Quiz about Financial Algebra - Fall Final 2024

Question 1

A1.F-IF.B.4 
What are the two most important factors in calculating your credit score?

Accepted Answer

Payment history and total debt

Answer

Payment history and types of accounts

Answer

Amounts owed and length of credit history

Answer

Length of credit history and new credit inquiries

Question 2

A1.F-IF.B.4 
All of the following would show up on a credit report, EXCEPT...

Accepted Answer

Salary of your current job

Answer

Payment history of your car loan

Answer

Credit card payment history

Answer

Student loan activity

Question 3

A1.F-IF.B.4 
What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Accepted Answer

Chapter 7 bankruptcy sells your assets; Chapter 13 bankruptcy  allows you to keep assets if you follow a repayment plan

Answer

Chapter 7 bankruptcy is for individuals; Chapter 13 bankruptcy is for corporations

Answer

Chapter 7 bankruptcy only eliminates student loan debt; Chapter 13 bankruptcy eliminates all your debts

Answer

There is no meaningful difference; both Chapter 7 and Chapter 13 bankruptcy clear your debts by selling off your assets and stay on your credit report for 10 years

Question 4

A1.F-IF.B.4 
Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

Accepted Answer

Make on-time payments

Answer

Cancel his credit cards

Answer

Get a car loan

Answer

Check his credit score

Question 5

A1.F-IF.B.4 
Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?

Accepted Answer

Ask his parents to cosign a credit card or add him as an authorized user on their credit card

Answer

Always say "credit" when asked "credit or debit?" at a store

Answer

Any time he borrows money from a friend or family member, be sure to pay it back promptly

Answer

Take out some private student loans, even though he doesn't need them because he has grants and scholarships

Question 6

A1.F-IF.B.4 
Frank and Jasmere are each shopping for a new car for themselves. Each will need a $20,000 loan that they will pay back over a five-year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?

Accepted Answer

Jasmere's monthly payment on the loan will be about $100 more than Frank's payment

Answer

Over the five-year period, Jasmere and Frank will pay the same amount for the car loan

Answer

Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment

Answer

Lenders are not allowed to charge people different interest rates based on their credit scores

Question 7

A1.F-IF.B.4 
What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?

Accepted Answer

High rate method

Answer

Snowball method

Answer

Make minimum payments

Answer

Consolidate multiple debts into one new loan

Question 8

A1.F-IF.B.4 
Who tracks all of your credit information?

Accepted Answer

Credit reporting agencies (Equifax, Experian and TransUnion)

Answer

Federal government

Answer

Consumer Financial Protection Board (CFPB)

Answer

Lenders

Question 9

A1.F-IF.B.4 
You find an error on your credit report: Your credit card account indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments. What should you do FIRST?

Accepted Answer

Contact the credit card company to have them fix it

Answer

Contact the credit reporting agency

Answer

Wait a few weeks to see if it gets resolved

Answer

Call the police to report the possible identity theft

Question 10

A1.F-IF.B.4 
Which of the following statements about bankruptcy is TRUE?

Accepted Answer

It decreases your credit score significantly

Answer

It is the recommended first step if your debts exceed 30% of your income

Answer

It stays on your credit report forever

Answer

It eliminates all of your debts for free

Question 11

A1.F-IF.B.4 
What does a credit counselor do?

Accepted Answer

Provides low-cost financial advice and creates debt management plans

Answer

Decides whether or not the bank should issue a loan to someone

Answer

Collects debts that are owed to creditors and over 180 days late

Answer

Co-signs loans to minimize financial risk for a borrower

Question 12

A1.F-IF.B.4 
Which best describes the Debt Snowball method for paying off debt?

Accepted Answer

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the lowest balance

Answer

Only make payments on your smallest debt first, then move on to your second smallest debt, and so on

Answer

Once your debt "snowballs" out of control, hire a certified credit counselor to help get your finances back on track

Answer

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the highest balance

Question 13

A1.F-IF.B.4 
You're paying your credit card bill and your student loan payment each month, but you're falling behind on your auto loan payment. Which friend's advice could have a NEGATIVE impact on your credit score?

Accepted Answer

Debbie says, "Stop making the credit card payment for a few months until you're caught up on the auto loan."

Answer

Joanie says, "Call the auto lender and see if you can negotiate a lower monthly payment or some other deal."

Answer

Angie says, "Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family."

Answer

Betty says, "Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential."

Question 14

A1.F-IF.B.4 
Which response best completes the sentence "It's best to begin establishing credit when you're young because ________" ?

Accepted Answer

You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card

Answer

Accessing credit only becomes more expensive as you get older

Answer

Negative marks on your credit report go away faster for younger borrowers

Answer

Credit scores are free for anyone under the age of 25

Question 15

A1.F-IF.B.4 
Review this partial credit report, and then choose the response below that accurately depicts the information on the report.

Accepted Answer

This borrower was 30 days late on their May 2015 payment

Answer

The borrower paid a $30 fee in February 2015

Answer

This borrower was never late with any of their credit payments

Answer

This borrower's most recent payment was $30

Question 16

A1.F-IF.B.4 
Which free credit report service is authorized by federal law but only accessible once per year?

Accepted Answer

AnnualCreditReport.com

Answer

Credit Karma

Answer

Credit Wise

Answer

Wallet Hub

Question 17

A1.F-IF.B.4 
How can your credit score impact your financial well-being?

Accepted Answer

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

Answer

Only consumers with high scores are approved for credit

Answer

Consumers with low scores get lower interest rates on loans than those with high scores

Answer

It generally has no impact on your financial situation

Question 18

A1.MP.2
Which of the following statements is TRUE about the value of a college degree?

Accepted Answer

A college graduate can expect to earn, on average, more than a high school graduate over a career

Answer

A high school graduate can expect to earn about the same as a college graduate

Answer

Every college graduate can expect to have a starting salary over $60,000 right after college

Answer

A college graduate typically earns less than someone with a high school diploma for the first 10 years

Question 19

A1.MP.2
Which of these options lists the types of financial aid from MOST attractive to LEAST attractive?

Accepted Answer

Grants/Scholarships, Work-study, Federal loans, Private loans

Answer

Private loans, Federal loans, Work-study, Grants/Scholarships

Answer

Work-study, Grants/Scholarships, Federal loans, Private loans

Answer

Federal loans, Grants/Scholarships, Work-study, Private loans

Question 20

A1.MP.2
In order to qualify for financial aid, which application must you submit?

Accepted Answer

FAFSA

Answer

PLUS

Answer

SAVE

Answer

SAI

Question 21

A1.MP.2
Which of the formulas below correctly calculates net price?

Accepted Answer

Sticker price - grants and scholarships = net price

Answer

Sticker price - student loans = net price

Answer

Grants and scholarships + student loans = net price

Answer

Sticker price + grants and scholarships = net price

Question 22

A1.MP.2
Which of the following is considered a direct cost of attendance?

Accepted Answer

Tuition

Answer

Travel expenses

Answer

Cell phone bill

Answer

Food and entertainment

Question 23

A1.MP.2
What types of money are used in paying for college and in what order should you use them?

Accepted Answer

Free money, your money, borrowed money

Answer

Your money, borrowed money, free money

Answer

Borrowed money, your money, free money

Answer

Your money, free money, borrowed money

Question 24

A1.MP.2
Janelle's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and net price of $12,000. College B has a sticker price of $60,000 and net price of $9,000. Which statement below is FALSE?

Accepted Answer

It will cost less to attend College A

Answer

College B is providing Janelle more grants and scholarships

Answer

College A has a lower sticker price than College B

Answer

It will cost less to attend College B

Question 25

A1.MP.2
Who is eligible to receive Direct Subsidized loans?

Accepted Answer

Undergraduate students

Answer

Graduate students

Answer

Professional students

Answer

Students enrolled less than half-time

Question 26

A1.MP.2
Which repayment option does not accrue interest while your required payments are paused?

Accepted Answer

Deferment

Answer

Consolidation

Answer

Refinancing

Answer

Forbearance

Question 27

A1.MP.2
What is a 529 plan?

Accepted Answer

An investment account used to encourage saving for college expenses by offering tax incentives

Answer

A fixed-rate savings account offered by banks specifically for setting aside money for college tuition, without tax advantages

Answer

An insurance plan that covers the costs of college in the event that you need to use that money for an emergency

Answer

A federal grant program that provides need-based financial aid to college students, requiring no repayment

Question 28

A1.MP.2
Typically, when should you first file the FAFSA?

Accepted Answer

October or November of your last year of high school

Answer

After you finish freshman year of high school

Answer

After you receive your Student Aid Index

Answer

Once you are ready to start repaying your student loans

Question 29

A1.MP.2
Which of the following is TRUE about the Student Aid Index (SAI)?

Accepted Answer

The lower your SAI the more financial aid you are eligible for

Answer

The higher your SAI the more financial aid you are eligible for

Answer

The lower your SAI the less financial aid you are eligible for

Answer

Your SAI does not impact how much financial aid you are eligible for

Question 30

A1.MP.2
Which of the following is the default federal student loan repayment plan college graduates are entered into, requires the same minimum payment for the life of the loan, and ensures the borrower will pay the loan in full in ten years?

Accepted Answer

Standard repayment plan

Answer

Graduated repayment plan

Answer

Extended repayment plan

Answer

Income-driven repayment plan

Question 31

A.1.5-CP.A.1
Soft skills can be best described as...

Accepted Answer

Skills that allow a person to work effectively with others

Answer

Skills that are easy to demonstrate and measure

Answer

Skills that apply only to a specific position

Answer

Skills that are unimportant to employers

Question 32

A.1.5-CP.A.1
Lilly is working on her first resume and has no previous work experience. What can she do to boost her resume?

Accepted Answer

Emphasize her education and highlight her strong GPA

Answer

Create fictional positions she held in the past

Answer

Leave out volunteer experience since it's not paid work

Answer

Include a lengthy paragraph at the top of her resume explaining why she has no previous work experience

Question 33

A.1.5-CP.A.1
Which statement is TRUE about the job posting shown here?

Accepted Answer

AutoNation will provide this employee with multiple types of insurance in their benefits package

Answer

The job is for an accounting specialist to work at Indeed

Answer

Whoever is hired can expect to make $110,000 per year

Answer

This scheduled hours are Monday-Friday with some weekends

Question 34

A.1.5-CP.A.1
Which of the following is TRUE about a cover letter?

Accepted Answer

A cover letter highlights your strengths and interest in a position

Answer

A cover letter presents the same information that is on your resume

Answer

A cover letter is typically 2-3 pages in length

Answer

A cover letter can be used to apply to multiple different jobs

Question 35

A.1.5-CP.A.1
All of the following are hard skills, EXCEPT...

Accepted Answer

Adaptability

Answer

Coding

Answer

Accounting

Answer

Carpentry

Question 36

A.1.5-CP.A.1
Joanna is looking for a new job and wants to improve her LinkedIn profile. All of the following are things she should do, EXCEPT...

Accepted Answer

Include vague, generic descriptions for previous job responsibilities

Answer

Update her photo so that it is professional and current

Answer

Ask for recommendations from previous coworkers and supervisors

Answer

Update her skills section to highlight both her soft and hard skills

Question 37

A.1.5-CP.A.1
What is the purpose of a resume?

Accepted Answer

To highlight your work experience and qualifications

Answer

To list all of your interests

Answer

To provide a list of references

Answer

To show off your social media profiles

Question 38

A.1.5-CP.A.1
What is the STAR method?

Accepted Answer

A framework for effectively responding to common interview questions

Answer

A method for calming nerves before an interview

Answer

A technique for making small talk with interviewers

Answer

A way of finding a job online

Question 39

A.1.5-CP.A.1
Which of the following is a TRUE statement regarding employee benefits?

Accepted Answer

It is possible for a job with a lower salary to have a better total compensation package when employee benefits are included

Answer

All employers offer the same employee benefits, so there is no need to review benefits when you are offered a job

Answer

Employee benefits always cost you extra money, so it is important to choose only a select few when accepting a job position

Answer

Jobs offering a higher salary always offer better employee benefits

Question 40

A.1.5-CP.A.1
Which of the following is the BEST strategy when using an online job board?

Accepted Answer

Set up a profile, set filters on which types of jobs you're looking for, and sign up for alerts

Answer

Submit your resume to every job posting, even when you're not really interested in the job

Answer

Limit your activity on job boards to once or twice a month so you don't get overwhelmed

Answer

Search for specific job titles you desire or specific companies you'd like to work for, but not both

Question 41

A.1.5-CP.A.1   
What is the purpose of a 401(k) plan?

Accepted Answer

To save for retirement

Answer

To pay for medical expenses

Answer

To develop new skills relevant to your job

Answer

To improve your chances of getting an interview

Question 42

A.1.5-CP.A.1
Which of the following statements about careers is generally TRUE?

Accepted Answer

The same skill set can be applied in different jobs

Answer

Your first job determines the rest of your career path

Answer

Hard skills are more important than soft skills to employers

Answer

College is the only way to learn hard skills

Question 43

A.1.5-CP.A.1
Which of the following statements is generally TRUE about the gig economy?

Accepted Answer

App-based gig work makes it easy to start working and set your own hours

Answer

The majority of U.S. workers are in the gig economy

Answer

App-based gig work guarantees a higher salary than median full-time employment

Answer

Gig work is more likely to offer health insurance and 401(k) benefits than a salaried position

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