Deck 15: Money

Question 1

Which of these is an example of income?

A) tuition
B) student loan disbursements
C) student loan interest
D) rent

Answer 1

B

Question 2

The first step of creating a budget is to

A) buy something new.
B) apply for a credit card.
C) gather income information.
D) cut costs.

Answer 2

C

Question 3

Brody works part-time at a veterinarian's office in addition to going to college, and he is paid twice a month. Which will likely work best for Brody?

A) daily budget
B) weekly budget
C) biweekly budget
D) monthly budget

Answer 3

C

Question 4

Which of these is an example of an expense?

A) residence hall fees
B) a federal grant
C) a student loan disbursement
D) savings account interest

Question 5

Which of the following statements accurately describes the "reality check" you should do when gathering information as part of budgeting?

A) Compare how you think you are spending your money with when and where your money is actually going by tracking your spending for about a month.
B) Compare what you think things cost with what they actually cost, and make adjustments in your budget accordingly.
C) Gather expense information from your college or university to get a true sense about whether the costs of going to school are worth it.
D) Compare your lists of wants and needs, and be diligent about depriving yourself of anything that isn't truly a need.

Question 6

Which of these is an example of a fixed expense?

A) an electric bill
B) a grocery bill
C) entertainment expenses
D) an auto loan payment

Question 7

Which of these is an example of a variable expense?

A) rent
B) textbooks
C) a monthly parking fee
D) an auto insurance payment

Question 8

If you stay focused and flexible, your budget will

A) adjust itself.
B) condition you to deprive yourself of what you really want.
C) lead to financial stability and independence.
D) allow you to spend more than you should.

Question 9

Which of these is an example of a need?

A) movie tickets
B) textbooks
C) video games
D) designer clothing

Question 10

Which of these is an example of a want?

A) tuition
B) food
C) concert tickets
D) shoes

Question 11

Mark, Frank, and Henry share an off-campus apartment. When they first decide to live together, Henry sets up an account with the local cable company for television and internet service, which costs $150 each month. The roommates agree that each will pay one-third of the bill, or $50 each month. Two weeks into their third month together, Frank suddenly moves out, leaving Mark and Henry alone in the apartment. Now the bill from the cable company is due. How much is Henry legally obligated to pay the cable company for the monthly bill?

A) $50
B) $75
C) $100
D) $150

Question 12

Which type of financial aid must be paid back with interest?

A) a student loan
B) a grant
C) a work-study job
D) a scholarship

Question 13

Who most commonly awards scholarships?

A) the federal government
B) state governments
C) colleges
D) banks

Question 14

Need-based scholarships are awarded on the basis of

A) talent alone.
B) budgeting skills.
C) future career plans.
D) talent and financial need.

Question 15

Frida is considering using a scholarship search service to help her locate and apply for merit scholarships. What is the most important thing she should do before she enters any of her personal information on the service's website?

A) Pay a modest fee to access the website's database.
B) Inquire whether the website offers information about work-study programs.
C) Determine whether the website provides college loan interest-rate comparisons.
D) Verify that her information will be kept confidential.

Question 16

Which provides part-time employment opportunities for students who receive financial aid if their aid amount is not enough to cover all their education costs?

A) a merit scholarship
B) a work-study program
C) a co-op program
D) a grant

Question 17

What does cooperative (co-op) education allow students to do?

A) to take classes at a different institution
B) to alternate a term of study with a term of unpaid work
C) to alternate a term of study with a term of paid work
D) to work on campus

Question 18

Which does FAFSA stand for?

A) Free Association for Federal Student Aid
B) Free Application for Federal Student Aid
C) Free Application for Financial Stimulus Aid
D) Federal Association for Financial Student Aid

Question 19

The amount of financial aid you receive will depend on how

A) early you submit all of your paperwork to complete your financial-aid request.
B) high your grade point average and college entrance test scores are.
C) much it costs to attend the college of your choice and what your family can pay.
D) much you are willing to accept in loans.

Question 20

How many credit hours per term are commonly defined as full-time enrollment?

A) six
B) eight
C) twelve
D) fifteen

Question 21

Andrea filed for financial aid this year before starting college and received enough money to cover her tuition for her freshman year. When should Andrea file for financial aid again?

A) next year
B) in two years
C) in three years
D) never, because financial aid renews automatically

Question 22

Calvin was awarded a small scholarship to attend a state school, and his parents were paying the balance of his tuition. A few weeks ago, Calvin's father was killed in an automobile accident, and his mother cannot afford to continue paying his tuition. The next tuition bill will arrive in a few months. What is the first thing Calvin should do?

A) Reduce his course load.
B) Drop out of school temporarily.
C) Get a part-time job.
D) Speak to a financial aid officer.

Question 23

Who is legally obligated to repay a PLUS loan?

A) the federal government
B) the student
C) the student's parents
D) the student's college

Question 24

You have several bills, such as electricity and internet, in your name. If you are late or miss payments, which would this affect?

A) your financial aid
B) your credit score
C) your college scholarship
D) your PLUS loan

Question 25

When attending college, you should use credit cards to build credit and to

A) buy things you want but don't necessarily need.
B) pay for everyday expenses.
C) buy things you could not otherwise afford.
D) pay for emergencies.

Question 26

Which statement about debit cards is correct?

A) When using a debit card, you are limited to the funds in your bank account.
B) You should write your PIN on the back of your debit card so you don't forget it.
C) Debit card accounts work the same way as credit card accounts.
D) Making purchases with a debit card helps to establish a good credit rating.

Question 27

What is the safest way to protect your debit card account?

A) Include your debit PIN when corresponding by e-mail.
B) Write your PIN on the back of your card.
C) Commit your PIN to memory.
D) Share your PIN with your roommate in case you forget it.

Question 28

As you plan for the future while attending school, if you have an off-campus job you should

A) try to work as many hours as possible to earn more money.
B) consider whether it is a job you want to continue after you graduate.
C) resign before your final exams so you will have more time to study.
D) ask for a raise because your expenses will increase after graduation.

Question 29

The first thing you need to do when creating a budget is to track your expenses.

Question 30

When you budget, you should prioritize your wants.

Question 31

To qualify for a grant, you must meet certain academic qualifications, be admitted to a qualifying college, and maintain a certain grade point average.

Question 32

Co-op opportunities are very common in the field of engineering.

Question 33

Students who work fifteen to twenty hours per week typically get lower grades than students who do not work at all.

Question 34

For most students, some level of borrowing is necessary to complete their degree and begin their career in a timely manner.

Question 35

With an unsubsidized federal student loan, the federal government pays the interest on your behalf while you are enrolled in school.

Question 36

If your credit score is low, you may not be able to qualify for a loan in the future.

Question 37

Paying the minimum payment each month is a good strategy to pay off your credit card debt.

Question 38

A debit card is a good way to make sure that you do not spend more money than you have.

Question 39

What are the areas where you are most willing to sacrifice in order to work toward a more secure financial future?

Question 40

Explain the difference between a fixed expense and a variable expense.

Question 41

What are two ways you can cut expenses from your budget?

Question 42

Identify and describe the different types of financial aid.

Question 43

Identify three ways in which your college's financial aid office can help you obtain money to pay for school.

Question 44

From your personal perspective, describe the advantages and disadvantages of working while going to school.