Budgeting
A successful budget is when your expenses are a) less or b) more than the income.
A) Less
Two types of accounts you can open at a bank are: _____ and ____.
Checking and savings
We have one credit score.
T or F
False.
Many people are surprised to find out they have more than one credit score. Your scores can vary for several reasons, including the company providing the credit score, the data on which the credit score is based and the credit scoring method (or ways of calculating your credit scores) being used. The types of credit scores used by lenders and creditors can also vary, based on the industry.
Where should you keep your social security card at?
A) In your wallet
B) Somewhere secure in your home
C) With your parents
D) In the bank
B) Somewhere secure in your home
A source of income for a retiree can include the person's:
A) mortgage loan
B) loan from a commercial bank
C) 401(k) Account
D) credit card cash advance
C) 401(k) Account
What do you need to create and maintain a budget?
A) An accountant
B) Basic math skills & a calculator
C) College degree
B) Basic Math Skills & a calculator
Savings
A) Getting a divorce
B) Having a credit application denied
C) A drop in salary
D) None of the above
D) None of the above
While the items listed may influence your finances, they generally won't have any effect on your credit scores. Income, marital status and denial of a credit application are not factors considered in calculating credit scores.
Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?
A) Carrying all credit cards in her wallet so they do not get lost
B) Giving account numbers over the Internet rather than over the phone
C) Signing the back of her card with her signature and “Please see picture ID”
D) Using credit cards for all her purchases so she only needs to pay one bill each month
C) Signing the back of her card with her signature and “Please see picture ID”
An individual wants to leave her assets to family members after her death. To do this successfully she will need a _____________.
A) letter of intent
B) credit card
C) checking account
D) will
D) will
Which of these categories belong in a monthly budget?
A) Your income
B) Your expenses
C) Monthly leisure spending
D) A&B
E) All of the above
D) A&B
If I spend more money than I have in my account, I will be charged a ______.
Overdraft fee
Which of the following most influences your credit scores?
A) The types of credit accounts you have
B) Your payment history
C) The amount of credit you're using compared to the total amount available to you
D) The length of your credit history
B) Payment History
The federal agency that handles is the federal clearinghouse for complaints of identity theft is:
A) Social Engineering Awareness (SEA)
B) Personal Information Agency (PIA)
C) Credit Card Fraud Agency (CCFA)
D) Federal Trade Commission (FTC)
D) Federal Trade Commission (FTC)
The Federal Reserve System (Fed) regulates the supple of money. They might lower interest rates to -
A) reduce tax rates
B) increase tax rates
C) encourage borrowing
D) discourage borrowing
C) encourage borrowing
Which of the following is most likely the reason a budget to fail?
A) An unplanned shopping spree
B) Not using a personal financial planning website or software.
C) Failing to establish an emergency fund to account for unforeseen expenses.
D) Not making enough money.
C) Failing to establish an emergency fund to account for unforeseen expenses.
Legally, who can an ATM password be shared with?
A) Spouse
B) Son or Daughter
C) Mother or Father
D) A &C
E) None of the above
E) None of the above
Getting married does not change your credit score.
T or F
True
You maintain your own independent credit history even after you get married. If you and your spouse open joint accounts, then both of your credit scores will reflect how that account is handled moving forward, but marriage itself does not impact your credit scores.
Which is a general rule when dealing with credit reports to minimize identity theft?
A) Check each credit report at least once per year.
B) Keep credit reports in an easily accessible location, so information can be accessed if fraud occurs.
C) Wait 60 days before disputing any wrong information found in a credit report or on a credit card statement
D) Report mistakes to only one credit reporting agency and they will inform the others.
A) Check each credit report at least once per year.
Which of the following is a mandatory payroll deduction?
A) 401k retirement plan
B) Medicare
C) Health insurance
D) Dental insurance
B) Medicare
Determine the net worth of the following individual.
Car worth $14,000 with a $2,000 loan remaining to be paid off
Rents 2-bedroom, 1 bathroom apartment
Investment Portfolio of $6,500
Checking account of $950
Saving account of $3,300
Outstanding student loans of $12,780
(Hint: Net Worth= Assets - Liabilities)
$10,000
Name two requirements to open any kind of bank account.
Proof of address, proof of identity (ID, passport, etc), social security number
What is a FICO score?
A) One of many types of credit scores
B) How much of your credit you're currently using compared to the total amount available to you.
C) How many times you've recently applied for credit
D) How many times you've made a payment late or missed a payment
A) One of many types of credit scores
A FICO Score is a type of credit score developed by the Fair Isaac Corporation. Like other types of credit scores, a FICO score is a three-digit number, based on information in your credit reports, that is designed to represent your credit risk, or the likelihood you will pay your bills on time.
At what website can you report an instance of identity theft?
Person 1 has $90,000 worth of investments, $20,000 in student loans, and $10,000 in credit card debt.
Person 2 has $40,000 in savings, $20,000 worth of jewelry, and $10,000 in student loans.
Why does Person 1 have a higher net worth than Person 2?
A) Person 1's assets are greater than her liabilities
B) Person 2's liabilities are greater than his assets
C) Person 1 has no mortgage
D) Person 2 has no credit card debt
A) Person 1's assets are greater than her liabilities