Dollars and Sense Final Review

Front

Magda is going to finance her car purchase using an auto loan. Which statement below is accurate? Her principal is the cost of the car, minus any down payment she makes, Her interest rate is the total cost she'll pay after making all of her principal and interest payments, Choosing a shorter term means it will take her longer to repay the loan, It's likely that her monthly payment will be between 4-5% of the cost of the car

Back

Her principal is the cost of the car, minus any down payment she makes

Front

Jaime is creating a budget for the first time and doesn't know which to use - NET PAY or GROSS PAY. What do you tell him?

Back

Use net pay, because it's the total amount you've earned minus taxes and other deductions.

Front

Cognitive bias can explain why...

Back

People can make decisions that are not always in their best interest

Front

Which of the following best describes the amount of money you'll have if you put $1,000 into a savings account earning 1% annual compound interest for 10 years? You can ignore the impact of inflation in this question.

Back

Slightly more than $1,100

Front

All of the following can be found in your credit report EXCEPT...
Your credit payment history, Your checking account balance history, The average age of your credit accounts, Your total number of active credit accounts

Back

Your checking account balance history

Front

Suppose you are trying to switch banks or open a brand new credit card. Which strategy will likely lead to the WORST long-term outcome? Options: Look for sign-up bonuses or introductory offers that will make the product a good deal, Read online reviews carefully, and consider those that align most closely to what you value, Spend some time comparison shopping before finalizing your decision, Review the fine print closely, paying close attention to fee structures and interest rates

Back

Look for sign-up bonuses or introductory offers that will make the product a good deal

Front

Who will pay the LEAST interest for their purchases: Stephan, who pays the first $1,000 using graduation money and then pays $250 per month until the debt is $0; Jasmine, who had saved the $1,500 previously and pays off the whole balance once her bill comes; Nelson, who makes the minimum monthly payment each month until the debt is $0; Robert, who makes $300 payments per month until the debt is $0?

Back

Jasmine, who had saved the $1,500 previously and pays off the whole balance once her bill comes.

Front

Jay asks his friends for advice: "Should I start doing mobile banking now that I've got my new smartphone?" Which friend is correct in their statement on the benefits of mobile banking? Options: It's so convenient, because you can deposit your check using your phone's camera and the bank's app, One major pro of mobile banking is that they typically waive all of the normal fees like overdraft fees, ATM fees, and insufficient funds fees, One inconvenience is that once you set up mobile banking on your phone, you can't use online banking on your computer anymore, A con of mobile banking is that typically banks charge you a $10-15 set-up fee in addition to a small monthly fee (~$3) for mobile banking privileges

Back

It's so convenient, because you can deposit your check using your phone's camera and the bank's app

Front

Maura has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is she likely to receive during her first week on the job?

Back

A W-4 form

Front

You have $3000 per month to cover your expenses. You estimate your monthly costs to be rent of $1200, car expenses of $700, utilities of $200, insurance of $300, food of $400, student loans of $800, and going out with friends of $200. What is the end result?

Back

A budget deficit of $800