdown timer on the website
Idris has to go through a series of tedious steps to close an account for an online shopping site
Arya is able to unsubscribe from an email list using the clear "unsubscribe" link at the bottom of one of the emails
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 401(k) 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
What information is typically included in a resume?
References and recommendations
Personal statement and career goals
Education, experience, and work skills
Introduction and personal story
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, and insufficient funds fees
One inconvenience is that once you set up mobile banking on your phone, you can't use online banking on your computer any more
A con of mobile banking is that typically banks charge you a 10−15set−upfeeinadditiontoasmallmonthlyfee( 3) for mobile banking privileges
Maura has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is she likely to receive during her first week on the job?
A Medicaid enrollment form
A W-4 form
A 1040 form
A W-2 form
You have 3000permonthtocoveryourexpenses.Youestimateyourmonthlycoststoberentof 1200, car expenses of 700,utilitiesof 200, insurance of 300,foodof 400, student loans of 800,andgoingoutwithfriendsof 200. What is the end result?
A budget deficit of $800
A budget surplus of $800
A total budget of $6800
$0
Comparison shopping is the practice of...
Comparing a product you bought a year ago to an updated version that is available now
Comparing the quality of a product you bought to the quality of a similar product your friend bought
Comparing the prices of two unrelated products you need to purchase
Comparing various factors of the same product offered by different retailers before making a purchasing decision
What is one step you can take to protect yourself from identity theft?
Check your bank statements each month to verify that all transactions are accurate
Log into your bank's mobile app using a public WiFi network
Throw away expired bank account cards and documents without shredding them
Use websites that start with "http" instead of "https"
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 a 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
1. What is the main purpose of a budget?
To track expenses and income
To plan for future financial goals
To limit spending
To allocate resources efficiently
Which of the following is a fixed expense?
Rent
Groceries
Entertainment
Clothing
True or False: A budget can help you save money for future goals.
True
False
Which of the following is an example of a variable expense?
Mortgage
Utilities
Dining out
Insurance
Which of the following statements is TRUE about the value of a college degree?
A high school graduate can expect to earn about the same as a college graduate.
Every college graduate can expect to have a starting salary over $60,000 right after college.
A college graduate can expect to earn on average more than a high school graduate over a career.
A college graduate typically earn less than someone with a high school diploma for the first 10 years.
During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues...
Grace Period
Grants and scholarships
FAFSA
Forbearance
The federal governmnet makes interest payments on _____ while you're enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.
Work-Study
Subsidized Federal Loans
Unsubsidized Federal Loans
Grants
Which of the formulas below correctly calculates net price?
Sticker price - student loans = net price
Grants and scholarships + student loans = net price
Sticker price - grants and scholarships = net price
Sticker price + grants and scholarships = net price
Which repayment option does not accrue interest while your required payments are paused?
Consolidation
Deferment
Refinancing
Forbearance
What are the two most important factors in calculating your credit score?
Payment history and types of accounts
Amounts owed and length of credit history
Payment history and total debt
Length of credit history and new credit inquiries
What is the general timeline to establish your first credit score?
As soon as you apply for a credit card or loan
Six months after you first actively use your credit
Once you pay all of your credit balances in full
Once you turn 18
Which best describes the Debt Snowball method for paying off debt?
Only make payments on your smallest debt first, then move on to your second smallest debt and so on.
Once your debt snowballs out of control hire a certified credit counselor to help get your finances back on track.
Make the monthly minimum payments on all your debts and then put any extra cash towards the debt with the highest balance
Make the monthly minimum payments on all debts and then put extra cash towards the debt with the lowest balance
Who tracks all your credit information?
Credit reporting agencies (Equifax, Experian, and TransUnion)
Federal Government
Consumer Financial Protection Board (CFPB)
Lenders
What is a 529 account?
A retirement savings account
A college savings account
A health savings account
A tax-free savings account
How does the 50-30-20 rule distribute your income?
50% for needs, 30% wants, 20% savings
50% for wants, 30% needs, 20% savings
50% for savings, 30% wants, 20% needs
50% for needs, 30% savings, 20% wants
How does inflation impact the money in your savings accounts?
It increases the value of your money
It has no impact on the value of your money
It decreases the value of your money
It depends on the interest rate
About how much should you save in an emergency fund?
1 month of expenses
6 months of expenses
3 months of expenses
1 year of expenses
How do you avoid paying interest on your credit card?
Always pay the account balance in full and on time.
Always make the minimum payment
Pay interest 1st, then pay what you can on leftover balance
Pay the principal 1st, then pay what you can on interest
What is a Schumer Box when applying for a credit card?
It summarizes information like interest rates, fees, and grace periods
It gives a detailed explanation of your credit history
It summarizes how much interest you have accrued in the last 90 days
It tracks your spending habits to help you find ways to budget your money
Which of the following is typically a SECURED Loan?
Auto Loan
Credit Card Balance
Student Loan
Overdraft
What is the name of the tax form that requires you to provide identification and prove you are eligible to work in the U.S.?
I-9
1099
1040
W-4
What is a premium?
The amount you pay to buy an insurance policy
A specific amount of money that the insured must pay before an insurance company will pay a claim
An arrangement by which a company provides a guarantee of compensation for a specified loss
Measures that are taken for disease prevention
Why is risk pooling essential for the insurance industry to exist?
Risk pooling eliminates everyone who files expensive claims and makes them uninsurable
Risk pooling creates large groups to spread the risk level out while maximizing the amount of premiums that can be collected
Risk pooling provides every insured person with a monthly check, called a premium, so they can pay whatever bills they need
Risk pooling is a low-cost way for everyone to save their premiums in a saving account to use later
What happens when you reached your health care deductible and out-of-pocket maximum?
You will continue to pay 100% of your healthcare costs out-of-pocket
You will pay 50% of your healthcare costs out-of-pocket, which includes co-pays
The insurance company pays all covered costs for the rest of the year, with no annual limit
The insurance company pays for all covered costs for the rest of your life
Karishma has renters insurance policy with a coverage limit of $25,000. While she's on vacation a fire breaks out, ruining $9,000 worth of possessions before the fire department puts it out. Her deductible is $500. How much will Karishma and the insurance company each pay?
Karishma pays $0, while the insurance company pays $500
Karishma pays $0, while the insurance company pays $9,000
Karishma pays $500, while the insurance company pays $8,500
Karishma pays $500, while the insurance company pays $24,500
