Question 1

A budget is...

Accepted Answer

a spending plan where you assign every dollar a purpose, on purpose, before you start spending

Answer

an unchanging document that lists all of your spending for a specific period

Answer

only needed when you get short on money and need to get your finances back on track

Answer

All of the above

Question 2

What are a couple of things a budget can do for you?

Accepted Answer

None of the above

Answer

makes saving unecessary because all of your current and future needs are planned for

Answer

All of the above

Answer

allows you to anticipate future financial problems and how to plan accordingly

Answer

help you calculate how much you need to save for taxes at the end of the year

Question 3

The debt snowball that Dave Ramsey teaches helps people out of debt by telling them to...

Accepted Answer

pay off credit cards with low balances first

Answer

Pay off credit cards with the lowest balances and lowest rates first

Answer

pay of credit cards with highest interest rates first

Answer

pay off credit cards with high balances first

Question 4

Even though actual FICO Scores range from 350 – 850, most people fall into a range of only about 300 points

Accepted Answer

True

Answer

False

Question 5

The average person in the US has a credit score which would be considered excellent

Accepted Answer

False

Answer

True

Question 6

All lenders interpret credit scores the same way

Accepted Answer

False

Answer

True

Question 7

There are many federally authorized/approved websites on the Internet where you can get your free credit report

Accepted Answer

False

Answer

True

Question 8

Companies like utilities and cell phone companies never report to the credit bureaus

Accepted Answer

False

Answer

True

Question 9

Most important factor towards calculating your credit score is

Accepted Answer

D. How timely you are at making your payments

Answer

B. The variety of credit you have

Answer

A. How long of credit history you have had

Answer

C. The amount of available credit you have

Question 10

Closing credit cards that you have no balances on hurts your credit score because

Accepted Answer

D. A and/or B

Answer

A. It reduces the amount of available credit you have, compared to used credit

Answer

B. It can shorten the length of your credit history

Answer

C. Closing a credit card is a sign that you are over your head in debt

Question 11

The exact manner in which your credit score is calculated can be found by

Accepted Answer

D. The way a credit score is calculated is largely a mystery

Answer

A. Visiting the Federal Trade Commission website

Answer

C. A simple Google search

Answer

B. Visiting the Credit Bureau website

Question 12

A free credit report can be obtained from each of the credit bureaus every year from

Accepted Answer

D. Annual Credit Report .com

Answer

A. Free Credit Report .com

Answer

C. Credit Reports Are Us .com

Answer

B. My Credit Report .com

Question 13

Some good advice for maintaining a good credit score is

Accepted Answer

D. All the above

Answer

B. Keep low balances on all cards rather than large balances on a few

Answer

A. Pay off your credit card balances completely at least once in a while

Answer

C. Keep and continue to use older cards even if they don’t have the best terms

Question 14

What is bankruptcy?

Accepted Answer

D. Both A and C

Answer

A. Legal protection from creditors

Answer

C. A way to start over; a 2nd chance

Answer

B. An easy way out of debt

Question 15

A Chapter 7 bankruptcy is known as a liquidation bankruptcy, however many people end up keeping everything because

Accepted Answer

C. Their property is worth less than the allowable federal exemptions

Answer

B. They are still making payments on the items

Answer

D. They make a special agreement with the creditors

Answer

A. They just don’t report many of their assets

Question 16

A Chapter 13 bankruptcy is favored by some people even though they may end up having to pay back a large amount of their debt because

Accepted Answer

B. They may be able to keep assets that are worth more than federal exemptions for a 7 allow

Answer

D. They don’t need to hire a lawyer

Answer

C. They don’t have to go to court

Answer

A. It doesn’t hurt their credit score for as long as a Chapter 7

Question 17

Before a lawyer can even file your case for bankruptcy you need a ticket in which means

Accepted Answer

D. A non-profit credit counseling service has to agree that there is no possibility for repaying your creditors

Answer

A. You have to pay the lawyer in full before he will do any work for you

Answer

B. A Non-Profit credit counseling service has to get your creditors to lower your rates and work out a plan for repayment

Answer

C. Your bankruptcy has to be approved by your creditors

Question 18

In order to even qualify for a chapter 7 bankruptcy you have to pass a means-test which establishes that

Accepted Answer

A. Your income is below average for your state

Answer

D. You make too much to qualify for a chapter 13

Answer

B. Your income is above average for your state

Answer

C. You make too little to qualify for a chapter 13

Question 19

In order to finalize a bankruptcy, debtors must first

Accepted Answer

C. Take an approved personal finance class

Answer

B. Have a money management counselor say that you have learned your lesson

Answer

A. Complete the repayment plan created by the court

Answer

D. All of the above

Question 20

Claiming bankruptcy is an easy way out of debt

Accepted Answer

False

Answer

True

Question 21

Bankruptcy barely affects your ability to get credit

Accepted Answer

False

Answer

True

Question 22

When filing a chapter 7 bankruptcy, most people have to liquidate all of their personal belongings

Accepted Answer

False

Answer

True

Question 23

Student loans cannot be discharged in bankruptcy

Accepted Answer

True

Answer

False

Question 24

Around a half million people a year file for bankruptcy now days

Accepted Answer

False

Answer

True

Question 25

Filing for bankruptcy is pretty easy and most people can file themselves

Accepted Answer

False

Answer

True

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