Question 1

Becky no longer wants to use her Macy's store credit card. What should she do with the cc?

Accepted Answer

Close the account then destroy the card

Answer

Keep the credit card in her wallet for ID

Answer

Let a family member take over the credit account

Answer

File the credit card away for use at a later time

Question 2

When may a person view his/her credit report for free?

Accepted Answer

once a year from each of the 3 credit reporting agencies

Answer

any time, unlimited number of times

Answer

only when you have sufficient finances

Answer

you may never view your credit report for free

Question 3

When trying to get a loan Bob learned that his credit score is low. What does this mean for Bob?

Accepted Answer

the interest rate will be higher

Answer

the interest rate will be lower

Answer

the monthly payments will be lower

Answer

the purchase price will be higher

Question 4

Which of the following is NOT included in an individual’s credit report?

Accepted Answer

medical information

Answer

account balances

Answer

current and past addresses

Answer

bankruptcies and foreclosures

Question 5

Edward wants to develop a positive credit history.  How should he do this?

Accepted Answer

Maintain reasonable amounts of available credit

Answer

Have one type of credit account

Answer

Pay cash for the majority of purchases

Answer

Open credit accounts in his parents’names

Question 6

Which statement below explain the importance of understanding the process of borrowing money?

Accepted Answer

When you are borrowing, you are spending future income

Answer

borrowing is an important part of a responsible financial plan

Answer

borrowing builds a strong credit history

Answer

borrowing affects your present, but not really your future

Question 7

Which statement describes closed-end credit?

Accepted Answer

equal payments are made on a regular basis

Answer

Credit limits vary depending on the loan balance

Answer

Interest rates varydepending on the repayment history

Answer

a continuous loan with a revolving balance

Question 8

How can you LEGALLY avoid paying interest when using your credit card?

Accepted Answer

pay the balance in full every month before the due date

Answer

there is no legal way to avoid paying interest

Answer

use credit card for balance transfers only

Answer

pay the minimum balance every month before the due date

Question 9

Which of the following is an act of identity theft?

Accepted Answer

Wrongfully acquiring and using someone’spersonal ID

Answer

Taking the identity of someone as inspiration for a costume

Answer

Having the same name as another person

Answer

Receiving permission to use a parent’s credit card

Question 10

What is a safety tip to follow when shopping online?

Accepted Answer

use a credit card

Answer

it's never safe

Answer

use a debit card

Answer

Shred all sales receipts as soon as possible

Question 11

Which strategy would be the most effective for decreasing risk of credit card fraud?

Accepted Answer

sign the back of the credit card with "See ID"

Answer

use your credit card for all purchases so you only have one payment each month

Answer

give account numbers over the internet rather than the phone

Answer

Carry all credit cards in wallet so they don't get lost

Question 12

Which of the following best describes the benefits of having insurance?

Accepted Answer

insurance provides a sense of financial security

Answer

it is required by law so benefits don't matter

Answer

The policyholder will be better off financially after a loss

Answer

all risk is transferred to ins co  so you don't have to worry about paying anything

Question 13

The monthly payment for insurance is called

Accepted Answer

premium

Answer

hazard

Answer

co-insurance

Answer

deductible

Question 14

You receive a $1000 medical bill; you have a $500 deductible and 20% co-insurance; how much do you pay?

Accepted Answer

$600

Answer

$500

Answer

$0 (ins co. pays all)

Answer

$700

Question 15

Amanda is Eric's beneficiary. This means that Amanda...

Accepted Answer

will receive payment if Eric dies

Answer

will receive commission for selling Eric's policy

Answer

will continue to pay Eric's premiums

Answer

is executor of Eric's estate

Question 16

What is the difference between property and liability insurance?

Accepted Answer

Property pays for loss of the insured; liability pays for loss to others

Answer

it depends on if it's for home, auto or renters policy

Answer

there is no difference

Answer

it depends on the specific policy

Question 17

What is NOT an example of a durable good?

Accepted Answer

food

Answer

cell phone

Answer

clothing

Answer

vehicle

Question 18

Insurance can be purchased to protect one from which of the following losses?

Accepted Answer

health care expenses

Answer

home maintenance

Answer

Car maintenance

Answer

stock market losses

Question 19

It is recommended that life insurance be purchased when the individual

Accepted Answer

has dependents

Answer

flies on an airplane

Answer

reaches the age of 50

Answer

gets his/her first job

Question 20

Pete would like to purchase a new car.  What should he do first?

Accepted Answer

Calculate the cost of ownership

Answer

Evaluate the opportunity costs and trade-offs

Answer

rank product features by importance

Answer

Research various sellers

Question 21

A rental agreement is often referred to as:

Accepted Answer

a lease

Answer

an amenity

Answer

a mortgage

Answer

insurance

Question 22

The equity that you build by making mortgage payments is

Accepted Answer

the value of the home minus what you owe the bank

Answer

the real estate collateral

Answer

the down payment

Answer

increased by purchasing the house as rental property

Question 23

Melissa needs a vehicle and is considering leasing one. This means:

Accepted Answer

She would be renting the car by making payments over time

Answer

She will need a larger down payment to offset the fees

Answer

Her depreciation costs will likely be higher

Answer

She would be purchasing the car by making payments overtime  She

Question 24

Which of the following expenses WOULD NOT be considered part of total transportation expenses?

Accepted Answer

depreciation

Answer

insurance

Answer

loan payment

Answer

fuel

Question 25

When making food decisions, which of the following is most likely to be least expensive?

Accepted Answer

Food made at home

Answer

fast food restaurants

Answer

full-service restaurants

Answer

Convenience foods (pre-packaged)

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