WorksheetsPersonal Finance and Credit Quiz
Total questions: 25
Worksheet time: 13mins
Why should you stay away from borrowing up to your credit limit?
Because you’re riding to the danger zone.
Because Dave Ramsey said so.
Because it reflects poorly on your credit score.
Because your interest rate increases when you borrow more on a credit card.
You find evidence that your identity has been stolen. Who should you contact first?
911.
The Federal Trade Commission.
Your local bank or credit union.
The post office.
Which of the following deductions are you most likely to see on your pay stub?
Auto insurance deduction.
Office cupcake deduction.
Social Security deduction.
Municipal tax deduction.
What is the main purpose of the dual accounting method?
To help you think twice about purchases.
To help you double check what you are spending your money on by confirming all receipts.
To record every transaction twice, reflecting them in accounts and in your budget.
To help you detect errors in your budget.
If you wanted to know what factors contributed to your credit score, how could you find out?
Check your credit report.
File a credit claim.
Call your credit card company.
Check your credit policy.
What’s a “hard inquiry”?
The document that you must fill out when you apply for a loan.
A note that’s added to your bank account when you’ve withdrawn over your limit.
A negative mark that appears on your credit score whenever you review your credit report.
When a financial institution requests information about your credit history for the purpose of extending more credit.
Which of the following shows up on your credit report?
How many open accounts you have.
Your debt-to-income ratio.
Your payment history.
A & C.
What is a debt-to-income ratio?
The ratio of your debt compared to your annual income.
Something that lenders look at on your credit report.
A percentage that helps lenders decide your ability to pay back a loan.
All of the above.
You hit a deer while driving. The deer is fine but your car isn’t. What kind of insurance must you have in order for the damage to be covered?
Liability.
Comprehensive.
Collision.
All of the above.
What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)?
15 percent.
18 percent.
20 percent.
35 percent.
Which of these is not identity theft?
Someone uses your identity to benefit financially.
Someone steals your credit card and goes on a shopping spree.
A scammer poses as a representative from a charity and asks for money.
A stranger files for a tax return under your name.
Why would you want to claim an exemption on your pay stub?
It will reduce the money you have to pay for insurance.
It will give your employer permission to put some of your earnings in a 401(k).
It will lower the amount of taxable income you have.
None of the above.
You bought $230 in clothes and charged it to your credit card. What happens if you don’t pay the balance off by the end of the month?
You’ll get an exemption on your credit report.
You’ll see an increase in your interest rate.
You’ll have to pay your credit deductible.
You’ll start to accrue interest on your credit card balance.
You don’t have dependents. Do you still need life insurance?
Yes; it can pay for medical and funeral costs.
Yes; it will make health insurance more affordable.
No; the government will pay for your expenses.
No; no one is depending on your income.
What would be the main benefit of paying in cash for a car instead of taking out a loan?
The price of the car is always 5% less when you pay in cash.
Paying in cash will give a boost to your credit score.
You won’t have to pay for registration and inspection on top of the car price.
You don’t have to pay interest because you won’t have a loan.
What does APR stand for?
Annual Percentage Rate.
Amortized Payoff Rate.
Annual Principal Return.
Automatic Payment Receipt.
Which of the following is true about tax returns?
You must have an accountant sign off that you filed correctly to get your return.
The government will always owe you money every time you file your taxes (that’s why you do it).
The more you pay for tax filing services, the more you will get on your tax return.
The number of exemptions you declare will affect if and how much you get on your return.
What is a 401(k)?
A retirement plan that automatically saves part of your tax return each year.
A special hybrid checking and saving account that allows you to earn interest and still write checks.
The more you pay for tax filing services, the more you will get on your tax return. A measurement of how much money you’ve contributed from your paycheck to taxes for the year.
An employer sponsored retirement plan where you contribute some of your paycheck.
In order to qualify for a mortgage with good rates, you have to have a high enough _____.
Credit score.
Finance approval rating.
Rate of return.
Credit report.
Debt-to-income ratio.
Which of the following is true about car loan terms?
The shorter the term, the higher the interest rate.
The shorter the term, the lower the interest rate.
The interest rate is the same no matter the length of the loan.
The longer the loan term, the lower the rate.
What is the best protection against uninsured drivers?
There is none.
Comprehensive insurance.
Liability coverage.
Uninsured motorist coverage.
When you apply for a mortgage, the lending institution will likely use your gross income to help decide if you qualify. What is that?
Your income after taxes are taken out.
Your income before taxes are taken out.
The income you earn from investments and interest bearing accounts.
Income from a salaried position only. It doesn’t include side jobs or hourly work.
When buying something with a loan, you can lower the amount you pay each month by paying a higher _____.
Interest rate.
Deductible.
Down payment.
Exemption.
You got in a car accident and repairs will cost $3,000. After filing your insurance claim, you only paid $500. Why?
That’s all you budgeted for car repairs.
Your deductible is $500.
Your exemption is up to 18%.
Your withholding is $500.
Your _____ is the amount you own in assets minus everything you owe.
Net Worth.
Net Income.
Principal.
Personal Return.
