Advanced Personal Finance Exam 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

Why is sending a personalized thank you after a job interview important?

Back

It gives you the opportunity to leave a good impression by expanding on an answer you gave or a topic you discussed.

Front

What do you need to subtract from a college’s cost of attendance in order to find the net price?

Back

Your grants and scholarships

Front

All of the following are characteristics of a secured credit card EXCEPT…

Back

They don’t have a spending limit, so you have to be very mindful of how much you buy with them

Front

Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account? Options: Pays with a prepaid card she loaded earlier in the month, Uses her credit card and says, "Credit" when the cashier asks, "Credit or debit?", Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?", Pays with cash she had in her purse

Back

Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"

Front

Kevin’s renters insurance has a monthly premium of $15 and a deductible of $500. If $2200 worth of possessions are stolen or destroyed, how much will Kevin pay and how much will the insurance pay?

Back

Kevin pays $500; insurance company pays $1700.

Front

Which definition best describes the FAFSA?

Back

The application you submit in order to determine eligibility for federal student aid

Front

Which of the following best describes the amount of money you'll have if you put $1000 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 $1100

Front

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

Back

Your checking account balance history