Earning & Income
June is thinking about her future and the career she'd like to pursue. Right now, the job that interests her most is park ranger. What can you infer about June based on this fact?
A. She wants a job that involves a lot of travel
B. She is seeking work that is highly technical
C. She cares about earning money above all else
D. She does not want to work in an office
What is the value of making and keeping a budget or spending plan?
A. Doing so can help people earn more money while working less and paying lower taxes overall.
B. Doing so can help people protect their identity while allowing them to shop online safely and securely.
C. Doing so can help people improve their credit while lowering the rate of interest lenders charge them.
D. Doing so can help people avoid overspending while progressing towards achieving financial goals.
D. Doing so can help people avoid overspending while progressing towards achieving financial goals.
What is one important reason for saving money?
A. To determine variable expenses
B. To share financial decisions
C. To cover unexpected or emergency costs
D. To Pay for small daily expenses
C. To cover unexpected or emergency costs
How are credit and debt different?
A. Credit is money that has been saved, while debt is money that has been spent.
B. Credit refers to money received from one's job, while debt refers to payments one makes to afford goods and services.
C. Credit represents money that is available to be borrowed, debt represents money that has been borrowed and must be repaid
D. Credit involves individuals paying interest, while debt involves individuals earning interest.
C. Credit represents money that is available to be borrowed, debt represents money that has been borrowed and must be repaid
Which of the following is the best suggestion for building and maintaining a good credit rating?
A. Having money in savings and protect against identity theft
B. Keep your debt low and pay your bills on time
C. Make safe investments and set clear financial goals
D. Have a high paying job
B. Keep your debt low and pay your bills on time
Malik has just completed his second year of college, and it's time for him to choose a field of study in which to major. Before doing so, Malik takes an honest account of his own values, priorities, and goals. He realizes that what is most important to him in a future career is not money, but rather the opportunity to help young people achieve their goals while also allowing him to raise a family and spend quality time with his own children. Based on these details, which career is Malik most likely to find fulfilling?
A. Corporate Lawyer
B. Advertising Executive
C. Film Director
D. Teacher
D. Teacher
On a budget, which of the following would be categorized as a periodic expense?
A. Rent
B. Car Insurance
C. Medical Bills
D. Electricity
C. Medical Bills
How is money in a savings account different from money borrowed from a lender?
A. One must pay interest on borrowed money
B. Money in a savings account defers interest
C. One earns interest on borrowed money
D. There is no difference between money in a savings account and money borrowed from a lender
A. One must pay interest on borrowed money
What affects an individuals credit history?
A. His or her decisions about loaning others money
B. His or her major financial transactions, such as car purchases and rent payments
C. His or her important achievements, such as graduating from college and having children
D. His or her ability to save money for retirement
B. His or her major financial transactions, such as car purchases and rent payments
When it comes to paying for insurance, a general rule is that...
A. Lower risk means higher cost
B. Higher risk means lower cost
C. Higher risk means higher cost
D. Risk and cost have nothing to do with each other
C. Higher risk means higher cost
Greg is married to Katie, and they have four children. What is the biggest reason that Greg should talk to Katie before he buys a new car?
A. Cars come in many colors and Greg may not know which one Katie prefers if he doesn't ask her
B. It is likely, with four children, Katie might tell Greg that he should actually buy two cars
C. Buying a new car could affect how much money Greg and Katie have to spend on other family expenses
D. Greg may not realize that whatever car he buys will need to be large enough to fit his entire family
C. Buying a new car could affect how much money Greg and Katie have to spend on other family expenses
Samantha and Ciara are roommates in college. To help clarify their financial obligations to one another, they create a monthly budget. Which of the following expenses would not be included on their shared budget?
A. School Books
B. Rent
C. Electricity
D. Internet
A. School Books
What does it mean to Pay Yourself First?
A. Set aside money for savings prior to paying your monthly expenses.
B. Buy the things you need before paying for others' wants.
C. Spend your money on yourself only.
D. Pay off debt in order to lower the amount of interest you owe to lenders.
A. Set aside money for savings prior to paying your monthly expenses.
What is one consequence of a low credit score?
A. Smaller paychecks
B. Not being hired
C. Being denied a loan
D. Eviction
C. Being denied a loan
About how much should you have in your "Emergency Fund"?
A. One months' salary
B. Four months' worth of living expenses
C. Enough to pay rent
D. A years' of salary
B. Four months' worth of living expenses
When making a financial decision with another person or making a financial decision that will affect another person, which of the following is the best approach?
A. Be rigid and firm in your own beliefs about the decision and convince the other person to agree with you.
B. Agree to let the other person choose the best way to handle the decision and its possible outcomes.
C. Speak about the decision in generalities to avoid saying anything overly personal or revealing too much information.
D. Discuss the decision openly and honestly, citing concerns and potential consequences.
D. Discuss the decision openly and honestly, citing concerns and potential consequences.
On a monthly budget, which expense category contains costs that typically cannot be avoided or delayed?
A. Variable
B. Periodic
C. Fixed
D. Voluntary
C. Fixed
Ray wants to buy a new mountain bike, which will cost him $1,000. What is the best strategy for Ray to adopt to achieve his goal?
A. Borrow money from a trusted friend and promise to repay the loan when he gets his annual bonus at work.
B. Save $1000 by cutting back on non-essential expenses over the course of several months.
C. Buy the bike with a credit card today and gradually pay down that debt over time.
D. Convince the owner of the bike shop to allow him to pay for the bike in monthly installments of $100 over the next 10 months.
B. Save $1000 by cutting back on non-essential expenses over the course of several months.
Rasheed's son is buying a car, and Rasheed agrees to be a co-signer on his son's car loan. What is one possible consequence of that decision?
A. Rasheed's own car may be repossessed if his son fails to repay the loan on time.
B. Rasheed could lose his job if his son fails to repay the loan on time.
C. Rasheed could be forced to buy the car himself if his son fails to repay the loan on time.
D. Rasheed's credit score may suffer if his son fails to repay the loan on time.
D. Rasheed's credit score may suffer if his son fails to repay the loan on time.
Which of these is not a fee that is sometimes charged to a checking account?
A. Overdraft fee
B. Minimum balance fee
C. ATM fee
D. Excessive withdrawals fee
D. Excessive withdrawals fee
Creativity is very important to Alex. He would also like to earn at least a moderate income to be financially secure. He wants to start working right away after earning his four-year bachelor's degree, without needing additional education. Which careers would be good choices for him?
A. Nurse Practitioner
B. Film Editor
C. Graphic Designer
D. Entertainment Lawyer
B. Film Editor
C. Graphic Designer
A. 50%
B. 20%
C. 10%
D. 60%
B. 20%
Tasha and Patty are best friends. But while Tasha is a saver, Patty is a spender. In fact, Patty is often in debt, and she's started asking Tasha to borrow money. When Tasha resists - citing the fact that she's saving money to pay for her college tuition - Patty calls Tasha a drip and insists that going to college is a waste of time. How should Tasha address this situation?
A. She should lend Patty money but get a second job in order to continue to save for college.
B. She should aggressively point out all of Patty's flaws and mistakes.
C. She should reconsider her decision to save for college and use the money she's saved to enjoy herself.
D. She should tell Patty that asking to borrow money and belittling her choices is damaging their friendship.
D. She should tell Patty that asking to borrow money and belittling her choices is damaging their friendship.
What is considered a "Good" credit score?
A. 350
B. 525
C. 680
D. 800
C. 680
What is a bear market?
A. A time when investors are acting aggressively
B. A time when stock prices are rising
C. A time when stock prices are inappropriate
D. A time when stock prices are falling
D. A time when stock prices are falling