WorksheetsUnit 6 Investment and Credit Quiz
Total questions: 35
Worksheet time: 18mins
How often should you review your monthly home budget?
Daily
Every Two Years
Monthly
Weekly
What is the First Principle of Finance?
Make Your Money Work For You
Spend Less Than You Earn
Protect Your Money
Spend More Than You Earn
What is the Second Principle of Finance?
Make Your Money Work For You
Spend Less Than You Earn
Protect Your Money
Spend More Than You Earn
Portions of Money taken out of a paycheck (Gross Pay) before you receive your money (Net Pay) are called _________.
(Examples: Taxes, Retirement, Health Insurance, FICA)
Interest
Payments
Deductions
Tax Refund
Using this Pay Stub, which value shows the total "current deductions" of the taxpayer?
$315.21
$284.79
$2563.11
$334.80
Debit card purchases come out of your checking account, not savings account.
True
False
Match the term to its definition:
_________ is the price you pay to borrow money or the cost you charge to lend money.
Interest
Mortgage
Insurance
Credit
In which of the following ways can you NOT pay your taxes?
Bank Account
Debit Card
Digital Wallet
Airline Miles
Elijah is applying for an auto loan. The lender considers Elijah creditworthy MOST LIKELY because Elijah...
has a new job.
has a home mortgage loan.
has many credit cards already.
has made on-time payments to other loans.
Ricky receives a credit card offer in the mail. The offer contains a low introductory rate. Although all of these are important factors, which of these should he investigate FIRST before accepting the offer?
availability of special programs, such as frequent flier miles
the type of card, such as secured, regular, or premium
the APR after the introductory period expires
the cash advance and ATM features
You have decided to save money to buy a car. You would like to buy a car in the next 6 months. All of the following options allow you to save money. Which option is NOT a good choice for your short-term needs?
Checking Account
Money Market Account
Savings Account
Individual Retirement Account
Patrick would like to increase his earnings. The option MOST LIKELY to increase his earnings potential in the long-term is to
spend money for additional training and education
spend money to renew current training
take a similar position with a different company
laterally transfer to a different job within the same company
Which situation explains how a credit becomes a debt?
A buyer purchases furniture on credit, and then owes a debt to the furniture store.
An electronics store extends credit to a buyer, and then owes a debt to the plumber.
A mechanic exchanges services with a plumber, and incurs a debt to the plumber.
A farmer purchases used equipment in exchange for a share of the crops grown.
Why are credit unions typically able to offer higher interest rates to savers and lower interest rates to borrowers than commercial banks?
Credit unions are required by law to pay different rates than commercial banks.
Credit unions charge very high membership fees to make up for the other losses.
Credit unions are not-for-profit and are able to provide low membership fees.
Credit unions are federally funded to insure they pay more and charge less.
Checking Account
Savings Account
Loan to customers
All of these are functions of what institution?
Businesses
Coorporations
Schools
Banks
What is a major way that a consumer can protect themselves when getting a credit card?
Getting as many credit cards with as high limits as possible.
Checking the APR and getting many free points or rewards for using the card.
Making sure that they get a very high credit limit.
Reading the fine print, terms and conditions, and the APR.
Which statement best describes your right to check your credit history for accuracy?
You cannot see your credit record.
Your credit record can be checked once a year for free.
You can only check your record if you are turned down for credit based on a credit report.
All credit records are the property of the US Government and access is only available to the FBI.
When would be the BEST time to purchase an investment?
When you need cash and you liquidate the asset.
When the investment is available for less than its true value.
When your investment goals change because of life changes.
When the investment is available for more than its true value.
When considering creditworthiness, which person is likely to pay the GREATEST credit card finance charges if they all charge the same amount each month on their cards?
James, who always pays the minimum each month.
Anna, who sometimes pays more than the minimum amount.
Kayla, who always pays the full credit bill each month.
John, who usually pays his credit card bill in full, if he can afford to.
Aubrey and Grace are newly married and preparing to buy their first home. The financial institution with which they are applying for a loan is analyzing their credit history. Which set of scores indicates that Aubrey and Grace are dependable borrowers?
723; 759
687; 696
620; 655
500; 619
Tonya worked her way through college without having to borrow any money for her education. She now has her first full-time job teaching elementary school. Which of these is the BEST example of long-term financial planning for Tonya?
purchasing a more fuel-efficient car for her daily commute
saving to purchase a home in an established neighborhood
saving to rent an apartment close to her work
paying off her student loans ahead of time
FICO score
Girlfriend's name
Cash amount in your bank account
Number of traffic tickets
Which one of these is NOT one of the 3 main Credit Bureaus?
Equifax
Experian
FICO
TransUnion
The highest FICO score possible is:
1600
1000
850
700
The biggest factor in your credit score is
payment history
amount owed
length of credit history
types of credit used (a good balance of open and closed loans)
The government authorized site to check your credit report is
Freecreditreport.org
Annualcreditreport.com
Creditreport.gov
Creditkarma.com
Sanjana is explaining what Social Security is to her younger brother. Which of the following descriptions should she use?
Social Security is a type of retirement savings plan that you can open through a brokerage firm
Social Security is a government program that pools contributions from current workers to then provide retirement support benefits to those who are eligible
Social Security is a type of retirement savings plan offered by some employers
Social security is a government mandate that requires employers to offer their employees a 401(k) or pension plan
Which of the following is TRUE about investing?
It guarantees a high rate of return over a short period of time
It can help you grow your money through the power of compounding
It is meant for achieving short-term financial goals
It involves little risk because your returns are insured up to $250,000
All of the following should be considered when creating your investing strategy EXCEPT...
Your credit score
The amount of time your money will be invested before you start drawing from it
Your risk tolerance
The amount of capital you have available to invest
Ben is 24 and wants to start saving for retirement. What can he do to set himself up for success?
Wait until his 30s to start investing
Invest 10-15% of his monthly salary
Invest primarily in low-risk investments like bonds
Delay his expected retirement age by 20 years
How can having a mix of credit accounts, such as a mortgage, car loan, and credit cards, affect your financial flexibility?
It limits the amount of credit you can access
It can improve your creditworthiness by showing you can manage different types of credit
It makes financial management more complex
It has no effect on financial flexibility
What is investing?
Spending all your money on toys
Putting money in a piggy bank
Using money to make more money
Borrowing money from a friend
