| A | B |
|---|
| Which of the following is considered a need? | a place to sleep |
| Which of the following factors can influence decisions | age, values, family peers (all of the above) |
| A value can be described as | a belief or idea you consider important or desirable |
| Marcus set a goal to buy a used car in the next few months. He plans to make a $2,500 down payment and has already saved $1,300. If he can save $150 each month for this goal to buy a car, how long will it take him to save the entire $2,500? [Competency 1-3] | 8 months ($2,500 total cost- $1,300 saved = $1,200 needed/$150 saved monthly = 8 months) c |
| Any money you receive such as an allowance or paycheck | Income |
| A predictable amount of money spent to buy something or do something that is the exact same amount every time | fixed expense |
| Saving a certain amount of money to be used later for financial goals | P.Y.F (Pay Yourself First) |
| Giving up the next best choice when making a decision | opportunity cost |
| Setting aside money to have on hand for unexpected expenses and events | emergency fund |
| What is the guideline for the maximum amount you should owe each month for loan payments (not including a home loan payment)? | 10 percent of monthly net income |
| Which is not a type of credit? | Car registration |
| Which of the following agencies provide free credit reports for consumers? | d. TransUnion, Experian |
| Who may review your credit report without your permission? | c. The car salesperson you talked to when you inquired about a loan to buy a car |
| Which of the following can impact your credit score? | d. Making a late car loan payment |
| Who is responsible for reporting identity fraud? | The victim of fraud |
| You can’t find your credit card, and you think it may have been stolen. What should you do? | Call the credit card company as soon as you are aware the card is missing |
| When items are bought on credit and paid for over a long period of time, the cost to the buyer is the same as more than if the items were bought with cash | FALSE |
| If your payment for your full credit card is received by the lender before the due date, you will not owe any interest. | TRUE |
| Using a debit credit card for purchases is a convenient way to buy now and pay later. [Using a debit card is not a form of using credit because a debit card payment is withdrawn from the user’s bank account the same as when writing a check.] | FALSE |
| The maximum amount you can charge on a credit card is called the capacity credit limit. | FALSE |
| Under the Fair Debt Collection Act, creditors are not allowed charge a new debt collection fee without informing the borrower notice. [Creditors must reveal all terms, fees, and charges in advance.] | FALSE |
| The total amount of money you owe other people. | Debt |
| A period of time before interest starts accumulating on charged purchases | Grace Period |
| What you pay to use another person’s money. | Interest |
| A reference of how you have used credit in the past. | Credit Report |
| Something of value that lenders can repossess if you are unable or unwilling to repay a loan as promised. | Collateral |
| A way for you to buy something now and pay for it later. | Credit |
| Which of the following is a major factor in helping you achieve your financial goals? [Competency 3-1] | a. your job choice |
| One of the single greatest assets an individual has is earning power. | True |
| Martin does not have to pay income taxes on the cash tips he received while working his shift at the car wash. [Competency 3-3] [Note: Tips received are considered income and are taxable.] | False |
| You cannot assume that you will expect to receive the same employee benefits wherever you work full-time. [Competency 3-2] [Note: Employers are not required to provide the same benefits; benefit packages will vary by job and company.] | False |
| The No. 1 reason why students drop out of higher education programs is due to money management problems because they can’t keep up with the coursework when they are working or have a family. | False |
| Pay is based on a percentage of the cost of items or services sold | Commission |
| An opportunity to combine on-the-job training with class instruction | Apprenticeship |
| Delay making payments on borrowed money | Loan deferment |
| The total amount of income earned during a pay period | Gross Pay |
| A payment made for academic achievement | Scholarship |
| An amount paid by employers in recognition of exceptional work | Bonus |
