Question 1 A)Groceries and rent are examples of... (1 point) Responses Assets Assets Essential expenses Essential expenses Personal income Personal income Loans Loans Question 2 A)Which of these is NOT an example of income? (1 point) Responses Mortgage Mortgage Interest earned Interest earned Salary Salary Monetary gifts Monetary gifts Question 3 A)Which statement is true of a household budget? (1 point) Responses Essential expenses should be reduced. Essential expenses should be reduced. Interest should not be calculated as income Interest should not be calculated as income Income should be more than expenses. Income should be more than expenses. Variable expenses should be removed. Variable expenses should be removed. Question 4 A)Which statement describes a variable expense? (1 point) Responses Chrystal pays $120 each month for access to high-speed internet at her house Chrystal pays $120 each month for access to high-speed internet at her house Gemma’s mortgage payment is exactly $784.56 every month. Gemma’s mortgage payment is exactly $784.56 every month. John makes an $89 payment each month on his new mobile phone John makes an $89 payment each month on his new mobile phone Mia’s electricity bill total depends on how much electricity she uses each month. Mia’s electricity bill total depends on how much electricity she uses each month. Question 5 A)Why is it important to save money? (1 point) Responses If you have money in savings, you won’t be charged interest on your loans. If you have money in savings, you won’t be charged interest on your loans. If you save money now, you will have multiple bankruptcy options in the future If you save money now, you will have multiple bankruptcy options in the future Saving money allows you to pay for expensive goods and services in the future. Saving money allows you to pay for expensive goods and services in the future. Saving money is a requirement once you start earning a regular salary. Saving money is a requirement once you start earning a regular salary. Question 6 A)How does the amount of money in your savings account grow over time?(1 point) Responses Banks who are insured through FDIC add money to your savings account each month. Banks who are insured through FDIC add money to your savings account each month. Money from your checking account is automatically moved into your savings account every month. Money from your checking account is automatically moved into your savings account every month. Money in your savings account earns a certain amount of principal each year. Money in your savings account earns a certain amount of principal each year. You can earn interest on the money you keep in your savings You can earn interest on the money you keep in your savings Question 7 A)George wants to start saving more money. What is a good first step for him to follow? (1 point) Responses Identify and cut all essential expenses. Identify and cut all essential expenses. Start putting 15% of his income into savings. Start putting 15% of his income into savings. Reduce spending on all expenses. Reduce spending on all expenses. Track his expenses for one month. Track his expenses for one month. Question 8 A)What is a business that keeps, exchanges, and lends money to people? (1 point) Responses Account Account Bank Bank Interest Interest Loan Loan Question 9 A)What can be cut from a person’s budget in order to save money?(1 point) Responses essential expenses essential expenses income from wages income from wages income from interest income from interest non-essential expenses non-essential expenses Question 10 A)Mortgage payments and student loans are examples of... (1 point) Responses assets assets credit credit collateral collateral income income Question 11 A)Which type of credit typically offers payment plans of up to 30 years or more? (1 point) Responses car loan car loan credit card credit card home mortgage home mortgage personal loan personal loan Question 12 A)Which type of credit is used in place of money, allowing you to buy things now and pay for them later? (1 point) Responses credit card credit card bankruptcy bankruptcy mortgage mortgage personal loan personal loan Question 13 A)Which type of credit would you most likely use if you wanted to pay for a large home renovation? (1 point) Responses car loan car loan credit card credit card personal loan personal loan student loan student loan Question 14 A)What do banks and other lenders use to evaluate your ability to repay a loan?(1 point) Responses bankruptcy bankruptcy credit score credit score debit debit interest rate interest rate Question 15 A)If Joan is unable to pay her mortgage, the bank may take her house away from her. Which of the following best describes Joan’s house? (1 point) Responses bankruptcy bankruptcy collateral collateral credit credit interest interest Question 16 A)Which of the following is an excellent credit score? (1 point) Responses 300 300 400 400 800 800 900 900 Question 17 A)Which statement describes a risk of taking on debt? (1 point) Responses It allows you to buy things now and pay later. It allows you to buy things now and pay later. It does not affect your credit score if you pay it off in a timely manner. It does not affect your credit score if you pay it off in a timely manner. It could affect your ability to take out other loans. It could affect your ability to take out other loans. It might result in the interest rates on other loans to increase. It might result in the interest rates on other loans to increase. Question 18 A)What is the word for a fee based on a percentage of money borrowed? (1 point) Responses collateral collateral credit credit debt debt Interest Interest Question 19 A)Which method of paying for education must be repaid? (1 point) Responses grant grant scholarship scholarship student loan student loan work study work study Question 20 A)Which method of paying for education is offered to students based on merit? (1 point) Responses credit credit grant grant scholarship scholarship student loan student loan Question 21 A)Which method of paying for education is offered to students based on need? (1 point) Responses credit credit grant grant scholarship scholarship student loan student loan Question 22 A)Which term describes the situation faced by people who cannot repay their loans? (1 point) Responses bankruptcy bankruptcy collateral collateral credit credit interest interest Question 23 A)In which type of bankruptcy does the individual lose all of their assets? (1 point) Responses Chapter 7 Chapter 7 Chapter 13 Chapter 13 Both chapters 7 and 13 Both chapters 7 and 13 Neither chapters 7 or 13 Neither chapters 7 or 13 Question 24 A)Which type of bank card immediately deducts payment for purchases from the cardholder’s checking account? (1 point) Responses credit card credit card debit card debit card loan card loan card smart card smart card Question 25 A)What is the amount of money that a person takes in over a specified period of time? (1 point) Responses budget budget credit credit income income expense expense
Question 1 A) Essential expenses
Question 2 A) Mortgage
Question 3 A) Income should be more than expenses.
Question 4 A) Mia’s electricity bill total depends on how much electricity she uses each month.
Question 5 A) Saving money allows you to pay for expensive goods and services in the future.
Question 6 A) Money in your savings account earns a certain amount of principal each year.
Question 7 A) Track his expenses for one month.
Question 8 A) Bank
Question 9 A) Non-essential expenses
Question 10 A) Credit
Question 11 A) Home mortgage
Question 12 A) Credit card
Question 13 A) Personal loan
Question 14 A) Credit score
Question 15 A) Collateral
Question 16 A) 800
Question 17 A) It could affect your ability to take out other loans.
Question 18 A) Interest
Question 19 A) Student loan
Question 20 A) Scholarship
Question 21 A) Grant
Question 22 A) Bankruptcy
Question 23 A) Chapter 7
Question 24 A) Debit card
Question 25 A) Income