Personal Finance

Front

Sylvester is taking out a loan and is confused by the wording on the loan application. Which of the following explanations might help him? INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the initial amount Sylvester borrows

Back

INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the initial amount Sylvester borrows

Front

Which should you use when creating a budget - your NET PAY or GROSS PAY?

Back

Net pay, because it’s the total amount you’ve earned minus taxes and other deductions.

Front

All of the following are benefits of taking out a loan with a cosigner EXCEPT…

Back

There are no late fees for late payments

Front

Which of the following is a method of accessing the money in your checking account? Options: Buy a prepaid card using cash, Deposit a paycheck from your job, Use your debit card at a store and select to withdrawal funds and sign the machine or receipt, Take money from the ATM using your credit card

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Use your debit card at a store and select to withdrawal funds and sign the machine or receipt

Front

How does renters insurance work?

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You pay monthly premiums to buy a policy, and then you file a claim to have the insurance company cover your losses if something goes wrong.

Front

You put $1000 in a CD (Certificate of Deposit). The CD earns 2% annual compound interest. Approximately how much money will be in the account after 10 years?

Back

Slightly more than $1200

Front

Which of the following can be found in your credit report? Your checking and savings account balances, How long you’ve been a member of a bank or credit union, Your credit payment history, A list of items you’ve purchased using credit

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Your credit payment history

Front

When making a decision about a financial product (such as a loan, savings account, credit card, etc.), which piece of advice is LEAST valuable? Options: Compare products based on the things you find most important, Do research to learn more about each of the options, Read the fine print of any agreements so you understand the costs and requirements of your account, Simply choose the option that your parents use

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Simply choose the option that your parents use

Front

When you use your credit card, you owe a payment called "interest" to the credit card company. Which of the following will result in your paying the LARGEST amount of interest to the credit card company? Options: Paying 20% of your credit card balance every month, Making the minimum payment every month, Paying off your balance every month, Saying "credit" every time the cashier asks "Debit or credit?"

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Making the minimum payment every month

Front

Which of the following is TRUE about a Target Date Fund (TDF)? Options: It is a fund that is managed by a company that usually charges a 1-2% management fee, A TDF will automatically adjust your assets for you over time as you get closer to retirement, You can only sign up for the TDF that aligns with your projected retirement year, A TDF only invests in stocks and will adjust your money between different industries over time

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A TDF will automatically adjust your assets for you over time as you get closer to retirement