Financial Lit Final Exam - Part 2

How long does a Chapter 7 bankruptcy stay on your credit report?

• 7 years

• 10 years

• 5 years

• 1 year

Which of the following has the largest impact on your credit score?

• utilization

• credit mix

• length of history

• payment history

Depreciation: if you buy a new car for $40,000 and it depreciates 25% the first year and 17.5% the second year, what is your car worth at the end of the second year?

• $23,000

• $24,750

• $26,250

• $30,000

Fuel cost: if you drive 600 miles per month, your car gets 24 MPG, and fuel costs $2.80 per gallon; how much will you spend PER YEAR on fuel?

• $70

• $740.20

• $840

• $5,142.86

What type of mortgage might a senior use to help supplement retirement income and stay in their home?

• reverse mortgage

• VA mortgage

• ARM mortgage

• balloon mortgage

When you recieve a check and sign the back so you can deposit it into your bank account, you've ______ the check which gives the financial institution permission to process the deposit.

• approved

• endorsed

• authorized

• accredited

On average the net price of college is often lower than the published "sticker" price. Net price equals

• tuition + room & board

• tuition & fees - scholarships - room & board

• tuition & fees - scholarships - grants - room & board

• tuition & fees - grants - scholarships - education tax benefits

While you are in school full-time, the interest on an unsubsidized loan is

• paid by you when in school

• paid by you but you can let it accrue until after graduation

• paid by the federal government

• paid by your parents

If you qualify, which of the following types of aid provides direct funds towards reducing college cost, is needs-based, and doesn't need to be repaid?

• grants

• scholarships

• subsidized loans

• unsubsidized loans

Scholarships are

• needs-based

• merit-based

• loans that need to be repaid

• Both needs and merits based