WorksheetsEPF Unit 2 Part 1 Study Guide - Money Management
Total questions: 20
Worksheet time: 10mins
What are Jade’s variable expenses?
Rent and loans
Groceries and entertainment
Insurance and savings
All of the above
What are Jade’s fixed expenses?
Rent and loans
Groceries and dining out
Entertainment and travel
Clothing and accessories
What areas can Jade make cuts if needed?
Utilities
College loans
Clothing
Pet care
What expenses above would be a discretionary expense?
Rent
Groceries
Dining out
Utilities
Which of the following is a pro of buying a home?
Making payments improves your credit.
It requires a large down payment.
It limits mobility.
It involves maintenance costs.
Which of the following is a pro of renting a home?
Flexibility to move.
Building equity over time
Potential tax benefits
Ability to renovate freely
The first piece of information needed to make a decision on a mortgage type is:
Budget
Down payment amount
Interest rate
Loan term
The recommended down payment on a fixed rate mortgage is:
5%
10%
20%
25%
The interest rate starts to fluctuate in an adjustable-rate mortgage:
at the beginning of the loan term
after a fixed period
After 20 years
After 30 years
What is the APR for a FICO score of 720?
5.935%
6.157%
6.334%
6.548%
Lacey wants to buy a 160,000 home. Her credit score is 745. She has a down payment of 32,000. What is her APR according to the FICO Score table?
Which is true about leasing a car? (choose BOTH correct answers)
Leasing a car means that the car goes back to the dealer after the lease is up
Leasing a car means monthly payments are more expensive than buying a car
Leasing a car means you have a limit on the miles you can drive
Leasing a car requires a large down payment.
Discretionary spending refers to:
Spending that comes first
Spending that is required
Spending that is optional
Spending that is a risk
The principal in a loan refers to:
The total amount of interest paid over the life of the loan
The original sum of money borrowed in a loan
The monthly payment amount
The total amount of money paid at the end of the loan term
The purpose of mortgage insurance is to:
protect the lender in case the borrower defaults on the loan
increase the interest rate on the mortgage
reduce the down payment required by the borrower
provide tax benefits to the borrower
What is NET pay?
What is GROSS pay?
What is a budget?
A budget is a spending plan
What happens to the car at the end of a lease?
The car is returned to the dealer.
The car is given away to charity.
What is the benefit of a fixed-rate mortgage?
lower interest rates.
no down payment required
option for variable payment amounts.
predictable monthly payments.
