Deck 12: Money Matters

Question 1

You have listed your expenditures for the past year and continue to keep track of everything you spend. In order to have a balanced budget, you also need to keep track of

A)how much money you have coming in.
B)your charitable contributions.
C)your credit card payments.
D)your child care expenses.

Answer 1

A

Question 2

How can you evaluate whether your budget is working or not?

A)Review it at the beginning of each school year and make needed changes.
B)Check with a credit reporting company.
C)Review it monthly and revise as necessary.
D)Keep track of every penny you spend, all year.

Answer 2

C

Question 3

You should review your budget monthly and revise it as necessary in order to evaluate

A)the role that money plays in your life.
B)if you should start to repay your school loan sooner.
C)whether you're on target with your finances.
D)whether your budget is working or not.

Answer 3

D

Question 4

Payments on many college loans are deferred, which means

A)you don't have to pay back the loan.
B)the federal government pays the accumulated interest.
C)the payments start small and increase when you start full-time work.
D)you do not have to start paying them back until after you graduate.

Question 5

What is a financial award that does not have to be repaid?

A)grant
B)loan
C)tax credit
D)trust fund

Question 6

A formal plan that accounts and plans for income and expenditures is referred to as a

A)grant.
B)budget.
C)loan.
D)credit report.

Question 7

A grant is referred to as the

A)stated amount of a loan.
B)length of time for which money is lent.
C)financial award that does not have to be repaid.
D)funds provided by a bank that must be repaiD.There are several grant programs that exist to help reduce the amount you'll need to pay for college.

Question 8

When you don't have to start paying your college loans back until after you graduate, your loans are

A)deferred.
B)on time.
C)accumulating interest.
D)grants.

Question 9

Perkins, Stafford, and PLUS are all types of

A)grants.
B)loans.
C)scholarships.
D)industry grants.

Question 10

A nonprofit organization that can help you design a plan to pay off your debts is referred to as a(n)

A)credit counseling service.
B)financial aid office.
C)loan department.
D)investment company.

Question 11

You've been spending more than you make. The two things you can do to rebalance your budget is increase your income and

A)ignore the problem.
B)attempt to get a loan.
C)decrease your expenses.
D)sign up for a new credit carD.Look into money-saving options like controlling any impulse buys and paying cash instead of using your credit card.

Question 12

What is the relationship between credit cards and your credit history?

A)There is no relationship, as long as you don't miss any payments.
B)The more credit cards you own, the better your credit history looks.
C)Using a credit card and making timely payments help you establish a credit history.
D)The higher the credit limit, the greater potential for borrowing in the future.

Question 13

Funds provided by a bank, credit union, or other agency that must be repaid are referred to as

A)industry grants.
B)grants.
C)loans.
D)scholarships.

Question 14

A budget is a

A)set of funds provided by a bank that must be repaid.
B)stated amount of a loan.
C)formal plan that accounts for expenditures and income.
D)length of time for which money is lent.

Question 15

Which of the following is not a good strategy for dealing with financial difficulties?

A)See a credit counselor.
B)Assess and find a solution for the problem.
C)Ignore the problem.
D)Communicate with creditors.

Question 16

In most cases, students who are signing up for their first credit card

A)should try to find a card with no annual fee and a low fixed rate.
B)should choose the card with the highest possible credit limit.
C)should make some major purchases immediately in order to establish a credit history.
D)should try to find a card with a variable interest rate.

Question 17

To develop a personal financial philosophy is to

A)devise a practical, workable budget.
B)control your finances and avoid surprises.
C)consider the role that money plays in your life.
D)choose the financial aid package that best suits your needs.

Question 18

Your roommate bailed on you and you lost your job. Your credit card bills are piling up and you haven't paid the balance off for over six months. What is the first thing you should do?

A)Stop paying your credit cards.
B)Cancel your credit cards.
C)Make a list of what you owe and to whom.
D)Work with a credit counselor.

Question 19

What is the first step in developing a meaningful financial philosophy?

A)keeping track of every cent you spend.
B)contacting a credit reporting agency.
C)asking for a loan.
D)exploring your views of money.

Question 20

Cutting up your credit cards and reading the newspaper online are two ways to

A)increase expenditures.
B)live more simply.
C)save money.
D)determine your income sources.

Question 21

The stated amount of a loan is referred to as the

A)Stafford.
B)term.
C)principal.
D)loan department.

Question 22

You received your financial aid package but it doesn't seem like it will be enough money for you to be able to attend college. Your next step should be to

A)initiate a formal appeal if you feel key elements of your application were overlooked.
B)ask one of your parents to come to the financial aid office with you to play a game of good cop, bad cop.
C)charge a year's tuition on your credit card.
D)take fewer classes and work more hours at your job.

Question 23

An important step in budgeting is to make sure that your income does not exceed your expenditures.
The goal of budgeting is to bring your income and expenditures into balance.

Question 24

A work-study grant

A)frees up funds for college with an annual maximum credit of $2,500.
B)provides jobs for undergraduates with financial needs.
C)is targeted toward older students who are changing careers.
D)is awarded by college financial aid offices following a formula provided by the federal government.

Question 25

A lifetime learning tax credit

A)frees up funds for college with an annual maximum credit of $2,500.
B)provides jobs for undergraduates with financial needs.
C)is targeted toward older students who are changing careers.
D)is awarded by college financial aid offices following a formula provided by the federal government.

Question 26

The length of time for which money is lent is referred to as the

A)Stafford.
B)term.
C)principal.
D)loan department.

Question 27

More than half of college graduates feel burdened by their debt.
Because college graduates often start off earning less than they thought they would after graduation, high levels of debt can lead to difficulties. More than half feel burdened by their debt.

Question 28

A Pell grant

A)frees up funds for college with an annual maximum credit of $2,500.
B)provides jobs for undergraduates with financial needs.
C)is targeted toward older students who are changing careers.
D)is awarded by college financial aid offices following a formula provided by the federal government.

Question 29

A Hope scholarship

A)frees up funds for college with an annual maximum credit of $2,500.
B)provides jobs for undergraduates with financial needs.
C)is targeted toward older students who are changing careers.
D)is awarded by college financial aid offices following a formula provided by the federal government.

Question 30

If you spend more than you make, you can either decrease your spending or increase your income to balance your budget.
The worst you can do is nothing. Take steps to confront the situation.

Question 31

What is the best way of describing the relationship between the cost of a college education and its value?

A)The higher the cost, the greater the value.
B)Good things come in small packages.
C)Substantial cost now may translate into substantial value later.
D)The larger the financial sacrifice, the greater the intellectual freedom.

Question 32

Credit cards make you less susceptible to identity theft.
Identity thieves may use your credit card number to make purchases, open new credit card accounts in your name, open new phone accounts, or even rent a house in your name.

Question 33

A good credit history means you have never missed a loan payment and you always pay on time.
A bad credit history can stay on file for seven years, and it can keep you from getting future loans, so it's important to keep a clear credit history.

Question 34

People who are college graduates earn more money than people with only a high school degree.
On average, people who are college graduates earn nearly twice as much money each year as people with only a high school degree.

Question 35

It is sometimes better to work excessive amounts to avoid having to take out more student loans to cover the costs of college.
Working too much can take hours away from your studies and add stress; consequently, it is sometimes better to take out a student loan to cover college costs than to work excessive amounts.

Question 36

The FAFSA form

A)requires that students divulge only their own income.
B)is complex and not always necessary for students wishing to obtain financial aid.
C)is an optional form used by some colleges.
D)is time-consuming to complete, but it can be time well spent for students seeking financial aiD.For many academic institutions, financial aid awards are made based on the FAFSA. It is even used by some private scholarship funds. The first step in receiving aid is to complete and submit the form. If you don't submit a form, your chances for obtaining aid are greatly diminished.

Question 37

You received a $2,500 tax credit that frees up some of your college funds. This credit is known as the

A)Stafford loan.
B)Hope scholarship.
C)Pell grant.
D)Lifetime learning tax credit.

Question 38

A scholarship is an award of money to a student based on merit or need.
Like a grant, a scholarship is money that does not have to be repaid.

Question 39

You're an older student going back to school to work on some of your skills. You received a 20 percent tax credit, which is referred to as a

A)Stafford loan.
B)Hope scholarship.
C)Pell grant.
D)Lifetime learning tax credit.

Question 40

What is the standard form used by almost every college to assess a student's financial capabilities and determine how much the student and family can be expected to contribute toward college expenses?

A)grant
B)PLUS loan
C)Hope scholarship
D)FAFSA

Question 41

As you search for sources of financial aid, your first stop should be your academic adviser.
As you search for sources of financial aid, your first stop should be your college's financial aid office. Financial aid officers can share a great deal of information about possible sources of aid.

Question 42

You have been accepted into the college of your choice and now you need to find the money to pay for your education.
a. What sources of information could you use to research the financial aid available?
b. Briefly describe the types of financing that should be available.
a. What sources of information could you use to research the financial aid available?
a. Your college's financial aid office, the library, the World Wide Web, and the Federal Student Aid Information Center.
b. Briefly describe the types of financing that should be available.
b. Loans, grants, and scholarships are the different types of financing available. Loans must be repaid after a specified period of time; grants and scholarships do not have to be repaid and are typically harder to get than loans, but not impossible.

Question 43

Due to unexpected car problems and being laid off from your part-time job, you have run up an overdraft on your checking account, reached the limit on your credit card, and are unable to pay this month's rent and utility bills. It is two months before the fall semester begins, and you receive your next loan payment. What can you do to deal with your immediate financial problems?

Question 44

Research shows that college students who work make poorer grades.
In fact, some students who work do better in school than those who don't work, because those with jobs need to be more disciplined and focused.

Question 45

You have received formal notification of your aid package for the upcoming semester and are shocked to discover that the loan amount you are to receive has been cut by 50 percent from last year's amount. You will not have enough to pay your tuition. What steps can you take to remedy the situation?

Question 46

You are about to start your first semester in college and have decided to work out a budget for the year.
a. What are the advantages of preparing a budget in advance?
b. What information do you need to gather to be able to write up your budget?
a. A budget will help you deal with the ups and downs of your finances. It will help prepare you for the world of work. Most of all, a budget provides a sense of security, allowing you to take control of your spending.
a. What are the advantages of preparing a budget in advance?
b. What information do you need to gather to be able to write up your budget?
b. You will need to know your monthly income and expenditures. To uncover your expenditures, keep track of everything you spend for a week. Also, go through any records you've kept to identify where you've spent money for the last year. You will also need to list each source of income.