Question 1

Amanda wants to find out what people’s favorite food is in her hometown.  Which of the following would be a good way to have a representative sample of the entire town?

Accepted Answer

Randomly mail a questionnaire to all the different neighborhoods and apartment buildings in her hometown.

Answer

Talk to her friends and their parents and ask them about their favorite foods.

Answer

Go to her church and ask the members of her congregation about their favorite foods.

Answer

Stand outside a local pizza place and ask people as they enter the restaurant.

Question 2

An 8th-grade student wants to find out what is the most popular type of music at her school.  Which of the following would be a good representative sample of all the students at her school?

Accepted Answer

Randomly asking students from every math class in the school.

Answer

Standing outside the band hall and asking students as they enter class.

Answer

Sending a question to her friends via social media asking them about the type of music they like.

Answer

Randomly asking students as they enter their 8th grade science classes.

Question 3

A large company wants to get the initial opinion of its employees on switching from five 8 hour workdays to four 10 hour workdays.  Which of the following would be a good representative sample of all of the employees?

Accepted Answer

Randomly select 3 employees from each department and have them fill out a survey with their opinions.

Answer

Ask the supervisors from each department what they think their employees would say.

Answer

Place a QR code linked to a survey in the cafeteria so employees can give their opinion.

Answer

Ask employees who have children what they think about the new schedule idea.

Question 4

The table shows different interest rates for a 5-year loan of $8000.  Which conclusion concerning the loans is most accurate?

Accepted Answer

As the interest rate goes up the total repayment goes up.

Answer

As the interest rate goes up the total repayment goes down.

Answer

As the interest rate goes up the total repayment stays the same.

Answer

The interest rate and the total repayment have no affect on one another.

Question 5

The table shows different terms, different interest rates, and different monthly payments for a loan of $12000.  Which conclusion concerning the loans is the most accurate?

Accepted Answer

A shorter-term has a higher interest rate and a higher monthly payment but one ends up paying less overall.

Answer

A longer-term has lower interest rate and a higher monthly payment but one ends up paying less overall.

Answer

A longer-term has higher interest rate and a lower monthly payment and one ends up paying less overall.

Answer

A shorter-term has a lower interest rate and a lower monthly payment and one ends up paying less overall.

Question 6

Which of the following correctly describes an advantage and a disadvantage of using a credit card?

Accepted Answer

It can offer rewards for using it but it is also easy to overspend.

Answer

It can help pay for emergencies and does not have a proof of purchase record.

Answer

It can help you stay within budget but the transaction may be denied if there are insufficient funds.

Answer

It is difficult to use and interest is charged to payments.

Question 7

Which statement is false concerning different methods of payments?

Accepted Answer

To avoid identity theft with online banking use public wifi and keep track of all transactions.

Answer

With cash, keep track of the amount of money you start with and always keep receipts in case you need to return something.

Answer

To avoid overdraft fees on a debit card keep track of transactions and the balance on your bank account.

Answer

To avoid interest on credits cards pay off the credit card every month.

Question 8

Which situation represents a financially irresponsible decision?

Accepted Answer

Alex uses his credit card to purchase pay his utility bill, groceries, his electric bill. He has a balance of $511.76. Alex decides to purchase NBA tickets rather than pay off his credit card.

Answer

Jonathan has the bank direct deposit $100 from his paycheck to his savings account.  This way it seems as if he never had the money.  His savings account is growing steadily.

Answer

Miranda wants to purchase a larger house. She could get a house loan but she might not be able to afford the monthly payments. She decides it is not something she can afford at this time.

Answer

Heather is graduating from college. She has accumulated $20,000 in student loans; however, she will now be making $40,000 more per year than she could have made without a Bachelor’s degree.

Question 9

Which situation represents a financially responsible decision?

Accepted Answer

Taylor wants to get a new phone for $800 and she does not have any money saved for this.  She decides to wait on buying the new phone since her old phone works fine.  She starts saving money every week for the new phone so that she can pay it off in cash.

Answer

Cody wants to get a new video game system.  He can’t afford it right now so he takes out a payday loan for $300.

Answer

Ben just got a new job that pays $60,000 a year.  He has a 10 year old truck that runs well.  He decides to sell his truck and buy a new $50,000 truck by taking out a loan

Answer

Susan needs to buy a used car for $10000.  She has $4000 in savings.  She decides to take out a loan for $10000 at 8% and use the money on a new TV, a new home entertainment system, and a new couch and recliner.

Question 10

Which statement does not represent a financially responsible mindset?

Accepted Answer

Always live outside your means.

Answer

Save early and save often.

Answer

Keep track of your spending.

Answer

Payoff your credit card bill each month.

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