Deck 10: Making Financial Decisions

Question 1

When income and expenses are __________, your budget is said to be balanced.

A) equal
B) very high
C) moderate
D) None of the choices are correct.

Answer 1

equal

Question 2

An example of a discretionary cost is

A) food.
B) rent.
C) video game purchases.
D) bus fare to college.

Answer 2

video game purchases.

Question 3

Auditing your budget means

A) making sure your financial records agree with your bank's records.
B) finding ways to cut costs and economize.
C) ensuring that your financial transactions are honest.
D) supplementing your budget with money from savings.

Answer 3

making sure your financial records agree with your bank's records.

Question 4

Another word for auditing your budget is __________ it.

A) recalculating
B) reconciling
C) rectifying
D) restoring

Question 5

To find out if you are eligible for a college work-study program, contact your

A) admissions office.
B) financial aid office.
C) career center.
D) dean of students' office.

Question 6

__________ can be a good source of information about scholarships.

A) Your college catalog
B) Your college's financial aid office
C) Your high school guidance counselor
D) All of the choices are correct.

Question 7

A good online source of scholarship information is

A) http://www.fastweb.com/.
B) http://www.money-student.com/.
C) http://www.collegeinfo.com/.
D) http://www.moneyfacts.com/.

Question 8

Financial need is not a requirement to obtain a(n)

A) perkins loan.
B) stafford loan.
C) insured supplementary loan.
D) All of the choices are correct.

Question 9

You must begin repaying a Perkins loan __________ months after you graduate, leave school, or drop below half-time status.

A) six
B) nine
C) twelve
D) eighteen

Question 10

According to the text, __________ percent of Americans leave balances on their credit cards each month.

A) 49
B) 56
C) 66
D) 75

Question 11

Credit card companies charge from __________ percent on unpaid balances.

A) 4 to 10
B) 6 to 14
C) 8 to 18
D) 9 to 21

Question 12

If you pay $100 per month on a credit card bill of $5,000 with an 18.9 percent interest rate, you will eventually pay almost __________ in interest alone.

A) $1,000
B) $2,000
C) $5,000
D) $8,000

Question 13

__________ is a sign of credit card danger.

A) Not knowing the sum of your debts
B) Being denied credit
C) Borrowing money to pay creditors
D) All of the choices are correct.

Question 14

Identity thieves often engage in an activity known as

A) phishing.
B) fleecing.
C) philandering.
D) flimflamming.

Question 15

Some examples of phishing targets include

A) Facebook and Twitter.
B) public WiFi hotspots.
C) phones.
D) All of the choices are correct.

Question 16

The first step in protecting your identity and financial reputation is

A) awareness.
B) responding.
C) maintenance.
D) phishing.

Question 17

The Anti-Phishing Working Group's (APWG) Public Education Initiative (PEI) created a campaign called

A) PROTECT/RESPOND/MAINTAIN.
B) ENFORCE/MAINTAIN/CONNECT.
C) STOP/THINK/CONNECT.
D) THINK/MAINTAIN/RESPOND.

Question 18

What are nondiscretionary costs?

Question 19

Discuss three cost-cutting measures.

Question 20

To stay on top of your budget, what records do you need to keep?

Question 21

How do college work-study programs help students meet the costs of higher education?

Question 22

If a professor agrees to write a scholarship reference, what information should you give to him or her?

Question 23

What does FAFSA stand for?

Question 24

What are three online resources for financial aid?

Question 25

What are merit scholarships?

Question 26

What is the difference between minority scholarships and restricted scholarships?

Question 27

What are three questions you should ask before deciding to take a loan?

Question 28

How are Stafford loans and Perkins loans alike?

Question 29

How is credit card interest calculated?

Question 30

What factors affect your credit score?

Question 31

What actions can lower your credit score?

Question 32

What are three signs of credit debt danger?

Question 33

Why should you shred unwanted credit card offers that you receive in the mail?

Question 34

How can you protect your identity when making Internet purchases?

Question 35

What are differences between minimum balance checking accounts and special checking accounts?

Question 36

What are some advantages of using cash over credit cards?

Question 37

Tuition, books, and car payments are examples of nondiscretionary payments.

Question 38

It is considered a good financial practice to audit your budget twice a year.

Question 39

College work-study programs are federally funded programs that provide campus jobs for students demonstrating financial need.

Question 40

All college scholarships have the same eligibility requirements.

Question 41

A typical financial aid package might consist of a scholarship, a grant, and a loan.

Question 42

College students who enroll in the Army, Navy, Air Force, or Marine Corps ROTC programs may be eligible for military scholarships.

Question 43

Both Perkins and Stafford loans must be repaid within 10 years.

Question 44

You must begin repaying an insured supplemental loan within six months after you graduate.

Question 45

If you serve in the Peace Corps or Vista after graduation, part (or all) of your Perkins loan may be canceled.

Question 46

One of the advantages of taking a Stafford loan is that interest rates remain low.

Question 47

The term "plastic money" refers only to general credit cards, such as VISA, MasterCard, and American Express.

Question 48

The National Foundation for Consumer Credit assists people who are struggling with credit card debt.

Question 49

The finance charges are calculated on unpaid credit card balances.

Question 50

If you pay $100 per month on a credit card bill of $5,000, you could spend as long as eight or nine years paying off this bill.

Question 51

It costs two hundred dollars to obtain access to your credit report.

Question 52

The amount of credit you use has no bearing on your credit score.

Question 53

One sign of credit card danger is spending more than 20 percent of your take-home pay on credit card payments.

Question 54

When creating a PIN number, choose familiar numbers (your birthday or telephone number, for example).

Question 55

If a bank offers overdraft protection, it agrees to pay the interest on your credit card balances.

Question 56

Checks are a widely accepted form of payment, but only if you show proper identification.

Question 57

Deposits to a checking account generally require 24-48 hours to clear.

Question 58

Phishing is restricted to email.

Question 59

Once someone gets access to your information, the user may access your bank or credit card accounts.