Final Quiz
Good Luck.
1. Filing for bankruptcy will make it almost impossible for you to obtain:
a. a traveling visa
b. a checking account
c. a loan for a car or house
d. work
C. a loan for a car or house
2. Bankruptcy should be considered:
a. an absolute and total last resort to rid debt
b. a quick fix to alleviate your debt
c. not a big deal; it doesn’t mean much, really
A. an absolute and total last resort to rid debt
3. Bankruptcy stays on your credit history for:
a. 1 month
b. 6 months
c. 3 years
d. 10 years
e. the rest of your life
D. 10 years
4. You begin to pay off your college loans ____ after you graduate.
a. immediately
b. 2 months
c. 6 months
d. 8 months
C
5. Which of the following is NOT an asset?
a. cash
b. bonds
c. real estate
d. health insurance
e. stocks
D
6. Any credit card is pretty much alright to get; almost every card can basically fit your needs.
True
False
*False
7. Lenders invest in your potential to pay off a loan; for their services, they get a fee from you, called:
a. investor’s payback
b. appreciation
c. return
d. reciprocation
C. Return
8. Lenders use _____ to calculate your payment.
a. a personal interview
b. an interest rate
c. a central database
B. An interest rate
9. If you don’t feel safe getting a credit card, but find that a credit card is useful to rent cars and purchase things online, consider:
a. buckling down and getting a credit card.
b. getting a debit card
c. asking someone else
B. Getting a debit card
10. A debit card utilizes _____ to make your purchases.
a. your savings account
b. your checking account
c. money you have yet to attain
d. your retirement account
B.
11. Interest Rate is:
a. A rate charged or paid for the use of a house or car.
b. A rate charged or paid for the use of someone else’s money.
c. A rate charged or paid for the use of your own money.
B.
12. What percentage of graduating college seniors have credit-card debt before they even find work?
a. 10%
b. 20%
c. 30%
d. 50%
e. 80%
E. 80%
13. Maintain good credit is something no one can predict.
True/False
False
14. What are the ways to help maintain good credit?
a. Pay on time, keep balances below 80% of their limit, limit the number of accounts you have
b. Pay on time
c. Pay on time, buy a lot of things.
A.
15. A new car will lose 60% of its value in the period of:
a. two years
b. four years
c. six years
B.
16. The lower your credit rating, the ____ your interest rate
a. lower
b. higher
B.
17. Most loans for large items like a house require down payments for houses anywhere between ___ and ___ percent.
a. 5 and 7
b. 9 and 10
c. 1 and 30
d. 3 and 20
D
18. True wealth is accumulated over:
a. Risk
b. Time
B.
19. Credit card debt is an investment.
True/False
False
20. How should you document your charges when you use a debit card?
a. Write it on a single sheet of paper.
b. Document it into your checkbook.
c. It doesn’t matter.
B
21. What percent of your monthly income should you reserve for emergency purposes?
a. 5%
b. 4%
c. 3%
d. 2%
A
22. When making a budget, figure to “spend” all of your money:
a. at the end of the budget’s month
b. right when you make the budget
c. somewhere in the middle that you choose
A
23. The grand majority of retirement-age Americans live paycheck to paycheck, and cannot write a check for ___ because they usually don’t have that amount in their accounts.
a. $150
b. $350
c. $600
d. $1000
e. $2000
C.
24. The secret to saving isn’t so much a secret; it lies in:
a. Simply not going into debt.
b. Putting a bunch of money in, one time, and letting it sit.
c. Consistent, stubborn saving for a long period of time.
C
25. You need to win the lottery to gain wealth in your lifetime.
True/False
False
26. Which of these ways will gain you $200,000 the most sensibly (given that it actually will)?
a. Putting $5000 a month in a standard savings account at your local bank for 40 months
b. Putting $500 a month in an IRA that assumes 10$ interest for 4 years.
c. Putting $50 a month in an IRA that assumes 10% interest for 37 years.
C
27. CD’s (Certificate of Deposit) are a great way to:
a. Reserve for small emergencies, like a car repair
b. Save for a specific item, like a better car
c. Both
d. Neither; CD’s were out of style with the dawn of the MP3.
C
28. Retirement age is:
a. 60
b. 65
c. 70
d. 80
B
29. It’s great to have a safety net. How big should the net be?
a. Your typical monthly budget
b. Your typical monthly budget times 3 to 6.
c. At least $50,000
B
30. Typically, how much of your income should go into retirement?
a. 1-3%
b. 3-7%
c. 7-15%
d. 15-25%
C